Accurate sizing and assortment planning are critical to both customer satisfaction and overall profitability, especially for retailers in apparel and footwear. When sizing misses the mark, it leads to excess inventory, higher return rates and lost sales. And as weight-loss drugs continue to gain popularity, size profiling has to become more dynamic to keep up with shifting trends. By harnessing data on shopper behavior, regional fit trends and inventory performance, AI-powered tools enable smarter, more localized assortment planning that boost sell-through, reduce returns and meet customers where they are—ensuring the right products, in the right sizes, reach the right customers at the right time.

Rise of GLP-1 & The Impact on Assortment Planning

Style, color, size. 

Assortment planners typically determine their mix 6-9 months in advance. And with lead times in production and planning, there’s little room for error—products made months in advance that don’t align with actual demand can tie up resources and margin for an entire season.

The rise of weight-loss medications is forcing retailers and wholesalers to be more agile and adjust their assortment planning to match the shift in size trends. While the long-term effect of weight-loss medications are yet to be seen, the apparel industry is already having to adapt their size curves as popularity for drugs like Ozempic and Wegovy soars. With 6% of the American population using GLP-1 drugs to lose weight, brands are starting to see smaller sizes selling more.

“Brands typically adjust (size) algorithms once a year. But now as more people use GLP-1 drugs, brands are updating these models more often than they have before to meet the need for small sizes.” – Kelly Pedersen, PwC retail leader.

Retailers who specialize in clothing or footwear know that accurate sizing is critical to customer satisfaction and profitability. AI can help improve size profiles by analyzing customer purchase patterns, returns data and even social media feedback in real-time to identify the most accurate sizing for different customer segments and simplify assortment planning. 

Enhancing Size Curves and Profiling with AI

AI enhances assortment planning by analyzing sales at the most granular level: style, color, size, by store, by week to recommend optimal buy. Instead of traditional, static clustering, AI systems such as 7thonline can optimize size profiling by store location to ensure demand is met. When AI fine-tunes sizing strategies, retailers benefit from higher profit margins as they avoid overstocking unpopular sizes while ensuring they have enough of the right sizes. 

Proactively react to shifting consumer behavior and needs with data-driven AI-based insights. By leveraging AI to its full potential, retail businesses can unlock efficiencies, reduce waste and meet consumer demand in a more personalized and profitable way. The future of retail is demand-based and data-driven—and those who embrace AI as an integral part of their operations will be the ones to reap the rewards in the rapidly evolving retail landscape.

7thonline is a leading provider of cross-channel assortment management solutions, including demand forecasting and inventory optimization for leading retailers and wholesalers, offering complete demand visibility and planning capabilities for wholesale, retail and ecommerce. 

To learn more about how AI can help make assortment planning more agile and dynamic, book a demo or email us at info@7thonline.com. 

The data is in: demand is high but sentiment is not. Up 1.4%, consumer spending was stronger than expected in March, reported the Commerce Department. However, consumer confidence is still slipping, especially with uncertainty around the tariffs. In a world where retail sales data is revealing mixed signals, strategic inventory assortment planning is paramount. 

Planning for Inventory Productivity and Sell-Through Rates

Retail assortment planning is a key part of merchandising strategy to determine the optimal mix of products to offer, in what quantities, when and where—to maximize sales and customer satisfaction. With a weak sentiment index, assortment planning is critical to ensure each SKU earns its place on the shelf. 

Inventory productivity drives profitability in retail. 

As shoppers become more selective with their spending, retailers must curate more targeted assortments that align with shifting consumer priorities, minimize excess inventory and maximize sell-through. 

Utilizing AI-powered planning solutions, retailers are able to use real-time sales data and historical trends to forecast demand, ensuring that stores are neither overstocked nor understocked, and enhance sell-through rates. With more accurate demand forecasting, inventory levels are more closely aligned with actual sales trends, reducing the likelihood of markdowns and unsold goods that eat into profit margins.

