At a glanceA leading celebrity fashion brand achieved a 13% increase in full-price sell-through, 25% reduction in assortment width, and 12% improvement in average selling price using Increff’s smart assortment planning solution.
What Is This Case Study About?
This case study shows how a leading celebrity fashion brand transformed its merchandising strategy using data-driven assortment planning to improve profitability, reduce excess inventory, and align product selection with real customer demand.
Client Overview
- Industry: Fashion Retail
- Store Network: 200+ stores
- Channels: 4 distinct sales channels
- Key Focus: Assortment planning and inventory optimization
- Challenge: Inefficient inventory distribution and poor alignment with demand
Challenges Faced: Why Traditional Merchandising Was Ineffective
As the brand scaled, several inefficiencies emerged:
- Overstocking across channels due to traditional buying decisions not aligned with actual sales
- Inconsistent store performance driven by uniform assortment strategies
- Lack of store-level customization despite varying customer preferences
- Inefficient inventory distribution reducing profitability and increasing operational complexity
Increff’s Solution: Smart Assortment Planning
Increff implemented a data-driven assortment planning solution across stores and channels to optimize merchandising decisions.
Store-Level Segmentation
- Classified stores into performance tiers based on sales velocity, demographics, and location
- Enabled targeted assortment strategies for each store
Data-Driven Buying Decisions
- Analyzed historical sales data to identify trends and attribute performance
- Shifted decision-making from intuition to analytics
Channel-Specific Optimization
- Customized assortment strategies for each sales channel
- Aligned product mix with channel-specific demand patterns
Real-Time Inventory Rebalancing
- Continuously adjusted inventory allocation based on performance
- Reduced excess stock while improving availability of high-demand products
Results: Measurable Impact Delivered by Increff
Key Outcomes Summary
- Improved profitability through higher full-price sell-through
- Reduced inventory complexity by eliminating low-performing SKUs
- Better alignment between assortment and customer demand
- Increased pricing power with reduced reliance on markdowns
- Enhanced operational efficiency across stores and channels
Frequently Asked Questions (FAQ)
What is assortment planning in retail?
Assortment planning is the process of selecting the right mix of products for each store or channel based on demand patterns and customer preferences.
How does smart assortment planning improve profitability?
It aligns inventory with actual demand, reducing overstock and increasing full-price sales.
How did Increff help this brand?
Increff implemented data-driven assortment planning tailored to each store and channel, improving efficiency and performance.
What is assortment width reduction?
It involves eliminating low-performing SKUs to focus on high-performing products.
Why is store-level segmentation important?
Different stores have different customer behaviors, requiring customized assortment strategies.
Which brands benefit from assortment optimization?
Fashion and lifestyle brands with multiple stores and diverse inventory benefit the most.
Why Increff for Assortment Optimization?
- Data-driven merchandising decisions
- Store-level assortment customization
- Improved sell-through and pricing power
- Reduced operational complexity
- Scalable solution for multi-store retail
Ready to Optimize Your Assortment?
Book a demo with Increff today