Coop Denmark Takes the Next Step in Its Customer-centric Journey with Galleria RTS

This press release refers to a project implemented by Galleria RTS which was acquired by RELEX Solutions in June 2016.

Coop Denmark extends its use of Galleria solutions to tailor its product offering in line with customer demand by localizing assortment and space.

Coop Denmark A/S, the largest grocery chain retailer in Denmark, has expanded its portfolio of Galleria retail and category optimization software in order to achieve greater competitive differentiation and put its customers at the centre of store-specific assortment, merchandising and space optimization decision-making.

An existing customer of Galleria, part of RELEX Solutions, Coop’s latest decision to implement Galleria’s Category Management software suite comes as a result of a successful pilot process in which significant insights and benefits have been achieved to date. With the foundations in place, the next stage in the journey unleashes the unique opportunity for Coop to take category management to a new level with a fully tailored offering to satisfy its entire customer base, reduce wastage / markdowns and achieve maximum sales potential in each individual store.

We wanted to better understand our shopper’s behavior and optimize individual store assortments and space.

Lars Kejser Bob, Head of Space Management, Coop Denmark comments: “The pilot project has proven that one size doesn’t fit all and that local demand differs greatly. For example, the needs of customers of two stores in the same chain located relatively close to each other could vary greatly, whereas two stores located at opposite ends of the country might experience similar levels of demand. We therefore wanted to better understand our shopper’s behavior and optimize individual store assortments and space.”

Based on the consumer purchasing patterns of its 1.6 million members and on a variety of parameters, including consumer types and different socio-economic surroundings, Coop Denmark is able to build a picture of who lives within the surrounding area to a specific store. It can then use this subsequent cluster analysis to find comparable stores, enabling it to better create locally-based assortments to suit the relevant customer base.

We have for some years been working closely with experienced and talented colleagues in the industry and have chosen to expand our collaboration with Galleria to implement its full intelligent solution.

Lars continues: “We have for some years been working closely with experienced and talented colleagues in the industry and have chosen to expand our collaboration with Galleria to implement its full intelligent solution for strategic, centralized category management and both micro and macro space. Our objective is to centralize decisions incorporated with each individual store’s customers’ requirement.”

With implementation already underway, Coop will enjoy benefits through use of the following solutions:

• Strategic Assortment

A customer focused approach to tailor product offering in line with customer demand at a national / cluster / store level. Fully space aware assortments are automatically created to provide a credible breadth and depth of products and in-line with category strategy & objectives.

• Customer Centric Merchandizing Version 8

A move to Galleria’s advanced merchandizing platform, offering the ability to plan, automate and optimize store-specific planograms for any fixture type; from pegboards to freezer chests and with full 3D visualization.

• Intelligent Store Optimization

The optimization of store, department & category space in each store to meet customer demand and to forecast the financial return on investment; utilizing a bottom-up approach to support new store space allocation, store refit programs, departmental & aisle space change.

• Galleria Foundation Services

Providing the centralized category management hub for master data and workflow management, seamlessly connecting business processes, providing integration with upstream/downstream systems and bringing together all key stakeholders.

By implementing a localized and more targeted assortment offering combined with store-specific planograms to meet merchandizing strategy and fit each store profile, Coop will have the ability to have the right products, in the right place, at the right time and at the right quantity to match individual store demand, optimize customer loyalty and increase its competitive differentiation.

Ian Duncan-Lewis, CEO, Galleria adds: “Coop and Galleria share the same customer-centric ethos; we are extremely pleased to have the opportunity to continue to strengthen our relationship and support Coop in its move to a fully store-specific strategy. With an increasingly competitive market-place there’s a clear pressure to reduce costs whilst increasing customer loyalty and we truly believe that this granular level of intelligence and automation is the future of retailing.”

About Coop Denmark

Coop Denmark A/S is Denmark’s largest supermarket chain. The company operates more than 1200 stores across Denmark under the following trade names: Kvickly, SuperBrugsen, Brugsen Dagli’Brugsen, LokalBrugsen, Mad Cooperativet, Irma, Fakta and Fakta Q.