What is assortment optimization?

Assortment optimization is a retail strategy that involves analyzing and selecting the most effective mix of products to offer customers in order to maximize sales and profitability. It involves determining which products to carry, how much of each product to stock, and where to display them in the store.

Assortment optimization relies on data analysis, market trends, customer preferences, and sales data to make informed decisions about product assortment. Retailers use sophisticated algorithms and analytics tools to analyze customer behavior, demand patterns, and market dynamics to identify the most profitable product mix.

By optimizing their assortment, retailers can improve customer satisfaction, increase sales, reduce inventory costs, and maximize profitability. It helps retailers better understand their target market, improve product availability, and stay ahead of competitors.

Overall, assortment optimization is a critical component of retail strategy that can help retailers make strategic decisions that drive sales and improve the overall shopping experience for customers.