Case Study: National Grocers achieves higher profit margins and revenue with Shelf Engine

How Shelf Engine Increased a National Grocer’s Profit Margins by 63.7% While Also Increasing Revenue

Shelf Engine conducted a case study with a national grocer who was facing significant challenges with perishable inventory. The grocer was experiencing high shrink rates, particularly for items like deli sandwiches and cut fruit, due to the difficulty of making accurate manual orders. Their existing system was prone to human bias, leading to both out-of-stocks and excess waste, which negatively impacted profit margins.

Using its proprietary forecasting and ordering system, Shelf Engine analyzed the grocer's data to create optimized, profit-maximizing orders for each store. The solution was implemented as a scan-based program where Shelf Engine assumed all inventory risk, only charging for products that were sold. This approach resulted in a dramatic 63.7% increase in profit margins for the 250 test stores. Shelf Engine also drove a 43.4% increase in sales for top-performing products during holidays compared to non-managed stores, generating substantial additional annual profit for the grocer.

National Grocers