Create a clear vision and business strategy for your company and stores. If you don’t know who your target customers are, it will be difficult to optimize product assortment.
Understanding what types of customers your company is targeting is one of the most important business strategies. What are your customers looking for? What needs do they have that will be met by your store?
For instance, if your store is targeting consumers of niche skincare brands, you will want to offer more depth in your product assortment since these customers are likely looking for a deep product assortment they can’t easily access elsewhere. On the other hand, if you’re opening a general beauty product store in a mid-sized town, you’ll want to increase product breadth and select a varied product mix to cater to the more diverse customer segment you are targeting.
You must understand your customers before creating your product assortment. When customers are disappointed, they tend to move to the nearest location carrying the product they want, so this is important to get right from the beginning. You can also use this information to create a targeted pricing strategy, such as two-for-one sales or placing small-purchase items near the related item to encourage impulse purchases.