The Expert Guide to Retail Assortment Planning

Retail assortment planning has historically been a very broadly defined capability under which many different activities fall. However, at a high level, this critical retail process involves developing different product ranges or collections for targeted groups of customers. While often combined with item planning, assortment planning is typically a precursor to item planning and is done pre-season.

In this guide, Parker Avery’s assortment planning experts provide a comprehensive overview of the assortment planning process. We cover key assortment planning competencies and their importance, as well as common mistakes and challenges we have witnessed throughout Parker Avery’s many client projects. We also explore assortment planning leading practices and innovations that can help improve this key retail capability.

• Assortment planning bridges strategy and execution
  Aligns customer preferences, financial goals, and merchandising strategy to deliver the right products, in the right locations, at the right time.
• A customer-centric approach is essential
  Incorporating customer insights, localized preferences, and omnichannel expectations is critical to building relevant assortments that drive sales.
• Data quality and integration underpin success
  Clean, accurate, and unified data—from sales history to market trends—enables confident assortment decisions and minimizes risk.
• Cross-functional collaboration drives better outcomes
  Integrating perspectives from merchandising, planning, store operations, and supply chain ensures assortments are both executable and profitable.
• Advanced analytics and AI can enhance decision-making
  Predictive analytics, scenario planning, and demand forecasting tools refine assortments and improve precision.
• Balance is key: art + science
  Blending merchant intuition with data-driven insights leads to assortments that resonate with customers while achieving financial targets.
• Assortment planning is continuous, not episodic
  Successful retailers refine assortments throughout the product lifecycle—pre-season, in-season, and post-season—to stay agile and competitive.
• Technology should enable, not dictate, the process
  The right tools streamline workflows, enhance visibility, and improve accuracy without overwhelming teams.
• Organizational readiness impacts adoption
  Change management, training, and clear governance structures are vital to ensuring new processes and tools are embraced.