By  on February 13, 2009

NEW YORK — There’s an 80-20 rule in mass market cosmetics that Grant Berry, founder of Styli-Style, is about to shatter.

The theory that 20 percent of the inventory produces 80 percent of sales isn’t realistic anymore, Berry suggested. It isn’t because the sales ratio has changed — rather it’s because retailers can’t justify having a majority of stockkeeping units that don’t sell. In a less competitive retail landscape, merchants could afford to offer the wide array of colors and brands to prove they “were in the business.” Now, every stockkeeping unit has to sell itself and the name of the game is managing inventory and boosting turns. Berry has edited his own mix by 33 percent, from 177 sku’s to 119.

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