Issue link: https://resources.tangoanalytics.com/i/1465837
tangoanalytics.com 2 BENEFITS Findings from the projects were very comprehensive, and provide much needed customer intelligence for both Caleres' Merchandising and Operations departments. Based on this success, they expanded the use and scope of Tango's models to make better decisions about how they staff and merchandise stores, and how they approach competitors. Tango also worked with the marketing department to help them understand how our model could be used to help them to better target market different ethnic market, in particular around merchandising and marketing. As a testament to the success of the project, Tango's relationship with Caleres is ongoing, and we continually seek opportunities to help improve their location decision making. CASE STUDY: CALERES Caleres was challenged with understanding the affect new locations were having on their existing stores, so Tango built a sales forcasting which included cannibalization methodologies. The models also allowed them to conduct reverse cannibalization analysis to help them understand what happened to existing stores if they decided to close one of their locations, and the impact on existing store sales. When it came to understanding their customer, they had data from a strong loyalty program which Tango used to help them track customer shopping patterns. Tango also helped Caleres understand the extent of trade areas based on the various types of malls their locations were in. For example, Tango helped them answer the following: How far does a closed mall pull from versus an external shopping center location? Or, what is the difference in trade areas of an A versus B mall—or a super-regional, regional, or community mall? Tango also helped them merchandise individual locations to better address the requirements of the customer base. Not only did Caleres now understand total projected volume, but also volume at the category level—for example, how many children's shoes, women's boots or men's dress shoes would sell. This department- by-department focus helps them merchandise their store properly, and helps them better understand how much space they should allocate to each department within any given location. Caleres is also taking advantage of Tango's mobile capabilities, which enable territory real estate managers to run a site through the system to quickly visualize the trade area, harvest demographics, and quickly understand any competitive threats, before providing the site to their market research department.