“Top-performing companies are three times more likely than lower performers to be sophisticated users of analytics, and are two times more likely to say that their analytics use is a competitive differentiator.“
Controlling operational costs is certainly one of the biggest challenges that any retailer faces. Since supermarkets and megastores typically run on extremely low-profit margins due to the highly competitive environment, the need for a lean and efficient operation whilst Optimizing the Marketing Efforts and Expenses is critical.
Labor costs are the single greatest controllable expense. If labor cost reduction is not managed properly, customer service and store conditions may suffer. This, of course, results in lost customers and sales.
Another critical challenge that threatens the Supermarkets’ and Megastores’ profitability is Loss and Theft. Recent studies show 1-3% loss on revenue, with 50% of that number caused by employees' fraud. Ongoing monitoring and real-time prevention results in over 20% prevention of shrinkage.