When retailers make product assortment changes by eliminating certain stockkeeping units (SKUs), how does this affect sales of individual brands? This is the main question the authors address in this article. Using data from an online retailer that implemented a permanent systemwide SKU...

The authors examine incumbent retailers' reactions to a Wal-Mart entry and the impact of these reactions on the retailers' sales. They compile a unique dataset which represents a natural experiment consisting of incumbent supermarket, drug, and mass stores in the vicinity of seven Wal-Mart...