8 Assortment Planning

The advanced Assortment Planning solution seamlessly integrates AI-driven insights to optimize inventory decisions and maximize profitability. By analyzing historical sales data, it predicts trends and refines product selection, ensuring retailers stock the right mix of items at the right time. The system intelligently determines optimal option counts, preventing oversaturation while maintaining a diverse, customer-focused assortment. It also provides attribute recommendations, identifying key product characteristics—such as color, size, and material—that resonate with shoppers. Additionally, the solution tailors assortments by analyzing store group characteristics, ensuring each location is stocked with products that align with regional demand and customer preferences. By factoring in demographic insights, and localized trends, it optimizes inventory for maximum engagement and sales conversions, delivering a curated experience that meets specific market needs.

The Assortment Planning solution consists of two key steps.

• Assortment Strategy - Assortment strategy is the process of selecting the right mix of products to meet customer demand while maximizing sales and profitability. It involves balancing variety and efficiency by determining optimal option counts and identifying key product attributes—such as size, color, and material—that align with consumer preferences. Planners rely on historical sales, and market trends to curate assortments tailored to specific locations, demographics, and shopping behaviors. With AI-driven insights, recommendations are automated, ensuring assortments remain adaptable to emerging trends while reducing excess inventory.

• Assortment Fit - The Assortment Fit Module replaces the existing Build Wedge/Assortment Recommendation Module, providing a more intelligent, data-driven approach to assortment planning. It serves as a strategic guide for Buyers and Assortment Analysts, helping them make informed market decisions while curating assortments for the chosen Season (Assortment Period), Product, and Store Group (Cluster).

Through advanced analytics, the Assortment Strategy defines the total number of options to buy across key attributes and corresponding Sales Units for specific Product, Calendar, and Location hierarchies. Additionally, it outlines the Short Life Cycle (SLC) versus Long Life Cycle (LLC) percentage within the total option count, ensuring a well-balanced product mix. These insights establish clear targets, allowing the Assortment Fit Module to fine-tune selections and align inventory with customer preferences, market trends, and localized demand.