Discovering 'Sleeper Stores': How AI is Redefining Retail Insights and Shaping Buying Behaviors
What comes to mind when you think of artificial intelligence (AI)? For many, the answers may circle around technological advances, automation, or the uncanny capability to predict and adapt. But what if we told you that AI has the potential to revolutionize the retail sector, shattering traditional assumptions and forging pathways previously unimaginable? This is a story of how our AI, leveraging retail-specific store-level data, unraveled the hidden treasure of an unexploited market, finding an audience for a Texas sauce brand all the way up to Colorado and Chicago.
Understanding the geographical and demographic preferences of your consumers is essential. However, the tale of the famous Texas sauce highlights the inherent limitations of traditional demographic data. Its avid consumers reached beyond Texas, spanning states and breaking regional barriers. But how could this be unveiled without the usual demographic data?
Enter our AI, armed with what we call an "unconstrained optimization" approach. We allowed the AI to play the field, eliminating restrictions on where items could sell based on demographics or regionality, along with merchandise and distribution center constraints. In essence, the AI had free reign to analyze, experiment, and optimize this sauce shelf availability. The result? A fascinating pattern, a pathway that trailed from Texas up to Chicago and from Texas into Colorado through New Mexico. It was as if the AI was following the migratory patterns of Texans, offering a profound, goosebump-inducing insight.
At the heart of our system is the concept that "Data Has A Better Idea™". We believe in the power of store-level data to deliver meaningful, granular insights often overlooked by traditional category management and revenue growth teams. Our AI revealed "sleeper stores", with significant potential previously hidden in the shadows due to limitations of traditional data sets.
Through the prism of AI, we see the true face of consumer behavior. Shoppers vote with their wallets in stores, and we make this visible to retailers and CPG brands, including this Texas sauce company. From this perspective, AI is not just a tool for automation, but a beacon of light that illuminates previously hidden pathways, pointing the way toward new opportunities and untapped markets.
Embracing AI isn't just about adopting new technology; it's about reimagining how we view and navigate the retail landscape. After all, in the vast ocean of retail data, we believe it's time for AI to guide the ship, proving repeatedly that Data Has A Better Idea™.
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