Category Management
& Store Clustering
Retail assortment is arguably a store’s greatest source of competitive advantage, driving customer loyalty and supporting brand positioning. That’s the upside. On the downside, it is also the single largest cost in terms of inventory, store replenishment and operational variability. Despite its criticality and complexity, too much of portfolio management is conducted through educated guesswork. Many retailers possess only a high-level view of their portfolio performance.
Gains:
2 - 5%
Sales Increase
2 - 3%
Margin Increase
30 - 40%
Store Inventory Reduction
Benefits:
- More Satisfied Customers:
- Customer preferences as one of the key inputs for store clustering
- Assortment tailored to local Store’s DNA
- Optimized Assortment-Mix:
- Optimized space allocated for product category
- Improved on-shelf product availability