Which of the following is NOT a benefit of category management? Increased Costs Increased Sales Improved Margins Improved Efficiency

1. Break Down the Problem

   • Identify the benefits typically associated with category management.
   • Analyze each option provided to determine which is not a benefit.

2. Relevant Concepts

   • Category management is a retail and purchasing concept that involves managing product categories as strategic business units, optimizing sales and efficiency.
   • Benefits often include increased sales, improved margins, and improved efficiency.

3. Analysis and Detail

   • Increased Sales: Category management focuses on product assortment and marketing strategies that can enhance customer experience, leading to higher sales.
   • Improved Margins: By combining purchasing power and optimizing product offerings, businesses can achieve better margins on products sold.
   • Improved Efficiency: Streamlining inventory and supply chain operations through category management can result in higher operational efficiency.
   • Increased Costs: This generally contradicts the goals of category management. Instead of increasing costs, the aim is to reduce them through effective management strategies.

4. Verify and Summarize

   • Evaluating each option: Increased costs are not a goal or benefit of category management practices, whereas the other options are recognized advantages.

Final Answer

The option that is NOT a benefit of category management is Increased Costs.