What's missing from supermarket clustering? - Retail World August 18th, 2008


The concept of store clustering is spelling significant changes for retailers and, naturally, suppliers.

While clustering has been applied with success in overseas markets, it is possible that current methodology is missing some key elements for tailoring a truly effective retail offer.

Store clustering, otherwise known as ‘consumer led ranging’, involves customising an individual store’s range and other aspects of its offer in response to the kind of shoppers who come to the store. Determining the type of customer shopping at a particular retail destination is based on shopper data and profiles.

However, the success of customer led ranging in any store will depend on the contexts included in the data analysis and forecasting, and it is possible that the Australian approach is incomplete.

Scott McLaughlin - CEO

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