Innovative retailers are leading the way for the industry. Revionics is proud to highlight and share recent articles that feature our customer community:
The new pricing strategy and software implementation from Revionics gave Holiday Stationstores a better view of a number of important pricing factors, including shopper price sensitivity, competitive price positions, cost changes, seasonality and more. These fact-based insights allowed the retailer to more easily influence profitability, competitiveness and demand.
“While the previous process was somewhat reactive, these days pricing decisions are made based on facts and not just on intuition,” said Solyntjes.
Herman Tinga, commercial director at Lenta, said: “At Lenta, we remain focused on giving our 10 million-strong customers quality products at competitive prices. By adopting Revionics’ market-leading price optimisation technology, we can do extensive analytics and scenario planning to ensure that we give our customers the very best pricing where it matters most.”
Lenta, one of the largest retail chains in Russia, has selected Revionics' science-based price optimisation capabilities in its latest bid to use data-driven insights and provide relevant assortment and offers to its customer base. Lenta will initially conduct a pilot rollout using Revionics across five product categories: industrial bread, ice cream, cooking oil, yoghurt and air fresheners...
Lenta will initially conduct a pilot rollout using Revionics across five product categories: industrial bread, ice cream, cooking oil, yogurt and air fresheners. The rollout will encompass both its traditional hypermarket stores and its newer supermarket formats. Lenta also plans to leverage Revionics Analytical Services including Key Value Item (KVI) analysis to refine its KVI list and category roles, Store Zone Cluster Analysis to identify the best store cluster approach and improve efficiencies in the pricing process, and Elasticity Workbench to analyze how shoppers respond to prices.
Lenta, Russia’s Leading Hypermarket Chain, Selects Revionics Price Optimization Suite
Retail and Loyalty: Lenta, Russia’s Leading Hypermarket Chain, Selects Revionics Price Optimization Suite
March 14, 2017
“We are impressed with Lenta’s data-driven approach to providing market-leading grocery experiences for their customers, and we are delighted to team up with them to bring top-tier current-generation price optimization to that mix,” said Marc H. Hafner, Revionics’ chairman and CEO. “It’s exciting to welcome another innovative Russian retailer to our growing EMEA and world-wide customer base. We look forward to a long and prosperous relationship.”
For the Russian version of the story, click here
The Best Price | Trade needs to master pricing. Today, that means software instead of gut instinct, demonstrated by the examples of Home Depot Mexico and OBI Poland
DYI International: The Best Price | Trade needs to master pricing. Today, that means software instead of gut instinct, demonstrated by the examples of Home Depot Mexico and OBI Poland
Revionics is notable for its advanced predictive analytics and demand-based science enabling retailers to be more responsive to shoppers’ needs across all touch points in the shopping journey – online, in-store, social and mobile – and more profitably. In particular, OBi Poland embraced the idea of a phased approach that would enable them to adapt each solution suite in turn, culminating a successfully integrated end-to-end responsive merchandising solution.
Trillions of data points | Andreas Grub, Managing Director of OBI Poland, on price transparency and price trustworthiness
DYI International: Trillions of data points | Andreas Grub, Managing Director of OBI Poland, on price transparency and price trustworthiness
We expect the solutions from Revionics to help us maintain and improve our clear price image to drive more customers to our stores — not only with the best price but also the right promotional offers at the right time. Additionally, as the DIY assortment has a big share of seasonal products, we optimse clearing the inventories on a timely basis by taking the emotions out of markdown decisions; this lets us sell the products at the right price as long as there is still demand in the market. Finally, we expect to streamline internal pricing processes while gaining time to cope with this constantly growing demand for new solutions and innovations as well as better fulfillment of complex project demands.
Building on its promise “to provide the highest level of service, the broadest selection of products and the most competitive prices,” The Home Depot Mexico has begun rolling out a new pricing optimization solution to deliver consistent, competitive pricing across the chain.
Revionics Price Suite is helping Home Depot Mexico deliver more consistent, competitive and customer-centric pricing across its 118 stores throughout the country. Its pricing team will leverage Revionics to gain better insights into customer price preferences, better compete with both online and brick-and-mortar companies and conduct scenario planning and analytics as the company continues to scale for growth across Mexico.
Home Depot México Leverages Price Optimization To Manage Growth
Retail TouchPoints: Home Depot México Leverages Price Optimization To Manage Growth
December 23, 2016
Building on its commitment to deliver exceptional customer service and competitive prices across all products, The Home Depot México has selected the Revionics Price Suite of solutions.
The retailer’s pricing team will leverage the Revionics suite to:
- Gain better insights into customer price preferences;
- Build more consistent price perception among consumers;
- Better compete with both online and brick-and-mortar companies; and
- Conduct scenario planning and analytics as the company continues to scale for growth across Mexico.
