Methodology for the digitalization of advertisement at the point of sale for gross margin increase in the traditional retail trade

Abstract

Retail trade modernization in Peru has displaced the traditional retailer as the first option when it comes to shopping. Supermarkets have grown 45% during the last four years and the new convenience stores gather all competitive advantages required by the sector. Industry has adapted to the new Peruvian in order to cover the needs generated by a digital age offering solutions that give timely information, comfort and modernity when acquiring a new product. In 2017, 414,000 grocery stores were counted in Peru, which were forced to adapt and improve their services. This research project aims to come up with a solution to bring the grocery stores into the twenty-first century, and thus, to increase their gross margin and ensure their continuity. A methodology connecting the requirements of the grocery stores that invest the most in the city of Lima to the needs of the mass consumption companies by means of a platform that digitalizes ads at the point of sale driven by digital advertising is presented here. Currently, the product benefits 40 grocery stores in the city with a new customer service channel that allows to increase their sales by 20%.