Article Summary
The article by Sheehan (2019), expounds on what assortment planning is and how it can help in maximizing a store’s profitability. According to the article, assortment planning entails making the right product picks and ordering the right quantities for items to match the demand of a market. For retailers, there is a need for planning the type of products to place, and understanding the most suitable time for such a placement (Sheehan, 2019). This helps in boosting the number of sales and also managing 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 optimizing a retail store, and as a result, leads to a high conversion rate (Sheehan, 2019). It also aids in enhancing growth goals, visual merchandising, improving lead time and promotions. For successful assortment planning, there is a need for retailers to start with setting goals, use historical data and clusters and also capitalize on impulse buyers.
Opinion on the relevance of the article to today’s industry
In today’s competitive industry, assortment planning is an important topic in that it helps businesses understand how to have an effective management system. This is through ensuring that the right products are on the shelves and that they help boost sales, considering the high competition in place. Despite the growing number of e-Commerce businesses, many customers still undertake physical purchases, and hence assortment 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 stock for a firm.
