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THE PROBLEM
You commit before the cost is known. Purchase volumes are committed 12 to 18 months out, while tariffs, freight and currency land afterwards. The annual cost of wrong stock is put at $1.7 trillion, or 6.2% of global retail sales.
The choice is made before the customer arrives. 62% of shoppers use AI to compare products before they buy, but only 23% at checkout.
The profit moved off the products. Advertising and membership now account for close to a third of operating income at the largest retailers, and private label runs 28–31% of sales at the majors, at roughly twice the margin.
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ALGOVERDE SOLUTIONS
MERCHANDISING
How many brands to carry, and which ones? And what are the hot upcoming products?
The assortment at brand level rather than SKU level — which brands to carry and how deep, against modelled shoppers rather than the same week last year, before the order goes in.
E-COMMERCE OFFERING
How do we increase click-to-cart?
How to showcase multiple brands on a page — what the store says about itself, and what actually moves a multi-brand page from browse to cart. Tested where the comparison now happens, not where it used to.
PRIVATE-LABEL CONCEPT TESTING
Does your own-label product earn its shelf?
Green-light or kill, before the shelf is committed. Your own label is tested as a typical CPG problem: concept, pack, claim and price together.
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PROOF
AlgoVerde worked with a global household-care portfolio for the past 24 years, green-lighting, reworking and killing concepts before the shelf was committed.
On e-commerce, concepts refined on the model and built into a live site lifted human add-to-cart by 60%.
Bring next season’s assortment. We’ll run it against the shopper rather than against last year, and tell you what to carry, how deep, and what to cut.
Want to know more? Check out our FAQ section for everything you need to know about working with AlgoVerde.
How can retail teams test assortment decisions before ordering?
AlgoVerde helps teams evaluate which brands to carry and how deep to buy against modelled shoppers before the order is placed.
Can AlgoVerde support e-commerce optimisation?
Yes. Teams can test how multiple brands are presented online and what may move shoppers from browse to cart.
Can private-label concepts be tested before shelf space is committed?
Yes. Private-label concepts can be tested across concept, pack, claim and price before shelf space is committed.
How is this different from relying on last year's sales data?
The approach lets teams test future assortment and product decisions against modelled shopper responses instead of relying only on historical performance.