Historically, merchants used their instinct, experience and other intangibles to determine which products consumers would buy. Today, however, the most successful merchants leverage big data and advanced analytics to manage their SKUs, arming themselves with data and data-mining tools that enable them to make decisions based more on statistics than on hunches, more on science than on art.
Organizations that leverage this information and these new-school merchandising tools have an edge over those organizations that rely on a gut feeling: The adoption of such tools — such as product associations, algorithms and L.E.K. Consulting’s merchandising process — enables merchants to make more informed and efficient assortment decisions, thereby driving top-line sales, maintaining more efficient inventory allocations and reducing product development costs.
Learn more about the challenges that product associations and association algorithms present, and how our new-school merchandising process ensures that you have appropriate data to inform major portfolio decisions, thereby driving significant profit for years to come.