Tech Investment Spurs Growth
Edwards’ strategic vision to reinvent eBags and focus on its core strengths and create a digital relationship with the consumer has proven to be an overwhelming success, but it would not have been possible without the implementation of some key technologies. In just over a year Edwards and his team have deployed a host of game-changing technologies that have simultaneously improved operations and the user experience. The key implementations include:
Pricing optimization. eBags leverages a hybrid pricing model that combines everyday pricing on high visibility items, personalized rewards, targeted promotions and coupons to attract shoppers. The retailer partnered with the consulting firm Oliver Wyman on a massive data analysis project to redefine its pricing strategy and then augmented its formulas and algorithms with price optimization solution provider Revionics. eBags and Revionics worked together to optimize its next-gen pricing capabilities for its 80,000 strong product array and has seen a significant increase in margins since deploying the pricing solution.
“We are managing a large number of SKUs and need the technology to find the opportunities for margin growth as well as where we are not as competitive so we can win the buy box,” Edwards says. “We have worked with Revionics pretty aggressively over the past year on this. Now we have a winning hand. Our sales are going up and our margins are going up faster than our sales.”
The Home Depot Mexico to Leverage Revionics Price Suite
HighBeam Research: The Home Depot Mexico to Leverage Revionics Price Suite
December 9, 2016
The Home Depot Mexico has selected Revionics Price Suite to deliver more consistent, competitive and customer-centric pricing across its 118 stores throughout the country.
According to a release, its pricing team will leverage Revionics to gain better insights into customer price preferences, better compete with both online and brick-and-mortar companies and conduct scenario planning and analytics as the company continues to scale for growth across Mexico.
"Since entering the Mexican market in 2001, The Home Depot Mexico has enjoyed a warm welcome and continued robust growth as we reach our planned 119 stores nationwide at the end of this year," said Jose Del Angel, Director of Merchandising Support for The Home Depot Mexico.
Revionics, Inc., a leading profit optimization company, announced the debut of its prestigious Elevate Retail Award program at Revionics’ 7th annual retail conference, Insight 2016. Notable Revionics customers received the award, which recognizes innovative retailers who have generated significant ROI and performance improvements through the effective use of Revionics merchandise optimization services and solutions.
Delhaize America, one of the U.S.’ largest supermarket operators and a Revionics customer for more than two years. Two of this retailer’s banners – Food Lion & Hannaford – each have a distinct identity and brand image. The company adopted Revionics Price and Markdown Suites to drive a shift towards a more customer-focused pricing strategy while aligning to each banner’s unique identity. Leveraging these solutions, Delhaize America has also enhanced visibility into business performance and increased store traffic.
eBags Boosts Conversions 20% With Innovative Tech Investments
Retail TouchPoints: eBags Boosts Conversions 20% With Innovative Tech Investments
November 2, 2016
Although Edwards is a big proponent of providing an immersive brand experience, competitive pricing is still important to the eBags business.
“Pricing is always a critical part of our go-to-market strategy,” Edwards noted. “But it’s more about understanding what our discounting methods were getting us from an acquisition and retention standpoint. We had to take a hard look at what we were doing and determine whether it was really creating value for the customer, and if it was making sense from a profit standpoint.”
Using the Revionics Price Optimization Solution, eBags is able to algorithmically tune pricing every day “on thousands of SKUs without any manpower — and without the inconsistency of human decision-making,” said Jonathan Fox, Director of Pricing at eBags. He added that the Revionics pricing engine allows the team to run different pricing strategies by product type, and even to take price elasticity, market share, gross margin and sales into account to guide price changes and achieve different outcomes.
Like everything else in the eBags business, pricing and promotions strategies are a constant work in progress. Fox describes the process as “an ongoing and fluid exercise in testing, learning and redeploying our demand-driving promotional tactics. Our efforts are zeroed in on how we allocate our discount dollars — invest more where we gain lift and positively impact customer lifetime value, and divest where we don’t.”
“In the midst of a slowing economy and rising inflation, it is more important than ever to offer our customers a competitive price image and create more localized, profitable promotions,” said Bruno Araujo, Commercial Director at Drogaria Araujo.
Using Revionics Price Suite and Advanced Analytics, including Key Value Item Analysis, Store Zone Clustering, Competitive Response Analysis and Item Strategy Position Analysis, Araujo is replacing its legacy price optimization solution as it seeks to be more responsive to fast-changing customer, market and competitive trends, while enhancing its brand image and driving top-line sales.
