US retail company Family Dollar, part of the Dollar Tree Group, relies on the platform of the British customer data analysis specialist Dunnhumby for its category management. The operator of discount variety stores expects from the move to better adapt product ranges at its stores to local requirements and gain deeper insights into consumer behaviour. The company recently complained about declining sales due to dwindling demand from its primarily low-income customer base.
With the help of AI-based software tools and a team of data scientists, Dunnhumby analyses costumer data as well as insights from supplier collaboration. This way, Family Dollar expects to make faster and better assortment decisions.
Dunnhumby made a name for itself in the mid-nineties with the introduction of the
Tesco Clubcard. The British food retailer subsequently took over the company, initially in part and later in full. It subsequently acquired the price optimiser KSS Retail, among others. Kroger was the exclusive customer in the USA for a long time. In 2015, Tesco sold a large part of the then Dunnhumby US branch to Kroger, which continued to operate under a different name. This enabled Dunnhumby to work with other retailers in the USA.
AI determines store-specific assortments
Dunnhumby Assortment uses AI and predictive technologies to quantify which products should be selected for each store. The system then forecasts possible consequences of assortment changes across every location. The software considers insights about local customer behaviour to create a store-specific range. The solution generates layouts and automatic planograms according to available space.
Dunnhumby Shop is a data tool that provides comprehensive insights into shopping behaviour and current trends in the respective product group via the cloud. Together, the two modules form the new Family Dollar Category Management platform, with the aim to localise assortments that provide customers with the right goods at the right time.
First Insight predicts market developments
Family Dollar has also been using predictive analytics and consumer data from provider First Insight since the beginning of August this year. The company wants to ensure that its product ranges meet changing consumer expectations and market developments.
