In food retail, market changes can happen quickly that require retailers to react just as swiftly. Find out how you can move from reacting to competitors to understanding and influencing where the market should go
Marielle Fong, Engage3 Director of Marketing, sat down with Bill Bishop, Chief Architect of Brickmeetclick, to discuss his calculations on what the retention rate for online grocery shopping will be in the near future, which retailer is impressing him nowadays, and his thoughts on whether retailers should pay more attention to shipping fees or prices.
Engage3 will allow Heinen’s to achieve the most comprehensive competitive pricing visibility, while leveraging its ML-powered product linking capabilities to attain a contextualized view of their competitors’ equivalent items at the localized market level.
Thad Reuter of Progressive Grocer, in a recent article titled Getting Pricing Right in 2021, writes that price optimization will be undergoing significant changes in 2021 – and that retailers who don’t get on board will face problems sooner than later.
“Price optimization will need to shift to be able to deal with smaller trip sizes, households with less money to spend on each trip, shifts to private label, and smaller pack sizes,” Edris Bemanian, Engage3 CEO, predicts. “Historical price optimization models of increasing price to drive profit won’t work. Retailers will need to focus on the items that drive their Price Image to keep traffic up.”
Struggling to compete on price and failing to drive trips
Legacy price optimization solutions still use outdated elasticity models and rules to set prices, which don’t include shopper behavior and the impact of price on perceptions.
Using AI-based shopper behavior analysis, Engage3 developed Price Image Management, which accurately forecasts the volume impact of price changes and identifies which items will have the greatest impact on Price Image with the least investment.
Private Label (PL) is expected to outpace branded items by an incremental $216B by 2027. Most competitive intelligence programs don’t accurately match a retailer’s exclusive items, like PL, to their rest of market equivalents at scale. Read on to discover how to create a best practice competitive intelligence program that provides visibility to Private Label.
While it is important to be competitively priced on KVIs, the low margins and frequent price wars or competitive-price-comping make it incredibly difficult to differentiate on these items to improve a retailer’s price perception. By focusing price investments on identifiable Price Image Drivers, retailers can grow trips and increase loyalty while remaining competitive on KVIs.
COVID-19 has made people acutely aware of the air they breathe. And with this week’s CDC announcement that the COVID-19 virus can be transmitted through the air, it behooves grocers and retailers who are doing business indoors to adjust their policies for protecting not just their shoppers, but also their employees.