TCS Optumera™ Macro Space Optimization

ABSTRACT

Despite the rapid growth of channels, stores continue to be the prime driver of customer experience and remain the most valuable asset for retailers. With the average store space of large retailers ranging from 30,000 to 250,000 sq. ft, and millions of stock keeping units (SKUs) competing for their spots, space planning can be quite challenging. This is further compounded by business dynamics such as new store launches, planned store resets and remodels, and the introduction of new in-store services. 

Because good use of store space directly impacts store performance and customer experience, space optimization across hundreds and thousands of stores requires diligent planning and implementation. You can maximize ROI from store space only through a multi-dimensional, holistic approach backed by the power of data-driven intelligence. 

OVERVIEW

TCS Optumera Macro Space Optimization helps space planners make intelligent space decisions that drive higher store performance. By infusing the power of AI into the art of merchandising, it helps maximize ROI from store space. TCS Optumera Macro Space Optimization makes integrated space recommendations aligned with strategic priorities such as category growth, brand perception, business agility, and superior customer experience. It helps space planners strategize aspects such as:

• How much space should I allocate to a new category?
• How can I repurpose available space for in-store services?
• How do space decisions impact category performance?
• How can I optimize backroom space?
• Can I use the same space plan for similar stores? 

OUR SOLUTION

TCS Optumera Macro Space Optimization takes a multi-dimensional  approach to space optimization by considering about 1,000+ factors such as customer insights, traffic, weather, seasonality, store formats, and supply chain cost. It is powered by robust ML models fine-tuned over 10 years by retail experts and data scientists. By learning and adapting to emerging business needs, it recommends optimal space for thousands of store-category combinations helping maximize sales and margins.  

• Makes transparent space recommendations with insights into trade-offs
• Empowers space planners to simulate scenarios with what-if analysis
• Comes with a configurable rules engine to define rule sets such as space and category adjacency rules
• Integrates seamlessly with planograms and assortment, pricing, and supply chain solutions
• Serves several use cases for right-sizing and remodeling of stores, space allocation to categories and store services, and backroom optimization
• Provides simple workflows for effective collaboration between central planning and store teams
• Comes with rich visualizations, configurable dashboards, and notifications to track and manage performance of store space

TCS Optumera Macro Space Optimization maximizes ROI from store space by aligning space decisions with strategic priorities such as category growth, brand perception, and superior customer experience.

BENEFITS

• 2-4% increase in revenue
• 3-5% increase in margin
• 20-25% uplift in store space productivity
• 5-7% higher ROI per store remodel
• Up to 10% reduction in working capital
• 30% improvement in team productivity with reduced manual planning and operational work
• Agile and faster review cycles with 3X space strategies