Article Summary
The article by Sheehan (2019), expounds on what assortmentplanning isand how it can help in maximizing a store’s profitability. According to the article, assortmentplanning entails making the right product picks and ordering the right quantities for itemsto match the demand of a market. For retailers, there is a need forplanning the type of products to place, and understanding the most suitable time for such a placement (Sheehan, 2019). This helps in boosting the number ofsalesandalsomanaging the demand maximizing the profit margin of the business.
Assortment planning is about forecasting demand and understanding how to manage such a demand. Assortment planning for a retailer is vital in that it aids in optimizinga retail store, and as a result,leads to a high conversion rate(Sheehan, 2019). It also aids in enhancing growth goals, visualmerchandising, improving lead time and promotions. For successful assortment planning, there is a need for retailers to start with setting goals, use historical data and clustersand also capitalize on impulse buyers.
Opinion on the relevance of the article to today’s industry
Intoday’s competitive industry, assortment planning is an important topic in that it helps businesses understand how to have an effectivemanagementsystem. This is through ensuring that the right products are on the shelvesand that they help boostsales, considering the high competition in place. Despite the growing number of e-Commerce businesses, many customers still undertakephysicalpurchases, and henceassortment planning is vital in optimizing the products on the shelves. The article is also relevant to today’s industry in that it provides important insights to retailers on identifying products that consumers may want to purchase.It finally addresses how to deal with the challenge of estimating the right amount of stockfor a firm.
Sheehan, A. (2019). Assortment Planning in Retail: How to Maximize Your Store’s Profitability. https://www.vendhq.com/blog/assortment-planning/
