I recently read an article about how Jewel-Osco is getting rid of certain merchandise in order to boost profits and regain market share from their competitors. According to Supervalu's CEO, this is part of their growth strategy, also known as Project SHE (Simplify Her Experience).
I like the idea behind this. The article mentioned customers' reactions were mixed. Some customers were a little upset because the product they purchased on a regular basis were no longer available.
There is technology and data available to help grocery stores like Jewel-Osco make the decisions on what merchandise to stop carrying with ease. Using customer analytics, these stores can understand what their consumers are buying and where in order to have the right merchandise stocked, help with target marketing to drive traffic to their location and ultimately keep their consumers happy.
I think that in the very near future the one thing that will separate successful retailers from the rest will be the use of analytics.