Successfully Increased Market ROI for $6 Billion Retailer

Situation

A $6 billion regional chain of 400+ supermarkets was facing stiff competition due to competitor store openings and internal inability to improve the performance of weekly ads and promotions. This led to weakened market share.

Approach

We worked with both IT and merchandising to gather item, ad, and category sales and link these to space allocation. We then established a system to crunch ’near real-time’ sales data across all promotion items at the store level, and systematically combined this with data on item pricing, ad space, and category space allocation.

Results

• The system correctly identified all category winners and losers.

• Ranked weekly sales from top to bottom in terms of ad performance.

• Effectively prioritized ad space allocation for merchandise categories.

• Successfully improved promotion and offer allocations.