First tier of separation is by category. P&L measured by category.

Advantages

Provides focus on:

• the product range regardless of channel
• Develop category specific knowledge and capabilities
• Develop intimate relationships with suppliers
• Integrate customer experience across multiple channels
• Clear accountability for P&L

 

Disadvantages

• Way of operating could be biased by predominant behaviours (e.g. stores)
• Generalist skill set – might not respond as quickly to new trends/technologies
• Higher operating costs because of duplication of capabilities
• Creates category silos – best practice & innovation not shared as effectively
• Can result in a different experience for the customer by category