Family Dollar has partnered with First Insight to refine its merchandise assortment strategy using the solution’s predictive analytics and actionable data. The deployment is designed to reduce the risk of markdowns and stock shortages while also limiting the impact of underperforming products.
“Listening to our customer and inspiring her with everyday essentials and must-have items of the season is at the core of everything we do,” said Bonita Price, SVP of Merchandising at Family Dollar in a statement. “First Insight’s platform gives us fast, actionable insights into our customers’ preferences, which has already provided significant value.”
“Our partnership with Family Dollar is a prime example of how AI and customer insights can transform retail decision-making,” said Greg Petro, CEO of First Insight in a statement. “By integrating our cutting-edge predictive analytics, products on Family Dollar’s shelves are not just in demand but customer-approved. Our analytics enable Family Dollar to anticipate demand more accurately make smarter product choices, and ultimately, heighten customer satisfaction while driving sales.”
Parent company Dollar Tree has had concerns about the performance and future of the Family Dollar banner for several months. In March 2024, Dollar Tree announced plans to close approximately 600 Family Dollar stores by August, as well as an additional 370 Family Dollar and 30 Dollar Tree locations over the next several years as their leases expire. Additionally, Dollar Tree initiated a strategic review in June 2024 to consider options including a sale, spinoff or “other disposition of the business” for Family Dollar.
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