Assortment Optimization: How AI and Data Analytics Help Retailers Make Smarter Product Decisions
Introduction In today's competitive retail landscape, offering the right products at the right time is essential for business success. Customers expect retailers to provide products that match their preferences, budgets, and shopping habits. At the same time, retailers must manage inventory costs, improve product availability, and maximize profitability. Balancing these requirements can be challenging without accurate data and effective planning. This is where Assortment Optimization plays an important role. Assortment optimization is the process of selecting the most suitable products to offer across stores, channels, and customer segments. It helps retailers understand which products should be stocked, in what quantities, and at which locations to meet customer demand while supporting business objectives. With the growing adoption of artificial intelligence (AI), machine learning, and advanced analytics, retailers can move beyond traditional product selection methods. Data-dri...