Merchandising Wins: How These Top Retailers Grew Profits with Merchandising Automation

In today's market, a sophisticated merchandising approach is essential for staying ahead in the competitive landscape. Yet, tackling slow-moving inventory is still a significant hurdle, particularly for brands striving to elevate their conversion rates. It's all about balance. 

Achieving this delicate balance is all about maximizing sales while minimizing inventory levels — something that can only be successfully achieved by leveraging advanced product analytics and real-time automation and optimization tools. 

And the results? That’s precisely what this post will show you. We highlight five merchandising automation case studies for these top online retailers: 

1. Swarovski 
2. DailySale 
3. Davosa USA 
4. JD Sports 
5. Mia Belle Girls 

Let’s jump in. 

1. Swarovski 

Looking to increase sales while reducing non-moving inventory, Swarovski IL turned to merchandising automation. The challenge was that they needed to find a solution to sell their slow-moving inventory without compromising the visibility of their bestsellers or affecting their conversion rates and sales. Therefore, a single-parameter strategy would not work. 

They needed to build a more tailored sorting strategy for each of their collections — one that uses multiple advanced parameters simultaneously but on auto-pilot. 

The strategy? 

We developed a sorting plan for their collections, taking into account various factors to match each collection with its specific business goals. By understanding how each factor influenced the objectives of different collections, they fine-tuned their approach. Using advanced AI, Swarovski regularly adjusted their collections based on real-time data to ensure they were constantly optimized.

The results? 

After integrating Kimonix’s Smart Collections across their entire Shopify store for four weeks, Swarovski witnessed a 29% reduction in stagnant inventory and an 18% uptick in conversion rates, resulting in an 8% increase in profits.

You can read more details about this case study here.  

2. DailySale

Looking to offer a varied selection of products guided by state-of-the-art product analytics while promoting their best performers and increasing CTRs, DailySale decided to upgrade and automate its online merchandising strategy. This was particularly challenging for them, given their product niche variety. 

DailySale offers buyers a wide range of on-demand and trending products from one convenient place — great for shoppers but tricky for product curation. In fact, without automation and advanced tools, they could not efficiently monitor data across multiple product categories, identify top-performing products, or track inventory levels in real-time. 

Their strategy? 

With the help of Kimonix’s advanced automation, they were able to dynamically sort their store products based on real-time data that factored in multiple parameters. 

The trick was combining a multi-parameter strategy that factors in real-time marketing and retail data with advanced AI capabilities to ensure they not only automated but optimized their product sorting. 

And the results? 

A 221% increase in YoY CTRs (click-through rate)! 

You can read about this case study in more detail here.  

3. Davosa USA

Looking to offload their dead stock without negatively influencing conversion rates, Davosa USA turned to advanced merchandising strategies driven by automation and sophisticated AI technologies. 

They aimed to segment their non-moving products into categories to promote them without reducing conversion rates. In other words, they needed to ensure that their best-selling products would still be visible to potential customers while trying to push stagnant stock. This would require a multi-segment collection approach combined with real-time optimization. 

Their strategy? 

We helped them create a multi-segment collection that included three product groups: best performers, non-moving inventory, and new stock. Automation was then used to enable them to alternate between these product collections. Additionally, a different sorting approach for each of these product segments (displayed in the collection) was used, one that factored in multiple retail parameters to push these products to the top of collection or category pages.  

The results? 

In just four weeks, Davosa USA was able to decrease the amount of their non-moving inventory by 16% while increasing their overall conversion rates by 32%!

You can read more details about this case study here. 

4. JD Sports 

Prominent retailer JD Sports had a straightforward goal — to significantly increase their collection conversion rates. To do this, they decided to test Kimonix’s built-in A/B testing strategy with just one of their main collections. 

The strategy? 

First, JD Sports set up a control test within the tool to provide a baseline for their original conversion rate. Next, they employed Kimonix’s multi-segment collection setup to create a collection that showcased a variety of product types in each row — such as a row of T-shirts, pants, shorts, and more. They then used a unique sorting strategy — one unique to the specific product — for each of these rows, all within the collection. 

Each sorting strategy factored in various parameters such as conversion rates, varieties in stock ratio, and more. Ultimately, the product segments within the collection were optimized in real-time to ensure that the right product was recommended at the right time. One that answered both potential shopper’s needs and the brand's KPIs. 

The results? 

A substantial boost in their collection conversion rate of 142%.

You can read about this case study in more detail here.  

5. Mia Belle Girls

Another brand who successfully used merchandising automation and advanced product sorting technology to boost conversion rates is Mia Belle Girls. 

This Miami-based girls' clothing brand had previously been using an item-by-item product sorting method that required manually tagging bestsellers and new arrivals. They were also unable to quickly adjust for inventory quantities, as a manual strategy doesn’t factor in real-time data. 

Therefore, looking for a more data-driven solution, Mia Belle Girls wanted to be able to adjust their collection in real-time. They also wanted to sort their products by a wide variety of parameters, such as sales, variants in stock, etc., within each of the collections — something that cannot be done manually. 

The strategy? 

Switching to an advanced merchandising tool, Kimonix, that harnesses the power of AI. Here’s how Kimonix works: 

The results? 

A whopping 267% increase in their conversion rates. 

You can read about this case study in more detail here. 

Wrap Up 

There you have it, five online retailers who grew profits and boosted conversions with merchandising automation. 

You can test their strategies on your store for free — sign up here for your free demo. You can also visit the Shopify app store to sign up for a free trial.