More SKU sales do not always mean more portfolio growth
A new size, pack, color, or nearby product can win orders that previously went to an existing item. The launch may look successful while total category units or profit barely changes.
Establish the before-and-after baseline
- Total units, net sales, and contribution profit for the related product group.
- Traffic, conversion, and advertising spend by old and new SKU.
- Search terms and placements where both products compete.
- Inventory availability, price changes, and seasonal effects.
- New-to-portfolio demand indicators available to the business.
Look for transfer patterns
If the new SKU rises while a close substitute declines on the same queries, review whether shoppers are switching rather than expanding the market. Confirm with total product-group profit instead of relying on correlation alone.
Keep the SKU when it has a clear role
Cannibalization may be acceptable when the new item earns a stronger margin, improves retention, reaches a distinct use case, or protects the brand from a competitor. Define that role and monitor whether it remains true.