Prioritize High-Margin Products to Strengthen Retail Performance

Tl;dr: This case study shows how Guzzi Gioielli increased revenue by 17.5% by using demand planning analytics for product assortment optimization and to prioritize high-margin inventory through data-driven demand planning and a renewed retail merchandising strategy.

In luxury retail, product assortment optimization is more than merchandising. A strong retail merchandising strategy directly influences revenue, profitability, and customer experience. Retailers must constantly decide where to invest inventory capital across a broad portfolio of brands and SKUs, knowing that not every product contributes equally to performance.

For Guzzi Gioielli, an Italian luxury jewelry and watch retailer, maintaining a refined assortment has always been central to the brand’s identity. With three retail locations in Calabria and a growing ecommerce presence, the company has built its reputation on craftsmanship, trust, and an elegant selection tailored to its clientele.

Under the leadership of CEO Eugenio Guzzi and COO Vitaliano Battaglia, the company experienced remarkable expansion, achieving 140% revenue growth over two years. As demand accelerated, the leadership team faced a new strategic question: how to allocate inventory investment across a growing product portfolio while protecting profitability.

The answer required a clearer view of which products truly drove performance, and to understand this, they needed powerful demand planning analytics to guide inventory investment.

The Challenge

Luxury retailers often manage hundreds of SKUs across multiple brands, each with different demand patterns, margins, and sales velocity.

As Guzzi Gioielli’s business grew, so did the complexity of its assortment decisions. Without precise analytical support, identifying the most profitable opportunities within the catalog became increasingly difficult.

The team faced several operational challenges:

  • Limited visibility into which brands and categories delivered the strongest financial returns
  • Difficulty prioritizing inventory investment across a broad SKU portfolio
  • Risk of allocating capital to slower-moving products during high-demand periods

Eugenio and Vitaliano recognized that sustaining growth required a more structured and data-driven merchandising approach.

A Data-Driven Merchandising Strategy with Intuendi

To strengthen decision-making around product investment, Guzzi Gioielli adopted Intuendi’s demand planning and analytics platform.

Using historical demand analysis and predictive insights, the leadership team gained a clearer understanding of how different brands and categories performed across the business. This allowed them to focus inventory investment on the products most likely to generate strong financial returns.

With Intuendi supporting daily planning decisions, the team was able to:

  • Identify top-performing brands and product categories
  • Prioritize inventory allocation toward high-margin items
  • Align purchasing decisions with real demand patterns

Rather than expanding inventory indiscriminately, Guzzi Gioielli concentrated its resources where they could create the greatest impact.

The Results

The shift toward more focused product prioritization strengthened both revenue and profitability:

  • 17.5% increase in overall revenue
  • 12% improvement in profit margin
  • Stronger inventory availability in top-performing categories

By directing inventory investment toward high-value products, the company was able to capture more demand while maintaining financial discipline.

The Advantage Gained

Guzzi Gioielli’s leadership demonstrated that effective growth in luxury retail requires more than expanding product offerings. It requires clarity about which products truly drive the business forward.

With Intuendi supporting forecasting and product performance insights, the company transformed merchandising decisions into a more strategic process.

The result was a sharper, more profitable assortment strategy capable of supporting continued growth while reinforcing the brand’s commitment to quality and excellence.

Written by
 Jacqueline Tanzella

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