Sales, Assortment and Promotion Analytics
Analysis of demand, margins and stock by product and store. Sales forecasting, promotion impact assessment and recommendations on assortment, pricing and replenishment.
The task
Help a retail chain manage assortment and stock based on real demand and the economics of sales. Identify which products make money, where the chain loses sales, and which changes are worth testing.
Analytical model
Sales, stock, deliveries, purchase prices and promotion history are combined at the product-and-store level. The analysis accounts for shelf availability: no sales during a stock-out does not mean no demand.
Inventory turnover, margins and differences between stores are examined. Excess stock, persistent shortages and items with unstable demand are singled out.
Forecasting and promotion assessment
Demand models take into account seasonality, the calendar, prices and promotion history. For each promotion, the incremental sales volume, the effect of the discount on profit and the redistribution of demand between products are estimated.
Hypotheses about assortment and promotion changes are tested on comparable groups of stores or in controlled experiments.
Working with results
The analytical interface drills down from chain-level indicators to a category, a store and an individual product. Forecasts and calculations feed decisions on purchasing, replenishment, assortment and the terms of the next promotions.