Predictive Analytics Demo Series: Optimizing Brand Assortment

Predictive Analytics Demo SeriesOptimizing Brand Assortment

Agenda

• Introduction to Celect• Current State of Retail• Understanding Customer Choice • The Big Picture Planning Process• Demo – Optimizing Brand Assortment

© 2016 Celect, Inc. All Rights Reserved.2

An Intro to Celect

• Who we are‒ Predictive analytics SaaS platform for retail‒ Based in Boston, MA‒ Venture-backed, technology out of MIT

• Awards & Recognitions‒ MIT Computer Science and Artificial

Intelligence (CSAIL) Top 50 Greatest Innovations



“For years, online retailers such as Amazon have built their businesses models around algorithms that track and predict how we purchase things

online—using a method called machine learning. Celect aims to do the same for traditional retailers.”

The hat whisperers: This Boston startup tracks shopper’s habits to help brick-and-mortar stores make sales

Boston Globe, June 25, 2015

“New solution providers like Celectpound through volumes of a retailer’s transactional data as well as customer footfall to more effectively execute its

merchandise allocation”

Web Style Analytics Enters The Retail StoreForrester Research, Inc., March 30, 2016

Current State of Retail


Retailers are Awash in Data

Inventory, PoS, browse history,

transaction logs, search, etc.

Online/Offline are Blurring

Merchants often have responsibility for both online and

in-store

Need for Growth Opportunities

Improved Allocation, Buy Accuracy,

Assortment Planning

How are decisions being made today?


There’s a Better Way


Bring Science to the Art of

Retail

• Supplement your experiences, knowledge, and intuition with machine learning

• Leverage the data you already have

Predicting Customer

Choice

• How products interact and influence each other • Assortment Planning, Buy Accuracy, & Allocation

This answers the questions…


We sold out of a particular product in Store 28WHAT WAS THE RIGHT ALLOCATION?

We have never sold a particular product in Store 58HOW WELL WOULD IT SELL THERE?

We are looking to add a new brand in to a set of storesWHAT IMPACT WILL THAT HAVE ON STORE SALES?

Which would perform better in store 54 vs 102?


Four Way StretchSolid ColorSweat WickingDrawstring hood

Fleece fabricSolid ColorBreathable

Zippered hood… …

The Retail Process

Plan Buy Allocate Sell Liquidate


What product and how much should I buy?

Did I over-buy or under-buy?

Is the product in the right stores?

Did I maximize full price sell-

through?

How much margin did we

lose?

PrescriptiveDecisions

Optimized Assortments

Optimized Allocation

Engaged Customers

Optimized Markdown

The Retail Process

Plan Buy Allocate Sell Liquidate


What product and how much should I buy?

Did I over-buy or under-buy?

Is the product in the right stores?

Did I maximize full price sell-

through?

How much margin did we

lose?

Prescriptive Decisions

Optimized Assortments

Optimized Allocation

Engaged Customers

Optimized Markdown

DEMO!


Thank you!


www.celect.com/

blog.celect.com

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Predictive Analytics Demo Series: Optimizing Brand Assortment

Retail

Transcript of Predictive Analytics Demo Series: Optimizing Brand Assortment