CSA Mentions First Insight | Grupo Coppel Leverages AI For Private Label Merchandising
The operator of one of Mexico’s largest department store chains is artificial intelligence-enabling its private label apparel and footwear strategy.
Grupo Coppel is utilizing First Insight AI decision tools as part of a broader $4.6 billion transformation growth strategy at its Coppel department store banner. Coppel is bringing predictive consumer signals into its merchandising process to help guide its private label strategy and support decisions across assortment, pricing and category growth.
Coppel will use First Insight’s proprietary Value Score, a predictive measure of customer appeal, price point and purchase intent, throughout the private label product development lifecycle.
The retailer intends to shape private label assortments around the products most likely to resonate with shoppers to help reduce markdowns, improve sell-through and direct development investment toward the strongest opportunities. Coppel also hopes to optimize pricing, align merchandising strategies across channels, and obtain customer feedback early in development rather than waiting for samples or sales data.
In an initial pilot of First Insight technology, Coppel focused on women’s apparel, its largest category. More than seven in 10 (72%) private label women’s styles landed within the medium-to-high Value Score range. The analysis also revealed pricing’s critical role in impacting purchase intent.
According to Coppel, it will continue to scale First Insight across women’s apparel while expanding into additional categories, including men’s apparel and women’s and men’s footwear.
"What stood out with First Insight was how intuitive and merchant-friendly the solution is, and their proven use cases in the market," said Daniela Orduña, divisional merchandise director, Coppel. "The platform simplifies complex decisions so it’s immediately clear which products and assortments we should move forward with, and which need to go back to the drawing board."
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