The Retail sector
The global economy is currently at a turning point. Until early 2018, the global economy displayed relatively steady growth. With inflation accelerating in major markets, governments making shifts in monetary and fiscal policies, and most of the emerging markets experiencing significant currency depreciation, the global economy will slow down in the near future. How will these changes impact the retailing industry? The success of online retail hinges on a multitude of competing factors which can be difficult to map.The quantity sold of a given product should be a function of:
• Product prices (including price of complements and substitutes)
• TV, advertising campaigns
• Consumer behaviour by geographic region
• Seasonality and major events i.e. Christmas, Easter etc.
• Consumer behaviour for online consumers is different to offline consumers
The algorithmic frameworks (statistical and machine learning) contained within AutoStat assist retailers make the following decisions:
• What is the best time to apply a price markdown? Suboptimal initial inventory or timing of markdown can result in stockout or throw-out.
• How to forecast sales across all SKUs to optimise sales and product reordering. The statistical frameworks in AutoStat® include time series count data models and multivariate factor models which are extremely accurate at forecasting sales for products that have small counts.
• How to optimise return on investment of marketing campaigns. The scenario analysis module in AutoStat® driven by Bayesian Decision Theory allows retailers to isolate and quantify the impact of sales campaigns on their bottom line.
AutoStat® in Retail
AutoStat can help your organization by:
1. Generating accurate forecasts of sales.
2. Optimize the scheduling of staff based on demand.
3. Modelling the impact of new products.
4. Analyse the relationships (in terms of cross-price elasticities) between different products and product SKUs
5. Model future demand for all product lines and undertake scenario analysis.
6. Upload analysis with point of sales data in real-time.