In years gone by, product positioning was an art practiced by retailers using a combination of data, experience and instinct. Retailers understand their shoppers, the neighbourhood they operate in and the types of households in their catchment area, leading to store layouts that capitalise on the shopping habits of their customers.
But sophisticated data processing techniques and the growth in AI are turning this artform into more of a science, uncovering insights that are not at all obvious at first glance - even to the seasoned retailer.
"We use data to show us patterns using machine learning and deep learning, which the normal human preconceived bias might not find or be able to see," said Chris Shortt , chief technology officer of Shoprite Holdings, in a recent interview with TechCentral.
"When you bring those two things together, you get the art and the science working very nicely together, and that starts to, hopefully, turn into a better shopping experience from the customer's perspective."
The story goes that the insights were put to the test by putting the nappies as close to beer as possible - next to each other where possible. The result was an increase in the sales of both products.