Data and analytics are the oil of the Internet Age. Retailers of all sizes are using data and analytics to improve service levels, cut inventory costs and working capital requirements, reduce customer acquisition costs and, ultimately build their brand.
In retail’s evolution, the fittest merchants – those who are surviving and winning – are those whose adaptations include the ability to make superior decisions with real-time facts, data, and analysis.
We know who is winning. The world’s largest retailer, Wal-Mart ($482b 2016 revenue), is more than twice the size of each of the next 2 largest retailers — CVS ($177b) and Amazon ($136b). According to Business Insider, Amazon captured over 40% of all US online retail sales in 2016 and over 50% of US ecommerce growth.
Amazon + Wal-Mart = Higher service levels + lower prices = Lower Margins
As a result, the retail landscape is changing at a meteoric pace. These companies have increased customer expectations and the cost of delighting consumers. At the same time, they’ve cut costs and continue to grow while maintaining razor thin margins.
The impact? Extinction level events are happening thousands of times per year.
In fact, according to Business Insider, as of August 2017 over 6,300 U.S retail store closings have been announced. To survive, retailers must analyze key performance indicators (KPIs) and data at a speed and granularity never before possible. And they must act upon these insights. Quickly.
The good news for middle market retailers is that data analysis capabilities previously available only to the Wal-Marts and Amazons of the world are now available to the vast majority of merchants.
Watch our on-demand webinar, How Smart Retailers Use Data to Grow Profitability, to see how mid-market retailers like you can analyze your data and KPIs to increase sales, increase inventory turns, reduce working capital requirements and increase profitability.
This webinar is hosted by Pulse Commerce’s CEO, Manish Chowdhary, and Juno Active Job Title, Jim Nekola, and covers:
- Important KPIs to track and improve:
- Sales KPIs
- Order and Inventory KPIs
- Important levels of analysis
- Store and channel level KPIs and benchmarks
- Category, item and sku level KPIs
- Critical decisions and their impacts
- Which products are driving growth and which are a drag on profits?
- Which items should be pruned from the catalog?
- Which items should we promote more aggressively?
- Juno Active Case Study
- How a women’s plus size activewear retailer increases profits with KPI and data analytics
- Reports and KPIs for sales, orders and inventory
- Critical decisions
We’ll help you identify opportunities that may not be readily apparent. For example, you may use your Inventory Management Software’s Days of Stock report to identify which items should be re-ordered. Perhaps an item with just 5 days of stock also has an inventory turnover ratio of 2:1. Maybe it will be better to reorder an item with 10 days of stock but a turnover ratio of 12:1. You need item level inventory turnover data to make decisions like this at scale.