Shopper Marketing - May 2016 - 34


PROGRAMS

The Home Depot: understanding the customer, localizing products and price and space to
meet that customer's needs, and then going
back and optimizing them after you've done
the first round," Surasky said.
The average Home Depot store has some
50,000 products across approximately 500
categories, and the average category has
more than 1,000 assortments. Clustering is
one of the retailer's keys to success, helping to
group stores in ways that create a framework
that allows merchants and buyers to make
sense of the business. Another key is substitutable item groups that ensure incremental
sales from a new product are not transferring
from existing assortment that had already
solved a shopper's need. Yet most important
to success are attributes and traits.
"The Home Depot is obsessed with attributing SKUs so that we can understand the
performance of our business down to the SKU
store level and make assortment decisions
that reflect the needs of the local customer,"
Surasky said.
When analyzing water heaters, for example, the first thing the retailer did was to attribute them as gas, electric, tall, short, highwarranty, expensive, Wi-Fi-connected, etc.
Then it grouped its stores based on customer
buying behaviors to understand which stores

34

y SHOPPER MARKETING MAY 2016

need gas, electric, expensive or less expensive
models, and analyzed all that data using its
assortment planning tools.
In rural areas where there are no gas lines
established, shoppers prefer electric water
heaters. In cities, they prefer gas water heaters. In areas where there is a mix of older
townhomes and newer high rises, there is a
mix of needs that warrants hybrid stores that
stock both types.
Following that, the retailer looked at the
space in each store - how many bays of water
heaters they have versus what they need -
and only then did Home Depot execute.
"Notice how this is different than clustering
and localization in years past," Surasky said.
"This is not an urban strategy versus a suburban strategy. This is not a high-income strategy
and a low-income strategy. Demographics no
longer drive the assortment. Customer buying
behavior drives the assortment. And so you
can have stores that are just a mile or two apart
that might have different assortments."
Home Depot's water heater reset resulted
in double-digit comparable sales growth. Despite the apparent success, the chief marketing officer was certain there was more that
could be optimized and called for a second
round, which again doubled comps. Now he
wants the team to go in for round three. SM



