What is retail assortment planning

What is retail assortment planning?In other words, it means that retailers decide what merchandise they should buy and market to their customers.Retail assortment planning is defined as planning of the right quantity of stock for the right month or season for the right customers.A question we frequently hear is what is the difference between assortment planning and merchandise planning.Assortment planning has the added capabilities to tailoring buys for unique micro markets and different sales channels.

It is very important for the retailer to pick the right product for the right season and then order the required quantities so that the retailer is not overstocked or understocked.Assortment planning is the process of selecting the collection of products which will be on offer in particular areas (localisation) and during specified periods of time (seasonality).It conside rs the financial objectives and seasonality of the product selection so that retailers and their customers gain from the outcome.Your start point is merchandise planning.To maximize the opportunity for retail sales, an assortment planning process is a pathway for businesses to enjoy increased profits.

Most retailers assess merchandise trends (monthly, quarterly, seasonally) and acquire products accordingly.Assortment planning is the process of forecasting demand then stocking your shelves with goods designed to drive sales.Assortment planning is about using data to guide the creative process.Many issues must be considered for a store to make a proper determination.