Our team is always looking for new approaches and tools to improve retail. We are excited to share the achievement of Num8erz, which is part of the Atriny Group. Together with Moldova’s major retail chain Linella, as part of a large-scale project concluded with C4R, Num8erz specialists have implemented our analytical tool Num8erz.Range. And they have already achieved the first results!
As part of the pilot project and testing, the service was launched in 13 Linella network stores in different regions. Over the course of three months, experts evaluated the dynamics of indicators in test categories: Sparkling wines, Cheeses, Yogurts and desserts, Cookies, Diapers and napkins.
Using Num8erz.Range for each category, specialists:
- evaluated the differences in demand structure in stores;
- conducted decision tree analysis and switching demand;
- created a new structure of assortment matrices;
- formed proposals for changing the assortment, taking into account space limitations and commercial conditions, in accordance with customer and retailer expectations.
After that, changes to the assortment were made in pilot stores using updated planograms.
The pilot results confirmed the retailer’s expectations and a decision has been made to scale the service across the entire network. For example, in the Cheese and Cookie categories, the assortment was reduced by 30%, while sales increased by 3% and margin increased by 8%.
The Diaper category was under question: remove or leave. During the project, it was completely reviewed, the correct assortment was selected according to customer preferences, and the correct allocation of the category on planograms was determined, which increased category sales by 2.5 times.
The overall weighted sales growth for all pilot categories was over 6%. In addition, thanks to the use of Num8erz.Range service, Linella network simplified the preparation of data for assortment review. Working with the assortment was structured in a chain of logical actions, the process became understandable, simple, and the result was measurable. The network plans to review all categories using the service in 2023 and make the process regular.
The team promises to share how they achieved such results and how the project went in the next publications.
Reference:
Num8erz is an intelligent analytics platform for category managers and marketing specialists. Num8erz software solutions transform raw retail data into analytical information to generate additional revenue. The company is part of the Atriny holding, which operates in more than 10 countries around the world.
Linella was founded in 2001 and is now the leading grocery retailer in the Republic of Moldova. The supermarket chain, owned by Moldretail Group, has 176 stores throughout the country. Thanks to its wide range of products and high level of service, Linella has earned the trust of millions of customers and occupies one-third of the organized retail market in Moldova.
Num8erz.Range is a service specifically designed for category management tasks. The digital tool automates labor-intensive tasks and helps to improve category management quality. It quickly and accurately analyzes vast amounts of data from receipts and loyalty cards, clusters retail outlets based on demand structure, and offers suggestions for revising the product range based on customer expectations, space limitations, and commercial conditions.