Heinen's Adopts New Software to Solve Out-of-Stocks

Heinen’s, which operates stores in the Chicago and Cleveland areas, has adopted new software that uses machine learning to solve out-of-stock issues.

Partnering with New York-based retail software provider CB4, the Warrensville Heights, Ohio-based grocer is using the software to detect unmet demand opportunities in its stores at the SKU level using only pre-existing POS data. In response, the technology provides actionable recommendations to the store’s relevant team, along with guidance on how to capture lost sales and improve the in-store experience for customers.

Implementing and onboarding for the new software takes only a few days, and requires no in-store hardware or external data sources. According to CB4, the technology can increase same-store growth by up to 3 percent using simple sales data.

“Product availability is the No. 1 driver of customer satisfaction," said Jeff Heinen, co-president of Heinen’s. "When CB4 showed us their first set of opportunities, we discovered numerous operational decisions affecting our product availability. Implementing the solution is a quick and strategic win. We will be working smarter to improve the shopper experience, driving higher sales.”

To use the software, retailers upload their POS data to its pattern-recognition software, which generates recommendations across the entire chain. Recommendations are delivered to store managers via the company’s mobile or desktop app to correct operational difficulties in stores. To help retailers measure ROI, dedicated dashboards provice transparency into how much the software has helped stores, and how much grocers can expect to earn over the fiscal year.