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Family Dollar Opts for dunnhumby AI Platform

Solution will optimize assortment process at all stores
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Customer data science company dunnhumby aims to help Family Dollar make merchandising decisions that will improve the customer experience and drive engagement with the retailer’s 66 million shoppers.

Discount retailer Family Dollar has chosen customer data science company dunnhumby as its chainwide strategic platform for category management and merchandising collaboration. According to the companies, the technology will place the customer directly at the heart of the decision-making process and allow Family Dollar’s merchandising and data analytics teams to make faster, smarter and more customer-centric decisions together with their CPG partners.  

Using its expertise in customer data science, as well consumer-led insights and collaboration, dunnhumby aims to help Family Dollar make merchandising decisions that will improve the customer experience and drive engagement with the retailer’s 66 million shoppers.

“Understanding and listening to what our customers want is at the very core of our mission to meet and exceed the needs of our shoppers,” noted Larry Gatta, Family Dollar’s chief merchandising officer. “With our new category and merchandising platform powered by dunnhumby, we can tailor and fine-tune our assortments to local purchasing preferences, to ensure we provide our customers with the products they need at each of our stores.”

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The Family Dollar category management and merchandising platform will consist of two key parts: dunnhumby Assortment, a next-generation assortment solution that leverages cutting-edge artificial intelligence and uses predictive analytics to quantify which products should be selected for each store, before forecasting the impact of assortment changes across every location, and dunnhumby Shop, a web-based AI-powered data tool created to deliver comprehensive aggregated insights about shopper behavior and identify the latest category trends. Employing this platform, Family Dollar will be able to localize assortments to provide its customers with the right assortment at just the right time.

[RELATED: Dollar Tree’s Family Dollar Business Is Under Strategic Review]

“The entire dunnhumby team is honored to be selected by Family Dollar, after a competitive review, as their strategic partner for category management and merchandising,” said Matt O’Grady, president of the Americas for Cincinnati-based dunnhumby, whose AI-powered solutions are used by around 60 retailers, 1,250 CPGs and 15,000 professionals. “In today’s hyper-competitive retail environment, Family Dollar recognizes that putting their customers first is crucial for growth and customer retention.”

Chesapeake, Va.-based Dollar Tree operates 16,397 Dollar Tree, Family Dollar and Dollar Tree Canada stores across 48 states and five Canadian provinces as of May 4. The company is No. 20 on The PG 100, PG’s 2024 list of the top food and consumables retailers in North America.

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