March 08, 2026

Customer-Based Merchandise Assortments

This might come as a surprise to some of you, but your customers don't universally love everything you sell.



Every customer has a favorite merchandise division/department/category. This "favorite" division/department/category dictates what you should show the customer in the future.

Example:  A Women's Apparel customer (favorite historical division) will spend 48% of future demand on Women's Apparel (your mileage will vary). The second-highest division generates just 12% of future demand, the third-highest division generates just 8% of future demand. This customer should see Women's Apparel, obviously. The marketer needs to be disciplined with this customer.

Example:  A Home customer (favorite historical division) will spend 8% of future demand on Home merchandise, with three divisions/departments/categories showing significantly higher future shares of merchandise purchased. Guess what? This customer needs to be cross-shopped. The marketer can be creative with this customer.

Each customer essentially warrants a customer-based merchandise assortment.

Do you think about your customers in this manner?

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Customer-Based Merchandise Assortments

This might come as a surprise to some of you, but your customers don't universally love everything you sell. Every customer has a favori...