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Technology

X5 Retail Group Introduces Automated Planograms To Boost Sales

Russian food retailer X5 Retail Group has introduced a system that provides automated generation of planograms after a three month trial period.

X5 Retail Group said that after three months of use the new system has helped increase sales by up to 10.5% in some categories.

Karusel, for example, achieved year-on-year sales growth of 3% to 8% in associated goods, 5% in tea and coffee, and 10.5% in shaving products thanks to planograms generated by the system.

In addition to higher sales, the new planograms also lower operating costs by optimising employee’s work. Assortments are monitored and adapted when needed.

Fully Customisable

The group reported that each product's location on a shelf is determined based on customer experience and the chain's merchandising rules. The technology employs JDA Software with customisable settings to reflect each hypermarket's layout principles.

The technology uses in-store equipment characteristics, customer preferences, historical data on inventory turnover by type of product, assortment by category, packaging size and type and other inputs. It enables automated generation of layout arrangements for each rack and  adjustments to them.

The pilot testing was completed in December 2017 and is now being used on an ongoing basis. It currently produces solutions for the beverages category in 30 hypermarkets, and for the laundry detergents, coffee, tea and vodka categories in 59 hypermarkets.

X5 Retail Group said that, by the end of 2018, up to 100% of grocery, confectionery, associated goods, alcohol, beverages and pet goods in all Karusel hypermarkets will be covered by the planogram generator.

The Russian retailer recently completed a major project to automate the demand and replenishment processes at its Perekrestok and Karusel stores and distribution centres

© 2018 European Supermarket Magazine – your source for the latest retail news. Article by Aidan O'Sullivan. Click subscribe to sign up to ESM: European Supermarket Magazine.

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