As today’s consumer markets demand more personalization, true growth won’t come from the same old playbook. Instead, growth is driven by niche products that speak directly to specific tastes, cultures, and communities. For brands and retailers, this presents a stubborn problem: how to execute hyperlocal merchandising with the precision and scale needed to truly capture growth?
The Limits of Traditional Localization
Traditional approaches to localized assortment and merchandising execution—manual testing, broad segmentation, one-size-fits-all strategies—don’t offer the precision or efficiency needed in a hyper-targeted world. They’re often slow, expensive, and incapable of adapting to the nuances of local consumer behavior.
In the past year, we’ve spoken with dozens of industry leaders about hyperlocal merchandising. Here’s what we’ve heard:
“It’s a real thing – we need to address it.”
“We haven’t found a way to do it cost effectively.”
These insights are consistent across categories and regions. The demand for hyperlocal strategies is real—but so is the struggle to make them work economically.
A Smarter Way Forward: Better Data, Better Tech, Better Approach
The answer isn’t more of the same—it’s smarter tools, more granular data, and scalable methods:
- VR and Behavioral Data: Instead of relying on costly, slow live testing, virtual reality and behavioral data-driven arrangement optimization enables faster, more affordable, and more predictable results. It captures real consumer behavior in simulated environments, allowing brands to optimize shelf layouts and planograms with confidence.
- Market Model-based AI: Precision at scale is now possible. AI models use real market data to tune assortments at the store level—across categories, geographies, and customer segments. This isn’t just micro-targeting; it’s strategic localization backed by AI that gets smarter with each iteration.
- Assortment and Arrangement as a Service: By offering piloting that’s both cost-effective and flexible, this approach enables retailers to test and scale hyperlocal merchandising solutions efficiently. From assortment and layout to promotion and on-shelf availability, execution becomes more agile—and more aligned with the 80/20 rule of growth.
The 80/20 Growth Opportunity
Not every SKU matters equally. In fact, 20% of items often drive 80% of growth. Hyperlocal merchandising empowers brands to identify and double down on these high-impact opportunities with speed and accuracy—tailoring assortments and presentations to the unique needs of each store and shopper.
Hyperlocal isn’t just a buzzword. It’s a recognized need—and one that InContext and r4 Technologies are working together to solve. Our partnership provides the right data, AI technology, and approach that positions to lead in a market that values local relevance as much as global scale. Contact us to get started!
