Retail range planning is an essential process for any retailer looking to optimize their operations and meet customer demands. It involves forecasting demand, analyzing market trends, and determining the right mix of products to stock in-store or online. By following a systematic approach to retail range planning, retailers can ensure they have the right products in the right quantities at the right time, ultimately driving sales and profitability.
Range Planning Step 1 – Forecast Your Demand
The first step in retail range planning is forecasting demand. This involves analyzing data such as sales records, customer behavior, and market trends to predict future demand for products. By accurately forecasting demand, retailers can proactively plan their inventory and ensure they have enough stock to meet customer needs. Additionally, retailers can use this data to identify patterns and trends that would be difficult for humans to see, providing valuable insights into consumer behavior.
Range Planning Step 2 – Figure Out Your Product Mix
Once demand has been forecasted, retailers can begin analyzing market trends to determine the right mix of products to stock. This involves researching competitors and industry trends to identify popular products, as well as identifying any gaps in the market that the retailer could fill. By understanding the market and what products are in demand, retailers can make informed decisions on which products to stock and how much to order.
Range Planning Step 3 – Create Your Product Range Plan
Once the product mix has been determined, retailers can begin creating a product range plan. This involves creating a detailed plan that outlines the quantity of each product that should be stocked, as well as when and where it should be sold. The product range plan should also take into account any promotions or discounts that will be offered, as well as any seasonal fluctuations in demand.
Range Planning Step 4 – Implement Your Range Plan
Once the product range plan has been created, retailers can begin implementing it. This involves ordering products from suppliers, as well as allocating products to different stores or online channels. Additionally, retailers should monitor sales and customer feedback to ensure the product range is meeting customer needs. Any necessary adjustments can be made to the product range plan to ensure it remains effective.
Retail range planning is an ongoing process that requires constant monitoring and adjustments. Retailers should regularly review their product range plan and make any necessary changes based on changes in customer demand or market trends. Additionally, retailers should use data analytics tools to track sales and customer behavior to make informed decisions about their product range.
The Bottom Line (TL;DR): retail range planning is an essential process for any retailer looking to optimize their operations and meet customer demands. By following a systematic approach to retail range planning, retailers can ensure they have the right products in the right quantities at the right time, ultimately driving sales and profitability. It’s important to have a good understanding of the market trends, consumer behavior and have the right tools and technology in place to make data-driven decisions.