Table of Contents for the Digital Edition of Shopper Marketing - May 2016

Contents
Shopper Marketing - May 2016 - Intro
Shopper Marketing - May 2016 - 1
Shopper Marketing - May 2016 - 2
Shopper Marketing - May 2016 - 3
Shopper Marketing - May 2016 - Contents
Shopper Marketing - May 2016 - 5
Shopper Marketing - May 2016 - 6
Shopper Marketing - May 2016 - 7
Shopper Marketing - May 2016 - 8
Shopper Marketing - May 2016 - 9
Shopper Marketing - May 2016 - 10
Shopper Marketing - May 2016 - 11
Shopper Marketing - May 2016 - 12
Shopper Marketing - May 2016 - 13
Shopper Marketing - May 2016 - 14
Shopper Marketing - May 2016 - 15
Shopper Marketing - May 2016 - 16
Shopper Marketing - May 2016 - 17
Shopper Marketing - May 2016 - 18
Shopper Marketing - May 2016 - 19
Shopper Marketing - May 2016 - 20
Shopper Marketing - May 2016 - 21
Shopper Marketing - May 2016 - 22
Shopper Marketing - May 2016 - 23
Shopper Marketing - May 2016 - 24
Shopper Marketing - May 2016 - 25
Shopper Marketing - May 2016 - 26
Shopper Marketing - May 2016 - 27
Shopper Marketing - May 2016 - 28
Shopper Marketing - May 2016 - 29
Shopper Marketing - May 2016 - 30
Shopper Marketing - May 2016 - 31
Shopper Marketing - May 2016 - 32
Shopper Marketing - May 2016 - 33
Shopper Marketing - May 2016 - 34
Shopper Marketing - May 2016 - 35
Shopper Marketing - May 2016 - 36
Shopper Marketing - May 2016 - 37
Shopper Marketing - May 2016 - 38
Shopper Marketing - May 2016 - 39
Shopper Marketing - May 2016 - 40
Shopper Marketing - May 2016 - 41
Shopper Marketing - May 2016 - 42
Shopper Marketing - May 2016 - 43
Shopper Marketing - May 2016 - 44
Shopper Marketing - May 2016 - 45
Shopper Marketing - May 2016 - 46
Shopper Marketing - May 2016 - 47
Shopper Marketing - May 2016 - 48
Shopper Marketing - May 2016 - 49
Shopper Marketing - May 2016 - 50
Shopper Marketing - May 2016 - 51
Shopper Marketing - May 2016 - 52
Shopper Marketing - May 2016 - 53
Shopper Marketing - May 2016 - 54
Shopper Marketing - May 2016 - 55
Shopper Marketing - May 2016 - 56
Shopper Marketing - May 2016 - 57
Shopper Marketing - May 2016 - 58
Shopper Marketing - May 2016 - 59
Shopper Marketing - May 2016 - 60
Shopper Marketing - May 2016 - 61
Shopper Marketing - May 2016 - 62
Shopper Marketing - May 2016 - 63
Shopper Marketing - May 2016 - 64
Shopper Marketing - May 2016 - 65
Shopper Marketing - May 2016 - 66
Shopper Marketing - May 2016 - 67
Shopper Marketing - May 2016 - 68
Shopper Marketing - May 2016 - 69
Shopper Marketing - May 2016 - 70
Shopper Marketing - May 2016 - 71
Shopper Marketing - May 2016 - 72
Shopper Marketing - May 2016 - 73
Shopper Marketing - May 2016 - 74
Shopper Marketing - May 2016 - 75
Shopper Marketing - May 2016 - 76
Shopper Marketing - May 2016 - 77
Shopper Marketing - May 2016 - 78
Shopper Marketing - May 2016 - 79
Shopper Marketing - May 2016 - 80
Shopper Marketing - May 2016 - 81
Shopper Marketing - May 2016 - 82
Shopper Marketing - May 2016 - 83
Shopper Marketing - May 2016 - 84
Shopper Marketing - May 2016 - 85
Shopper Marketing - May 2016 - 86
Shopper Marketing - May 2016 - 87
Shopper Marketing - May 2016 - 88
Shopper Marketing - May 2016 - 89
Shopper Marketing - May 2016 - 90
Shopper Marketing - May 2016 - 91
Shopper Marketing - May 2016 - 92
Shopper Marketing - May 2016 - 93
Shopper Marketing - May 2016 - 94
Shopper Marketing - May 2016 - 95
Shopper Marketing - May 2016 - 96
Shopper Marketing - May 2016 - 97
Shopper Marketing - May 2016 - 98
Shopper Marketing - May 2016 - 99
Shopper Marketing - May 2016 - 100
Shopper Marketing - May 2016 - 101
Shopper Marketing - May 2016 - 102
Shopper Marketing - May 2016 - 103
Shopper Marketing - May 2016 - 104
Shopper Marketing - May 2016 - 105
Shopper Marketing - May 2016 - 106
Shopper Marketing - May 2016 - 107
Shopper Marketing - May 2016 - 108
Shopper Marketing - May 2016 - 109
Shopper Marketing - May 2016 - 110
Shopper Marketing - May 2016 - 111
Shopper Marketing - May 2016 - 112
Shopper Marketing - May 2016 - 113
Shopper Marketing - May 2016 - 114
