Assortment Planning
The analytical process of determining which products a retailer should stock, in which locations, and in what quantities, based on demand data and customer segmentation.
Full Definition
Assortment planning is a strategic merchandising discipline that uses historical sales data, market trends, demographic analysis, and inventory analytics to build the optimal product range for each store or channel. It involves decisions on product breadth (number of categories) and depth (number of variants within each category), and is closely linked to planogram development and space management. In analytics documents, 'assortment planning' should not be confused with 'range planning,' though the terms are used interchangeably in some organisations. Editors should apply whichever term the organisation prefers and use it consistently; a usage note should be added if both appear.
Usage
Usage note: The terms 'assortment planning' and 'range planning' are often used interchangeably; establish the preferred house term and apply consistently. Two words, no hyphen.
In Context
- "Assortment planning analytics revealed that 30% of SKUs contributed fewer than 2% of category revenue, supporting a rationalisation programme." — Category analytics report
- "The editor noted that the document alternated between 'assortment planning' and 'range planning' and standardised to the client's preferred term throughout." — Editorial amendment note