Big Box Specialty Retailer Case Study

• Analytics & Modeling - Predictive Analytics

• Retail

• Product Research & Development
• Sales & Marketing

• Demand Planning & Forecasting
• Predictive Replenishment

• Data Science Services
• System Integration

A Big Box Specialty Retailer entered a strategic relationship with a specific vendor, who had developed an exclusive yoga & fitness wear for Big Box Specialty Retailer and was also seeking to significantly expand its assortment in the women’s running and men’s apparel. The Big Box Specialty Retailer, in partnership with the vendor, engaged First Insight to examine the market potential for the new line as well as identify potentially strong and weak items across the board. The vendor has solid brand equity in footwear, but still struggles to establish a reputation in apparel. The Big Box Specialty Retailer was taking a significant risk in expanding the vendor apparel lines. Retailers in the big box market rarely test items in advance. Buyers typically purchase from CAD drawings and, in apparel, may get to review single samples from the vendor. The vendor was going to support the apparel launch with co-op dollars and adspend. To test the product in time for the campaign, First Insight was able to deliver test results in time for informed key buys. The vision was to reduce the risk for both retailer and vendor in this new program and to allow the Big Box Specialty Retailer to expand its space and inventory investment in the vendor with confidence.

The Big Box Specialty Retailer is a large-scale retail chain that specializes in offering a wide range of products, including exclusive lines of yoga and fitness wear. The retailer has a significant presence in the market and is known for its strategic partnerships with various vendors to bring unique and high-quality products to its customers. The retailer aims to expand its assortment in women's running and men's apparel, leveraging its strong market position and customer base. The retailer's partnership with vendors is crucial for its business strategy, as it allows them to offer exclusive products that are not available elsewhere, thereby attracting more customers and increasing sales. The retailer is committed to reducing risks associated with new product launches and ensuring that their inventory investments are made with confidence.

First Insight provided a comprehensive market testing platform to evaluate the new apparel line's potential. The platform utilized advanced sentiment analysis and predictive analytics to assess customer reactions and forecast market performance. By categorizing each item into one of six recommendation buckets based on value scores and sentiment, First Insight enabled the retailer to make informed decisions. The categories included 'Invest, consider price increase,' 'Invest,' 'Reduce buy,' 'Reduce price,' 'Avoid,' and 'Neutral/Evaluate further.' This granular approach allowed the retailer to strategically adjust pricing, calibrate buys, and negotiate better terms with the vendor. The solution also included real-time data analysis, enabling the retailer to quickly adapt to market trends and customer preferences. This proactive approach ensured that the retailer could minimize risks and maximize returns on their new product line.

• The retailer was able to categorize each item into specific recommendation buckets, allowing for more strategic decision-making.
• The buyers used the results to select items, calibrate buys, and adjust pricing strategically.
• The retailer could negotiate better terms with the vendor on some items, ensuring more favorable conditions.

• The retailer could make informed key buys in time for the campaign, reducing the risk of unsold inventory.
• The categorization into six recommendation buckets allowed for more precise inventory management, potentially reducing overstock and understock situations.