Customer data analytics company dunnhumby has released a new suite of tools that use artificial intelligence to localize assortment selections and optimize planograms, the company announced Monday.
“In today's dynamic retail landscape, meeting customer expectations while staying ahead of local competitors is crucial,” Jen Dabelt, global product director at Danunhamby, said in a press release. “Powered by advanced AI, our new assortment tool enables retailers to build store-specific assortments around customer desires.”
The AI model uses purchasing data to determine which products are best suited for individual stores, and the company notes that some products sell better than others — protein shakes, for example, may sell better in stores near gyms.
“By focusing on the relationships between products and stores, advanced recommendation systems are able to detect connections and highlight opportunities while significantly reducing the risk of error,” the company said.
The Plan-O-Gram tool takes a similar analytical approach at the shelf level, using historical data to “select assortments that optimize sales potential…”
The new tool also comes equipped with predictive AI to forecast what will happen when a product is introduced or removed from a store.
“For example, removing a particular pack size or flavor of cookies doesn't necessarily mean that category revenue will decrease by that amount. Dunnhumby's AI helps retailers understand how many of those sales will shift to remaining similar products in the assortment, allowing them to create more accurate forecasts,” the company said.
