Data-Driven Analytical Grocery Store Design

Elif Danisman () and Alice E. Smith ()
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Elif Danisman: Izmir Demokrasi University
Alice E. Smith: Auburn University

A chapter in Retail Space Analytics, 2023, pp 75-101 from Springer

Abstract: 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.

Keywords: Retailing; Grocery store layout; Optimization; Data mining (search for similar items in EconPapers)
Date: 2023
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DOI: 10.1007/978-3-031-27058-1_5

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