Optimising Retail Store Operations with Sensor-Driven Insights

Optimising Retail Store Operations with Sensor-Driven Insights

Jul 21, 2024

Client

A retail store faced challenges in optimising store layouts, reducing energy costs, and understanding customer behaviour. Their goal was to use real-time data to enhance the shopping experience, boost sales, and improve operational efficiency.

Challenge

The store encountered several operational and strategic challenges:

  • Limited Foot Traffic Insights: Store managers lacked accurate data on customer flow, making it difficult to optimise layouts and product placements.

  • Energy Inefficiencies: HVAC and lighting systems ran continuously, regardless of occupancy, leading to high energy bills.

  • Ineffective Promotions: Inconsistent data on customer behaviour made it hard to assess the effectiveness of in-store promotions.

  • Missed Opportunities: Without real-time data, staff struggled to respond to peak traffic periods, resulting in missed sales opportunities.

Approach

We deployed a comprehensive sensor-driven solution to collect real-time data and provide actionable insights:

  1. Occupancy Sensors - Installed at entrances and throughout the store to monitor foot traffic and customer flow patterns.

  2. Environmental Sensors - Deployed to track temperature, humidity, and lighting conditions in real time.

  3. Data Integration - Combined sensor data with POS systems to correlate foot traffic with sales performance.

  4. AI-Driven Analytics - Built predictive models to forecast peak traffic times and recommend energy-saving strategies.

  5. Dashboard Development - Created a user-friendly dashboard to visualise key metrics such as foot traffic, energy usage, and sales performance.

Solution

The sensor-driven solution delivered the following functionalities:

  • Sensors tracked the number of customers entering and exiting the store, as well as movement within specific aisles.

  • HVAC and lighting systems were automated to adjust based on real-time occupancy levels, reducing unnecessary energy usage.

  • Visualised customer flow to identify high-traffic areas and optimise product placement for maximum visibility.

  • Integrated sales and foot traffic data to assess the ROI of in-store promotions.

  • Notifications sent to staff during peak periods to allocate resources efficiently.

Impact

Enhanced Store Layout Efficiency:

  • Before: Product placements were based on assumptions and anecdotal feedback.

  • After: Data-driven heat-maps led to a 15% increase in sales of promoted items by optimising high-traffic zones.

Reduced Energy Costs:

  • Before: HVAC and lighting systems operated at full capacity during non-peak hours.

  • After: Automated adjustments based on occupancy reduced energy consumption by 25%, saving the client £500 per store monthly.

Improved Customer Experience

  • Before: Staff struggled to respond to peak times, leading to longer checkout lines.

  • After: Real-time occupancy data allowed better resource allocation, reducing wait times by 20%.

Increased Promotion Effectiveness:

  • Before: Limited data made it difficult to measure the success of in-store campaigns.

  • After: Correlating traffic patterns with sales data increased promotion ROI by 18%.

Scalable Insights:

  • The solution was rolled out to additional locations, providing centralised insights across all stores and enabling strategic decision-making at the corporate level.