7thOnline declares Size Optimization to meet demand
14 Sep '06
2 min read
7thOnline, the premier provider of assortment planning and optimization solutions to the apparel, footwear, and accessories community, announced the availability of 7thOnline Size Optimization.
The solution enables retailers and suppliers to determine the optimal merchandise size distribution to meet unique store-level demand and to maximize profit potential.
Given the lack of adequate tools, most retailers and suppliers are forced to use national or chain average size performance or to apply local sales ratios by size blindly in order to determine size distribution.
Consequently, a significant portion of retail sales and gross margin are lost due to a mismatch between store size distribution and local demand.
Retailers and suppliers can avoid these unnecessary sales and margin losses with 7thOnline's powerful size analytics and optimization capabilities.
Through historical POS analysis and an optimization algorithm, 7thOnline SIZE OPTIMIZATION enables merchants to determine the optimal size distribution by style attribute by store that will maximize gross margin.
For case pack styles, the system enables suppliers to determine the optimal size mix for each pack size for their buy accounts and enables retailers to optimally distribute case packs to each store.
"Markdowns and overstocked inventory are often not a result of misguided assortment strategy, but rather a result of poor execution of merchandise allocation and distribution," stated Saman Hong, VP Analytics and Optimization Solutions.
"Size distribution is a large component of this execution. With 7thOnline SIZE OPTIMIZATION, retailers and suppliers can be confident that they are executing a size distribution strategy that best matches their customers' local buying behavior, minimizes size breaks, and maximizes sell-thru."
marketing@alchempro.com
