Shopper's Stop Case Study

One day, Suchitra walked into Shopper’s Stop but had no intention of making any purchase that day. During her shopping jaunts with her friends, if she bought an ethnic ensemble, she would go upstairs and purchase matching footwear. On that day, she was pleasantly surprised to find footwear section adjacent to ethnic wear department. She ended buying ethnic wear and shoes that match. This is not a mere coincidence. Shopper’s Stop has painstakingly conducted adjacency analysis on 24 month customer transaction data and found a pattern that 25% of women who buy ethnic wear tended to buy footwear. Based on this insight, Shopper’s Stop moved its footwear section adjacent to Ethnic wear section which translated to an increase of 25% in sales. This

It is the foundation on which any business stands, more so in retail industry. A customer would be satisfied if the outlet has the stock of items, he/she would want to purchase and has decent levels of customer service e.g., store staff helping the customer to find the item he/she is searching for. The former one has more to do with the supply chain management. In other countries, big retailers like Walmart and Tesco are largely successful because of the efficient supply chain. This is enabled by technology as they use EDI for procurement. Companies like HyperCity in India have dynamic auto replenishment processes which accounts on average to 26-30% of their purchases. “In India, most of the benefits reaped have been in Supply chain management while the future potential lies in CRM”, says Sharmila, a retail

The opportunity to gain competitive advantage of using analytics in retail is enormous.

Following are few ways in which data can be used to derive business benefits. These are the trends which are widely adopted by successful retailers across the world:

2.1. Optimized assortment and allocation of shelf space:
By using optimization tools, we can analyse which products are selling better, the profit contribution each brand to help retailers in taking the decision of trade-off between shelf space and depth of the assortment.
2.2. Providing customized offers to customers:
By segmenting customers based on their buying behaviour and formulating customized offers to them, there is a high likelihood of customers responding. It also helps in giving product recommendations which leads to cross selling and up selling.
2.3. Detecting and preventing fraud:
Latest analytical approaches help the customers in detecting incidents of fraud like stealing credit card information, fraudulent merchandise returns and shrinkage. As detection is the first step, retailers can prevent fraud by taking measures at potential points of fraud.
2.4. Inventory