Clustering stores

Stores can be clustered on the basis of various store performance metrics and differential treatment strategies can be adopted. This could be with respect to the

1) Store format to be adopted for each store cluster

2) Mix of merchandize to be stocked for each store cluster

3) Pricing strategy for each store cluster

4) Promotion mix strategy for each store cluster. Coupons vs Temporary price reduction vs Gift off

5) Instore experience strategy . Lighting vs staff per square feet vs Displays vs sampling

6) Shelf placement strategy

Stores can be clustered on a variety of attributes like

1) Price sensitivity to strategic products

2) Footfall in store

3) Spend dispersion observed in basket across categories like grocery, hair care, electronics, juices etc

4) % revenue accrued from loyalty card holders vs anonymous buyers