Why retailers should be making data-driven decisions

In a retail landscape increasingly dominated by e-commerce and consumer-driven expectations, Stefan Loncar, founder and CEO of Loncom Consulting, is on a mission to transform how retailers use data. From inventory management to leveraging AI, Loncar’s insights and expertise have helped retailers across the globe improve their operations, predict trends, and ultimately boost profitability. Speaking from his Nottingham office, Loncar shared the story of his entrepreneurial journey and the crucial lessons he’s learned while navigating the complex world of retail data. From Croatia to the UK: A Journey of Opportunity Born and raised in Croatia, Loncar’s path to becoming a data expert began with a love for learning and a vision for broader opportunities. “Croatia is a beautiful country, but it’s small. I felt it didn’t give me all the opportunities I was looking for,” Loncar explains. At just 13, he attended an English language school in the UK and fell in love with its education system. By 18, he was back, studying financial mathematics at Nottingham Trent University before completing his master’s degree at University College London. Like many international students, Loncar dreamed of working in London’s financial sector, but the fast-paced lifestyle didn’t suit his Mediterranean sensibilities. “We like to take things slowly, enjoy a coffee,” he says with a smile. Instead, Loncar began working for a Portuguese company in Nottingham, running finances and business development. During this time, he discovered a passion for analytics and coding. His entry into retail, however, came by chance. “A Nottingham-based retailer needed help with their inventory management system,” he recalls. Loncar’s analytical skills proved invaluable, and soon he found himself freelancing for multiple companies. When redundancy struck in 2020, the idea for Loncom Consulting was born. “In 24 hours, I had six job inquiries. I thought, ‘Why work for one, when I can work with all of them?’” The Backbone of Retail: Inventory Management For Loncar, every problem in retail boils down to data. “The biggest data problem in the retail industry is inventory,” he states. Mismanagement in this area can lead to inefficiencies, missed opportunities, and wasted resources. Loncar’s team specialises in operational data analytics, focusing on issues like inventory forecasting and production optimisation. One of their most common projects involves helping fashion retailers predict buying cycles. “What do I need to order for the next season? We bring data into that decision-making process,” he explains. Using machine learning and AI, Loncom analyses past trends to forecast future needs, enabling retailers to strike the right balance between demand and supply. But Loncar is quick to acknowledge the foundational work involved. “Seventy percent of our time is spent cleaning, standardising, and normalising data,” he says. Without this groundwork, analytics would yield meaningless results. The Hidden Costs of Messy Data Loncar recounts anecdotes that highlight the pitfalls of poor data management. One retailer, for example, used inconsistent SKU codes to denote product colours like black and “blk.” “It caused endless headaches,” he recalls. Another time, he was handed inventory data scrawled on a piece of cardboard. “That was their system,” Loncar laughs. These examples underscore a common issue: many retailers fail to consider data management until it’s too late. “Retailers often don’t think about growth when it comes to data,” he explains. This shortsightedness can lead to inefficiencies, such as overstocking, missed sales opportunities, or unnecessary markdowns. “If you’re selling out before a season ends, you’re leaving money on the table,” Loncar warns. His advice to retailers is clear: plan for growth from the outset. “Input as much information as possible into your systems, even if you’re just starting out. It will save you time and money down the line.” Building Trust and Long-Term Partnerships Data analytics requires more than just technical expertise; it’s a deeply collaborative process. “We look at the guts of a business,” Loncar says. This level of access requires trust, which Loncom builds through consistent communication and proven results. Loncar describes the process as transformative. “At first, nobody likes data. But once they see the value of data-driven decisions, they become addicted,” he says. This shift often turns hesitant clients into long-term partners, with Loncom providing ongoing support through monthly retainers. The Growing Role of AI in Retail As AI technology becomes more accessible, Loncar sees it playing a crucial role in retail. “Data is the foundation of AI,” he explains. By feeding clean, standardised data into AI models, retailers can unlock powerful capabilities, from personalised product recommendations to predictive analytics. One example Loncar highlights is using AI to create tailored e-commerce pages in seconds—a task that would take human teams hours or days. “It’s exciting to see how AI is transforming the industry, but it also requires careful implementation,” he cautions. Sharing Knowledge with the Next Generation Beyond consulting, Loncar is passionate about education. He serves as a part-time lecturer at Nottingham Trent University, teaching fashion business analytics. “It’s a unique course responding to industry needs,” he says. Retailers had complained that graduates lacked skills in data analysis, prompting the university to create the programme. Loncar’s enthusiasm for teaching stems from his own educational journey. “Education brought so much to my life,” he says. By equipping students with practical skills, he hopes to bridge the gap between academia and industry, benefiting both graduates and the retailers who hire them. Looking Ahead: Growth and Expansion Loncom Consulting has grown from a one-man operation to a team of six, with clients spanning the globe. As Loncar looks to the future, his focus is on expansion—both geographically and in terms of services. “The UK is still our biggest market, but we’re moving into the US, Canada, and the Middle East,” he says. Internally, Loncar aims to refine his own systems and processes. “I need to work on the business, not just in the business,” he admits, a challenge many entrepreneurs will recognise. Data as the Future of Retail Loncar’s belief in the power of data is unwavering. “We’re in a data-driven economy,” he says. Whether it’s through better inventory management, AI implementation, or educating the next generation of retail leaders, Loncom is committed to helping businesses harness the potential of their data. For retailers hesitant to dive into analytics, Loncar offers a simple message: “Start small, but start now. The sooner you embrace data, the sooner you’ll see its value.” With leaders like Stefan Loncar at the forefront, the future of retail is not just about selling products—it’s about smarter, more informed decision-making at every level.