NOVEL THINKING

Cross promotions or cross merchandising offer shoppers additional options based on similar items that they like. It’s so critical for retailers to manage their assortment strategies because it helps optimize products for more conversions. Especially helpful if you’re new to goal-setting, look at your past retail analytics to determine benchmarks and growth trends. It’s important to carry items for any major retail holiday, general time of the year, or weather patterns.

No matter what direction you go, a modern POS system is essential. A smaller store, of course, doesn’t have the luxury of holding vast amounts of inventory, so you’ll have to be more selective in your product catalog. This post will give you an overview of assortment planning and optimization, and will offer tips so you can implement the practice successfully in your retail business. We’d love your input. Assortment plans both identify the types of products, including range … If you have multiple locations, you must consider each uniquely. Retail analytics should be used to simplify and streamline the assortment planning process; this will lead to maximising sales and margins while reducing the time it takes to plan. Though assortment planning gets way more complex and drilled down than that.

Full line discount stores are retailers that provide name-brand products at a lower cost than other stores. 5. What questions are they asking? Whatever it is, share the goal with your entire team for shared ownership.

Another great thing to observe is the items that people typically purchase together.

When planning assortment, retailers consider more than just the product type. Understand product hierarchy and how customers arrive at the purchase decision, and incorporate that into your assortment planning. We will examine the differences in assortment and variety between different types of merchandise retailers below. Did you have an idea for improving this content? Health and safety concerns, lockdowns, and the shift to remote work changed the behaviors and needs of consumers, which resulted in an increased demand for certain products. #progressbar{margin-bottom:30px;overflow:hidden; How would this change if you were in a dollar store, a convenience store, or a warehouse club? They buy from other retailers that overbought, manufacturers that overproduced, retailers selling their remaining inventory that is going out-of-season, and in other similar ways. It’s always important to optimize your store for a better experience and more conversions. Did you have an idea for improving this content? #msform .action-button:hover, #msform .action-button:focus{box-shadow:0 0 0 2px white, 0 0 0 3px #b52700;} Dig through your reports and pay close attention to what’s selling, then use that information to decide if you need to expand or deepen your assortments. You need data, a deep understanding of your customers and trends, as well as some foresight and intuition into what your customers want. Assortment strategies are used by retailers in brick-and-mortar and ecommerce to decide on a daily basis how to allocate inventory to their stores as part of their merchandise planning processes. Capitalize on small, inexpensive products for impulse buys. Use space constraints and market demands to help guide your retail assortment planning.

One example is Walmart, which sells everything from toilet paper and diapers to PJs and jackets. Consider these tips when planning your assortment: 1. The takeaway? Find the right balance in product categories, sizes, variations, SKUs, prices, and more. Let’s say you want to purchase a can of soup. If a customer is searching for a Makita drill or a DeWalt drill and we don’t have it in stock, then we know it’s something to consider.”, “Or, if a shopper is looking for a particular type of lawnmower or something, and we haven’t got it in stock, then we put it on a restocking list, and we have a chat at the end of the week.”. Look at the data from your POS to see which products are often purchased in the same transaction. Thanks for signing up to the Vend newsletter. Which response shows the number of items in assortment across different retail formats, going from least to most items carried: Multiple Choice Question. Effective assortment planning ensures that the right mix and range of retail … This post will give you an overview of assortment … That means not same assortment … It’s important to understand merchandise this way because retailers make assortment decisions at the category, segment, brand, and SKU level to target a distinct consumer or shopping occasion. As we touched on above, retail assortment planning is the process of optimizing your store’s inventory and improving all merchandising, displays, store layout, and shelving.

How much? Use that information to decide on what items to stock up on.

But they likely will not carry all segments, and they certainly will not carry most brands or SKUs. Assortment strategies are used by retailers in brick-and-mortar and ecommerce to decide on a daily basis how to allocate inventory to their stores as part of their merchandise planning processes.

