Axiom Tools: Economic Modeling
Time Series Analytics
Business Objective
Identify the true growth potential of disparate U.S. markets
Identify highest potential markets which receive preferred development resources
Strategy
Complete univariate regression modeling from industry and government sources (i.e. Bureau of Economic Analysis, Bureau of Labor Statistics, and Census)
Correlate this information with regional retailer sales data
Create “heat maps” that compare disparate economic regions by zip codes
Remove “economic noise factors” to identify true growth rates in disparate economies (i.e. Detroit vs. Los Angeles)
Results
Improved resource allocation and decision making enabled quarterly same store sales to increase 10-12% depending on market
Improved inventory management decreased inventory costs by 3-5% depending on market