How Leveraging AI Technology Helps with Better Assortment Planning for Retail
As retailers strive to stay ahead of the competition, they are increasingly turning to artificial intelligence (AI) technology to help them stay on top of their game. AI technology is revolutionizing how retailers plan their product assortment and manage inventory. By leveraging AI technology, retailers can make smarter, more informed decisions about their product assortment and inventory management, leading to increased efficiency and profitability.
AI and Assortment Planning: How It All Links Together
To understand how AI technology can help with better assortment planning for retail, let's first look at what assortment planning is. It's a fundamental strategy in the retail business as it selects the right assortment of products for a particular market to maximize sales and profit.
It involves analyzing customer preferences and tastes, inventory levels, and competition to determine what products to carry, quantity, and price.
By leveraging AI technology, retailers can use data-driven insights to strategize about when to adjust their product mix, such as when to introduce new products or discontinue old ones. AI can also predict demand, optimize pricing and automate the ordering and replenishment process, making it easier for retailers to always have the right items in stock.
How Does AI Technology Help Optimise Your Assortment Planning?
Benefit #1:
Analyses Previous Sales, Retail Display Space, Local Trends, and Other Variables to Ensure the Right Stock at the Right Store
AI-based solutions are also able to identify customer preferences and trends in real-time, allowing retailers to move goods from one store to another if necessary. This helps them to take advantage of local trends and respond instantly to changes in demand, reducing stockouts and meeting customers’ short-term and long-term needs.
Furthermore, AI-driven solutions can help to identify potential product gaps and suggest new items to add to the assortment. It helps to ensure the right stock is in the right store, reduce stockouts, and generate shopper-focused assortments. This helps to create a more personalized shopping experience, increasing customer satisfaction and loyalty.
Benefit #2:
Improve Retail Outcomes with its Sophisticated, Predictive Capabilities
As consumers’ preferences and shopping habits change rapidly, keeping up with the latest trends and adjusting assortments accordingly can be difficult. AI technology helps retailers to predict customer behavior and optimize their product assortment accordingly and accurately. Through predictive algorithms and machine learning, AI can identify customer preferences and suggest products that are likely to be successful. This helps retailers to make informed decisions regarding which products to add to their assortment and which to remove.
AI can also analyze customer data and uncover patterns and insights that may not be immediately apparent. By leveraging this data, retailers are able to identify product trends, seasonal variations, and other factors that could impact their assortment planning.
Benefit #3:
Promotes Better Curation
AI can analyze customer data to help determine which items are most likely successful and the best pricing strategies. AI can also detect trends in customer purchasing, allowing retailers to adjust their assortment planning quickly and accurately to meet changing customer needs.
Moreover, AI can optimize inventory levels and reduce the risk of overstocking or understocking. AI can take a deep dive into customer data to determine the optimal stock levels for each product, helping to reduce the risk of unsold items and wasted resources. AI can even automate replenishment, ensuring stores are always stocked with the right products and quantity.
Benefit #4:
Stay Ahead by Helping You Respond Before the Competition
AI technology can also help businesses identify new opportunities. Businesses can use AI to spot emerging trends by analyzing customer data and trends and quickly adjust their assortment plans accordingly. This helps businesses stay ahead of their competition and capitalize on new opportunities.
The Bottom Line:
The Power of AI in Influencing the Financial Impact of Your Assortment Strategy
In short, AI technology can help businesses optimize their assortment planning by providing real-time data and insights, forecasting customer demand, and understanding their customers’ needs and preferences. By leveraging AI technology, businesses can stay ahead of the competition and make smarter decisions about their product offerings.
If you're looking for AI-driven assortment planning software for your retail business, HIVERY is the perfect solution. Our powerful software is designed to help CPG companies and retailers optimize their product assortment strategy and maximize sales.
With HIVERY's AI-driven software, you can gain valuable insights into consumer preferences and behaviors, simulate and optimize your product assortment strategies in real-time, and track and measure the performance of your product assortment. Try HIVERY today and take your retail business to the next level!
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