Coop Denmark extends its use of Galleria solutions to tailor its product offering in line with customer demand by localizing assortment and space.

Coop Denmark A/S, the largest grocery chain retailer in Denmark, has expanded its portfolio of Galleria retail and category optimization software in order to achieve greater competitive differentiation and put its customers at the centre of store-specific assortment, merchandising and space optimization decision-making.

An existing customer of Galleria, part of RELEX solutions, Coop’s latest decision to implement Galleria’s Category Management software suite comes as a result of a successful pilot process in which significant insights and benefits have been achieved to date. With the foundations in place, the next stage in the journey unleashes the unique opportunity for Coop to take category management to a new level with a fully tailored offering to satisfy its entire customer base, reduce wastage / markdowns and achieve maximum sales potential in each individual store.

Lars Kejser Bob, Head of Space Management, Coop Denmark comments: “The pilot project has proven that one size doesn’t fit all and that local demand differs greatly. For example, the needs of customers of two stores in the same chain located relatively close to each other could vary greatly, whereas two stores located at opposite ends of the country might experience similar levels of demand. We therefore wanted to better understand our shopper’s behavior and optimize individual store assortments and space.”

Based on the consumer purchasing patterns of its 1.6 million members and on a variety of parameters, including consumer types and different socio-economic surroundings, Coop Denmark is able to build a picture of who lives within the surrounding area to a specific store. It can then use this subsequent cluster analysis to find comparable stores, enabling it to better create locally-based assortments to suit the relevant customer base.

Lars continues: “We have for some years been working closely with experienced and talented colleagues in the industry and have chosen to expand our collaboration with Galleria to implement its full intelligent solution for strategic, centralized category management and both micro and macro space. Our objective is to centralize decisions incorporated with each individual store’s customers’ requirement.”

By implementing a localized and more targeted assortment offering combined with store-specific planograms to meet merchandizing strategy and fit each store profile, Coop will have the ability to have the right products, in the right place, at the right time and at the right quantity to match individual store demand, optimize customer loyalty and increase its competitive differentiation.

Read the full press release at: