Assortment Analytics (ASSORTMENT OPTIMISATION)
Without insight into what consumers are buying and how they’re shopping for products, you’re essentially playing a retail version of pin the tail on the donkey. Side-stepping the guessing game involves two key actions: optimising the assortment of products you plan to stock and then arranging those products on the shelves for maximum impact.
What we measure
Our assortment optimisation tools show how much of each SKU’s volume is incremental to its segment and its category, as well as how much volume reflects a switch from other products. This is the key information to help you maximise segment and category sales for any size shelf in your store.
How we do it
In retail, the buck stops at the shelf. That’s where shoppers consider their final purchases. So in order to get a full understanding of what motivates those decisions, we examine a consumer decision tree that dissects the competitive structure of the category. We then use advanced regression analysis to determine whether stocking additional items generates incremental volume to the segment and the category. We then run this data through a powerful assortment simulator and optimiser. From there we use proprietary shelf space management software to help you determine the optimal locations on the shelf, within your store for items in each segment and category.
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