Shopper Marketing - May 2016 - 115
Shopper Marketing - May 2016 - 116
Shopper Marketing - May 2016 - 117
Shopper Marketing - May 2016 - 118
Shopper Marketing - May 2016 - 119
Shopper Marketing - May 2016 - 120
Shopper Marketing - May 2016 - 121
Shopper Marketing - May 2016 - 122
Shopper Marketing - May 2016 - 123
Shopper Marketing - May 2016 - 124
Shopper Marketing - May 2016 - 125
Shopper Marketing - May 2016 - 126
Shopper Marketing - May 2016 - 127
Shopper Marketing - May 2016 - 128
Shopper Marketing - May 2016 - 129
Shopper Marketing - May 2016 - 130
Shopper Marketing - May 2016 - 131
Shopper Marketing - May 2016 - 132
Shopper Marketing - May 2016 - 133
Shopper Marketing - May 2016 - 134
Shopper Marketing - May 2016 - 135
Shopper Marketing - May 2016 - 136
Shopper Marketing - May 2016 - 137
Shopper Marketing - May 2016 - 138
Shopper Marketing - May 2016 - 139
Shopper Marketing - May 2016 - 140
Shopper Marketing - May 2016 - 141
Shopper Marketing - May 2016 - 142
http://digital.shoppermarketingmag.com/nxtbooks/ptp/sm_ecommerce2018
http://digital.shoppermarketingmag.com/nxtbooks/ptp/sm_201708
http://digital.shoppermarketingmag.com/nxtbooks/ptp/sm_201707
http://digital.shoppermarketingmag.com/nxtbooks/ptp/sm_201706
http://digital.shoppermarketingmag.com/nxtbooks/ptp/sm_201705
http://digital.shoppermarketingmag.com/nxtbooks/ptp/sm_201704
http://digital.shoppermarketingmag.com/nxtbooks/ptp/sm_201703
http://digital.shoppermarketingmag.com/nxtbooks/ptp/sm_201702
http://digital.shoppermarketingmag.com/nxtbooks/ptp/sm_201701
http://digital.shoppermarketingmag.com/nxtbooks/ptp/sm_201612
http://digital.shoppermarketingmag.com/nxtbooks/ptp/sm_201611
http://digital.shoppermarketingmag.com/nxtbooks/ptp/sm_201610
http://digital.shoppermarketingmag.com/nxtbooks/ptp/sm_201609
http://digital.shoppermarketingmag.com/nxtbooks/ptp/sm_201608
http://digital.shoppermarketingmag.com/nxtbooks/ptp/sm_201607
http://digital.shoppermarketingmag.com/nxtbooks/ptp/sm_201606
http://digital.shoppermarketingmag.com/nxtbooks/ptp/sm_201605
http://digital.shoppermarketingmag.com/nxtbooks/ptp/sm_201604
http://digital.shoppermarketingmag.com/nxtbooks/ptp/sm_201603
http://digital.shoppermarketingmag.com/nxtbooks/ptp/sm_201602
http://digital.shoppermarketingmag.com/nxtbooks/ptp/sm_201601
http://digital.shoppermarketingmag.com/nxtbooks/ptp/sm_201512
http://digital.shoppermarketingmag.com/nxtbooks/ptp/sm_201511
http://digital.shoppermarketingmag.com/nxtbooks/ptp/sm_201510
http://digital.shoppermarketingmag.com/nxtbooks/ptp/sm_201509
http://digital.shoppermarketingmag.com/nxtbooks/ptp/sm_201508
http://digital.shoppermarketingmag.com/nxtbooks/ptp/sm_201507
http://digital.shoppermarketingmag.com/nxtbooks/ptp/sm_201506
http://digital.shoppermarketingmag.com/nxtbooks/ptp/sm_201505
http://digital.shoppermarketingmag.com/nxtbooks/ptp/sm_201504
http://digital.shoppermarketingmag.com/nxtbooks/ptp/sm_201503
http://digital.shoppermarketingmag.com/nxtbooks/ptp/sm_201502
http://digital.shoppermarketingmag.com/nxtbooks/ptp/sm_201501
http://digital.shoppermarketingmag.com/nxtbooks/ptp/sm_201412
http://digital.shoppermarketingmag.com/nxtbooks/ptp/sm_201411
http://digital.shoppermarketingmag.com/nxtbooks/ptp/sm_201410
http://digital.shoppermarketingmag.com/nxtbooks/ptp/sm_201409
http://www.nxtbook.com/nxtbooks/ptp/sm_201408
http://www.nxtbook.com/nxtbooks/ptp/sm_201407
http://www.nxtbook.com/nxtbooks/ptp/sm_201406
http://www.nxtbook.com/nxtbooks/ptp/sm_201405
http://www.nxtbook.com/nxtbooks/ptp/sm_201404
http://www.nxtbook.com/nxtbooks/ptp/sm_201403
http://www.nxtbook.com/nxtbooks/ptp/sm_201402
http://www.nxtbook.com/nxtbooks/ptp/sm_201401
http://www.nxtbook.com/nxtbooks/ptp/sm_201312
http://www.nxtbook.com/nxtbooks/ptp/sm_201311
http://www.nxtbook.com/nxtbooks/ptp/sm_enhancedpreview
http://www.nxtbook.com/nxtbooks/ptp/sm_201310
http://www.nxtbook.com/nxtbooks/ptp/sm_201309
http://www.nxtbook.com/nxtbooks/ptp/sm_201308
http://www.nxtbook.com/nxtbooks/ptp/sm_201307
http://www.nxtbookMEDIA.com