Tractor Supply Doubles Down On Pricing Optimization
Retail TouchPoints: Tractor Supply Doubles Down On Pricing Optimization
June 23, 2016
The retailer first licensed the Revionics Price Suite in 2010 to help drive its pricing strategies. With the added solutions, Tractor Supply aims to:
- Continue its focus on intelligent pricing based on consumer needs;
- Meet business goals while driving customer loyalty; and
- Drive additional business impact and ROI.
Tractor Supply Co. plans to grow from 1,500 to 2,500 stores, and has been shifting to a Web-scale architecture and new ERP platform. Now the company is extending an existing partnership with merchandise optimization solutions provider Revionics Inc. through 2019. Using the Revionics price suite, the retailer has implemented diverse price strategies throughout the country.
Tractor Supply has also continued its focus on pricing intelligently based on the needs of its customers, and believes strategic pricing results in customer loyalty while meeting key business goals. The chain seeks to drive additional business impact and ROI through more sophisticated use of Revionics’ price and markdown optimization suites.
Tractor Supply Extends Revionics Deal for Strategic Pricing
Zacks Investment Research: Tractor Supply Extends Revionics Deal for Strategic Pricing
June 16, 2016
Thereafter, Tractor Supply also used ‘Revionics Markdown Suite’ and ‘Revionics Advanced Analytics’, thus increasing its usage of Revionics’ products. These products are likely to be beneficial, given their ability to offer the most efficient pricing opportunities. Further, over the years, Tractor Supply executed miscellaneous pricing strategies across the country, as it gained tangible experience in using Revionics Price Suite.
Clearly, the extension of its contract with Revionics highlights Tractor Supply’s aforementioned focus on improving pricing. Going forward, the company remains on track to make more efficient usage of Revionics’ products to further augment business and return on investment.
Tractor Supply Co. plans to grow from 1,500 to 2,500 stores, and has been shifting to a Web-scale architecture and new ERP platform. Now the company is extending an existing partnership with merchandise optimization solutions provider Revionics Inc. through 2019.
Using the Revionics price suite, the retailer has implemented diverse price strategies throughout the country. Tractor Supply has also continued its focus on pricing intelligently based on the needs of its customers, and believes strategic pricing results in customer loyalty while meeting key business goals. The chain seeks to drive additional business impact and ROI through more sophisticated use of Revionics’ price and markdown optimization suites.
By deepening its use of price and markdown optimization technology, Tractor Supply is helping ensure its infrastructure investments provide a maximum return.
Revionics Congratulates Rouses’ Allison Rouse-Royster, Winner of Progressive Grocer’s 2016 Top Women in Grocery Award
Revionics Congratulates Rouses’ Allison Rouse-Royster, Winner of Progressive Grocer’s 2016 Top Women in Grocery Award
June 13, 2016
“On behalf of all the team members at Rouses, I am truly honored by this industry recognition,” said Ms. Royster. “I am constantly driving myself and my teams to innovate around critical operational and customer-facing functions to implement initiatives that will have the desired results, and they rise to the challenge again and again. I’m proud of what we have accomplished in initiatives across merchandising, price optimization, automation and ordering and delivering systems, which in turn help us reach our business goals, scale for growth, streamline processes and enhance customer loyalty. At the same time we continue to invest in the communities we serve, which is the heartbeat of our business.”
Love’s and Revionics have entered into a multi-year agreement for Revionics Price Optimization and Revionics Promotion Optimization. Through Revionics' responsive merchandising capabilities, including pricing and promotion solutions, Love’s can focus on delivering value for its customers.
Jay Dempsey, merchandising technology manager at Love’s, said that with more targeted, systematic pricing and promotions, they can be more competitive, increase customer loyalty, scale for growth and protect profitability.
Optimizing Wants and Needs: MGM Resorts taps into the science of analytics for retail pricing
STORES Magazine: Optimizing Wants and Needs: MGM Resorts taps into the science of analytics for retail pricing
June 2016 Issue
To help get a better grasp on optimizing price solutions, MGM began working with Revionics, which provides merchandise optimization to companies through what it calls a science-based model that features pricing recommendations, self-tuning pricing scoring and real-time "what-if" price planning.
Pricing optimization is nothing new to retail, but with advances in using data to generate predictive analytics, new software-based tools such as those offered through Revionics platforms have proliferated.
Revionics rose to the top of the list with its SaaS-based solutions that are intuitive, transparent, scalable and easy to use. Backed by strong customer references with undeniable ROI, its self-learning science provides insight into the “why” behind price and promotion recommendations to help retailers make intelligent, profitable decisions. Armed with automated workflows and sophisticated analytics, Love’s can ensure consistent execution and improved forecasting across all its banners and stores.
