RELEX Webinar
Smarter Pricing: Unlocking retail success with AI-driven strategies
Date: Thursday 3rd April
Time: 15:00 (BST) | 10:00 (EDT) | 16:00 (CEST)
Pricing is at the heart of retail success. Determining the ideal price point for every product across varying locations and market conditions demands strategic and accurate decision making. This challenge is further complicated as retailers navigate the pressures of remaining competitive while maintaining profit margins.
A further challenge involves managing consumer expectations in an increasingly dynamic market. Shopping habits have changed in recent years, and comparison shopping and coupon clipping are on a scale the industry hasn’t seen before.
Many retailers are leaving millions in lost margin on the table due to inefficient pricing and promotions management. Overinvesting in promotions for non-core items that don’t drive real sales growth hurts margins without driving store traffic or baskets. Equally, underinvesting in key promotional products that move the needle hurts both price perception and leads to lost revenue opportunities. Finally, failure to localize promotions to match regional demand is increasingly important as consumer wallets continue to be under pressure.
Companies have gone out of business because their promotions were too deep, too wide, and too broad. Without a fast, efficient way to process data, there’s a real danger of getting promotions and pricing wrong.
“In the case of one retailer,” Arvid Stenback, VP of Pricing Solutions at RELEX shares, “25 percent of products put on promotion sold for less than $10 and less than 20 units were sold on average per store, per year. To put that into perspective, to get a product into the store, it must be warehoused and then transported. It takes up valuable space in store while on promotion, and then on average, is still sold for less than $10 for an entire year. That amounts to considerable waste.”
These problems are solvable today with a combination of AI-driven insights and user-friendly tools that category managers and buyers can easily implement. Effective pricing management can increase gross margins. Retailers who get this right will be far better equipped to navigate cost pressures, stay competitive, and drive profitability. It’s time for retailers to go beyond price wars and start managing promotions and pricing like a profit center.
In the upcoming Smarter Pricing: Unlocking retail success with AI-driven strategies webinar, Arvid will reveal how artificial intelligence helps retailers make smart, data-driven pricing decisions with remarkable ease, efficiency, and precision. He’ll dive into the tangible business outcomes that AI-powered pricing capabilities can deliver, from increasing sales by up to ten percent to boosting gross margins by three percent.
Forward-thinking retailers are using AI to identify the products customers care about the most and to strategically adjust pricing to drive store traffic and capture greater market share. They are eliminating spending on products irrelevant to price perception, freeing up budget for key items that directly influence buying behavior. They are also setting prices to match regional variations in purchasing power, competition, and operational costs, optimizing margins where possible while staying competitive elsewhere.
Arvid will share real-world success stories and examples of how retailers are using AI-driven pricing to outperform competitors and achieve profitable growth. He will explain how retailers can use AI to dynamically adjust prices based on market trends, competitor moves, and customer demand.
“Teams across different planning functions often use bespoke solutions that don’t talk to each other, which can hamper the planning process. A promo team, for example, might run a promotion that increases demand for a product without the inventory to support that spike, and the demand planners find out too late. Retailers need to establish what success looks like for them and to identify KPIs across the board to avoid data silos.
“AI-powered pricing helps retailers craft pricing strategies aligned with business goals, so they can make informed pricing decisions to increase sales and margins while building a desired price image. Solutions can empower retailers to gain the competitive edge through optimized price recommendations that leverage predictive analytics and price elasticity models for precise and informed pricing decisions. AI helps retailers create regionally tailored pricing that aligns with local consumer behavior and purchasing power.
“Before investing in new software, we can help retailers explore their options and get started with AI-powered pricing.”
Join the RELEX Webinar on Thursday 3rd April at 15:00 (BST) | 10:00 (EDT) | 16:00 (CEST)