Is it true or false that stocking only national brands assures profitability?

Stocking only national brands does not guarantee profitability due to several factors inherent in retail and brand assortment strategies. National brands may attract customer attention and may have established recognition, but profitability is influenced by a mix of market dynamics, consumer preferences, competition, and operating costs.

Limiting offerings to only national brands could overlook the potential of private label or local brands, which can sometimes offer higher profit margins or cater to niche markets. Additionally, consumer demand fluctuates, and relying exclusively on national brands might not align with local consumer preferences or trends, which can vary significantly across different regions.

Furthermore, market conditions such as economic downturns, shifts in consumer behavior, and the rise of e-commerce can impact the effectiveness of a national brand strategy. Retailers that diversify their offerings, including exclusive or private label products, often have a more resilient business model, allowing for better adaptability and increased chances of maintaining profits across varying market conditions.