What does SKU stand for in retail terminology?

In retail terminology, SKU stands for Stock Keeping Unit. This term refers to a unique identifier used by retailers to track inventory and manage stock within their stores. Each SKU represents a specific product, allowing for precise inventory control, pricing, and sales analysis. By using SKUs, retailers can streamline their operations, reduce the chances of stockouts or overstock situations, and enhance overall supply chain management.

This system of organization is vital for effective product management and helps retailers ensure they meet customer demand efficiently. It's also instrumental in data analysis, enabling businesses to assess which products are performing well and which are not, thus informing purchasing and merchandising decisions.