One of Russia’s largest retail pharmacy chains improves profits by tapping into their Big Data with price optimization
AUSTIN, TX – (August 18, 2015) – Revionics, Inc., a leading global provider of End-to-End Merchandise Optimization solutions, and its Russian distribution partner SmartService Ltd, announced today that they have entered into a multi-year agreement for Revionics® Price Optimization with A5 Pharmacy Ltd., one of Russia’s largest pharmacy retail chains, which operates more than 700 retail locations throughout Russia.
A5 chose Revionics and SmartService for their ability to provide robust price management, planning and optimization capabilities. Through the granular analysis of customer demand and shopping preferences at the store/SKU level, A5 will be able to execute more localized, shopper-centric pricing to improve customer value and its competitive position while driving additional margins in targeted areas.
“We are confident that Revionics is the right partner for us and we were impressed with their solution’s proven track record, ease of use and scalability, while SmartService is an expert in price optimization methodology and is capable of delivering change and project management services,” said Armine Danelyan, Director of Finance for A5. “There are many regulations that we need to comply with, so it was also imperative that we find a solution with a comprehensive set of management capabilities in addition to optimization.”
A5 started its price optimization deployment in 2014 with seventeen key categories taking price recommendations weekly. Because of the measured improvements in their profits from taking prices, A5 has expanded its deployment across its other categories.
“In today’s increasingly competitive marketplace, retailers need to implement a more disciplined and localized approach to pricing. Optimization incorporates all of the factors that impact shopper demand, enabling retailers to price with precision and be responsive at the speed, scale and frequency required in today’s rapidly changing retail environment,” said Marc Hafner, CEO of Revionics. “We are looking forward to helping A5 Pharmacy drive enhanced shopper and shareholder value.”
Revionics Price Optimization Enables Shopper-centric, Fact-Based Pricing
Retailers require sophisticated, scalable tools to help them plan, execute and measure their pricing strategies. Shopper-centric pricing compels a retailer to understand how consumers are behaving by store and how they shop by item.
Revionics’ optimization process integrates internal and external data, business rules and operational constraints with price image, strategic and financial objectives, enabling retailers to rapidly adapt their pricing strategies and tactics to constantly changing shopper and competitor behavior. Benefits include:
• Image-enhancing, profitable prices that achieve strategic and financial objectives
• Ability to forecast and measure the impact of price changes
• Automation of the pricing process to ensure consistent execution of business rules and price image while eliminating manual, error-prone tasks
• Surgical execution of competitive positioning while maximizing profit opportunities
• Localizing prices based on shopper demand and competitor behavior
About Revionics, Inc.
Revionics is a proven leader in End-to-End Merchandise Optimization solutions. Over 40,000+ retail locations around the world optimize with Revionics across 18M+ products and 2.2B+ sku/store combinations are modeled weekly. Revionics empowers retailers around the globe to profitably execute a data-driven omnichannel merchandising strategy by utilizing one of the most comprehensive set of shopper demand signals to increase financial performance and improve customer satisfaction. Revionics’ solutions are powered by unmatched demand-based science and advanced predictive analytics to help ensure retailers have the right product, price, promotion, placement and space allocation to drive business performance and seamless shopper experience – online, in-store, social and mobile. Delivered on a scalable, SaaS-based platform, Revionics solutions offer real-time insights and dynamic decisions at speed, scale and frequency, while providing fast ROI. Revionics has been recognized as a Deloitte Technology Fast 500™ and JMP Securities’ Hot 100 Software Company. To learn how you can compete more profitably, please visit www.revionics.com.
About SmartService Ltd.
SmartService specializes in implementation, integration, enhancement and support of high-performance solutions for process management planning and optimization for retailers in Russia and Eastern and Central Europe.
The company focuses on the most acute problems of modern retailers in the areas of price and markdown optimization, demand planning and replenishment, and workforce management.
SmartService has a highly qualified team dedicated to success. Its team has deep knowledge of best practices and can successfully customize them to a local market. SmartService’s unparalleled technical expertise enables the company to deliver its customers the best-adapted solutions and support in the deployment of retail projects. The company's proven methodology ensures SmartService clients fast return on investment and profit improvement.
SmartService mustered significant skills and experience of complex project management throughout the project life cycle. The company's ability to successfully integrate requirements within the client’s unique environment ensures project implementation on time and within budget. For more information, please visit www.retailsmartservice.com
About A5 Pharmacy Ltd.
Founded in 2006, the A5 Pharmacy chain has established itself as a leading brand in the Russian pharmacy sector, focused on providing customers with superior service. With more than 300 pharmacies located in supermarkets including Pyaterochka, Perekrestok and Karusel, A5 offers convenient locations for consumers. A5 pharmacies carry an assortment of drugs and guarantee delivery of even rare pharmaceuticals. The company invests aggressively in marketing and retail innovation and dynamic, flexible business models to set new standards in retail and fulfill the needs of all its customers.