For the webcast replay, head over here! https://www.celect.com/brand-assortments-webcast

1. Predictive Analytics
Demo Series
Optimizing Brand Assortment

2. Agenda
• Introduction to Celect
• Current State of Retail
• Understanding Customer Choice
• The Big Picture Planning Process
• Demo – Optimizing Brand Assortment
© 2016 Celect, Inc. All Rights Reserved.2

3. An Intro to Celect
• Who we are
‒ Predictive analytics SaaS platform for retail
‒ Based in Boston, MA
‒ Venture-backed, technology out of MIT
• Awards & Recognitions
‒ MIT Computer Science and Artificial
Intelligence (CSAIL) Top 50 Greatest
Innovations
© 2016 Celect, Inc. All Rights Reserved.3

4. © 2016 Celect, Inc. All Rights Reserved.4
“For years, online retailers such as
Amazon have built their businesses
models around algorithms that track
and predict how we purchase things
online—using a method called
machine learning. Celect aims to do
the same for traditional retailers.”
The hat whisperers: This Boston startup tracks shopper’s
habits to help brick-and-mortar stores make sales
Boston Globe, June 25, 2015
“New solution providers like Celect
pound through volumes of a retailer’s
transactional data as well as customer
footfall to more effectively execute its
merchandise allocation”
Web Style Analytics Enters The Retail Store
Forrester Research, Inc., March 30, 2016

5. Current State of Retail
© 2016 Celect, Inc. All Rights Reserved.5
Retailers are
Awash in Data
Inventory, PoS,
browse history,
transaction logs,
search, etc.
Online/Offline
are Blurring
Merchants often
have responsibility
for both online and
in-store
Need for Growth
Opportunities
Improved Allocation,
Buy Accuracy,
Assortment Planning

6. How are decisions being made today?
© 2016 Celect, Inc. All Rights Reserved.6

7. There’s a Better Way
© 2016 Celect, Inc. All Rights Reserved.7
Bring Science
to the Art of
Retail
• Supplement your experiences, knowledge, and
intuition with machine learning
• Leverage the data you already have
Predicting
Customer
Choice
• How products interact and influence each other
• Assortment Planning, Buy Accuracy, & Allocation

8. This answers the questions…
© 2016 Celect, Inc. All Rights Reserved.8
We sold out of a particular product in Store 28
WHAT WAS THE RIGHT ALLOCATION?
We have never sold a particular product in Store 58
HOW WELL WOULD IT SELL THERE?
We are looking to add a new brand in to a set of stores
WHAT IMPACT WILL THAT HAVE ON STORE SALES?

9. Which would perform better in store 54 vs 102?
© 2016 Celect, Inc. All Rights Reserved.9
Four Way Stretch
Solid Color
Sweat Wicking
Drawstring hood
Fleece fabric
Solid Color
Breathable
Zippered hood
… …

10. The Retail Process
Plan Buy Allocate Sell Liquidate
© 2016 Celect, Inc. All Rights Reserved.10
What product
and how much
should I buy?
Did I over-buy
or under-buy?
Is the product in
the right stores?
Did I maximize
full price sell-
through?
How much
margin did we
lose?
Prescriptive
Decisions
Optimized
Assortments
Optimized
Allocation
Engaged
Customers
Optimized
Markdown

11. The Retail Process
Plan Buy Allocate Sell Liquidate
© 2016 Celect, Inc. All Rights Reserved.11
What product
and how much
should I buy?
Did I over-buy
or under-buy?
Is the product in
the right stores?
Did I maximize
full price sell-
through?
How much
margin did we
lose?
Prescriptive
Decisions
Optimized
Assortments
Optimized
Allocation
Engaged
Customers
Optimized
Markdown

12. DEMO!
© 2016 Celect, Inc. All Rights Reserved.12

13. Thank you!
© 2016 Celect, Inc. All Rights Reserved.13
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