How can retailers increase sales and profit margins through merchandise assortment planning?

How can retailers increase sales and profit margins through merchandise assortment planning?

March 12, 2024 | By HIVERY

In the competitive retail landscape, the significance of merchandise assortment planning must be balanced. The strategic ace up the sleeve enables retailers to meet and exceed customer expectations, increasing sales and profit margins. The challenge, however, lies in deciphering the complex matrix of consumer behavior, product performance, and market trends. Enter HIVERY Curate - a transformative tool designed to revolutionize how retailers approach merchandise assortment planning.

Understanding the Need for Strategic Assortment Planning

At the heart of retail success is presenting the right product mix to the right customer at the right time. The dynamic nature of consumer preferences and the vast array of products available complicates this seemingly straightforward goal. Traditional methods of assortment planning, while useful, often need to catch up in today's data-driven market, leading to missed opportunities and inefficiencies.

Bridging the Assortment Planning Gap with AI

HIVERY Curate is an AI-powered platform that provides retailers with granular, actionable insights into their merchandise assortment planning process. By leveraging sophisticated machine learning algorithms, Curate analyzes store-level sales data, product attributes, and space distribution data alongside custom Consumer Decision Trees (CDTs). This allows retailers to understand what shoppers are buying and why they are making those purchases.

Key Features of HIVERY Curate That Enhance Assortment Planning & Optimization

Hyper-local Insights:

HIVERY Curate drills down to the most granular level, offering hyper-local insights that empower retailers to tailor their assortment to meet the specific needs of each store's customer base.

Dynamic Scenario Simulation:

With Curate, retailers can simulate various assortment strategies and immediately see the impact on key performance indicators (KPIs). This real-time analysis aids in making informed decisions that align with business objectives.

Space Awareness:

Unlike other platforms, Curate is aware of the physical space constraints within stores. It optimizes product assortment based on performance metrics and ensures that the optimized assortment fits within the available space, enhancing both aesthetic appeal and shopping experience.

Demand Transfer Analysis:

Understanding the ripple effect of adding or removing SKUs is crucial. Curate's demand transfer analysis feature predicts how changes in the assortment will affect sales of other products, ensuring that every decision contributes positively to overall sales and margins. Curate allows you to input your custom decision tree (CDT) parameters.

Driving Profitability Through Informed Assortment Optimization

Implementing HIVERY Curate into the merchandise assortment planning process represents a paradigm shift in retail strategy. By harnessing the power of AI and machine learning, retailers can move beyond guesswork and intuition, making data-driven decisions that maximize sales and profit margins. The platform's ability to analyze vast datasets and simulate the outcome of strategic changes empowers retailers to stay ahead of market trends and consumer preferences, ultimately leading to increased customer satisfaction and loyalty.

Merchandise assortment planning is more than just selecting products to fill shelves; it's about creating a shopping experience that resonates with consumers, encouraging repeat visits, and fostering brand loyalty. HIVERY Curate offers a cutting-edge solution that transforms the complex challenge of assortment planning into an opportunity for retail innovation and growth. By embracing this AI-powered tool, retailers can achieve not just incremental gains but substantial increases in sales and profit margins, securing their competitive edge in the marketplace.

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