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Target Corp. has selected DemandTec’s nextGEN Assortment Optimization software service to further tailor and localize its assortments. Minneapolis-based Target, which operates operates 1,740 stores in 49 states nationwide, already uses the vendor’s Everyday Price Optimization software service.
The assortment optimization software service originally gave retailers the ability to optimize assortments by store cluster and fixture size based on statistical modeling of incrementality and transferable demand. Recent enhancements to nextGEN mean the solution now offers such features as macro-space optimization to plan cross-category layouts, embedded shopper insights to understand brand and item preferences by segment, and the ability to optimize and further localize assortments based on both a category strategy and defined customer segment strategies.
“Like pricing in recent years, assortment planning has permanently changed,” said Dan Fishback, president and CEO of San Mateo, Calif.-based DemandTec. “Rank reports and basic analytics simply don't provide major retailers with the right insights they need to optimize and localize assortments for different store clusters, store layouts and customer segments. Target selecting DemandTec's Assortment Optimization is a testament to this change.”
The software service leverages the DemandTec platform, as do Everyday Price Optimization, Promotion Optimization and the company’s other software services, providing retailers with a single foundation for data management, demand modeling and shared shopper insights exposed at the point of decision within the software services.
DemandTec customers within the grocery industry include Ahold USA, ConAgra Foods, Delhaize America, General Mills, HEB, Hormel Foods, Safeway, Sara Lee and Walmart.