What does the acronym SKU stand for in retail?

The acronym SKU stands for Stock Keeping Unit. It is a retailer’s internal identifier for a distinct product or sellable variation, such as a particular shirt size and color, rather than merely a general product name.

A SKU helps a business track inventory, pricing, purchasing, and sales. A blue medium T-shirt and a red large T-shirt normally receive different SKUs because they are separate stock items. Retailers create their own SKU systems, so the same product can have different SKUs at different stores.

SKUs are often confused with UPCs, EANs, and other standardized product codes. A barcode may encode a universal identifier shared across retailers, while an SKU is usually store-specific and can be made from letters, numbers, or both. The term is also different from a model number supplied by a manufacturer.

The phrase “stock keeping unit” emphasizes the practical purpose: counting and managing what is available for sale. In online retail, one product listing may contain many SKUs when customers can choose variations such as size, capacity, flavor, or finish.