daVinci’s Clustering application is a demand planning software for retail store clustering to create groupings, also known as clusters for different product levels using various inputs. These inputs can be product attribute, seasonality, location, or customer attribute, for one or a combination number of performance metrics (e.g., sales dollars, sales units, and gross margin).
The application uses embedded science and automation to deliver:
- your pre-specified number of clusters that best meets your business objectives, or
- the calculated optimal number of clusters that best fits the historical data you supplied for the analysis.
The Clustering app’s output can be used within the daVinci Assortment Planning, or in other enterprise tools such as Pricing, or Allocation and Replenishment.
daVinci Assortment Planning can take clustering results from this app directly and as frequently as necessary to create unique assortments at any product level. For example, a store can be an “A” for jeans, but “B” for boots, and “C” for leggings, and a “D” for accessories for winter with a completely different profile for summer.