Richard Seesel

Family Dollar Tests Basket Analysis

March 11, 2010

FROM RETAILWIRE:
In a project last year, Family Dollar worked with Applied Predictive Technologies to understand what's happening at the basket level. How do you think better access to basket analysis insights can help retailers and vendors?      [more...]

There are at least a few key benefits of market basket analysis, for any retailer not just Family Dollar:

1. Understanding the "market basket" of your best customers in particular is a key component of good Customer Relationship Management;
2. Market Basket analysis gives merchants a greater idea about the efficacy of cross-promoted categories;
3. Most important, this kind of tool can help management do a better job aligning store adjacencies, layouts and endcaps to actual shopping habits.

Family Dollar should benefit greatly from this study, and almost every other kind of retailer ought to go through the same exercise.