Get assortment optimized to local demand in minutes

How collaboration between human and AI gets things done fast, effectively, profitably – and above all – satisfying the local shoppers

How to satisfy the local demand with an optimal assortment


A growing number of SKUs to choose from, limited shelf space, heterogeneous store characteristics, and the increasingly fragmented customer demand put pressure on retailers to satisfy the local demand.

With real-time access to all mediums, consumers have become more specific and more demanding as far as the products they want to consume, their qualities and prices.

Consumers of all ages and backgrounds exhibit brand recall and top-of-mind instead of merely reaching out for the lowest price or what their local stores happen to stock.

Success can no longer be achieved from mere value chain efficiency. Size class-based or cluster assortments aren't enough to keep shoppers loyal.

Demand-driven assortment optimization guides you to carry products that people want to buy

Retailers can satisfy the local demand by finding an assortment for each store that is optimal from the point of view of demand in its trading area.

Demand-driven retailing forecasts each location’s demand potential guiding you to manage assortments.

That's the demand side, the full potential of each location to which the optimization engine is optimizing each assortment: Delisting long-tail SKUs, identifying and listing new SKUs that shoppers want, minimizing out-of-stocks with micro space optimization, optimizing macro space to the factual store space for both shoppers' convenience and the optimal category allocation.

Retailers that have applied demand-driven assortment optimization have enjoyed over 20% improved profits, simultaneously gaining significant time-saving in every step of the process from planning to store implementation.


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Increase your margins with demand-driven assortment optimization


An efficient assortment means fewer missed sales opportunities, less capital tied to over-stocking your products, and improved customer satisfaction.

Assortment in Space’s optimization algorithm calculates the optimal assortment to each individual location. Performance improvements have so far been up to a 24.6% margin increase.


Case example: A retail chain with small stores faced a challenge in optimizing assortment to local demand. They wanted to maintain the current level of SKUs and avoid category location changes.

The first store to go through the uplift was one of the smallest, with 100m2 store space and 3000 SKU assortment.

Maintaining the current SKU level, the optimization engine excluded 328 SKUs that comprised both long-tail and less circulating products and added 616 new SKUs to the assortment based on local demand potential.

Without category location changes the optimized assortment delivered total sales growth of 13.62%, units sold grew by 5.37% leading to a margin uplift of 13.71%.


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Assortment optimization is always linked to store space


Factual store space sets the boundaries for assortment.

With all the macro space data, factual category space data, your tactics and business rules in one easy-to-access place you gain the capability to efficiently manage your stores.

All the key data elements are stored in one place and visualized as Digital Twin of the stores allowing an efficient approach through the entire process of strategy planning, analyses and in-store implementation with digital planograms and instructions.

The benefits of moving from once siloed and manual processes to data-driven, coherent and transparent workflow will empower everyone in your team to focus on more value-added things.


Watch the one-minute demo of Assortment in Space in action. 

Benefits of Assortment in Space


Short Term: sales and/or margin uplift by optimizing assortment to local demand delivering the optimal performance.

Long Term: new process and tools that minimize the time needed to assortment work, freeing up time for innovative category development. 


Short Term: more sales by minimizing out-of-stock and optimizing rotations.

Long Term: macro-level space planning to optimize store space to further maximize sales and customer satisfaction.


Short Term: optimizing Net Working Capital via narrowing the long tail of SKUs.

Long Term: better view of store coverage and utilization of customer demand improves the negotiation power.

Download the case study

How to set prices to address local demand and tackle competition


View Pricing optimization

Frequently Asked Questions  


What is demand-driven assortment optimization?

Demand-driven assortment optimization focuses on the demand potential by trading area, guiding the optimization towards localized assortment according to retailer’s tactics and business rules.


How demand-driven assortment optimization differs from supply-driven assortment optimization?

Traditionally retail chains have focused on the supply side, aiming to increase value chain efficiency whilst maintaining low, steady margins. Supply-driven retail analytics has its root in logistics analytics, aiming to optimize the flow-of-goods based on historical averages.

Demand-driven retail analytics on the other hand focuses on the demand side, the shoppers by trading area, aiming to optimize assortment to meet the full local demand potential.

What is Assortment in Space?

Assortment in Space is a state-of-the-art, cloud-based SaaS service designed to optimize your assortment and shelf spacing.

It offers an End-to-End process that takes you all the way from sales predictions to executing your assortment and space scenarios in stores.

A Modular Toolkit is designed to manage and execute at an individual store level as well as clusters and chains of stores.


What data is needed for Assortment in Space?

Assortment in Space leverages data from different data sources. The data typically includes a store, shelf, module, loyalty card, shopper, POS, product, etc. information which will be synchronized and enriched for the Assortment in Space data model.

Why is true space awareness important?

The category shelf space in stores vary, which makes it challenging to optimize the assortment and shelf space in stores. Therefore, having the true space data in digitalized format is essential for advanced store-specific assortment and space optimization.

What does true optimization mean in Assortment in Space?

Assortment in Space leverages Artificial Intelligence, Machine Learning, and state-of-the-art mathematical optimization model and predictive analytics - ensuring you meet your local, store specific, shopper demand according to your strategy. You do not need to react to the market – you’ll start to drive it.

How does Assortment in Space work?

Assortment in Space enables you to digitalize your true store space and manage both macro- & micro-level assortment and space, create your assortment and space scenarios based on your local shopper needs and your category assortment strategies.

It enables you to execute unique double-loop optimization: First Assortment in Space enables you to optimize your store-specific assortment based on each store’s local demand. Secondly, it enables you to combine optimized store-specific assortment with each store’s true shelf space and optimize the space for each SKU based on your space management tactics and rules.


Which technologies have been used as part of the Assortment in Space solution?

A mix of commercially available and open source technologies has been used. IBM Decision Optimization Studio (CPLEX) has been used for optimizations and IBM SPSS Modeler and IBM SPSS Collaboration & Deployment Services for predictive analytics. As the data warehouse, IBM DB2 Enterprise Server has been used. Alternatively, Oracle Database or Microsoft Database can be used.