Predictive Analytics

Retail site selection is not just a matter of available real estate. It’s an analytical challenge that requires sophisticated statistical modeling and a thorough understanding of the market potential of a location. Devon Wolfe, managing director of Americas Strategy & Analytics, Troy, N.Y.- based Pitney Bowes Business Insight, discusses the Top 10 most common mistakes that seem to repeatedly plague businesses and hinder their success:

1. Assuming you can build a model for all situations

Delinquency rates in Target’s credit card portfolio are now at their lowest level in three years as more people are paying their bills on time. It is an encouraging sign for the long-term health of the nation’s economy to know that people are increasingly using credit in a responsible manner, at least those who have a Target card anyway, and therefore more likely to honor their obligations.

Target is looking for a low to mid-single digit increase in July same-store sales even though it posted a June increase of 4.5% that exceeded analysts’ estimates and came in at the high end of the company’s range of anticipated results. 

Cincinnati -- Bartell Drugs has selected KSS Retail, a global supplier of price modeling, optimization, and customer insight solutions for the retail industry, as its provider for price modeling and optimization.

“We chose KSS Retail because we know Price Optimization will allow us to better understand what’s important to our shoppers, which will help us deliver the value they’ve come to expect.” said Ron Miller, senior VP merchandising at Bartell Drugs, which operates 58 stores in Washington State.

Costco and BJ’s reported impressive same-store sales for June, and that’s good news for Sam’s Club. Given the strong correlation in performance between Sam’s and its direct competitors it is reasonable to assume Sam’s is on track to easily attain its second quarter same-store sales guidance, which calls for an increase in the range of 3% to 5%. Sam’s posted a first-quarter comp increase of 4.2% but doesn’t provide monthly updates.

Stronger-than-expected sales from a number of retailers in June is adding credence to a recent forecast that this year’s back-to-dchool season could be the strongest in the past five years, which is good news for Walmart as it looks for a strong ending to its second quarter.

Shoppers continue to face a lot of economic headwinds this back-to-school season, but one forecaster has seasonal sales growing by 6.2% to $467 billion, the most since 2006.

DEERFIELD, Ill. — Walgreens’ stock was trading up 30 cents to $43.03 on the New York Stock Exchange mid-morning on Wednesday thanks to favorable same-store sales growth of 4.8% for the month of June versus an analyst consensus estimate of 2.8%.

By Mark Gibson, [email protected]

Lewisville, Texas -- Consumer deal-seeking is here to stay, according to a new report by Parago. The study, Shopper Trend Report: Values, Deals & How Far They’re Willing To Go To Get Them, provides a comprehensive look at the entire deal landscape, from traditional clipped coupons to mobile applications. It finds that deal-finding has evolved from a necessity for cash-strapped consumers to an attractive, trendy activity that all shoppers now pursue. It also examines how these trends will likely continue to affect shopper behavior.

Leveraging the social and mobile channels to present a unified cross-channel experience is one of the keys to maximizing online holiday sales this year, according to the IBM Coremetrics Fourth Annual Online Retail Holiday Readiness Report.