Merchandising Analytics

In today's retail world, IT systems drive most of the merchandising decisions such as assortment, allocation, and pricing. However in many retailers, these system settings are not updated for many years, or worse still, updated without adequate statistical analysis. This leads to sub-optimal performance.

Retailers have used our solutions to improve their merchadising in multiple different ways, such as:

Assortment and Allocation Planning

  • Redefining store clusters to localize assortment for a US apparel retailer
  • Refreshing volume groups to reduce markdowns and stock-outs for a US apparel retailer
  • Refining assortment of packaged goods categories of a UK supermarket chain, based on SKU attributes and demand patterns

Promotions and Markdowns

  • Optimizing the vendor-funded promotions for the paints category of a UK Home Improvement Retailer - by estimating the cannibalization, halo and complementarity effects of each promotion
  • Optimizing the store brand promotions of the paper category of a US office products retailer
  • Refining the markdown product clusters for a US apparel chain