TOCICO

Our major challenge in the retail environment is to exploit the store traffic using effective, scalable and profitable processes. After implementing depth management, we are facing another interesting and challenging phase – Range management. In the case study to be presented, you will be able to see clearly the behavior in a fashion retail environment – we have both situations: saturation and starvation. Categories that are in saturation block shelf space for categories in starvation without contribution to performance. Another ramification of assortment saturation is the freshness of the store which impacts on the rate of returning customers. In this case study we will demonstrate: 1. An analysis of a real VV implementation fashion environment that validates that both saturation and starvation do exist and saturation and “push” of range leads to lower freshness in the store. 2. The U curve behavior between too much range and too low range; 3. Direction for solution – Pull allocation – adjust range levels and refresh only when consumed. 4. Pilot results – Test store performance VS. control store performance.