This press release refers to a project implemented by Galleria RTS which has been acquired by RELEX Solutions in June 2016.

M.Video, the leading Russian electronics retailer, will utilize Galleria’s Behavioral Cluster Planning solution to enhance its merchandising strategy.


Galleria Retail Technology Solutions, the leading provider of retail and category optimization solutions, today announced that M.Video, the leading Russian Federation electronics retailer, will utilize its Behavioral Cluster Planning solution to enhance its merchandising strategy. The solution enables retailers and suppliers to optimize sales by clustering stores based on product performance data, such as historic sales, market or supplier information.

M.Video is the leading electronics retailer in Russia and one the largest European retail consumer electronics retail chains with over 250 stores. Seeking to improve store performance M.Video involved Galleria in a pilot exercise to identify store clusters and category performance variance across these clusters. The pilot highlighted three clear clusters each with a significantly different customer type. Following the clustering exercise M.Video were able to make assortment recommendations for each of those clustered stores. Taking these recommendations on board, M.Video revised a range of products in each of the clustered stores ensuring that more of the most popular products were on offer reflecting varying consumer demand. M.Video expects this to result in further sales increase while optimizing the level of stock to serve this demand. The company will now roll out the solution across all categories.

“With a wide variety of stores across the Russian Federation and a fast changing assortment our goal is to provide our customers with great value, the latest technology products, a superior shopping experience, and great service,” said Konstantin Nechaev , program director, M.Video. “Galleria’s Behavioral Cluster Planning solution has enabled us to highlight variations across our store estate. Armed with this insight we’ve been able to tailor the stores more closely to the customer requirements ensuring that we carry more lines that are appropriate to the needs of customers whilst still providing a range of products which fall outside of these identified clusters. With Galleria solution we can now analyse demand patterns, draw conclusions and convert them into particular actions in very short period of time. ”.

M.Video selected Galleria’s solution as it provides the only way to build bottom up category clusters based on actual customer behaviour rather than relying on an averages approach which does not always provide satisfying results.

“The decision by M.Video to utilise our Behavioral Cluster Planning solution proves that non-grocery retailers are looking to enhance their store and customer experience and by turning to Galleria they are recognising the solutions as the best available,” said Ian Duncan-Lewis, CEO, Galleria. “We are delighted that we have expanded into a new and exciting market in Russia and are confident the implementation will enable M.Video to improve its customer experience, maintain a competitive advantage and achieve a fast return on investment.”

About M.Video

M.Video is one of the leading European consumer electronics retailers. The company has been operating since 1993, and now owns more than 250 stores in more than 100 Russian cities. In November 2007 M,Video became the first public company among Russian consumer electronics retailers. In 2010 the revenue of M.Video amounted to 102 billion RUB (more than €2.5 billion), an increase of 23 per cent compared to 2009. In 2010 the company opened 44 new stores. The total space of M.Video’s stores reached 564.000 sq. m.