Retail Planning for Demand: Software, Techniques and Models

A demand-focused, data-driven approach allows businesses to stay agile, plan with precision and protect margins. A delicate balance between art and science, assortment planning not only anticipates trendy and relevant products but also relies on data to analyze and forecast demand. Through demand planning software, powered by AI, retail is able to do this seamlessly—leveraging analytics for precision while relying on merchant intuition and creativity to connect with shoppers and give them what they want. 

Instead of a traditional, static clustering (or “the wedge”) approach, demand planning software helps maximize selling potential with granular insights that help retailers curate a localized mix. 7thonline’s demand planning technique goes as far as the style, color, size, by store, by week—localizing assortments based on the store’s propensity to sell based on product attribute performance. The system will recommend buy based on demand targets and even use proprietary demand planning models to anticipate sales for new and seasonal products. 

7thonline is a leading provider of cross-channel assortment planning and management solutions, enabling more effective planning, demand forecasting and inventory optimization for leading retailers and wholesalers. With embedded business intelligence and rich analytics, the company’s solutions offer complete demand visibility and planning capabilities for wholesale, retail and ecommerce. 

To learn more about how AI can help brands and retailers drive revenue amid weak consumer sentiment through smarter assortment planning, book a demo or email us at info@7thonline.com. 

7thonline sat with WWD to discuss how AI in retail is enhancing efficiency, highlighting the company’s commitment to breaking down operational silos and enhancing efficiency across the board, ensuring tailored and flexible solutions that meet diverse client demands.

Since its inception, 7thonline has worked to revolutionize the retail and wholesale industry by integrating advanced data science with more than 25 years of business acumen. Today, 7thonline is committed to helping the retail industry move away from relying so heavily on manual processes to embracing technologies like machine learning and AI that can boost productivity and enhance profitability. The company has catapulted from a start-up focused on wholesale buying and planning tools to a global leader providing omnichannel merchandise solutions. With a client list including brands such as Patagonia and Calvin Klein, 7thonline maintains its competitive edge by fostering innovation and adapting swiftly to industry changes.

Here, Max Ma, chief executive officer, and Lauren Taubes, director of business development, reveal how cutting-edge retail tech can free retailers from “Excel Hell”.

WWD: 7thonline offers a unique suite of solutions for omnichannel merchandise and assortment planning. How do you maintain your competitive edge in such a dynamic industry?

Max Ma.: We always have the opportunity to collaborate with “best in class” brands that set the industry standard for best practices. We’ve had the privilege to collaborate with some of the best retail brands, like Patagonia, Birkenstock, Calvin Klein, Canada Goose, Bestseller, among others.

It is important to constantly ask ourselves: Are we on the right track? Are we approaching this the best way? We have a passion for the fashion and retail industry that fuels our innovation. Our team is composed of data scientists and former retail executives with extensive experience and this combination gives us insights into the problems our clients are facing and the data needed for the solution. We are able to do this by creating an industry specific platform that uses AI and machine learning to revolutionize merchandise planning and allocation and drives profitability.

Lauren Taubes: There are many retail technology companies out there and some offer services that are similar to 7thonline. But we are exceptional that we are able to integrate with technologies that clients already have and that we provide unique solutions for wholesalers that are breaking down silos and fostering more effective collaboration across the organization.

WWD: 7thonline serves global clients across various regions. Can you discuss any challenges you face while catering to such a diverse clientele and how you overcome them?

L.T.: Serving a global clientele, we see several challenges, primarily around inventory cycles and demand patterns. Each market has unique trends and seasonality, so a one-size-fits-all solution simply doesn’t work. To overcome this, we’ve built our platform to be highly flexible and adaptable, allowing clients to tailor planning and forecasting based on local data.

Additionally, global clients often face logistical and regulatory complexities. To address these, we provide real-time insights and AI-driven recommendations based on their history. This enables clients to make more accurate decisions. We also work closely with leadership to fine-tune our solutions. We want to make sure that we are in alignment with each client’s specific needs.

