Achieve real-world ROI and category growth with SparkBeyond’s explainable, always-optimized solutions

Assortment optimization

Boosted shelf productivity

$16.9M margin boost via custom assortments

Store location selection

Fixed poor site selection

1,300+ high-profit sites unlocked

Demand forecasting

Enabled better planning

90%+ forecast accuracy for 4,500+ stores

Customer segmentation

Improved targeting

Efficient value grouping from 3 years of data

Always-Optimized KPI Applications

Challenge

  • A leading grocery retailer wanted to automate assortment management by store and identify key customer segment drivers to optimize shelf space allocation.
  • The objective was to get the right product to the right shopper at the right price.

Approach

  • Identified common purchase behaviors of customer segments across store locations
  • Correlated those patterns to optimized assortment segments
  • Created new assortment packs tailored to each store’s demographic profile

Results

  • €15M margin impact achieved through optimized assortment allocation
  • Constant updates with fresh transaction and external data to refine segments
Store Assortment Optimization

Challenge

  • A premium grocery retailer needed to understand the lifetime value of its customer base.
  • However, it lacked a robust analytical approach to build a value-based customer segmentation.
  • The goal was to identify and target its most valuable customer profiles.

Approach

  • Identified common behaviors of the highest-value customers.
  • Most valuable customers of “tomorrow” bought value products and preferred seafood.
  • Discontinuing household product purchases was a leading churn indicator.
  • Defined behavioral segments and tailored marketing strategies accordingly.

Results

  • Defined six customer segments using behavioral dimensions like purchase categories, channel, loyalty, promotion spend, and private label usage.
  • Analyzed 3 years of transaction-level data within one week to uncover trends and customer behaviors.
Customer Segmentation Retail

Challenge

  • A retail chain wanted a more accurate long-range sales forecast to better inform its strategic positioning.
  • SparkBeyond partnered with the client to build a monthly sales forecasting model by store segment, 15 months rolling forward.

Approach

  • Incorporated complex dimensions:
  • Diverse store segments characterized by differing categories (e.g., fresh vs. non-fresh).
  • Considered the impact of new store openings and closures.
  • Included store maturity curve effects.
  • Accounted for Sunday closure bans (e.g., 25% of franchisees closed).

Results

  • Built a suite of models predicting monthly sales up to 15 months ahead for 4500+ locations.
  • Achieved 90%+ accuracy in 80% of 1-month revenue forecasts.
  • Used to set franchisee sales targets and support long-term planning (budgeting & promotions).
Retail Demand Forecasting

Challenge

  • A top Japanese convenience store retailer aimed to open 2,000 new stores in Tokyo.
  • However, the first 200 openings underperformed, triggering an urgent need to uncover profitability patterns and select better locations.

Approach

  • Combined internal data and external sources (e.g., Google Maps backend, store networks) to identify drivers of store profitability.
  • Built a model to predict store revenue and applied optimization algorithms to select the best 1,300+ sites out of 5,000+ possible location

Results

Identified 1,300+ potential high-profit locations based on non-obvious factors, such as proximity to:

  • Laundromats
  • Fast food chains
  • Mobile phone shops
  • Gas stations
Location Selection Analytics
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