Author: David Thompson, Chief Technology Officer at Revionics
On day 2 of Revionics' Insight 2015 Conference, I am remembering again why I love the retail business so much. In retail, it seems to me that there is always an opportunity to separate one's business or vision from the competition, whether by assortment, service level, price or some other factor. This morning we were treated to a great lesson in the importance of brand. Tim Lowe of Lowes Foods gave a fascinating presentation on how they define and protect their brand, and how this drives their business. Tim talked about the importance of "knowing what you stand for..." , and in a business as tough as grocery it really makes you think about the truth of this.
Practical Strategies for Escaping the Promotions Death Spiral: World Retail Congress Panelists Share Insights Driving SuccessWednesday, 21 October 2015 00:00
By: Karen Dutch, Senior Vice President, Marketing
World Retail Congress is always a high-energy event and this year’s conference in Rome was no exception. With a variety of insightful break-out sessions to choose from, the panel titled “Kicking the Discounting Habit” stood out as one of the most well-attended and engaging sessions of the conference. And it’s no surprise – everyone knows this is a hot topic for retailers and shoppers alike. Price is top of mind for shoppers today and a retailer’s biggest margin lever. It’s incredibly critical to get every shopper the right offer, at the right time, via the right channel. WRC retailers were hungry to hear from their peers on pricing and promotion strategies and tactics that build shopper loyalty, enable them to compete more profitably and support their brand image while escaping the ‘race to the bottom’ death spiral.
Two of Revionics’ European customers, Argos and METRO Cash & Carry, participated on the panel, as did our Chief Science Officer Jeff Moore. Forrester Research VP and Principal Analyst George Lawrie moderated the panel asking incisive questions and keeping the conversation relevant and engaging.
By Cindy Kim
The complexities of promotions have exploded – and retailers are stuck in the endless “death by discount” cycle that is destroying their margins. To help retailers turn underperforming promotions into profit generating promotions strategy, we recently teamed up with Susan Nichols, Publisher for Apparel Magazine, Brian Kilcourse, Managing Partner for RSR Research, and Mark Schwans, Senior Director of Solutions for Revionics, for an insightful webinar. In case you missed it, you can view it here on-demand: Retail Pricing in a Dynamic Promotional World.
Following the webinar, I had a chance to speak with Brian and he was kind enough to contribute additional thoughts on this very topic.
Contributed Blog by Brian Kilcourse, Managing Partner, RSR Research
Retailers are caught in a promotions spiral. Two recent trends triggered that spiral; the lingering effects of the Great Recession have caused consumers to put more weight on “low price” as a key component of “value” than ever, and the mass adoption of “smart” mobile technologies by consumers since 2009-10 has made it possible for them to find the best solutions to their lifestyle needs anytime and anywhere, from anybody.
(Authored by: Dick O’Brien, Director of Product Marketing at Revionics)
It should come as no surprise to even the most casual observer of retail trends that promotional activity has increased substantially over the past few years. What may not be as apparent is that the increase in promotional activity has not had the desired results. The frenzy of promotions may, in fact, be driving retailers into a downward spiral, a vortex of increasing promotions and decreasing sales and margins.
These blog articles were developed in partnership between Revionics and Retalix to provide retail industry trends and insights. This is Part 1 of a blog series and Part 2 can be found here. Retalix and Revionics will be participants in the upcoming NGA 2013 trade show in Las Vegas. Stop by our booth #500 to discuss how our respective solutions can help your business.