Reviewing your assortments and planning to cut SKUs? One thing’s for sure – you need to review the impact of transferable demand to ensure you don’t disappoint your shoppers and maintain category turnover.
In this video, Symphony RetailAI’s Head of Category Planning Julian Miller explores why calculating transferable demand is so complex, and ways to solve it.
Ready to take your next step?
- Learn more about calculating transferable demand in our on-demand assortment webinar
- Do you have the right tools to calculate transferable demand? Check for yourself in our ultimate category planning checklist
- Read Video Transcript
When we look at transferable demand, it’s a very complex problem to solve.
There’s an interesting statistic about how we choose the right products for a category. Imagine you have to choose 300 products out of a possible choice set of 500. There are more ways of choosing 300 products than there are atoms in the universe. It’s an incredible number and it’s something that has historically, always been computationally impossible. But through artificial intelligence, we’re getting much closer to that optimal solution, than we’ve ever been able to get before.
We see prediction accuracy rates of 90% with our transferable demand calculations, and that’s because we test our models. Our neural networks are tested against real life data and they’re used to predict the impact of smaller assortments in smaller stores, from a transferability perspective.