DemandTec Inc., a provider of on-demand optimization solutions for retailers and consumer products manufacturers, has announced that Target Corp., the second-largest general merchandise retailer in the United States and user of DemandTec's Everyday Price Optimization software service, has selected DemandTec's nextGEN Assortment Optimization software service to further tailor and localize its assortments.
DemandTec's Assortment Optimization software service initially introduced the ability for retailers to optimize assortments by store cluster and fixture size based on statistical modeling of incrementality and transferable demand, according to the company.
With recent enhancements as part of DemandTec's nextGEN strategy, Assortment Optimization now also includes macro-space optimization to plan cross-category layouts, embedded shopper insights to understand brand and item preferences by segment, and the ability to optimize and further localize assortments based on both a category strategy and defined customer segment strategies.
"Like pricing in recent years, assortment planning has permanently changed. Rank reports and basic analytics simply don't provide major retailers with the right insights they need to optimize and localize assortments for different store clusters, store layouts, and customer segments," said Dan Fishback, president and CEO of DemandTec. "Target selecting DemandTec's Assortment Optimization is a testament to this change and we are honored to further expand our strategic relationship with such an innovative industry leader."
The Assortment Optimization software service leverages the DemandTec Platform, as do Everyday Price Optimization, Promotion Optimization, and the other DemandTec software services, so that retailers have a single foundation for data management, demand modeling and shared shopper insights exposed at the point of decision within the software services.
