The Importance of Localized Size Profiling & How AI Helps You Get it Right

“Sorry, we don’t have any more in that size.”

Out-of-stock sizes rank as the top complaint among shoppers. Inaccurate stock purchasing across sizes is estimated to result in profit loss of up to 20% on average a month. In today’s retail climate, precision is everything. With shifting consumer preferences and compressed product lifecycles, the margin for error has never been smaller. One area where we consistently see brands leaving revenue on the table? Size allocation.

The Power of Localized Size Profiles

Too often, size profiles are applied broadly across regions—or worse, chain-wide—without accounting for localized demand signals. A best-selling medium in one district could be deadstock in another. Getting the right products in the right size, to the right store, at the right time is no longer optional—it’s essential.

Localized size profiles enable brands to fine-tune allocations down to the store or region level based on actual demand, not assumptions. But creating these profiles manually is time-consuming, and static models quickly fall out of sync with current selling trends.

That’s where AI steps in.

AI + Real-Time Data = Smart Allocation and Assortment Planning Software

Retailers are increasingly turning to AI tools to overcome challenges in balancing demand, availability and profitability. AI enables a more agile, responsive approach to assortment planning through granular insights on real-time data. Risk is reduced as production decisions are informed by what actually sells, cutting down on waste and markdowns.

Leverage advanced AI and machine learning models to analyze real-time POS data, identify emerging demand drivers and detect shifting size curves as they happen. This means brands can automatically adjust allocations based on what’s actually selling—down to the store level.

Our AI models factor in:

• Local climate and demographics

• Historical sell-through performance

• Category-level trends and seasonality

The result? More accurate demand forecasts, optimized size runs and fewer markdowns.

The Bottom Line

Localized size profiles powered by AI aren’t just a nice-to-have—they’re a competitive advantage. With today’s tools, retailers can stop relying on intuition and start making data-backed allocation decisions that drive full-price sell-through, reduce stockouts and increase margins.

Are you ready to turn your size profile strategy into a growth driver? Talk to the team at info@7thonline.com or book a demo.