What does “stock keeping unit” (SKU) represent in retail?

The term "stock keeping unit" (SKU) serves as a unique identifier for each product item in retail. It helps retailers track inventory, manage stock levels, and streamline the purchasing process. An SKU typically consists of a combination of letters and numbers that provide essential information about the product, such as its brand, size, color, and other attributes. This unique identifier allows retailers to differentiate between products efficiently, facilitating inventory management and reporting. By using SKUs, retailers can quickly identify specific items, assess sales data, and restock as necessary, making it a fundamental component of retail operations.