What is mix shift?
The part of an average-price change explained by a change in which products are on sale, rather than by price changes on the same products.
Definition
When the average price of a category rises, part of the rise may come from existing products getting more expensive (matched-SKU inflation) and part from the range moving towards more expensive products (mix shift).
How Data Purl measures it
Data Purl decomposes the change in average price into same-SKU price moves, net new products, and mix movement up and down the price tiers.
Why it matters
Mix shift separates premiumisation and range strategy from pricing. For modeling revenue per unit, the two have different drivers and different persistence.
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