Case Study: a largest retailer achieves 18% store planning cost savings with Mu Sigma

Building an automated store planning tool for product placement for one of the largest retailers using a design first approach

Mu Sigma worked with a major global retailer to address performance issues in its US super centers, which were suffering from declining sales and a poor shopping experience due to challenges with manual product placement, inventory management, and promotion planning.

Mu Sigma took a design-first approach, using its muPDNA software to model the problem. They explored multiple algorithmic frameworks and ultimately implemented a scalable linear optimization solution for automated store planning. This platform, delivered in six months and applicable to any store format, resulted in an 18% cost savings for the client and a 3% increase in overall profitability, cementing Mu Sigma's role as a strategic partner.