Real-time pricing agility
Enhancing responsiveness, precision and quality by digitizing & automating price displays in the aisles is now imperative for retailers. The meteoric rise of the Internet as well as increased competition between retail outlets have caused prices to change faster in mass retail, which is very hard to keep up with in physical stores.
With manual processes and paper tags, employees are increasingly engrossed in managing label changes. Meanwhile, other, more important tasks are neglected, while pricing errors proliferate with myriad negative consequences on customer satisfaction, complaints or government fines. This irresistible increase of price change velocity is prompting more and more retailers around the world to digitize paper displays, to automate updates thanks to electronic shelf labels. Once free from this time-consuming manual update work, employees will be cheerier, more helpful shoppers, and return their focus to cleaner and tidier shops with neat well-stocked shelves, fresher fruit and vegetables, etc.
The key to quickly bolstering margins is, first and fore-most, detailed, accurate and responsive management of retail prices. Make better daily pricing decisions based on the competition, stock and demand, i.e. based on the local context of each store.
Each shop has a specific context with regard to local market, local competition, temporary stock-outs or overstocks, etc. Pricing decisions must take into account this local or regional context each day to maximize the store’s sales and profitability. Analysis of internal & external data makes it possible to decide on shrewdly targeted price changes each day that are implemented rapidly, at no cost thanks to the smart tag digital solution. This approach leads to improved margins and sales, while optimizing the price index.
There is a substantial top and bottom-line impact at stake. Multiple clients of SES-imagotag have deployed pricing strategies such as these have added 100 to 200 basis points to their margins thanks to:
- Improved sales: better targeted and thus more effective promotions, faster sell-through of overstock, reduced food waste.
- Optimized margins: more targeted mark-downs, fewer unjustified promotions, fewer discounts granted by sales staff in store, fewer government fines, faster return to pre-sale prices, etc.
- Reduced personnel costs: elimination of time devoted to label updates and verifications, less time spent on customer complaints (elimination of pricing errors), etc.
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