BRdata Analytics: Trend Decomposition
Grocers need to ensure that their shelves are stocked with the items their customers want. Maintaining a high price for an item where market demand is falling uses valuable inventory space as well as shelf space where customers note that their needs aren’t being served. Maintaining a low price for an item where market demand is rising, or simply failing to offer that merchandise, risks lost profit. Both high prices and out-of-stocks nudge customers to look elsewhere. This presents an interesting, and difficult, problem: for which items is market demand rising or falling and by how much?