Cluster Optimization


7thOnline Cluster Optimization generates the cluster configuration at the department/class level that will optimize the distribution of units at the individual store level.  The flexible and user-friendly solutions allow merchants to perform store clustering based on their unique business requirements.  The optimized clustering output is exported into the company's assortment planning system through integration.

7thOnline's industry expertise and experience in retail technology and operations research enables us to provide solutions that are at the forefront of clustering technology.  The proprietary algorithms are being utilized by some of the largest U.S. retailers within the apparel, footwear, and accessories industries.


KEY FEATURES
  • Department/class level clusters determined by flexible selection criteria
  • Ability to assign status to doors such as new, remodeled and closed
  • Ability to assign sister doors to account for any shifts in business within a specific door
  • Unlimited door level attributes for localized planning
  • Ability to manually override and move a door from one cluster to another
  • Ability to import clustering schemas created externally from the system

KEY BENEFITS
  • Ensures that the average store in each cluster represents the individual stores in that cluster as closely as possible
  • Higher sell-thru and reduced markdowns and stock-outs due to more productive assortments at the store level
  • Improved customer satisfaction and loyalty through localization of assortments
  • Reduced administrative activities and errors
  • Proprietary algorithms built specifically for apparel, footwear and accessories