• The Journal of Bigdata
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• v.8 no.1
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• pp.131-156
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• 2023

The traditional retail industry significantly changed over the past decade due to the mobile and online technologies. This change has been accompanied by a shift in consumer behavior regarding purchasing patterns. Despite the rise of online shopping, there are still specific categories of products, such as "Processed food" in Mongolia, for which traditional shopping remains the preferred purchase method. To prepare for the inevitable future of retail businesses, firms need to closely analyze the performance of their offline stores to plan their further actions in a new multi-channel environment. Retailers must integrate diverse channels into their operations to stay relevant and adjust to the shifting market. In this research, we have analyzed the performance data such as sales, profit, and amount of sales of offline stores by using clustering approach. From the clustering, we have found the several distinct insights by comparing the circumstances and performance of retail stores. For the certain retail stores, we have proposed three different strategies: a fulfillment hub store between online and offline channels, an experience store to elongate customers' time on the premises, and a merge between two non-related channels that could complement each other to increase traffic based on the store characteristics. With the proposed strategies, it may enhance the user experience and profit at the same time.