Retail Industry

The Retail industry is a dynamic sector requiring a careful combination of creativity, business theory, skilled practice, and technology to create value for customers – key aspects being experiences, convenience, service, and quality.

Value-creating functions of the retail sector are providing an assortment of products and services, breaking bulk, holding inventory and providing services. The sector is undergoing rapid change: customers scrutinize retailers today under a new set of value standards, including social responsibility, environmental impact, workplace safety and diversity, and the forces of globalization and trade.

Digital disruption continues to have a big influence on the retail sector - Amazon being a symbol of this threat to the incumbents.

The challenge for retailers is responding to the economic, technological, and customer disruptions with sound retail management strategy.

E-commerce is the one getting the most media coverage. However, technology and online customer behavior are not a threat to retail but should be a part of the strategy, so the economic and technological trends from e-commerce still are a driver for the need to innovate in the retail sector.

Pre-configured Analytics & Machine Learning systems​

Complexity of adressing business-specifics is often underestimated while technological requirements are overestimated
Lack of understanding in business units on how to utilize Advanced Analytics and Machine Learning
Access to experts with the right set of competencies across different domains
Availability of data at sufficient quality and quantity

Performance Drivers

Assortment optimizationCost reduction for category management
Retailers can gain competitive advantage by comprehending, monitoring and optimizing assortments at the macro, store cluster and store levels. They can leverage their insights to align the assortment with customer needs, simplify the supply chain and gain control of vendor negotiations.
Promotion effectivenessCost reduction for promotions
Retailers get transparency on the effectiveness of promotion activities (revenue, margin, store visits) in order to develop strategies for more impact focused campaign management and discounts.
Customer segmentationRevenue increase through improved customer relationships
Retailers get transparency on their customers and different customer groups. They can make campaigns and offers more targeted, streamline the assortment towards customer’s needs.
Store segmentationRevenue increase through improved store footprint
Retailers get transparency on their stores and different types of stores which helps them to derive a specific strategy for each sales location.
PricingMargin increase through optimized pricing
Retailers can optimize their pricing strategy by identifying Key Value Indicators, i.e. products for which the price is exceedingly important. Also, retailers can use competitive intelligence to adjust their prices and leverage local and temporal information to make prices dynamic.
Personalized promotionsRevenue increase through upselling
Retailers can make customer offers to customers based on their needs. By understanding which promotions are meaningful for a specific customer, retailers can move away from mass communication to personalized interactions with their customers.

Next Steps

Read about our past Industry Solutions
Learn more About SCALEWORK
Speak with a Data Expert