Optimized and localized assortments
for every store and every space

Common assortment and space techniques put a mix of products on shelves, but don’t put the best mix of products on shelves:

• Assortment and space decisions are linear and disconnected
  
• Categories behave differently within a store - store level clustering misses this
  
• “Assort by sales” and “earn your space” ignore product substitutability and uniqueness
• Typical tools ignore demand forecasts, cross-item effects, and replenishment requirements
  
• Force-fitting assortments to smaller POGs does not produce optimized assortments
  
• Optimizing while complying with business rules and objectives is very difficult if not impossible to do manually

For these reasons, Predictix felt a new approach to assortment and space optimization was needed. One with a sophisticated understanding of customer demand, of the complexities of widely varying spaces, and of retailers' business objectives. An approach that would optimize across all of these, and let retailers finalize their assortments with real-time feedback on the impact of their decisions. To accomplish all of this, we delivered Predictix Assortment & Space Optimization (ASO).

Predictix ASO: A more effective approach to assortment & space optimization

Predictix ASO achieves truly optimized, localized assortments for every store, every category, and every POG by introducing many distinctive and unique approaches; we highlight a few below:

• Uses actual consumer buying patterns at the category level within each store as a starting point
• Takes into account demand, cross-item effects (substitutability, brand loyalty, lifestyle preferences, cannibalization), replenishment, and other inputs
• Lets users define business rules and objectives that must be met within the context of an optimized assortment
• Produces an optimized assortment for each and every store and each and every planogram
• Provides real time financial forecasts of the assortment

Predictix ASO drives higher sales and margins

Retailers can expect category margins to improve 100 basis points or more, and to drive higher sales, from optimizing their assortments with Predictix ASO. On a qualitative level, customer satisfaction improves by having more robust assortments within the stores’ existing space. Retailers can also consistently meet their category objectives and enforce desired rules without needlessly sacrificing sales or margins, since the Predictix ASO solution explicitly takes all business rules, objectives, and constraints into account when optimizing each individual assortment.