Fashion retailer The Limited just got smarter about its purchasing and pricing decisions.
First Insight, a provider of predictive analytics, announced that it had reached an agreement with The Limited to provide predictive analytics for selecting and pricing new products. The company did not elaborate further on the extent of its relationship with The Limited.
However, generally speaking, First Insight generates predictive analytics by leveraging the data flow generated from retailer’s engagement with online customers. For example, First Insight’s solution uses online social engagement tools to gather real-time preference, pricing and sentiment data on new products. This information is filtered through the company’s predictive analytic models to determine which products present the greatest opportunity.
In essence, The Limited will be able to evaluate thousands of designs or products quickly, to increase speed to market and reduce in-store testing costs. Another advantage relates to the ability to calibrate inventory buys based on direct consumer input and then determine optimal entry price points and forecast average unit retail prices.
The Limited operates approximately 250 mall-based retail stores and is owned by the private equity firm Sun Capital Partners. The company characterizes itself as an iconic fashion retailer that offers high-quality, private-label apparel designed to help the modern woman succeed. The Limited was part of the Limited Brands Inc., until August 2007 when it was acquired by Sun Capital. Limited Brands is best known as the operator of more than 2,600 U.S. stores primarily under the banners of Victoria’s Secret, Bath & Body Works and Pink.