Article

Top 100: 24. Assortment localization

July 26, 2011

The concept of store assortment localization encourages chains to create custom assortments based on each store's local characteristics and demographics. John Seidl, a partner at Kurt Salmon Associates, argues that, as U.S. consumers become more diverse, they tend to rebel against the one-size-fits-all retailing model. To counter this, proactive retailers are utilizing sophisticated communication tools such as assortment planning, financial planning, flow modeling, price optimization, promotion optimization and size optimization to capture information about the specific buying patterns of shoppers at each of their stores and then catering to each store's particular needs. By utilizing this understanding of local markets, Seidl says retailers are able to boost sales by 40 percent to 50 percent and carve out a solid competitive advantage.

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