Quarterly NewsletterSummer 2015
Back to School
The carefree (and hot) days of summer are quickly coming to an end, with many of us squeezing in final days of vacation before children head back to school.
As a retailer, this means several things:
- • If you have a "back-to-school" business, then your assortment is locked and loaded, whether in stores, in your fulfillment center, perhaps even already in consumer's shopping carts.
- • For holiday shopping, more than likely your near-final inventory positioning, allocation and related activities are well underway, along with marketing and promotional plans.
- • Finally, if you're one of the lucky few to have "summer hours" on Fridays, enjoy them while you can, as Labor Day is just around the corner.
Aside from the summer hours comment, everything else, as always in retail, is dependent on "The Product." Regardless of store plans, allocation, fulfillment, marketing, etc., if you don't have the right assortment, all else is moot. Besides actual product design, or finding and buying the right product, the most important, and typically one of the most difficult retail activities, is planning the assortment.
Why is this so? Why does it seem so difficult at times, and why does it seem when retailers discuss Assortment Planning that they are speaking different languages with each other? A few reasons include:
- • Assortment Planning makes Merchandise Financial Planning look easy. It is much more than just planning department / class and dollars - it requires intimate knowledge across the product categories, store space, target consumers, price points, supply chain implications and more.
- • Resource needs are different than most merchants and most planners. Assortment Planning often requires a "hybrid" skill set.
- • There is at times ambiguity involved. For example, having a placeholder for a style to be determined later - typical processes and systems don't easily handle this requirement.
- • Not all retailers are created equal. Fashion apparel retailers likely have the biggest challenge, while retailers with multi-channel variations, international assortment needs and other complexities present other unique Assortment Planning challenges.
Taking the pain - and opportunity - one step further, the value of Assortment Planning done correctly drives both sales and inventory effectiveness, potentially delivering significant benefits to a retailer's top and bottom lines.
Over the next few months, we will share with you our thoughts and perspectives on Assortment Planning and clustering, including the latest trends and key considerations, in order to prepare you to effectively execute Assortment Planning in your enterprise. We will share our experience in upcoming Points of View articles, and will also be sharing the results of our Assortment Planning research study, which closes at the end of August. We welcome your perspectives on the subject; here's a link to participate if you haven't yet had a chance: Assortment Planning Study.
Enjoy these final days of summer. If you'd like to discuss any of your upcoming merchandising or other retail initiatives, please don't hesitate to contact me.
President & Managing Partner, The Parker Avery Group
Writing Business Requirements:
Strategy & Software Selection Essentials
Key tenets to ensure the "best" solution is identified that fulfills the needs of the business...
New Case Studies
Retail Inventory Efficiency Roadmap
In-depth assessment of retail store and corporate processes and development of a multi-year roadmap...
Item Master Assessment and Implementation
In-depth evaluation of current pricing practices and systems as well as definition of future capabilities...
Pricing Capabilities Assessment and Roadmap
Designing the future processes and evaluating a merchandising solution to enable strategic planning and enhance visibility...
PLM System Implementation
Multi-phased Product Lifecycle Management (PLM) solution implementation, spanning multiple brands...
The Parker Avery Group frequently contributes to articles, publications and events beyond our own thought leadership to provide current perspectives and advice to the retail community. We invite you to read the following articles to which we recently contributed or authored:
The Price is Right: Strategies for Omnichannel Pricing (Webinar with RIS News and Revionics, June 2015)
Made for Each Other:
Building Loyal Customer Relationships
(Retail Leader, May 2015)
Minimizing Supply Chain Disruptions:
Leveraging PLM to Reduce Risk
(Apparel Magazine, March 2015)
Please join Parker Avery at Apparel Magazine's "Apparel East" event, October 29 in NYC, as we present findings from our latest research study "Unraveling the Mysteries of Assortment Planning." Click below for more information about the event.
• The Power of Being Yourself: A Game Plan for Success, by renowned business leader Joe Plumeri. Non-fiction, business. A good leader is an "everyman" who combines vision and high energy with the ability to connect with and learn from all types of people.
• The End of Fashion: How Marketing Changed the Clothing Business Forever, by Wall Street Journal Reporter Teri Agins. Non-fiction, business. How designers take their cues from mainstream consumers and creativity is channeled more into mass-marketing clothes than into designing them.
• Just Don't Fall, by Josh Sundquist. Non-fiction, motivational. An astounding story of the author's heroic struggle with childhood cancer, numerous hospitalizations and worse to become an award-winning skier in the Paralympics and renowned motivational speaker.
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