Hyperlocal Stores

Create the perfect store with AI-informed space, assortment and promotion planning

Hyperlocal Assortment for a Fragmented Marketplace

  • CPG growth is challenged by the accelerating fragmentation of consumer preferences, many of which are driven by local factors (climate, culture, local trends, etc.)
  • r4 XEM for CPG puts the power of AI in the hands of decision makers to address hyperlocal requirements with precision and speed – without the need to replace existing systems.

Become Hyperlocal in 4 Steps

Step 1

Store
Targeting

Identify those stores where localization activities will deliver the highest ROI.

Step 2

Hyperlocal
Promotion

Test a hyper-localized assortment through existing promotion plan.

Step 3

Agile
Assortment
Management

Increase frequency, targeting and productivity of shelf-resets.

Step 4

New Production Introduction

Increase new product success rates with  localized targeting & distribution.

Localization Lifts Everything

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  • 84% of businesses see revenue growth from marketing localization.
  • Localization improves sales by 40%-50% while simultaneously reducing inventory and store mark downs.
  • Companies that prioritize localization see a 1.7x increase in revenue growth.
  • 70% of consumers feel localization improves their brand loyalty.
  • Localized marketing builds stronger connections
    • 65% of businesses see 3x improvement in engagement when using AI for to localize marketing content
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But Effective Execution Remains Difficult

A localization strategy is challenging because it requires balancing both customization with operational efficiency.  Five complicating factors:

  1. Consumer Fragmentation – Preferences vary widely; an approach that works in one city may fail in another due.
  2. Supply Chain Complexity – Tailoring inventory to regional demand  creates logistical challenges across suppliers, warehouses distribution models.
  3. Brand Consistency vs. Localization – Maintaining a unified brand identity while adapting to local tastes is a difficult balance.
  4. Operational Costs – Localized strategies often require unique store layouts, staffing models, and pricing strategies, which increase expenses.
  5. Data and Personalization Challenges – Retailers need hyper-local consumer insights, but gathering and analyzing region-specific data can be resource-intensive.
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Key Benefits by Stakeholder

Supply Managers

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Access to a unified demand plan at the store/item level to synchronize supply actions with sales and marketing actions

Business Level (C-suite)

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Capture latent demand currently constrained by mismatch of local preferences and current on-shelf assortments and promotions.

Store Planners, Merchandisers, and Category Managers

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See market opportunities for growth to plan with greater precision, augmented by AI for predictive intelligence and speed.

Frequently Asked Questions:

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Can r4 XEM® help me understand the best place to launch a new product?

r4 XEM® provides a deep understanding of the attributes that make products successful in each individual location. XEM’s digital-twin AI Foundation gives you a detailed view of location and customer behavior, allowing you to target the exact locations and markets to make your new product launch successful.

How can r4 XEM® improve our inventory management across multiple locations and reduce stockouts?

r4 XEM® is based on the groundbreaking engine that drove billions in value for Priceline.com by accurately matching supply with demand, optimizing pricing, and providing offers to the correct consumers in the right locations at the right time. With r4’s XEM® solution, you will have the power to deeply understand the trends and behaviors occurring at each unique location you do business in and be able to match the optimal products, quantities, and offerings to maximize yield at the hyper-local level.

How can r4 XEM® help us analyze local market trends and localized consumer behavior to make data-driven decisions?

The core of r4’s XEM® technology is the AI Foundation that is uniquely constructed for each customer. XEM creates a digital twin of each customer’s unique market space consisting of all the people, places, and things in and around their business. This foundation, or digital twin is constructed with customers’ enterprise data, multiple external data sources, and bolstered with generative AI – giving you a complete detailed view of your locations, your customers, and the products driving your revenue at the local level.