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Problem
Challenges
 Results

Case Study: Enhancing Assortment Planning and Operational Efficiency for a Boutique Swimwear Retailer

The Problem

A swimwear boutique and e-commerce retailer needed to evaluate the effectiveness of its product inventory to improve future product investment decisions and better estimate future cash flows. Additionally, the retailer wanted to optimize initiatives that drive company growth, profitability, and operational efficiency. The brand sought to validate their product assortment plan using data-driven insights to achieve optimal product, margin and service levels while minimizing sell-outs. The company’s primary focus was maintaining relevance while exceeding customer expectations through their combination of trend and timeless style. 

Challenges

These challenges were compounded by the need to maintain the brand’s reputation for exceptional quality and service while ensuring profitability and scalability.

Solutions

Green Retail Consulting partnered with the client to develop actionable strategies that addressed these challenges.

Assortment Plan Development

    • We created a detailed assortment plan segmented by class and vendor, focusing on high-margin categories such as swimwear and coverups.
    • Conducted an in-depth analysis of historical sales data to identify top-performing product categories and underperforming SKUs.
    • Proposed a refined vendor strategy, reducing reliance on lower-performing vendors while negotiating better terms with high-performing ones.
    • Identified seasonal merchandising opportunities, enabling the client to capitalize on peak demand periods with curated product offerings.

By aligning the assortment strategy with market trends, we helped the client balance timeless staples with seasonal novelties, ensuring a compelling mix that drove sales and enhanced customer satisfaction.

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Inventory Management Optimization

    • Designed an inventory plan that minimized out-of-stock situations and ensured efficient inventory turnover.
    • Introduced data-driven reorder thresholds and demand forecasting to align stock levels with customer purchasing patterns.
    • Implemented strategies to phase out slow-moving inventory through promotional campaigns and bundled offers.

      Our approach ensured that inventory investments were optimized to reduce waste, improve cash flow, and maintain stock levels that supported seamless operations.

Sales Forecasting

    • Developed a robust sales forecasting model using historical sales data, customer trends, and external market factors.
    • Provided actionable insights to guide future product investment decisions and align inventory with demand.
    • Identified cross-category sales opportunities to enhance attachment rates and boost overall basket size.

      This forecasting model enabled the client to proactively adjust their strategies based on real-time insights, ensuring readiness for both market shifts and customer demand fluctuations.

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Cash Flow Projection

    • Produced future cash flow estimates based on sales projections, aiding in the prioritization of digital marketing and growth initiatives.
    • Delivered a financial framework for evaluating ROI on potential marketing and operational investments.

      These cash flow projections empowered the client to make informed decisions on allocating resources, balancing operational needs with growth-focused investments.

Results

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15% Increase in Sales

Enhanced assortment planning resulted in a 15% increase in sales within six months.

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 20% Improvement in Inventory Turnover

Optimized inventory management improved turnover rates by 20%, reducing carrying costs.

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8% Boost in Gross Margins

Better product mix and strategic investments boosted gross margins by 8%.

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Sustainable Growth

Cash flow projections enabled effective allocation of resources, driving profitability and scalability.

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12% Boost in attachment rates

Increased cross-category sales by strategically positioning complementary items together.

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Customer Satisfaction

Reduced sell-outs and improved product availability elevated the customer experience, fostering brand loyalty.

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Merchandising Improvements

Refined the product assortment to focus on high-demand items, eliminating redundancies and enhancing overall profitability.

Developed a calendar-based promotional strategy, targeting key sales periods with data-backed discounting approaches.

Increased cross-category sales by strategically positioning complementary items together, boosting attachment rates by 12%.

Introduced a limited-edition product strategy to create urgency and exclusivity, resulting in faster sell-through rates.

By implementing these merchandising improvements, the client was able to strengthen their competitive edge while driving incremental revenue and building stronger customer relationships.

These results reflect the transformative impact of a data-driven approach, blending operational expertise with a customer-centric focus.

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