A closer look at the interface between the product lines of manufacturers and the assortments of retailers

Suggests that gaps exist between the product ranges or lines offered by manufacturers and the assortments selected and stocked by retailers. Looks at the extent to which differing levels of “product volatility” affect retailers’ selectivity in stocking items from a manufacturer’s line. Provides a limited test of several hypotheses about how the degree of product volatility of the category within which a manufacturer’s line belongs might affect the number of items in the line that will be stocked by a retailer. Analysis of stock‐planning data for two retailers in each of two product categories offers some support for the hypotheses. Interprets these results in light of theories of distribution channel co‐ordination and retailer expertise. They may reflect an alternative explanation for widely observed increases in retailer power.