AI-Driven Planogram Management: HIVERY Curate's Impact on a Multinational Grocer's 500,000+ Planograms.
A leading multinational grocer, operating across numerous regions with a vast store network, faced significant challenges in managing over 500,000 planograms. The process was inefficient, costly, and lacked effectiveness in sales optimization and supplier negotiations. The objective was to revolutionize this process, enhancing the planograms' role in driving sales and improving negotiation leverage.
Value 5 drivers met: How Curate Can Help
1. Process Efficiency:
In a pilot implementation of Curate, the solution reduced the planogram creation and management timeline from 12 weeks to just 2 weeks, a significant efficiency gain achieved using existing capabilities such as data integration, planogram interaction, and predictive analytics, before even introducing advanced merchandising features.
2. Category or "Range" Performance Enhancement:
Curate's planogram adjustments, executed even with incomplete data, outperformed the grocer's traditional 12-week process in a control store test. This marked a substantial improvement in in-store performance and category sales, demonstrating the system's ability to optimize retail space effectively.
3. Strategic Negotiation Facilitation:
With the speed and agility of Curate, the team realized its functions as a "negotiation decision engine", offering data-driven insights for smarter product assortment decisions. Curate's predictive capabilities enable this retailer to understand the revenue implications of product changes, strengthening its position in negotiations with Consumer Packaged Goods (CPG) suppliers.
4. Hyper-local Strategy & Automation:
Embracing a hyper-local assortment and planogram strategy, Curate's automated, store-specific insights support the grocer's shift towards more localized assortments. This capability dramatically reduces the labor-intensive task of planogram drawing, enabling rapid adaptation to market demands.
5. Scalability and Adaptation:
The grocer can deploy customized planograms on a large scale, effectively addressing local market dynamics and consumer preferences. HIVERY Curate's ongoing updates and learning ensure the system's continued relevance, effectiveness, and alignment with evolving market trends.
Additional Example Analysis
Not all stores are equal, but some are better positioned for store-specific than others.
A separate case study involving another client's 400 stores revealed that not all stores are equally suited for store-specific assortments. Tailoring assortments to just 8% of the stores (33 stores) could increase sales by 15%, showcasing the power of customized assortments. However, as store-specific assortments expanded to more locations, the contribution to incremental sales decreased, with the next 100 stores experiencing a 10-15% sales increase. This pattern of diminishing returns, influenced by factors such as operational costs, distance to distribution centers, and supply chain constraints, is precisely what HIVERY Curate can analyze, model, and incorporate into its decision-making algorithms.
- Efficiency and Resource Optimization: A drastic reduction in the time and resources required for planogram management was achieved, transforming a historically cumbersome process into a streamlined, agile operation.
- Enhanced In-Store Performance: The use of Curate led to improved in-store performance and increased sales, linked to more effective planogram designs and assortments.
- Empowered Negotiations: Enhanced negotiation leverage with suppliers, supported by the robust, data-driven insights provided by HIVERY Curate.
- Successful Hyper-Local Implementation: The automated and scalable nature of Curate facilitated a successful transition to a hyper-local strategy, enabling the retailer to respond swiftly to local market nuances.
The application of HIVERY Curate in these scenarios demonstrates its indispensable role in retail assortment strategy and operational efficiency. By fostering efficiency, enhancing store performance, and empowering negotiation processes, HIVERY Curate is a pivotal tool for retailers seeking to refine their strategies, adapt to market changes, and achieve long-term success in a dynamic.
Get started today and discover how HIVERY Curate can transform your retail decision-making process.