Feature Case Study: Transferred demand in grocery retail.
A partnership between 5one and Brunel University


The need: The set of products that a retailer stocks in its stores is known as its assortment. Any changes to a store's assortment need to be carefully planned as they could have a major impact on the sales and profitability of the retailer. The loss of any product from the assortment carries a risk of lost sales even if it is replaced by another product and so it is important to understand the impact of change to the assortment. Transferred Demand is the prediction of the substitution of sales from product to product when changes in assortment are made to a category. An important link to investigate is how demand changes when the attributes of the category change (as defined by the attributes of the products in the category).

Company quotation: "It was exciting to have a different and fresh perspective on the data we work with day in, day out, and we have achieved progress in understanding some of the dynamics of transferred demand."  Tim Jones, 5one.

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