Assortment

A major European retailer faced significant declines in sales and market share. It wanted to focus on assortment to increase loyalty and improve its competitive position.

 

IRI’s cloud-based assortment platform enabled better and quicker decision making, delivered 2-3% cost savings and improved the retailer's competitive position.

THE CHALLENGE

Managing over 150+ categories, multiple store types, and shopper profiles, the client needed to meticulously align its assortment against shopper needs to win in the marketplace.


IRI built a holistic, cloud-based assortment platform designed specifically for the retailer, which included:
  • Fully integrated data sets: weekly transaction, point of sale, store cluster, loyalty, and shopper segmentation data sets
  • A powerful underlying layer of analytics, including simulation tools for scenario planning and optimization
  • Customizable user interface that toggles seamlessly across different data sources and tools, with a variety of visualizations and dashboards for a wide range of user types and functions
 
The tool helped the retailer improve its competitive position and reverse sales and market share declines through:

 
Quicker and more efficient assortment optimization across store types using integrated POS, store cluster and shopper segmentation data to drive revenue, profit, and loyalty and increase traffic
Defining consumer needs for assortment, as well as promotional and merchandising approaches, by linking shopper segments and purchase behavior to individual store assortments
Leveraging insights from the tool to develop closer relationships with suppliers to define the best category approaches

THE RESULT

In one case, the client wanted to streamline its shampoo category by reducing SKUs but maintain the same level of revenue and market share. The assortment solution allowed them to:
  • Identify the product attributes that drove sales within the category
  • Analyze which SKUs were the highest performers with the greatest loyalty
  • Identify the optimal number of SKUs offered to maximize cost effectiveness
The retailer identified that it could reduce the number of SKUs by 10 percent and achieve the same result, leading to significant cost savings.
 

 

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