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Family Dollar Selects AI-Powered Solution to Enhance Category Management

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Family Dollar will use solutions from Dunnhumby to make merchandising and category management more customer-centric across its store network. Dunnhumby will use customer data science as well as consumer-led insights to help Family Dollar make merchandising decisions that drive greater engagement with the retailer’s 66 million shoppers.

The Family Dollar platform will be built on two solutions: Dunnhumby Assortment, which employs predictive analytics to quantify which products should be selected for each store and forecast the impact of assortment changes across each location; and Dunnhumby Shop, a web-based, AI-powered data tool designed to deliver comprehensive, aggregated insights about shopper behavior as well as the latest category trends.

“Understanding and listening to what our customers want is at the very core of our mission to meet and exceed the needs of our shoppers,” said Larry Gatta, Chief Merchandising Officer at Family Dollar in a statement. “With our new category and merchandising platform powered by Dunnhumby, we can tailor and fine tune our assortments to local purchasing preferences, to ensure we provide our customers with the products they need at each of our stores.”

In June 2024 Family Dollar parent company Dollar Tree initiated a strategic review of the struggling banner, with options including a sale, a spinoff or “other disposition of the business.” The move followed Dollar Tree’s March 2024 announcement that it planned to close approximately 600 Family Dollar stores by August, along with an additional 370 Family Dollar stores and 30 Dollar Tree stores in coming years as each store’s lease expires.

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In August 2024 Family Dollar partnered with First Insight to improve its merchandise assortment strategy.

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