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9Classification · Segmentation

Store Clustering

Which stores behave similarly for promotional planning?

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A real-world example

Which stores behave similarly for promotional planning?

Retailers run 150-300 promotional campaigns per year, typically applying the same offers across all stores or using broad regional groupings. But two stores 5 miles apart can have completely different customer bases, price sensitivities, and category preferences. A suburban family-focused store responds to BOGO deals on bulk items, while an urban store near a college campus responds to single-serve discounts. Mismatched promotions waste 20-30% of promotional budgets ($40-80M annually for a large chain) and can actually decrease margin when high-margin items are discounted at stores where they would have sold at full price.

How KumoRFM solves this

Relational intelligence built for retail and e-commerce data

Kumo builds a relational graph connecting stores to their transaction patterns, customer demographics, product category performance, promotional response history, and geographic context. The model generates embeddings that capture each store's behavioral DNA. Stores S-14 and S-38 cluster together because they share similar customer demographics, promotional response patterns, and category mix, even though they are in different states. Kumo surfaces 8-12 natural clusters that respond predictably to specific promotion types, replacing 500+ store-level rules with a small number of targeted strategies.

From data to predictions

See the full pipeline in action

Connect your tables, write a PQL query, and get predictions with built-in explainability — all in minutes, not months.

1

Your data

The relational tables Kumo learns from

STORES

store_idnameregionformatsqftdemo_index
S-14Union Square MarketWestUrban42,000Young Professional
S-22Midtown GroceryNortheastSuburban55,000Family
S-38SoHo FreshNortheastUrban38,000Young Professional

CATEGORY_PERFORMANCE

store_idcategoryrevenue_sharegrowth_yoyavg_basket
S-14Organic & Natural28%+18%$42
S-14Ready Meals22%+12%$18
S-22Bulk & Family Pack35%+8%$65

PROMO_RESPONSE_HISTORY

store_idpromo_typeavg_liftavg_margin_impactbest_category
S-14% Off+22%+$1,200Organic
S-14BOGO+8%-$400Snacks
S-22BOGO+35%+$2,800Bulk Items

CUSTOMER_DEMOGRAPHICS

store_idavg_ageavg_incomehousehold_sizeprice_sensitivity
S-1431$92,0001.8Low
S-2242$78,0003.4Medium
S-3829$88,0001.6Low
2

Write your PQL query

Describe what to predict in 2–3 lines — Kumo handles the rest

PQL
PREDICT MOST_COMMON(STORES.CLUSTER_ID)
FOR EACH STORES.STORE_ID
3

Prediction output

Every entity gets a score, updated continuously

STORE_IDNAMECLUSTERCLUSTER_LABELTOP_PROMO_TYPE
S-14Union SquareC-1Urban Health-Forward% Off Organic
S-38SoHo FreshC-1Urban Health-Forward% Off Organic
S-22Midtown GroceryC-3Suburban FamilyBOGO Bulk
4

Understand why

Every prediction includes feature attributions — no black boxes

Store S-14 (Union Square Market)

Predicted: Cluster C-1: Urban Health-Forward

Top contributing features

Organic category revenue share

28%

28% attribution

Customer demographic profile

Young Pro, 1.8 HH

24% attribution

Promotional response pattern

% Off > BOGO

22% attribution

Price sensitivity index

Low

15% attribution

Store format and size

Urban, 42K sqft

11% attribution

Feature attributions are computed automatically for every prediction. No separate tooling required. Learn more about Kumo explainability

Bottom line: Increase promotional ROI by 25-40% by targeting store clusters with the right promotion types, recovering $40-80M in wasted promotional spend for a 500-store chain.

Topics covered

store clustering AIstore segmentation retailpromotional planning AIstore similarity analysisgraph neural network clusteringKumoRFMrelational deep learning retailstore performance analyticsretail store segmentationpromotion optimization retail

One Platform. One Model. Predict Instantly.

KumoRFM

Relational Foundation Model

Turn structured relational data into predictions in seconds. KumoRFM delivers zero-shot predictions that rival months of traditional data science. No training, feature engineering, or infrastructure required. Just connect your data and start predicting.

For critical use cases, fine-tune KumoRFM on your data using the Kumo platform and Data Science Agent for 30%+ higher accuracy than traditional models.

Book a demo and get a free trial of the full platform: data science agent, fine-tune capabilities, and forward-deployed engineer support.