Over-Assorted Sub-Categories? HIVERY Curate Offers Solutions
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Over-Assorted Sub-Categories? HIVERY Curate Offers Solutions

September 15, 2023 | By HIVERY

In the ever-evolving world of retail, assortment management is a critical puzzle piece that directly impacts a brand's success. One of the challenges that frequently arises is the issue of over-assorted sub-categories. This situation occurs when too many products are within a particular sub-category, leading to inefficiencies, decreased sales, and confused shoppers.

The good news is that HIVERY Curate, a cutting-edge AI-powered solution, offers intelligent solutions to this complex problem.

Understanding the Challenge of Over-Assorted Sub-Categories

Over-assorted sub-categories can be a nightmare for retailers and manufacturers alike. When there are too many options within a sub-category, it can lead to several issues:

  1. Consumer Confusion: Shoppers are overwhelmed by choice, making finding the products they want challenging.
  2. Inventory Management: Managing many SKUs can increase inventory costs and logistical challenges.
  3. Reduced Sales: Paradoxically, having too many options can lead to lower sales as shoppers become indecisive.
  4. Wasted Shelf Space: Over-assorted sub-categories often result in inefficient use of precious retail shelf space.
  5. Ineffective Marketing: Marketing efforts become diluted when there are too many products to promote effectively.
  6. Reduced Sales per SKU: With too many products vying for attention, individual SKUs may suffer from decreased sales.
  7. Out-of-Stock Situations: Over-assorted sub-categories can lead to out-of-stock situations for popular items due to space constraints.

HIVERY Curate's Smart Solutions

HIVERY Curate stands out as a game-changer in the realm of assortment optimization. It harnesses the power of artificial intelligence and machine learning to provide actionable insights and solutions, especially when dealing with over-assorted sub-categories. Here's how it can help:

  1. Data-Driven Insights: HIVERY Curate uses store-level data and advanced algorithms to analyze sub-categories and identify which products are essential and which may need to be rationalized.
  2. Dynamic Assortment Recommendations: HIVERY Curate doesn't rely on static assortments. Instead, it continuously analyzes data to recommend the optimal number of products for each sub-category. This ensures that assortments remain relevant and efficient.
  3. Simulation and Qualification: With HIVERY Curate, you can simulate and qualify strategies in real-world scenarios, helping you identify the optimal assortment size for each sub-category.
  4. Predictive Analytics: HIVERY Curate can predict the impact of assortment changes with machine learning models. Retailers can simulate scenarios, such as SKU reductions or introductions, and see the potential outcomes on sales and profitability.
  5. Churn Management: HIVERY Curate can help limit churn to a specified percentage, ensuring a stable assortment while optimizing growth.
  6. Demand-Based Assortments: By aligning assortments with customer demand, HIVERY Curate helps retailers offer products that truly resonate with their shoppers. This results in improved customer satisfaction and increased sales per SKU.
  7. Demand Transfer Analysis: Understand how sub-category assortments change the portfolio and consumer behavior.
  8. Cluster Strategy Optimization: HIVERY Curate aids in re-optimizing cluster strategies and planogram numbers to ensure efficient use of space.
  9. Space Efficiency: HIVERY Curate considers physical space constraints, ensuring that the recommended assortments can fit within the available store space. This prevents overcrowding and maintains a visually appealing shopping experience.

Real-World Impact

Let's consider a real-world scenario to understand how HIVERY Curate can address over-assorted sub-categories:

Scenario: A grocery retailer has historically carried 50 different breakfast cereals, but sales have stagnated, and shelf space is limited.

In this case, the HIVERY Curate was able to:
  • Analyze sales data and product (i.e., pack sizes) store and store attributes (i.e., fixtures and merchandising styles) to recommend reducing the assortment to the top-performing 30 cereal bowls.
  • Simulate the impact of this change, predicting potential sales increases and cost reductions.
  • Optimize shelf space, reduce carrying costs, and ensure the assortment aligns with shopper behavior.

The Path to Efficient Assortment

In a retail landscape where every inch of shelf space matters, addressing over-assorted sub-categories is crucial for success. HIVERY Curate offers a clear path to efficient assortment planning and optimization. By leveraging data, AI, and machine learning, retailers and manufacturers can make informed decisions that enhance the shopping experience, boost sales, and improve overall operational efficiency.

If you're facing the challenge of over-assorted sub-categories in your retail strategy, it's time to explore how HIVERY Curate can provide tailored solutions to drive growth and profitability. Say goodbye to cluttered shelves and hello to a more intelligent, more streamlined assortment strategy with HIVERY Curate.

Would you be ready to learn more? Please feel free to contact us today to learn how HIVERY Curate can transform your retail assortment management.

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