New products that get added to the feed after a shopping campaign is created, usually end up in the 'Everything Else' product group. If you have excluded the 'Everything Else', then the Shopping Refresher will not recommend new product groups to be created.
The reason for this is that if a product group is excluded the system assumes that you don't want to advertise the products in it.
Sometimes you'll notice that a product group in AdWords is empty however, the Shopping Refresher doesn't recommend removing it. The reason this happens is that the Shopping Refresher will recommend adding or removing product groups based on the products submitted to the Merchant Feed. However, in AdWords, the products that are shown in the product groups have to be submitted in the feed and approved by Google to run.
If a product is submitted in the feed but it is not approved by Google and it is the only product in the product group, the product group will show up as empty in AdWords. However, since the product is there in the merchant feed, the Shopping Refresher will not recommend removing it. This can be verified in AdWords by checking the columns 'products submitted' and 'products approved'. If the products submitted number is 1 and products approved is 0 for the product group, the Shopping Refresher will not recommend removing the product group. If products submitted and products approved are 0, then the Shopping Refresher will recommend removing the product group.
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