WWD: How does 7thonline ensure its solutions cater to both well-established brands and emerging players in the industry?

L.T.: By offering a modular, integrated approach, 7thonline helps both established and emerging brands improve speed to market, planning accuracy and greater profitability. Our tools enable businesses to adapt quickly to changing market demands by truly using the data the companies have but do not use effectively.

We offer a flexible, data-driven platform tailored to the fashion and footwear industry, supporting top brands like PVH, Patagonia, Birkenstock, Michael Kors and Canada Goose across both retail and wholesale models. Our platform provides granular, real-time demand insights, down to the SKU level at each store location for each selling week, helping businesses align inventory with localized demand and maximize productivity.

With solutions like merchandise planning, open-to-buy (OTB), pre-season assortment planning and built-in analytics, we enable smarter decision-making. Our tools streamline production forecasts, optimize allocation and replenishment and enhance supply chain efficiency, ensuring products reach the most profitable channels.

WWD: Customer success stories are very powerful. Could you share a specific case where 7thonline significantly impacted a client’s business outcomes?

M.M.: Recently, one large conglomerate that we work with reported that by utilizing a wholesale account planning system, they were able to place their production orders a week earlier. This was due to better planning and led to a $1 cost reduction per garment from their supplier. This is a notable savings in the retail industry.

WWD: How important is data security to 7thonline, especially when dealing with sensitive client information in the digital age?

M.M.: In our 25 years of business we have not had a data breach. Data security is extremely important to us, especially given the sensitive nature of client information and the current digital landscape. We are committed to safeguarding our clients’ data through robust security measures and industry best practices. Our cloud-native SaaS solutions are designed with advanced security protocols to protect against unauthorized access and data breaches. We are continuously updating our security frameworks to ensure that client information remains confidential and secure.

WWD: Can you describe any upcoming features or products that 7thonline is excited about rolling out?

L.T.: Here’s another reason why working with “best in class” industry leaders makes a difference. It allows us to develop products that meet their exact needs. For example, we are rolling out several new features designed to enhance both DTC and wholesale operations. For clients, we are expanding our item level planning that integrates sales planning with inventory management. This enhanced tool will provide detailed open-to-buy (OTB) and item level planning.

The benefit is that it will enable brands to track all key performance indicators (KPIs), including on-hand inventory, receipts, sales and transfers at both the distribution center and store level on a monthly basis. Another benefit is this provides real-time collaboration between the sales planning and inventory team so that there will be no more silos between planning and execution. To continue on the path, we are working with a major footwear brand to expand into production planning. This will help us to close the loop of the retail/inventory/planning/execution cycle.

WWD: What are some of the long-term goals for 7thonline, and what strategies are in place to achieve them?

M.M.: Looking ahead, 7thonline aims to eliminate inefficiencies caused by outdated tools like Excel. I like to call it “Excel Hell” because it’s frustrating, time consuming and full of inaccuracies. The biggest offense is that it creates data silos and slow real-time decision-making. As margins shrink, manual processes become unsustainable. The future is about delivering automated, end-to-end solutions that streamline operations and improve results, removing the need for manual inputting.

Embracing AI in Retail

Known as the “science guys of the retail industry,” we’re advancing AI and machine learning through collaboration with leading clients. It’s no secret that AI is part of the future and is transforming buyers’ roles, enabling smarter, real-time adjustments to product assortments, especially for seasonal items. Studies show 60 percent of pre-season purchases are unprofitable due to decisions made without real-time data. By leveraging AI, retailers can respond to consumer behavior mid-season, improving profitability.

Our strategy for the future is to embrace AI and the crucial edge it provides by predicting trends early, reducing reliance on pre-season guesses and enhancing margins, allowing retailers to reinvest in technology and stay ahead.

To read the full article on WWD, click here.

To learn more about the latest in AI for retail demand planning and inventory management, email us at info@7thonline.com or book a demo with our team.

