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Retail Analytics

Retail Planning & Analytics framework (RPAF)

Why RPAF?
To know the customer better than the competition and having the ability to orchestrate business decisions based on data and insights.

Starts with robust Data Management and Data Modeling, leverage data to create context-rich, actionable insight. Identify and report the performance measures/ KPIs, improved visualization, the ability to work with real-time data, and include additional functionality such as planning, forecasting, regression, and modeling.

RPAF is focused on the questions – reasons for the current performance, what if the trends continue, what will happen next (predict based on data), how we want it (Plan), and what is the best that can happen (optimize)

Challenges > Data > Analytics > Insight > Actions > Results

Varieties of Grain

Retail is Detail

It is a business that has low margins across almost all segments. So, It is no surprise that the entire industry and its participants follow the motto “retail is detail.”

what makes Retail? different in the analytics
3Vs; The volume (amount), variety (different sources and types), and velocity (the speed at which this data flows through the decision support systems). 3Vs are at higher levels compared to any other business.
Important goals of RPAF:
  • Improve customer insight & profitability
  • Improve operational transparency & efficiency
  • Spot future business trends
  • Predict business performance
  • Increase business agility
Role playing functions:
  • Merchandising/ Department/ Product
  • Customer & Channel
  • InventoryStores & 
  • Human Resources
  • Marketing
  • Finance
RPAF - Solution Components
Sales & Margin
Plan @ Week; Report @ day
@ store, location, product, brand,
and customer
SG&A, EBITDA, and EBIT
Plan & Report @ month
@ store
Financial Report
Stores (Expansions & Closing) 
Plan & Report @ Week
@ store
Drivers/ Factors
trends, growth,
rate, volume,
value, footfalls,
conversions, baskets
Productivity
Market / Segment share
Sales
Number of outlets
Sales / space
Sales / staff
Sales / stockholding
Profitability
Net margin
Operating margin
Gross margin
Return on sales (ROS)
Return on equity (ROE)
Return on capital employed (ROCE)
Thrift Shop
Weekly Sales Planning

Sales & Discounts
Scan Margin
Inventory Adjustment
Gross Margin
 

Computer with Graph
Profit & Loss

SG&A
Store P&L
Brand P&L
Net Income

Retail Core Models

Sales & Merchandising
Channel Performance
Marketing & Promotions
Inventory & Shrinkage

Code
Performance

Markdowns as % of Sales
# of Inventory Turns
Contribution
Target - Volumes/ Revenue

Investment Chart
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