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What is Assortment Planning?
Assortment planning is the strategic process of deciding which products to stock in specific locations or digital storefronts. Retailers use historical sales data, local trends, and customer behavior patterns to determine the ideal mix of sizes, colors, and styles for each unique market. By moving away from a one-size-fits-all approach, businesses ensure that their inventory aligns closely with what local customers actually want to buy. This process helps companies balance their product variety while minimizing the risk of holding excess stock that does not move. It turns raw sales data into a precise roadmap for inventory management, ensuring that the right items are available at the right time to meet consumer demand effectively.
Why this matters to you
It directly impacts your bottom line by reducing waste and storage costs. When you stock only what your customers want, you increase sales, improve inventory turnover, and prevent the need for heavy markdowns on unsold items.
How you might hear this
We are using AI-driven tools to refine our assortment planning so each store stocks the specific items that local customers prefer.
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