Case Study: a major US apparel retailer boosts promotional margin with APT Illuminate from Applied Predictive Technologies

Major US Apparel Retailing Company - Customer Case Study

A major US apparel retailing company was challenged to improve the performance of its circular promotions, which accounted for 20% of its total store sales. The company had been running numerous promotions annually but was unable to analyze their effectiveness, prompting the CEO to seek a data-driven solution. They partnered with vendor Applied Predictive Technologies and used its APT Illuminate product to address this challenge.

Applied Predictive Technologies implemented a solution using three years of historical data to establish a non-promotional baseline and measure the impact of each promotion. Their analysis identified the key drivers of success and revealed that 40% of the promotions were ineffective or profit-negative. By shifting away from these poor performers and optimizing its strategy, the retailer generated over $3 million in incremental margin in a single month.