Before the category manager and the category partner can optimize the product range various things have to be clarified:

1. Which products can be pooled to a category?

2. How important is the category for the trading company?

This is divided into four roles: destination role, preferred role, supplemental role and occasional/seasonal role. How these four roles are assigned to categories depends mainly on how important they are for retailers’ core target group, which future potential is expected and in how far the category contributes to sharpening the trading company’s profile against competitors. The roles of all categories have to piece together to a coherent strategic picture. Consequently, the category manager cannot take this decision single-handedly and even the participation of category partners reaches its limitations. As soon as the category is assigned a role, the category management team determines the respective targets, strategies and measures. Supplemental items such as hairpins are on display at groceries without being advertised in brochures. Categories with a destination role, such as cosmetics, receive a lot of shelf-space and are frequently at the heart of promotions.

Profile categories generally account for approx. 10 percent of the entire product range of a store. Trading companies use these items to promote above average growth and to demonstrate its strength in this segment. Profile categories include items which are tuned to the needs of some or all core customer target groups of a distribution line. Real aims to especially attract young families with children and therefore has a special display zone under the heading of "Baby, Kids & Co.". Customers are to perceive Real as the leading provider in the respective goods groups.

Categories with an preferred role account for the largest proportion of the product range with more than 55 percent. These are the typical everyday consumables, which all customers need equally. In a grocery store these include bread, butter, sugar, condiments and spirits. METRO Group distribution lines such as Real aim to be very well positioned in this field. Growth at whatever price – price being the operative word – is not the stated objective.

The proportion of supplemental categories of the overall product range is up to 20 percent. They are not at the forefront but complement the range and therefore ensure that customers can cover their daily needs in one-stop. These are product ranges which are not part of the store’s core focus. Take for example plants and hair accessories.

Seasonal categories are taken into the range for a specific period depending on the season. This applies to specific candy or decorative items for Easter and Christmas or such occasions as Halloween, Valentine’s Day or Mother’s Day. Some seasonal products only have a convenience role, whereas others have a destination role, even if they are only on offer for four weeks.