Retailers today are constantly being pulled in two directions. Customers expect choice, but they also expect simplicity, personalization and the confidence that the product they want will actually be in stock. That’s why a product assortment strategy has become a critical growth lever.
The challenge is that most organizations still approach assortment planning in silos. Merchandising and planning teams often make decisions in isolation, each focused on their own goals.
The outcome?
A retail assortment strategy that doesn’t always reflect what customers want, missed opportunities in the product mix and excess retail inventory that ties up working capital.
It’s no longer enough to rely on seasonal planning cycles and instinct. Breaking down these silos with an AI-powered product assortment strategy is quickly becoming a competitive necessity.
Why traditional assortment approaches fall short
In the past, retailers planned assortments by fixed product categories and product lines. Buyers picked items for the product catalog, and supply teams focused on getting them to stores. While that may have worked when shopping was simple, today’s customers move back and forth between online and in-store channels, creating true omnichannel retail environments.
However, omnichannel retail can cause chaos among assortment teams. For instance, one team might push for more product breadth to keep up with online demand. Another might argue for tighter product breadth to manage costs and inventory levels. Both arguments might be reasonable, but when they play out in separate silos, they clash. The result is a merchandising strategy that is unaligned with business goals and leaves the customer experience feeling like an afterthought.
Modern assortment strategy leverages the power of data-driven decisioning. Instead of isolated decisions, it brings choices together. With tools like assortment analytics and demand forecasting, retailers can shape product offerings around what people actually buy, while still keeping inventory and the supply chain under control.
That shift changes the dynamic. Rather than fighting over trade-offs, teams can balance assortment breadth with assortment depth, fine-tune the product mix across categories and cut back on excess stock without cutting into profit margins. It also makes it easier to respond when market trends shift, when sales performance dips or when new customer insights surface. Planning stops being a tug of war and starts working for both the retailer and the customer.
Better experience, better results
At its core, assortment strategy is about the customer. When merchandising, planning and supply teams work together, shoppers find the right products and are happy. The product variety feels intentional: enough to be interesting, but never overwhelming. This alignment makes the shopping experience smoother and keeps customers coming back. It also gives retailers a clearer view when planning product positioning, managing the product lifecycle or shaping the overall product portfolio. With this clarity, retailers can reduce markdowns and boost sales performance.
Improving an assortment strategy often starts with aligning teams. Merchandising and planning should share a single view of retail inventory and customer demand. When all teams have the same information, decisions are faster and more accurate. Next, clean, organized data should support these decisions. Traditional assortment analytics highlight which products are performing well, refine product assortment planning and shape the retail product mix. But when AI is layered atop analytics, the barriers to implementing those decisions fall away. Management based on clear insights reduces guesswork and allows the business to act confidently.
Measuring the result of these changes is equally important. Tracking results beyond sales performance—including effects on customer experience, profit margins and alignment with broader business objectives—ensures that the strategy benefits both the business and the customer.
Take your assortment strategy further with invent.ai
Retail moves fast, and the stores that do well are those focused on customer experience and simple, yet AI-powered assortment management.
With invent.ai, teams can see the same information and work together, all rowing in the same direction and with the finesse of the most precise GPS. That means the right products are in the right place when shoppers need them. By connecting product development, retail merchandising, inventory management and assortment planning, stores can make intelligent assortment decisions that drive retail success. Customers get the product mix they want, teams spend less time guessing and shopping becomes smoother. The result is happier customers and better sales—all without adding complexity.
Start transforming your assortment strategy with invent.ai today—connect with a retail AI expert, and see what’s possible.