Issue: № 6, 2026
Doi: https://doi.org/10.37634/efp.2026.6.2e
Introduction. In the face of strategic changes, growing competition, and market instability, trading companies are forced to constantly review the structure of their product range, striking a balance between the breadth of their product portfolio, its profitability, turnover, and return on investment. The purpose of the paper is to study aspects of optimizing a retail company’s product portfolio as a tool for increasing profitability in the context of strategic changes. Results. A retail enterprise’s product portfolio is a structured system with qualitative and quantitative characteristics, including economic parameters (turnover or sales volume, inventory levels); turnover (inventory turnover and turnover rate), markup, distribution costs, average shelf life of goods, share of new products, profitability of operations and sales). In light of this, optimizing a retail company’s product portfolio involves finding the optimal balance of goods offered for sale by expanding (adding new ones) or reducing (product groups, categories, assortment items, or brands), as well as adjusting sales volumes in light of product life cycle stages, demand, and the resource capabilities of sales channels to achieve the company’s strategic operational and development goals. Combining an assessment of products’ contribution to financial results with an analysis of the stability of their sales allows for a more accurate determination of their role in the portfolio. The choice of a specific approach depends on the company’s development goals and operating conditions, its market positioning, and expected changes in the competitive environment. Strategic changes influence the distribution of roles among products in the portfolio. Conclusion. Product portfolio management is not limited to a single tool. Indeed, to optimize a retail company’s product portfolio, it is advisable to employ both strategic models and analytical methods. This makes it possible to more accurately assess the role of each product line within the portfolio. Optimization approaches are distinguished separately, reflecting various aspects of assortment management: from resource allocation to accounting for changes in consumer behavior.
Keywords : optimization, product portfolio, trading company, profitability, strategic changes
References:
1. Verba V.A., Lishchynska V.V. Optimization of the product portfolio as a factor in improving the economic efficiency of a manufacturing enterprise. Problems of Economics. 2014. №. 4. pp. 262–268. (in Ukrainian).
2. Semenenko K.Y. Product portfolio: rules for formation and marketing tools for its development. Information Society: Technological, Economic, and Technical Aspects of Formation: Proceedings of the Internet Conference. 2023. URL: http://konferenciaonline.org.ua/ua/article/id-997/ (in Ukrainian).
3. Voitovych N., Bulavinets A. Formation of an enterprise’s product portfolio. Scientific Bulletin of the S.Z. Gzhytsky Lviv National University of Food Technologies. Series: Economic Sciences. 2021. Vol. 23. №. 98. (in Ukrainian).
4. Poliak Yu.Ya. Innovative Approaches to Forming an Enterprise’s Product Portfolio. Efficiency of Public Administration. 2022. №. 59. DOI: 10.33990/2070-4011.59.2019.178439 (in Ukrainian).
5. Brindina O.A., Trush M.S. Strategic set of product policies and product portfolio management strategies. Agrosvit. 2020. №. 11. pp. 107–114. DOI: 10.32702/2306-6792.2020.11.107 (in Ukrainian).