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Merchandising · All retail

Cluster Reassortment

Cluster mismatched to demand. Re-maps to its real velocity.

Target KPI Sell-through
Executes in ≤ 48 hours
System of record Blue Yonder · SAP
Run this on your data → How the loop closes
Trigger condition

A store consistently sells a category more like a different cluster than its assigned one, for two consecutive seasons and more than 15% apart.

Write-back

Cluster assignment updated in Blue Yonder; assortment plan and replenishment parameters re-pointed in SAP.

Every write is gated on an approver role you name. Nothing runs unattended.

Procedure
  1. Re-cluster stores on realised category velocity, basket composition, and demographic drift rather than the original banner rules.
  2. Identify stores whose assigned cluster costs them: over-assorted on slow lines, under-assorted on fast ones.
  3. Model the reassortment: what changes on the shelf and what it releases in working capital.
  4. Open a case to the assortment planner with the proposed cluster moves, gated on approval.
  5. Close when the reassorted stores hold sell-through above their new cluster benchmark for a full season.
Outcome metric

Sell-through in reassorted stores over one season vs. their prior-cluster benchmark. Positive at 3 points.

The case closes on this number, not on the action being taken. A playbook without a close condition is a dashboard.

The rest of Merchandising

Markdown Cadence Reset Style velocity below cluster. Proposes a shallower, earlier ladder. Full-margin sell-through Promo Conflict Cancellation Cannibalization mid-promo. Models kill-or-narrow, ends the overlap. Net promo lift Assortment Rationalization Long-tail SKUs tying up capital. Ranks by GMROI, proposes cuts and adds. GMROI Price Elasticity Recalibration Elasticity drifted. Re-estimates and proposes moves that hold volume. Category margin New SKU Velocity Gate A new item is missing its launch curve. Flags it for cut or support. GMROI

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