Assortment Planning for a hypermarket


The client is a retailer embarking on the launch of their inaugural store, featuring a diverse array of 15,000 products across a sprawling 14,000 sqft. area spread across three floors. Their objective is creation of an optimal merchandise mix and efficient planogram, primarily focused on gross margin maximisation. Simultaneously, they aim to align this plan with customer preferences, and enhance the efficiency of shelf space utilisation.

Given the extensive range of products, the effective utilisation of shelf space takes on paramount importance. Each product category exhibits distinct demand patterns and spatial requirements. Additionally, the need to remain adaptable in response to seasonal trends and evolving consumer preferences further emphasises on the importance of having right assortment plan.


TrueGradient’s Assortment Optimisation module is just the right solution for this. TrueGradient engine utilises data and runs an algorithm for gross margin maximisation:

-Customer demand and preferences: Demographics, buying habits, and lifestyle.

-Product Attributes: Type, Size, Shape, Brand, no. of varied SKUs, storage preferences

-Supplier availability and costs: Availability and cost of products from suppliers, as well as factors such as lead times and delivery schedules.

-Store space and layout: Available store space and layout, location of the store, competitor presence

-Seasonality and promotions: Seasonal demand and promotional events, such as holidays and sales.

After taking into consideration all the above factors and historical data, no. of facings are decided for each SKU i.e. how many SKUs will be kept on which shelf in which orientation. 


The resultant assortment plan comes in the form of a planogram which will be directly used by store managers to display inventory on each shelf. The plan aims to minimise stock-outs and optimise shelf space to enrich the shopping experience and decision-making. The dynamic nature of the plan ensures ongoing relevance, enhancing customer satisfaction and loyalty.

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