Dynamic Store Merchandising

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Retailers are refocusing their attention on the store, cutting costs and seeking to optimize the return-on-inventory investment across all product categories. For grocers, nearly 25% of inventory is perishable – a potential 3% loss to the bottom line if price cuts, promotions and other selling techniques fail.

But imagine it is possible for grocers to track real-time demand for perishable items in each store, and automatically adjust prices and promotions to prevent spoilage while also protecting margins. With Toshiba Dynamic Store Merchandising solution (DSM), reducing loss and turning it into profit is actually happening.

Just right. Just in time.

By constantly looking at in-store inventory, demand level and sell through rates, Dynamic Store Merchandising enables retailers to drive profit out of the “last 100 yards of the supply chain.” Using same-store analytics to focus on operations and processes where margin is at risk or can be improved, DSM helps retailers:
 

Dynamic Store Merchandising in action

For example, a grocer with approximately $1 billion turnover averages $500m to $600m of sales from perishable items. That means a potential loss of $30 million from the bottom line through lost margin and waste. When deploying DSM to determine when to begin price cuts, promotions or other actions, 25% or more of the waste could be saved -- nearly $7.5 million -- which translates into increasing sales by $150 million.

Grocers recently surveyed agree, using Toshiba Dynamic Store Merchandising, they can:

Act now

Dynamic Store Merchandising deployment starts with an OIM Trend Analysis to verify the benefits of the solution and the cost, leveraging the retailer’s existing infrastructure. With agreed upon milestones, measured within the first month of operation, the solution can be up and running in less than 90 days.

 

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