Abstract: Past sales data for a product sold at stores in a chain of retail stores is received by a computing device. For each segment, the stores in the chain are grouped into one or more clusters. The average sales of the product in each cluster and the average sales of the product in all of the stores are calculated based on the past sales data. A cluster variation and a total variation may be determined for each of the stores based on the past sales data. A correlation indicative of an effectiveness of the segmentation strategy to reduce sales variation between stores in each of the plurality of clusters may also be determined based on the at least cluster variation.