In an industry that is highly dependant upon consumer loyalty, retailers have continually honed their store clustering strategies resulting in a widespread use of “top-down” clustering. This approach to clustering is often driven by high-level business criteria determining store formats and clusters based upon fascia, store size and demographics. Although an effective means of clustering, the question arises as to how the consumers see themselves in relation to the cluster and if the clustering policy achieves their requirements.
In answer to retailer feedback, Galleria has developed a flexible clustering model that caters for a “top-down” approach and adds the exciting dimension of “bottom-up” analysis. This innovative approach, working on line-by-line store-by-store information facilitates a detailed understanding of customer purchasing habits and commonality in assortment mix. Like stores are highlighted based upon their current performance and are often from different clusters based upon the "top down" methodology. The ability to quickly adopt a "top down, "bottom up" or combination approach leads to a thorough understanding of product distribution and maximum efficiency in range and supply chain management.
optimize accurate store clusters
The power of pertinent store clustering results in an increase in customer satisfaction, compliance and supply chain efficiency.
Key business benefits:
Consumer driven store clustering increases value leading to lifetime customer loyalty.
Targeted store cluster planning leads to maximum in-store compliance resulting in an accurate understanding of product distribution.
Accurate store clustering ensures optimum supply chain efficiency that results in higher availability to consumers, maximum stock turn and the most efficient use of space.
Introducing focused store-clustering leads to increased sales and profitability, reduction in stock and operational costs and an overall improvement in bottom line contribution.
Galleria's cluster planning solutions
Galleria's cluster portfolio transforms an effective store cluster strategy into an optimized implemented retail reality.

Micro Cluster Planner supports a top-down, bottom-up or a combined approach resulting in detailed “what-if” analysis and accurate store clusters. The process is a two-phased approach with the first concentrating upon clustering with the second considering clusters in relation to product assortment.

