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March 2014

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Advanced Retail Science Drives Profitable Category Management

As club, drug, and dollar stores muscle in on grocers' traditional territory, grocers face an increasingly complex and competitive landscape. Grocers must find a unique connection to consumers by providing a more localized neighborhood experience. And yet many still leave profit-making opportunities on the table simply because they lack the granular insight necessary to optimize category management across their operations.

In response, Oracle provides a sophisticated, end-to-end category management solution with an intuitive interface that enables grocery stores and other merchandisers to build optimized, consumer-centric assortments driven by the industry's most-advanced retail analytics.

Increase Revenues 3 to 7 Percent, Gross Margins 3 to 5 Percent
"By combining a disciplined, easy-to-use process flow with advanced retail science, we can help our customers achieve increases of 3 to 7 percent in revenue and 3 to 5 percent in gross margins," says Brian Hart, solution director, Oracle Retail.

The solution set includes

  • Oracle Retail Category Management. Compare retailer data to market data to identify opportunities. Create companywide strategies establishing category roles, strategies, tactics, and scorecards. Leverage point-of-sale and market data to recommend, select, and execute customer-specific assortments. Identify optimal assortments, product-facing counts, and placement.
  • Oracle Retail Advanced Clustering. Leverage advanced analytics to dynamically build an optimized number of clusters using various scenarios based on any number of criteria including customer segments, demographics, store size, volume, climate, geography, and many more.
  • Oracle Retail Macro Space Management. Establish, manage, analyze, and execute store-specific merchandise floor plans with full integration to AutoCAD.
  • Oracle Retail In-Store Space Collaboration. Improve headquarters-to-store accuracy for execution and compliance by empowering collaboration and surveying capabilities.
Localization and Targeting
Grocery merchandisers are operating across wider geographies than ever before. At the same time, they are serving widely diverging populations, even within the same city or region. To compete, they need to support varied and highly flexible assortment strategies and planograms.

"To support this level of localization, Oracle has multiple types of retail science, which retailers are telling us differentiate us from the competition," says Hart. They include
  • Assortment planning and optimization—Localizing and targeting assortments along with facing counts
  • Advanced clustering—Optimizing scenarios using multiple attributes
  • Customer decision tree analytics—Using the retailer's own data
  • Demand transference—Calculating incrementality and cannibalization
  • Macro space optimization—Optimizing category section sizes
Why Oracle?
Oracle's category management solution outpaces competitor products in the following ways.
  • Greatest maturity and reliability. The solution is built on a mature retail analytics platform, Oracle Retail Predictive Application Server, which is being leveraged by more than 200 retail customers.
  • Most integrated platform. Only Oracle delivers all key data and tools on one integrated platform, including forecasting and category management as well as pricing and promotion.
  • Most advanced science. To ensure its retail science remains the most advanced in the industry, Oracle Retail has a dedicated team of researchers and analytic developers, as well as key partnerships with the MIT Sloan School of Management and other universities. So far, Oracle Retail has 37 patents that are granted or pending.
Do you want to increase revenues 3 to 7 percent and increase gross margins 3 to 5 percent? Reach out to Oracle Retail to learn more.

Learn more about Oracle Retail merchandise planning and optimization.
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