Case Study

Optimize assortment plans with systematic testing of localized assortment strategies


As more and more retailers make the transition (or try to) from a product centric assortment strategy to a more customer centric strategy, they are still faced with many issues like determining the optimal product mix and inventory size. These issues become strategically important to solve as customers are always looking for a personalized shopping experience (both online and offline); the right assortment will drive more foot falls, repeat purchases, increase sales and profitability

Striking the perfect balance with your assortments requires data and use of advanced analytics. Specifically, you need to analyze historical data and market intelligence in order to forecast trends, launch products or promotions at the right time and prevent out of stocks. All of this needs to be done with ever changing customer preferences and how the assortment relates to local factors and seasonal factors.


Convergytics deployed an end to end merchandising solution starting with category trends & forecasting to help merchant planners understand product trends, product affinities by various customer & geographical dimensions. 

With this as the basis, we created a framework of A/B testing to test new localized assortment strategies based on SKU rationalization to ensure maximum coverage of assortment with always customer preferences as the pivot. 

We have been able to create a data driven continuous improvement (test & learn cycle) framework so merchant planners can now use intelligent design to measure impact and fine tune assortment strategies.


Assortment strategies recommendations have resulted in an increase in traffic (online by 18% and stores by 12%) resulting in basket size by 15% and reduction in inventory carrying costs by 10%

Increase in traffic (online and stores) by

18% & 12%