What is Rationalization in Retail? Explained

Rationalization in the retail industry involves the strategic and systematic review of business operations, processes, or product lines to improve efficiency, reduce costs, and enhance overall performance. Retailers may undertake rationalization efforts to streamline their operations, optimize resources, and align their business with market demands. This can include reevaluating product offerings, closing underperforming stores, or restructuring organizational functions. The goal is to ensure that a retailer's resources are allocated effectively to maximize profitability and competitiveness. Rationalization is often part of ongoing efforts to adapt to market changes and maintain a sustainable and resilient business model.