How Analytics-Driven Store Clustering Can Drive Sales And Profits In Retail

Personalisation is the new mantra for retailers today. However, that should not be limited only for the customers but also be adopted as a strategy towards growing store sales. ‘One-size-fits-all’ approach would no longer work for achieving strong store-level growth and it is important to customise a strategy for each store. Clustering of stores based on characteristics beyond store sales or region will enable retailers to identify a cluster of stores that would match each other closely on multiple dimensions. Brick-and-mortar retailers can begin their store level personalisation journey in three steps: Identify variables for clustering: Variables that define variation in-store performance should be identified to create clusters. Business validation of emerging clusters: St