The world of retail pricing is never easy, especially with the recent Price Inflation. There are more combinations of products and prices than there are atoms in the universe. Not…
A quick Google search highlights continued price increases and inflationary pressures coming from all of the major FMCG suppliers. In September & October our inflation tracker saw a significant spike…
Price Zones are used by many grocery retailers as a way to group stores together, typically to react to a common competitor. This then allows the retailer to apply common pricing across these store groups (price zones), versus using the same pricing across all…
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Legacy price optimization solutions still use outdated elasticity models and rules to set prices, which don’t include shopper behavior and the impact of price on perceptions.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.