Analysis And Solution

Supermarkets are the traditional destination for consumers looking to stock up on many of the items they use on a day-to-day basis. The need for shoppers to replenish their pantries and refrigerators typically results in frequent trips to the supermarket. For this reason, industry sales tend to be noncyclical. Competition for these dollars, though, can be intense, which helps to explain the unimpressive profit margins. Consumers typically have a variety of options to choose from when deciding where to purchase items. Not only do they often have a choice between competing neighborhood supermarkets, but they can also shop at alternative retailers, such as large national discount chains and warehouse stores.

From an operating perspective, supermarkets are a homogenous group. Factors that may cause results to vary, aside from a company's ability to execute its business plan, include geography and store formats. Generally, though, investors can use common analytical benchmarks to evaluate the performance of these retailers

 

There a lot of key factors which needs to be analyzed to ensure the performance of these retail chains and few of them on which VST has specializes are:

 

Market based analysis

This analysis is a study natural affinities between products and how they need to be show cased or arranged. In retailing, most purchases are bought on impulse. Market basket analysis gives clues as to what a customer might have bought if the idea had occurred to them. If we observe that a rule holds in one store, but not in any other (or does not hold in one store, but holds in all others), then we know that there is something interesting about that store. Perhaps its clientele is different, or perhaps it has organized its displays in a novel and more lucrative way. Investigating such differences may yield useful insights which will improve company sales and in-turn revenue.


Upsell and Cross Sell Predictive Analysis

This analysis of Upsell/Cross Sell aim to provide existing customers with additional or more valued products. Upsell is the practice of selling more expensive products, upgrades or add-ons to an existing customer. Cross sell is the practice of selling additional products to existing customers. Strong customer relationships are key to every business as they result in stable revenue streams. Enhance customer relationships and drive product interest and purchases by recommending the right mix of products at the right time. As VST, we empower to build cross-selling models in order to recommend complementary products that generate additional revenue that allows our clients to employ new up-selling techniques to recommend products that yield higher profits and also clear nonmoving or slow moving items which in-turn help in better inventory management