The Right Inventory.
In the Right Place.
Before the Markdown.
Allocation is where the buy plan meets the store. RetailNorthstar optimizes how inventory is distributed across channels and doors — to maximize full-price sell-through before clearance pressure begins.
Allocation planning is the process of distributing confirmed inventory quantities across sales channels and individual store doors. Every allocation decision either supports or undermines the full-price sell-through rate you planned for at the start of the season.
Allocation quality is margin quality
The connection between allocation and margin is direct. It is not a planning abstraction — it is what happens to your inventory cost recovery when units are in the wrong place.
Inventory at a slow door
Units age past the full-price selling window. Markdown required to clear. Margin diluted.
Inventory at a fast door — too little
Door sells through early. Stockout. Lost full-price revenue that cannot be recovered.
Inventory matched to demand
Full-price selling window fully utilized. Markdown reserve intact. Margin protected.
The core principle: allocation decisions are made before the season starts, but their margin impact is realized throughout. The earlier you identify and correct an imbalance — either pre-season or through in-season reallocation — the more full-price selling time you preserve.
DTC, wholesale, and store — in one plan
Most apparel brands manage channel splits as an afterthought — decided after the buy is locked, in a separate spreadsheet, by someone who wasn't in the buy review. In RetailNorthstar, channel allocation is part of the connected workflow from the buy plan forward.
Direct-to-consumer units planned against sell-through forecast by style and color. DTC allocation reflects site traffic patterns and margin priority.
Account-level commitments captured in the buy plan flow into wholesale allocation. Minimum commitments and delivery windows are tracked by account.
Store inventory planned at the door level — not just by region or tier. Each door receives a quantity based on its demand signal, not a formula.
Allocation decisions informed by door-level history
Equal distribution is the default when you don't have a better signal. RetailNorthstar replaces the default with AI-generated recommendations based on how each door has actually performed on comparable styles.
- Historical sell-through rate by door × category
- Style-level performance vs category average
- Door capacity and current inventory position
- Seasonal sell-through patterns (SS vs FW)
- Channel weighting by brand and style type
Allocation capabilities in RetailNorthstar
How spreadsheet allocation erodes sell-through
Manual allocation in spreadsheets produces predictable failure modes. Each one costs full-price revenue and adds markdown pressure.
Equal distribution
Splitting inventory evenly across all doors is the path of least resistance — and one of the most common causes of imbalanced sell-through. Stores that sell faster run out early and lose revenue. Stores that sell slower carry excess inventory into markdown.
Gut-feel store ranking
Allocating based on store tier or historical revenue rank misses the style-level signal. A top-revenue door may underperform on a specific category or colorway. Door-level sell-through by product type is what matters — and it requires data, not intuition.
Channel splits decided last
When channel allocation is decided after the buy is locked, it becomes a reactive exercise rather than a planned one. DTC, wholesale, and store quantities should be part of the buy plan, not an afterthought.
No in-season reallocation
Pre-season allocation is a forecast. In-season, sell-through diverges from plan — some doors outperform, others underperform. Without a structured reallocation process, brands miss the window to move inventory before it ages.
Allocation is the final step in the connected workflow
Allocation planning questions
What is allocation planning in apparel merchandising?
Allocation planning in apparel merchandising is the process of distributing confirmed inventory quantities across channels (DTC, wholesale, stores) and individual store doors. Allocation decisions determine which stores receive which styles and how many units — and they directly affect full-price sell-through rate. A well-allocated inventory position means the right quantity in the right door before the selling window closes. A poorly allocated position creates simultaneous stockouts at strong-performing doors and excess inventory at slower doors, both of which lead to markdown pressure.
How does RetailNorthstar handle multi-channel allocation?
RetailNorthstar manages channel allocation — DTC, wholesale, and store splits — as part of the connected planning workflow. Channel quantities are established during the buy planning stage and flow into the allocation workflow automatically. Within each channel, door-level distribution is planned using historical sell-through data and AI-generated recommendations. All allocation decisions are visible in a single interface, connected to the original buy plan and OTB.
How do AI allocation recommendations work in RetailNorthstar?
RetailNorthstar uses historical sell-through data at the door and style level to generate allocation recommendations. Instead of distributing inventory based on store tier or gut feel, the system identifies how each door has performed on similar styles in previous seasons and recommends quantities proportional to that demand signal. Recommendations are a starting point — buyers and planners review and adjust before allocation is finalized.
What is the difference between pre-season and in-season allocation?
Pre-season allocation is the initial distribution plan built before the selling season begins, based on the confirmed buy and historical demand patterns. In-season allocation — also called reallocation — happens once sell-through data is available and actual performance diverges from plan. RetailNorthstar supports both within the same workflow: pre-season allocation is built from the buy plan, and in-season reallocation is triggered when door-level sell-through signals an imbalance.
See allocation planning in action.
Book a demo and walk through a live allocation workflow — AI recommendations by door, channel splits from the buy plan, pre-season and in-season in one connected system.