Use high volume Point of Sale data to drive business performance

HyperCube knows how to help retailers optimize their sales. Whether its cosmetics, children’s clothes or sports goods, by analyzing point of sale activity we have helped retailers grow by an average of four percentage points just a year after applying HyperCube insights. What follows is just one example. 


A leading retailer, with a network of over 2,000 stores worldwide, was losing market share and didn’t know why. The retailer came to us to better understand customer need and behaviour, and to work out what drives the performance inside its stores. As well as striving for growth within its existing network, it also wanted insights on the best locations for future store openings. 


To meet the client’s needs we built a database that combined more than 18,000 variables to describe each store. These included size, location, local competition, product mix, catchment zone and supply chain. 
With these datasets in place, HyperCube was able to analyze store performance drivers, expressing performance both in terms of year-on-year growth and sales per square meter. 


In just two months, this analysis threw a light on the client’s retail business. It helped confirm some existing beliefs. Among these the retailer knew that it needed to:

  • Collect multichannel customer information 
  • Heavily invest in human resources to ensure the right candidates were recruited and that in-house training matched business need 
  • Understand that Internet sales do not negatively affect store performance

In addition, HyperCube uncovered new insights that the client was not aware of, such as:

  • Recruiting new customers is more important than increasing loyalty
  • Traffic - number of customers and frequency of purchases - is more important than the average ‘basket’ size
  • There is no cannibalization between stores but there is a network effect
  • One family of products increases global sales while another can cannibalize sales

A year after applying these learnings, the retail client turned a -1% decline in sales into 3% growth.

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