Merchandising Analytics: Driving Value Through Store-front Assortment Optimization for a Leading Home Furnishings Retailer

May 2, 2018

The client: Home furnishings retailer

Area of engagement: Merchandising analytics

The market for home furnishings consists of companies that manufacture and sell textiles, furniture, and other such goods to offices, residences, restaurants, and other commercial establishments. Offerings of leading home furnishings retailers include fabrics, seating, case goods, upholstery, bedding, and health products. Though this market is well established, it provides several investment and growth opportunities for home furnishings retailers.

The Business Challenge

Company Description- A leading home furnishings and furniture retail firm, with several business units spread across the globe.

The client approached our team of merchandising analytics experts to help them devise a data-driven merchandising platform. The home furnishings retailer was also looking at leveraging assortment optimization-based decisions to identify the best practices in assortment strategy, techniques, and models that help home furnishings retailers determine the category and store-level assortment opportunities. With the help of merchandising analytics, the home furnishings retailer wanted to assess the purchase journey of different shoppers and use the demand to predict and plan an enterprise-wide customer-centric merchandising assortments. As such, they were looking at leveraging Quantzig’s merchandising analytics solution to improve returns and drive value through assortment optimization.

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The Solution and the Business Impact

Leveraging Quantzig’s merchandising analytics enabled the home furnishings retailer to enhance their on core merchandising activities. This included purchasing replenishment, financial inventory valuation, and data management. Also, store-front assortment optimization helped them devise an assortment strategy that prioritized the store and cross-category variety requirements based on targeted shopper and commercial criteria.

Merchandising Analytics Predictive Insights

Merchandising analytics is increasingly becoming a necessity for both vendors and home furnishings retailers owing to the enormous benefits offered by data and merchandising activities. Quantzig’s merchandising analytics allow clients to develop strategies to engage and empower customers. It is designed to enhance the overall shopping experience of a client, which, in turn, helps them increase profitability.

Merchandising analytics offered several other benefits including:

  • Enhanced category visibility It helps to track category performance and strengthen the role of different categories in driving traffic, overall store growth, and profitability.
  • Planning and assortment optimization- Enables firms to carry out store-level assortment optimization programs to determine which performs the best with new and discontinued items.
  • Enhance product affinity- Evaluate new product affinities for increasing revenue and enhancing co-merchandising activities.

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