ORGANISATIONAL AND ECONOMIC MECHANISMS FOR IMPROVING ENTERPRISE ASSORTMENT POLICY

This paper investigates organisational and economic mechanisms for improving enterprise assortment policy using the publicly reported 2023–2025 results of H&M Group. The objective is to connect portfolio governance with inventory discipline and operating performance. The methodology combines secondary-data case study, year-on-year financial comparisons and a proposed ABC–XYZ decision framework. The company's net sales declined from SEK 236,035 million in 2023 to SEK 228,285 million in 2025, whereas operating profit increased from SEK 14,537 million to SEK 18,395 million. This divergence indicates that the efficiency of the offer cannot be judged by sales expansion alone. The article proposes a stage-gated assortment council, contribution-based product screening and coordinated forecasting across channels. Public consolidated data cannot establish SKU-level assortment effects or causal attribution. The paper contributes a replicable evaluation framework for enterprises that wish to broaden their product range without allowing complexity and working-capital requirements to grow uncontrollably.