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Data-Driven Analytical Grocery Store Design

In: Retail Space Analytics

Author

Listed:
  • Elif Danisman

    (Izmir Demokrasi University)

  • Alice E. Smith

    (Auburn University)

Abstract

Despite the rise of e-commerce and online channels in the retail industry, brick and mortar stores continue to attract a large volume of customers and operate under high competition. A key element of traditional retailing is the store layout. This chapter investigates the influence of the store layout configuration on sales and in store traffic in a grocery store environment. A bi-objective optimization approach, combined with data mining techniques, is developed to examine two conflicting objectives, namely, customer satisfaction and revenue maximization. A case study is undertaken with the participation of Turkey’s largest grocery store chain, Migros, to test and evaluate the proposed approach. The results after the implementation of the new layout show that an analytical approach can result in superior revenue for the store.

Suggested Citation

  • Elif Danisman & Alice E. Smith, 2023. "Data-Driven Analytical Grocery Store Design," International Series in Operations Research & Management Science, in: Ahmed Ghoniem & Bacel Maddah (ed.), Retail Space Analytics, pages 75-101, Springer.
    • Handle: RePEc:spr:isochp:978-3-031-27058-1_5
    DOI: 10.1007/978-3-031-27058-1_5
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