JDA Channel Clustering

In order to pinpoint localized consumer preferences, businesses rely on a number of tactics with widely varying success, including purchasing market data, segmenting stores by region or relying on chain-wide averages. JDA Channel Clustering provides a fact-based micro-merchandising capability that enables retailers to isolate significant preference patterns, and create more targeted consumer strategies.

How does it solve your business challenges?

JDA Channel Clustering supports fact-based decisions by analyzing stores’ historical performance based on point-of-sale (POS) transactions. JDA’s advanced data-mining technology helps you identify which stores exhibit similar consumer preference patterns and incorporates additional performance and attribute information to create dynamic store groupings that drive improved planning decisions.

What are the benefits?

• Ability to identify consumer preferences by region
• Decreased carrying costs, lost sales and markdowns
• Reduced chain-wide inventory and improved space planning
• Improved decision-making productivity and effectiveness

Why JDA?

While traditional approaches segment stores based on averages or assumptions, JDA Channel Clustering groups stores based on facts such as POS data. The solution also assesses individual store attributes (e.g., zip code and square footage) and store trade area (e.g., shopper demographics and local competitors). With data-mining technology backing your efforts, you can confidently launch channel, assortment and category plans and realize a fast return on investment with your merchandising programs.