The retail sector is experiencing a period of upheaval as consumers change their habits and are influenced by factors such as the internet and sustainability. The industry tends to follow economic fortunes and this should be planned for in any retail company’s financial modelling.
Working across a variety of retail businesses we have helped our clients undertake SKU analysis and analyse their stores, online performance and distribution networks. Marketing is a major outgoing for retailers and our consultants have built models to highlight where costs are being consumed and allow for planning using multiple economic forecasts.
The depth of examination we undertake has significantly helped retailers forecast sales and plan resource requirements.
The sector is shifting from bricks and mortar to online and those multiple channels require careful planning. IBM® Planning Analytics allows the fast visualisation in models of a sliding rate of change from physical stores and catalogues to internet shopping. Historic data combined with industry knowledge and predictions will allow executives to focus company efforts and resources on the most likely outcomes.
Trends have seen us developing models which respond to a click-for-purchase on a website and the trickle effect this has on various stages and layers of the company systems. IBM® Planning Analytics delivers real-time information to support strategic-level decisions covering the type of outlet, target demographic, product mix, support services and a store’s overall market positioning. Using the ensuing business plan, a retail mix is formulated comprising product, price, place, promotion, personnel and presentation.
Here at Spitfire Analytics we have been involved in all aspects of using IBM® Planning Analytics to provide solutions throughout retail organisations, get in touch to see how we can help with your modelling and planning processes.