Assortment plan is a trade-off between the breadth and depth of products that a retailer wishes to carry.

Shelf stable and packaged items aren’t generally differentiated across formats or retailers. Cross merchandising is when you use complementary displays to cross-promote similar products in a shared category. Assess the variety and assortment of goods carried by each type of food retailer. They might first look at material, then color, and finally size. #progressbar li:first-child:after{

The email address you provided is already in use. #progressbar li{list-style-type:none;color:#f78913;text-transform:uppercase;font-size:9px;width:33.33%;float:left;position:relative;} key takeaways An assortment strategy is a strategic retail-industry sales tool. This time, it’s all about how deep an assortment is in a given category. Product depth refers to the number of variations within a particular product line.

Department stores offer a broad assortments of products with multiple departments separating product categories. Asking analytical questions like this will help you drill down into your POS data and glean actionable insights.

Paycheck Protection Program Flexibility Act, Break your inventory down into large categories and smaller sub-categories. Drug Store, Warehouse Club Store, Supermarket and Super Center. No fluff. Getting your product assortment right is one of the most important — yet trickiest — things to do in retail.

In either event, it’s important to be able to offer something comparable. 5 Simple Strategies to Optimize Your Assortment … He's passionate about helping small businesses reach their potential, and Jeopardy. Depending on the time of the year, you may need to narrow down your assortment for certain categories while widening the others. An example of this could be found at a neighborhood hardware store. 35th+Butter, a store in Walla Walla, Washington, which sells home accessories, clothing, and gifts, is an example of such a store.

Otherwise, you could risk losing customers to competitors with a wider range of products. There are tons of ways to increase profitability, from in-store events to influencer marketing and everything in between. 4. Use the right tools. Take the time to analyze each category in your store to ensure that you offer products from each. Instead, focus on one or two at a time and pursue the channels that will have the biggest return on your time and money investment. “We make sure that we always have a good range of the current most popular gaming products,” shares Mark Lester, founder at Stratagem Cards and Games. The homeware retailer Crate and Barrel, for example, sold more bread makers in April 2020 than all of 2019 because more people were staying home and baking. When retailers plan assortment, they’re planning which products to place and where during that period of time. Here are a few to check out, depending on your needs and budget: You can also use a planogram, which is a detailed drawing of your store, layout, retail merchandising displays, and product placement. They also look at size, color, price, SKU, and other characteristics within product categories and segments. Small, low-priced items make perfect impulse purchases. By providing your information you agree to our privacy policy.

Other considerations include: Pretty complex, huh? Product breadth is all about how wide and diverse an assortment is. If they buy the same colors and ignore the rest, then you’ll want to remove the non-movers.

9 Reasons Your In-Store Retail Displays Aren’t Working — and What to Do Instead... How to Encourage Impulse Buys and Unplanned Purchases in Your Retail Store... 6 Easy Ways To Drive Sales and Engagement Using Your Checkout Counter... optimizing your retail store for the highest conversion rate, Survivor's Guide to the Retail Apocalypse. A good example of usage of assortment would be a company that has a store chain but with different sizes of shops. Such strategies are integral for retailers because they directly affect how their customers interact with their merchandise, and therefore, their brand.

She's also the author of Retail Survival of the Fittest, a free eBook to help retailers future-proof their stores.

How would you find the soup in each of the different stores? Impulse buys increase ATV with little effort on the part of the retailer. How do they perceive your store and what purpose does it serve? You need data, a deep understanding of your customers and trends, as well as some foresight and intuition into what your customers want. .fs-subtitle{font-weight:normal;font-size:13px;color:#666;margin-bottom:20px;}

When it is done successfully, however, customers feel like they are getting a more specialized assortment offering because it has essentially been personalized for their anticipated needs. She writes about trends, tips, and other cool things that enable retailers to increase sales, serve customers better, and be more awesome overall.

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