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Deploying A Retail Predictive Sales Model
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Deploying A Retail Predictive Sales Model (PDF)

Deploying A Retail Predictive Sales Model

"When I found Tactician, I not only found an easy map software to pinpoint each store but a tool to help manage our business. The ease of the tool is the best part for me. Within minutes, I have not only what they think they need but even more!"

-- Lauren Vickers, Carter's Clothing

Challenge / Goal

A US retailer was finding it more and more difficult to accurately predict the performance of its new stores in both new and existing markets. Because of the significant costs incurred when adding new locations, it needed an accurate method for gauging both the revenue opportunity for proposed locations in new markets, as well as assessing and identifying profitable proposed store locations in its existing markets that would not compete with and cannibalize existing stores.

Tactician In Action

A Predictive Sales Model was created and deployed within a custom, Tactician Online-based delivery system. The system is used by real estate personnel in the field to quickly assess prospective store locations. It is also used to target opportunity areas where the criteria required to support a successful store have been identified.

Results

  • A Tactician Online-based predictive sales model is used to generate a regression-based revenue prediction for any existing or proposed location in a matter of minutes.
  • Sales predictions are quickly and easily generated for hundreds of sites each year.
  • The underlying business rules / drivers that impact store performance and define successful vs. unsuccessful store have been defined and can be quantified for any proposed or existing location.
  • The appropriate actions to be employed against the existing store network are continually assessed: keep open, close, relocate, renovate, etc.

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Model Parameter Values / Impact and Predicted Sales Estimate

Sample Model Results

Managing The Model Parameters

Model Generated Trade Areas

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