Quantzig’s Merchandising Analytics Helps a Renowned Sporting Goods Retailer Optimize Markdown and Projections

Dec 15, 2017

A recent study reveals that the retail stores are witnessing a 54% year-on-year increase in mobile shopping.

The retail industry is emerging as the most dynamic and fast-paced sector across the globe, accounting for 31% of the world’s total GDP revenue. The sector encompasses the buying and selling merchandise for the household consumption with food and beverages comprising of the majority of the sector’s revenue. With the recent shift toward “retailization,” the APAC region is witnessing the fastest growth, accounting for approximately 35% of the global market. Though the global retail industry is showing promising growth, several factors are likely to hinder the growth of the industry over the coming years.

The growing need to revamp retail strategies and leverage data-driven insights have prompted leading retailers to invest in merchandising analytics. Contact us to know why it’s crucial for businesses.

  • Global economic recession: With the global economic slowdown, and the recent Brexit issue, the economy across the globe has been greatly affected. This has, in turn, affected the commodity prices. With the rising prices of the products, the retail sector is estimated to take a setback, as the industry is witnessing a significant decline in the consumers’ spending behavior.

  • Online retailing: With the recent shift toward e-commerce, the shopping behavior of the consumers is altering as the consumers are looking for convenience, authenticity, and creativity in their shopping preferences. With the online players paying more emphasis on customer satisfaction, the customers are more likely to shift to online retailing platforms.

It is due to these factors that leading organizations are looking for merchandising analytics solutions to cater to the rising demands of the customers. Merchandising analytics solution is used by the merchandisers to optimize merchandise assortment and store-front layout. The solution comprises of techniques such as store-front assortment optimization, category planning, inventory optimization, and demand planning and forecasting. For leading organizations, the solution helps companies track new product performance, optimize markdowns and promotions, and improves the overall profit margins. Also, organizations can rely on merchandising analytics to enhance their store performance and the merchandising effectiveness.

Request a FREE proposal to learn more about our merchandising analytics solutions.

The Business Challenge

A leading sporting goods retailer with more than 300 stores spread across the globe wanted to differentiate its in-store offerings and cater to the changing customer preferences. The sporting goods retailer wanted to create a merchandising strategy to understand how customer behavior is impacted by product replacements and further wanted to optimize their merchandising tactics to enhance shopper loyalty and ensure better returns. With the help of Quantzig’s analytics solution, the sporting goods retailer wanted to compare the price indexes of the products with that of the competitors. The client wanted to seek ways to gain predictive insights on the sales, returns, and pricing effectiveness and efficiently bridge the demand-supply gap between the retailers and the customers.

QZ- merchandising analytics

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Benefits of the Merchandising Analytics Solution

The merchandising analytics solutions offered by Quantzig helped the sporting goods retailer reduce their spending due to better inventory planning and increase customer retention. The engagement also helped the sporting goods retailer identify optimal product combinations based on customer preferences and profile and target the potential customers with the help of category planning. The solution also focused on improving the effectiveness of pricing decisions on customer buying behavior; thereby, resulting in higher sales and profitability. The engagement also sought ways for the sporting goods retailer to improve their merchandising planning and enhance sales promotions.

Additional Benefits Offered by Quantzig Include:

  • Through store assortments, the client drove sales, productivity, and performance
  • Efficiently managed merchandises and maintained price competitiveness and targeted offers to customers

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