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How Grocery Stores and Supermarkets Are Making Use of Data Analytics

Updated: Jan 13, 2021

Grocery stores and supermarkets know a lot more about us than we think. With every transaction that occurs in-store, valuable data about the customer is collected and is utilised by grocery store chains and supermarkets to draw these customers back in. In the Fast-Moving Consumer Goods (FMCG) sector, data is especially important in retaining customers and getting new business due to the low profit margins. In order to do so, these businesses need to understand and target their audience appropriately. We've compiled a few ways of how groceries and supermarkets are making use of their data to run their business the right way.

Marketing campaigns and promotions

Data analytics takes advantage of the valuable data generated by consumers whenever they purchase items, be it offline or online. This data paints the customer profile, and with the frequent purchases happening in supermarkets, these businesses will be able to see patterns in shopping behaviour to which they can leverage on. Knowing what and where customers buy their products from, their spending behaviour and purchase habits, allows supermarkets to create well-targeted marketing promotions and offers that appeal directly towards what customers want. This draws them back to their stores for future purchases. Data analytics also allows these supermarkets to gauge the effectiveness of their marketing campaigns and overall profitability.


In the supermarket’s price-sensitive industry, determining the right price that will attract enough customers and allows them to stay competitive is a difficult task. However, data analytics empowers supermarkets and grocery stores to price their items right. Through examining real-time sales numbers and customer feedback, they are able to determine the right price that customers respond positively to, yet one which allows them to remain profitable. Questions retailers often ask themselves include ‘What is the right price point that will help maximise sales?’ or ‘What is the customer’s optimal price?’, which are answered easily with data analytics. This is especially important for supermarkets, given the extremely tight profit margins in which they operate in.

Inventory management

Replenishing items only when stock is low is no longer viable in today's age. Knowing what item is running low and what items to stock up are just some of the questions retailers often have – especially so in the supermarket industry, where items come and go quickly. Real-time data allows grocery stores and supermarkets to forecast the potential sales and demand of their items through predictive analytics, highlighting which items are in demand and those to discard. This removes the problem of stock that’s just taking up space on shelves and not selling; this solution reduces overall inventory costs, ensures high-demand items are always in stock, and increases potential revenue. Overall, it helps supermarkets and grocery stores better manage their inventory and have the optimised amount of stock for each item.

With the rise of e-commerce, many more people are going online to purchase their groceries, effectively taking them away from brick and mortar grocery stores and supermarkets. With real-time data analytics, they will be able to be competitive with these e-commerce sites by making use of valuable transactional data generated in stores, and this is possible with the AImazing solution. With its Plug and Play installation, grocery stores and supermarkets will be able to make full use of their data. Click here to find out more and get started!

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