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In today's dynamic retail landscape,

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it is more critical and challenging
than ever to offer customers

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the right products, in the right stores,
at the right cost.

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Introducing Merch AI by BCG X.

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The holistic suite’s infrastructure,
algorithms, and workflows help retailers

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build customer-centric assortment, achieve
top-line growth, and improve margins.

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Merch AI quickly wrangles different data sets

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sets into a single source of truth
to enable advanced analytics.

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Proprietary and customized algorithms

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find hidden opportunities and
prescribe actions that will drive value.

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Retailers can then use a suite of
intuitive applications to extract insights,

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run “what-if” models, collaborate
to make decisions,

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and finally, monitor and adjust, if needed.

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The Category Performance app enables data-driven
negotiations that improve category margins—

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retailers can analyze historical performance
and customer loyalty to inform negotiation strategy—

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then generate fact packs to support discussions.

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Tracking over 20,000 commodities and quantifying
gaps between “actual cost” and “should-cost”,

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the Commodity Opportunity app supports retailers

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in pushing for cost reductions
and pushing back on cost increases.

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The Item Attribution app uses product
descriptions and images

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to generate category-specific attributes
for both retailer items and competitor items.

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The Customer Decision Tree app uses the attributes

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to visualize and benchmark the retailer’s
assortment versus competitors,

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or the overall market.

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Retailers can then identify assortment
moves to address customer needs.

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Navigating to the Assortment Optimization app,

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retailers can cluster stores based on
category-level shopping behavior

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and build localized assortments that optimize
item shelf space allocation in each cluster.

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The Store Network app optimizes
store locations, formats, and floorspace

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to reach more customers
and maximize store productivity.

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Retailers can identify attractive
new sites, model store closures,

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and build an omnichannel footprint
to maximize net present value.

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Finally, the Supplier Hub app helps retailers

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securely monetize their data
and gain new revenue streams.

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Leveraging the solution suppliers can evaluate
their business and identify opportunities,

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while retailers maintain full control of data access.

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Combining BCG X’s vast retail and analytics knowledge,

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Merch AI often results in a 2%-3% COGS
reduction and 2%-5% sales lift.

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We provide retailers with fully customizable tools,

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paired with new ways of working
to embed capabilities and sustain impact.

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Learn more about how to harness your data,

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leverage AI, and curate your
offer with Merch AI by BCG X.