Retail Planning Software: Optimize Assortment Planning and Demand-Driven Inventory With AI

The data is in: demand is high but sentiment is not. Up 1.4%, consumer spending was stronger than expected in March, reported the Commerce Department. However, consumer confidence is still slipping, especially with uncertainty around the tariffs. In a world where retail sales data is revealing mixed signals, strategic inventory assortment planning is paramount. 

Planning for Inventory Productivity and Sell-Through Rates

Retail assortment planning is a key part of merchandising strategy to determine the optimal mix of products to offer, in what quantities, when, and where—to maximize sales and customer satisfaction. With a weak sentiment index, assortment planning is critical to ensure each SKU earns its place on the shelf. 

Inventory productivity drives profitability in retail. 

As shoppers become more selective with their spending, retailers must curate more targeted assortments that align with shifting consumer priorities, minimize excess inventory, and maximize sell-through. 

Utilizing AI-powered planning solutions, retailers are able to use real-time sales data and historical trends to forecast demand, ensuring that stores are neither overstocked nor understocked, and enhance sell-through rates. With more accurate demand forecasting, inventory levels are more closely aligned with actual sales trends, reducing the likelihood of markdowns and unsold goods that eat into profit margins.

Retail Planning for Demand: Software, Techniques, and Models

A demand-focused, data-driven approach allows businesses to stay agile, plan with precision, and protect margins. A delicate balance between art and science, assortment planning not only anticipates trendy and relevant products but also relies on data to analyze and forecast demand. Through demand planning software, powered by AI, retail is able to do this seamlessly—leveraging analytics for precision while relying on merchant intuition and creativity to connect with shoppers and give them what they want. 

Download our Demand-Driven Allocation whitepaper to learn more integrated allocation and proactive supply chain planning: https://www.7thonline.com/demand-driven-allocation-strategy-whitepaper 

Instead of a traditional, static clustering (or “the wedge”) approach, demand planning software helps maximize selling potential with granular insights that help retailers curate a localized mix. 7thonline’s demand planning technique goes as far as the style, color, size, by store, by week—localizing assortments based on the store’s propensity to sell based on product attribute performance. The system will recommend buy based on demand targets and even use proprietary demand planning models to anticipate sales for new and seasonal products. 

7thonline is a leading provider of cross-channel assortment planning and management solutions, enabling more effective planning, demand forecasting, and inventory optimization for leading retailers and wholesalers. With embedded business intelligence and rich analytics, the company's solutions offer complete demand visibility and planning capabilities for wholesale, retail, and ecommerce. 

To learn more about how AI can help brands and retailers drive revenue amid weak consumer sentiment through smarter assortment planning, book a demo or email us at info@7thonline.com.