What is Assortment Planning

Assortment planning is the process of deciding which products to offer in your store or catalog, when, and in what quantities. It’s about choosing the right mix of items to meet customer demand and make sales, whilst not over (or under) stocking. Good assortment planning balances variety with focus: making sure you have enough options to attract buyers, without overloading your shelves or warehouses with slow movers.

A brief history

Early shops had access to limited products, so assortment planning wasn’t as much of a thing. But, as trade grew and consumers expected more choices, retailers faced a new challenge: deciding what to stock.

Assortment planning emerged in the 20th century with department stores and big retail chains that had to choose thousands of products to stock, often across many locations. It took serious planning. But the term really became popular as data and analytics started playing a bigger role, helping planners make informed decisions based on sales, trends, and customer preferences.

Good to know

Effective assortment planning requires good data. You need to know what sold well in the past, be on top of current trends, understand your inventory, and have insights into customer preferences. It’s about aligning your products with your business goals, seasonality, and target customers. Many companies use dedicated software or modules in ERP, PIM, or retail planning systems to streamline this process.

Know more

Frequently Asked Questions

Who does assortment planning?
Who does assortment planning depends on the company size and setup, but in most cases it’s handled by merchandisers, category managers, or buyers, who decide which products should be available for a store or channel. In some cases, marketers or brand teams also contribute, especially when considering promotions, trends, or customer preferences.
Is assortment planning just about picking products already in stock?
Not necessarily. Retailers may plan their assortment first and then order the products they need, while brands often use assortment planning to decide what to produce. It’s about matching the right products to the right customers, not just managing existing inventory.
Why does assortment planning matter?
Assortment planning matters because it helps bring in sales whilst avoiding having excess stock, managing margins, and keeping customers happy by delivering the right product selection at the right time.
Is assortment planning only for big retailers?
Nope, assortment planning is for anyone selling a product! Even small shops or online sellers need to think about what to offer and when, just on a smaller scale.
Do assortment planners decide product design or just what to stock?
Usually, assortment planners pick from existing products or supplier catalogs, but in brands, they might influence design decisions as well.