Health & Beauty Assortment Optimization
The Problem
After multiple acquisitions, this Health & Beauty chain, οne of the leaders in their local retail market, was operating 2500+ stores of different sizes and formats with a too-small central team to manage assortments. One of the challenges was centralization of the decision-making process to avoid manual errors and poor alignment.
They challenged our team to extend our Demand Forecasting analytics to predict demand for ultra-low rate-of-sale products as well as our Assortment Planning solution to fully automate assortment recommendations at store level and establish a unified assortment management approach.
Results
Dataviva Assortment Planning solution was deployed in 30 pairs of stores with 30 reference stores under user maintenance over a two-month Pilot test period. The assortment matrix was optimized based on internal and external factors such as market data, thus achieving increased customer satisfaction.
The centralization of the assortment matrix management allowed the Health & Beauty chain to create a high-quality analytical base for decision-making which, in turn, increased sales and margin. The new solution is simple-to-use, easier-to-adopt and can provide a platform that can be built upon as business matures.
- Increased Sales & Margin >4%
- Increased Transactions per Receipt 3.5%
- Average Decrease per Markup 1%
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