I began using Retail Link/DSS regularly when I started on Gillette’s Walmart Team back in 2003. I thought it was wonderful compared to the other retailers that I had worked with, where I was lucky to get units and dollars sold. Walmart has taken some data fields out and added other data fields since I started using it. Still, DSS is no longer the Cadillac it once was. But like most vehicles from the early 2000s, it’s time for a replacement. So, why should you be excited about Luminate? It would certainly be beneficial if the data was a bit more affordable. The price is significant, and I understand that it could be a major factor in many companies’ purchasing decisions. The free version does have valuable information. I am focusing on the paid version because that will have leadership asking for ROI and I believe there is growth to be had.
Assortment optimization will again be critical in category management as teams use the new data from Walmart Luminate for better space to sales indices. For example, Walmart and their suppliers have tried to balance the capacity constraints of high-performance items against unique assortment items with high walk rates. Now, you will be able to see the right option based on your category and merchant’s goals. Those unique assortment items will have more scrutiny than ever before. Conversely, high velocity items may be able to get the space they need.
We have always used historical data to measure item movement but that has been incomplete as it did not capture Out-of-Stocks and many other key drivers of sales. Walmart Luminate will allow you the opportunity to add the number of items that were not able to be picked for OGP shoppers. While the true number of lost sales is not captured, we can begin to close the gap on OOS. Another example of using Luminate data to get closer to a true forecast is around cross-shop. I know DSS had some basket information. As category advisors, we have always paired likely combinations like shampoo and conditioner. Luminate shows less obvious patterns that will grow sales if you take advantage of the data.
Here are ten reasons to embrace Walmart Luminate:
- Moving Beyond DSS: Let’s be honest, Decision Support is due to be replaced with more robust data and better insights.
- Effortless Data Import: Shopper data is easier to import into modulars allowing smarter decisions in the modular building and/or automation process.
- Strategic Placement: Walmart Luminate data will be better enable advisors to decide where low volume/high walk rate items should live in the Walmart ecosystem by having the data included in your modulars.
- Space Advocacy: You can utilize nil pick data to justify more space for your items.
- True Forecasting: Walmart Luminate is closer to a true forecast versus primarily using historical data as you can include the missed sales.
- Modular Optimization: You might be able to cluster to lower your mod count or you may want store specific mods if you’re items or the category has extensive regionality. The data could be beneficial to grow your category either way.
- Channel Insights: Channel data may help you discover that some items need more or less holding capacity.
- Transferability Data: Transferability data in your modulars may enhance your insights as to Assortment needs versus capacity constraints.
- Comprehensive Ranking: Advisors who use a combination of factors to rank items beyond price and volume will have a better way to normalize the value an item brings to the assortment’s uniqueness compared to items with higher velocity.
- Reliable Data: The data is reliable and will be the single source of truth going forward and will continue to evolve with the sunset of DSS.
Embracing Walmart Luminate is not just a strategic move; it’s a necessity for staying ahead in decision-making for category growth. Join our upcoming virtual. Learn how we can help you get your Luminate data into your modular – contact us today!