Sally Beauty predicts improved store operations

Sally Beauty Supply is applying analytics to the literal consumer touchpoint where revenues are made -- the point of sale.



Sally Beauty is teaming up with prescriptive analytics provider Profitect Inc. to analyze sales and other data recorded at its in-store POS terminals. After a two-week implementation, Sally Beauty now has better insight into trends and patterns associated with areas of leaking profit, including shrink, damage, costing errors, waste, process mistakes, and lack of training.



"Profitect provided one complete prescriptive analytics solution that enabled us to upgrade our operational performance and opportunity identification needs," said Mike Povendo, VP of loss prevention and safety of Sally Beauty Supply. "Profitect revolutionized the way our stores operate with the technology's world-class functionality, clarity, ease of use and detailed visibility capabilities when you need it.”



The POS is a critical repository of data far beyond how much money is brought in. Analysis of POS data also lets retailers compare sales to inventory to discover shrink, track how long it takes to process transactions, and identify deeper trends such as products that sell together. Opt-in loyalty programs also let retailers obtain significant insight into individual consumer preferences.



Applying predictive analytics to this trove of POS data allows Sally Beauty to prepare for a future of increased in-store sales, higher levels of customer satisfaction, and reduced shrink.