BI Masterminds 2012

Shoppers Stop: BI for micro-segmentation, expansion

BI Masterminds 2012 Awards Rank: 4

The portfolio containing a variety of retail formats and ever expanding product basket at each store had made expanding into new geographies a challenging task for Shoppers Stop. The management also felt the need to have a holistic view of the customer across the retail formats (department stores, hypermarkets, bookstores, specialty stores, and airport retailing) to analyze the customer-behavior and thereby improve wallet-share. Micro-segmentation of customers was another requirement as the retailer wanted to reach to its customers with specialized messages, thus making an integrated BI platform the key business requirement.

Shoppers Stop also needed BI to carry out market basket analysis and recency, frequency, and the monetary value of each customer to review effectiveness of its merchandising and associations between products.

BI was seen as critical to help the organization with demand forecast to optimize on fast/slow movers in the same store and across the chain to reduce markdowns and fill rates (a measure of shipping performance expressed as a percentage of the total order).

Solution implemented:

  • Datawarehouse appliance: Netezza (IBM)
  • Business Data model: RDM (Retail Data Model) from Claraview (Teradata)
  • ETL Tool: ODI (Oracle Data Integrator)
  • Business Intelligence and Analytics: SAS
  • Data Visualization: Tableau

BI system at Shoppers Stop covers:

  • Analytics
  • Dashboards
  • Decision support systems
  • Online analytical processing
  • Querying and reporting

Used by:

  • Top management
  • Finance and accounts
  • Customer support
  • Sales
  • Operations
  • Merchandising

Benefits delivered by BI:

  • With BI, Shoppers Stop is able to target micro-segments to ensure incremental business through promotions and messages sent to its customers. This has also helped the retailer to reduce inventory and still offer the customer what he wants by optimizing the merchandise mix.
  • BI has turned Shoppers Stop’s store expansion projects productive. The company analyzes the profiles of its stores located in the cities with similar demographic spread to create new stores at new locations. This analysis ensures that stories opened in the new cities have a higher probability of success.
  • Monitoring sales patterns across stores helps the operations teams to tactically change store layouts or of the displayed merchandise to attract customers.  The same feedback helps the back office planners in adjusting flow of merchandise to the stores.
  • BI has also helped Shoppers Stop to grow its online retail and improve the flow of referrals.

 

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This was first published in March 2012