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How can customer data help us drive sales by optimizing our merchandise assortment?


Fortune 500 US-off price retailer was able to identify a category of customers with the highest "penetration gap" against the industry standards and close the gap in order to drive more sales

 

Client

Fortune 500 US off-price retailer

Business Challenge

The client wanted to drive sales by optimizing its assortment mix—over geography, wearer segment, and brands. This included benchmarking against the industry in its active wear apparel segment to find growth opportunities.

Solution

The client partnered with Fractal Analytics to create a category mapping for its customer segments to classify its market data under a common structure. The solution included a gap analysis of the client’s active wear brands versus the industry to find an optimal assortment mix. The client’s existing assortment was analyzed by different attributes ratios—such as ‘penetration’ within sub-categories—and compared them with data from the industry.

Benefits

By combining customer category mapping, industry benchmarking, and gap analysis, the client was able to identify the optimal brand mix within its active wear segment. The engagement revealed a category of customers with the highest “penetration gap” against the industry standards. This finding presented the highest opportunity to close the gap in order to drive more sales.