How are KPMG firms helping leading organizations leverage D&A to improve their insights and their investments?
When a leading international food retailer wanted to expand their footprint, they called KPMG in the UK. The retailer had already worked with KPMG’s team of D&A professionals to understand and predict existing store performance by day-part and product category. Now the client wanted to see how this insight could be used to predict new store viability and profitability.
By looking across more than 6,500 different ‘signals’ – including both local demand drivers and sales performance indicators – the organization was able to create accurate estimates of customer demand by location, by day-part and by food item category. Based on this data, the KPMG team was then able to forecast and evaluate the expected revenues per week for new and proposed stores.
The client selected KPMG in the UK not only for the firm’s deep experience in the market, but also because they demonstrated a clear understanding and practical application of sophisticated analytics techniques such as Advanced Clustering Algorithms.
Supported by KPMG in the UK’s ‘Always-On’ solutions (which listen to internal and external signals that can be translated into new insights on local markets and people), the organization recognized that KPMG’s approach would allow them to rigorously test new locations before investing significant capital.
Ultimately, the organization was able to improve the return on their new store investments. In the future, the system also provides the organization with the capability to develop a new, improved and highly accurate forecasting, replenishment ordering and labor scheduling system.
KPMG’s global network of professionals knows how to turn data into new ideas that lead directly to growth opportunities.