Integrating Space & Assortment to Increase Sales
In order to compete and grow in today’s high pressure omni-channel, shopper empowered environment retailers are challenged to meet the demands of customer-centric localization by “right-sizing” stores, refining assortments in-store and on-line, increasing inventory productivity/in-stock levels and laying out stores for customer convenience – while maximizing return from every product carried. It is impossible to meet these needs unless space and assortment decisions are simultaneously optimized in a tightly integrated system.
Predictive Assortment-Aware Space Optimization
Revionics Assortment & Space Optimization is the only solution available today that simultaneously optimizes and balances the impact of the factors driving assortment and space adjustments while maximizing performance of merchandise and space in alignment with business objectives and strategies.
How Space & Assortment Optimization Works
Revionics ASO allocates the appropriate amount of space to category and subcategory assortments based on local shopper demand, loyalty data, market basket analytics and market data to identify local competitive opportunities - all within the context of category roles and financial objectives. Optimization blends science and strategy with operational rules and constraints, to measure effectiveness and ensure performance goals are achieved. “What-if Simulation” at every step predicts financial impact so performance is maximized and mistakes avoided. ASO augments and integrates with current tools by applying predictive analytics and optimization intellect to space and assortment systems.
Implementation – Best Practices
The most successful implementations of simultaneous space and assortment optimization have provided insight into best practices that not only ensure speed to ROI but also manage risk as this application and related business processes that span organizational functions are adopted. A typical best practice implementation process follows a “crawl – walk – run” approach that accelerates return on investment while managing risk.
Assortment & Space Optimization Features
A successful implementation of simultaneous integrated space and assortment optimization requires a flexible software solution that is rich in business focused features. Revionics Cloud based Assortment & Space Optimization Software-as-a-Service (SaaS) includes a full and growing set of user friendly features.
Revionics best-in-class features include:
- Recommends “right-sized” reformats, remodels and resets
- Optimizes space, assortment and inventory across the entire store
- Simulates ‘what If’ strategy scenarios
- Breaks down siloes between Assortment and Space planning
- Ensures proper capacity, facings and SKU presence
- Predictive optimization – identifies “size of the prize” before making changes
- Incorporates 3rd party Market Data to identify competitive gaps and opportunities
- Determines fair share of market and identifies category growth opportunities
- Provides guidance to store reinvention
- Augments and integrates with current assortment and space planning tools
- Cloud based SaaS delivery
We work with our customers as partners and listening to them has led to a full and growing set of user friendly features many of which were the result of customer requirements.
Assortment & Space Optimization Benefits
Because simultaneous Assortment and Space Optimization maximizes the return on the most significant assets employed by retailers the resulting positive bottom line impact can make the difference between being a competitive growing enterprise and an also ran.
By providing the right amount of space for shopper tuned assortments sales are increased as a result of more frequent and larger purchases
Increased gross profits
Proper mix of higher and lower margin products contributes to increases profitability
Planned inventory levels are set to reduce investment in excess stock and increase return on inventory investment
Space is set to accommodate a level of inventory needed to sustain sales between delivery receipts while maintaining a targeted level of in-stock
Helps eliminate organizational silos
Optimizing across departments and categories requires fact based collaboration across the organization while focusing all levels of management on total company objectives
Measurable predicted financial and shopper impact
Predictive analytics projections of business results are used to guide business decisions and provide the basis for measurement of success against financial goals and improved shopper satisfaction
Retailers who use Revionics Assortment and Space Optimization typically realize a Return on Investment within a few months, 2-7% sales increases, 2-5% gross margin gains and 10-20% inventory reduction. Read our Assortment and Space Optimization Optimization case studies to see how we've helped retailers succeed.
Assortment & Space Optimization Resources
The best way to learn how Revionics Assortment and Space Optimization can help your organization to succeed is to discover how others are using this revolutionary capability to transform their companies into world class growing profitable enterprises. Explore the experiences of our retailer partners and other insights by accessing the following resources:
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