Nilesh Khalkho, CEO of Sharaf DG, explains how his company, a multi-brand electronics retailer, utilizes data to enhance operational efficiency and drive sales. Currently, they generate data at the brand zone level within their stores and share these insights with the respective brands without charging a fee. This collaboration aims to improve operational efficiency by using data-driven insights.

A significant finding from their data analysis revealed that staffing levels did not align with footfall patterns. Specifically, there was only a 66% match between manpower availability and customer traffic. By tracking hourly footfalls and sales conversions, they identified periods when footfall was high, but sales associates were absent. Nilesh's team demonstrated to the brands that aligning staffing levels with footfall patterns could unlock additional sales opportunities.

To quantify this, they calculated the potential loss of sales by applying conversion rates to the periods when associates were absent. This projection showed the brands the potential revenue they were missing. By comparing the cost of adding staff to the projected additional income, it became evident that optimizing staffing was financially beneficial. As a result, manpower availability increased from 66% to 90%, leading to double-digit sales growth for the brands.

This approach of sharing data and collaborating with brands has proven mutually beneficial. The brands see increased sales and operational efficiency, while the retailer benefits from the additional sales and income. This stage of data sharing sets the foundation for potential future monetization, demonstrating the value of data-driven strategies in retail.

READ THE CASE STUDY: How UAE Electronics Retailer Makes Data-Driven Decisions