OPTIMIZATION...IN MERCHANT TIME
Continually Monitor the Pulse of Store Activity
A Better Read on Product Availability
Of the thousands of items that line the shelves in your stores, can you be certain that each product is associated with the correct price, and that each is in the best condition for your customers?
Is there a can of beans dented on aisle two? Cracked eggs in the refrigerated section? Damaged peaches in the produce department?
KSS Retail Heartbeat detects what the customer sees—or doesn’t see—in real-time so store personnel can rapidly solve any problems and re-capture lost sales.
With KSS Retail Heartbeat, retailers can now instantly identify and improve selling conditions by constantly measuring and monitoring what’s being purchased by consumers.
The solution quickly, accurately and intelligently determines when issues arise with store selling conditions, and it automatically alerts store personnel to spot-check and correct problems that otherwise take hours or days to determine—if they’re discovered at all.
Why You Need It
The supermarket industry currently suffers from an average of 8.3 percent in lost sales due to items not available for sale. Levels are twice that on promoted items (Gruen & Corsten, GMA Out-of-Stocks Report 2007).
But this information is commonly misunderstood. Simple out-of-stocks or shelf-voids represent only a small proportion of the item availability issues that block sales.
Too often, items are present in the store, but not on the shelf. Additionally, items may be on the shelf, but damaged, short-dated, soiled, out of place, un-priced, incorrectly priced or priced differently than the ad price. Any or all of these issues may make an item unacceptable for purchase.
The problem—and the opportunity—is to identify the root causes of out-of-stocks and learn to systematically detect and quickly correct them.
Store personnel can’t easily detect these problems through store audits or walk-throughs, because the store assortment is too vast, and Ready-for-Purchase issues often appear nominal to the unaided eye. But to the 20,000+ shoppers that visit your stores every week, and scour the shelves, these Ready-for-Purchase problems are very real. Their responses to these issues are reflected in your checkout data—as item substitutions, expected purchases that don’t happen, even abandoned baskets.
The clues are out there—you just need a method to monitor the pulse of the store.
What Retail Heartbeat Does
KSS Retail Heartbeat intelligently monitors the POS data stream to track the rates of sale for key items. The system continuously forecasts expected movement for these items in every store, all day, every day. Historical, seasonal, day-of- week, promotional, even day-part differences are factored in the calculations.
The Retail Heartbeat software engine compares real- time sales against forecast data and detects statistically meaningful differences every 15 minutes, using statistical purchase pattern recognition. As suspect issues are