At 7thonline, we understand the challenges brands face in maximizing inventory productivity across wholesale and direct-to-consumer (DTC) channels. 7thonline’s DTC Demand Planning is ‘Store-Based’ (Yin), while its Wholesale Demand Planning is ‘Account-Based’ (Yang), for a comprehensive and complete view of Corporate Demand. The two approaches are equally vital to your business yet when they are integrated as part of a whole, the combined benefits are significant.

Through decades of collaboration with clients like Patagonia, Canada Goose, PVH, Under Armour, Oakley and VF Corp, we have learned, refined and developed an end-to-end multi-channel demand planning technology that is purpose-built for inventory management, planners and account executives/salespeople.

Unfortunately, many people think they can manage wholesale with Excel or treat it the same as retail by using a ‘store-based’ solution, which leads to overstock and lost sales. Recently, several leading, innovative brands have approached 7thonline seeking a technology that can help them overcome the unique challenges of wholesale channel demand planning.

• Traditional demand planning tools were originally developed as ‘store-based’ solutions for CPG and food and beverage. After all, these are the largest consumer consumption categories so it makes sense.
• However, while ‘store-based’ approaches are great for DTC brick and mortar, they cannot be retrofitted to work for wholesale demand planning—period.
• Our wholesale demand planning is purpose-built as an ‘account-based’ system which is the only way to effectively manage wholesale.
• It enables Account Executives (AEs) to take early demand signals from customers and provides demand visibility across all accounts.
• It also enables quick order aggregation from brick-and-mortar and other channels, as well as effective planning for future demand with the aid of ML&AI forecasting.

Available to Sell (ATS) Reports can be created instantaneously versus aggregating bookings from hundreds of Excel worksheets. As mentioned earlier and in stark contrast, our approach to DTC demand planning is ‘store-based’. Utilizing both strategies for multi-channel demand planning is crucial for success.

7thonline’s unique approach of combining Yin and Yang has enabled brands to have a holistic view of demand planning across all channels, helping them drive revenue growth for nearly 25 years.

To learn more about 7thonline’s multi-channel capabilities, book a demo or email us at info@7thonline.com.

Amid supply chain woes, retailers are struggling to keep products on shelves and satisfy consumer demand—even retail giants are facing unprecedented inventory management problems: shortages, overstock, markdowns and lost sales.

The problem is systemic. Companies worry about shortages and err on the side of caution, ordering more than necessary to get inventory in the door. However, as demand softens, they end up with too much inventory and have to cut back and markdown existing inventory. 

So how can retailers address and get ahead of inventory management issues? In 2022, Walmart was caught with 32% more inventory year over year.

“It’s crazy. 8% would have been high, 15% would have been terrible, 32% is apocalyptic. I mean that’s billions of dollars of inventory. That’s just frankly not managed very well.” – Former Walmart President and CEO Bill Simon told CNBC

Introducing Inventory Control Desk, by 7thonline. Inventory Control Desk addresses the challenges retail executives are facing regarding managing inventory level liquidity and optimizing working capital, resulting in improved customer satisfaction and increased profits.

Developed in collaboration with industry-leading clients, Inventory Control Desk was designed. Inventory Control Desk affords visibility to plan and execute promotions, markdowns, transfers and closeouts—addressing growing inventory management problems for multichannel retailers grappling with lost sales. The application provides daily, weekly and monthly sales and inventory positions and generates sales forecasts and alerts for re-orders when inventory positions are at risk. 

For over 25 years, 7thonline has been helping the retail, wholesale and supply chain industries optimize demand planning and inventory management. Deployed as a cloud-native SaaS enterprise solution, 7thonline applications optimize merchandise planning and demand forecasting for clients such as Calvin Klein, Patagonia, Tommy Hilfiger, Michael Kors, Nautica, PVH and more.

Discover how 7thonline can help you minimize your inventory risk. Book a demo or email us at info@7thonline.com.