“We respect Revionics’ track record as an industry leader and growth company making aggressive product investments to sustain their leadership," said Brian Poulliot, senior vice president of strategic planning and analysis for BJ’s Wholesale Club. "We are excited to apply those innovative capabilities to deliver even greater value for BJ’s Members.”
Love’s Partners with Revionics for Customer-Centric Pricing
Convince Store News: Love’s Partners with Revionics for Customer-Centric Pricing
May 24, 2016
Jay Dempsey, Merchandising Technology Manager of Love’s said: “We value Revionics’ ‘what-if’ scenario planning as well as its ability to evaluate and leverage real-time and historical price and promotions data and provide insight into what products we should carry nationally vs. regionally based on customers’ shopping behavior. With more targeted, systematic pricing and promotions, we can be more competitive, increase customer loyalty, scale for growth and protect profitability.”
“We are excited to partner with Revionics to provide customer-centric pricing to our unique customer base of people traveling across the country, and we are excited to standardize on a solution that provides deep insight into key customer demand signals,” said Jay Dempsey, Merchandising Technology Manager, Love’s.
Revionics, a provider of end-to-end merchandise optimization solutions, has agreed to a three-year contract with BJ’s Wholesale Club. Marc Hafner, Revionics chairman and CEO, said, “As BJ’s embarks on this transformational pricing journey, we look forward to forging a strong partnership with the BJ’s team to deliver more targeted, competitively priced quality assortment for their members and to contributing to the continuing health of their business.”
Revionics has announced that BJ’s Wholesale Club has entered into a three-year contract for Revionics Price Suite. The management and price optimisation solutions will help improve member-centric prices while taking the competitive landscape into account…
BJ’s delivers the right product at the right price
Retailing Today: BJ’s delivers the right product at the right price
May 10, 2016
Knowing what consumers want and how much they are willing to pay is the type of intelligence that keeps retailers in business.
BJ’s also recently started offering customers the option to order products online and then pick them up and pay for them at their local store. With access to goods easier than ever, the retailer is taking the next logical step of ensuring omnichannel shoppers can buy the items they truly want, at a price that creates both profit and incentive for repeat purchases.
BJ’s Delivers the Right Product at the Right Price
Chain Store Age: BJ’s Delivers the Right Product at the Right Price
May 10, 2016
Looking to offer a more targeted and competitively priced assortment, BJ’s Wholesale Club is rolling out the price suite from merchandise optimization technology provider Revionics. The management and price optimization solutions will help improve customer-centric prices while taking the competitive landscape into account. The retailer will also use the application to help align brand and size parity among its single and multipack products.
“We respect Revionics’ track record as an industry leader and growth company making aggressive product investments to sustain their leadership, and we are excited to apply those innovative capabilities to deliver even greater value for BJ’s members,” said Brian Poulliot, senior VP of strategic planning and analysis for BJ’s Wholesale Club.
DIXY, Russia's third-largest grocery chain, increased its footprint to 2,600 locations in more than 750 cities over the past four years. Tailored, region-specific price optimization was a major ingredient in the retailer's success.
Since implementing the Revionics Price Optimization solution, the retailer has:
- Doubled its number of stores while maintaining the same size pricing team;
- Improved accuracy with the use of price automation and decision automation solutions; and
- Used customer-focused pricing to win shoppers away from traditional small grocers, fueling additional growth.
"We've moved from having a pretty uniform approach for each category to a much more powerful differentiated value proposition in each category," he explained. "We began with beer and oils, then expanded into fruits and vegetables, poultry, milk and cheese, and now more broadly across other categories."
The DIXY pricing team makes extensive use of Revionics' "what-if" functionality. "The ability to quickly run varied scenarios, see different impact in different categories, and have insight into elasticity down to the item level is very powerful," he said. "It enables us to make more nuanced decisions and become more and more automated in our end-to-end pricing processes."
DIXY has also begun implementing Revionics Promotion Optimization, to drive more strategic results from its promotional activity. Key goals include:
- Driving double-digit growth in its share of promotions;
- Increasing promotion-driven traffic in DIXY stores; and
- Increasing forecast accuracy for more accurate replenishment stock planning.
Progressive Grocer Video Interview with Tim Lowe, CEO, Lowes Foods Stores
Progressive Grocer (Video): Progressive Grocer Video Interview with Tim Lowe, CEO, Lowes Foods Stores
January 26, 2016
“We looked at our center store pricing and it’s something that’s across the entire country that center store pricing has been influenced in a lot of different ways. This past year we launched a new program called ‘Go for Lower Prices’ in November and we’re seeing some very, very strong results back from that. We are also partnering back up with Revionics and have done some very, very cool things within their tool to be able to go through and manage this pricing on an ongoing week-by-week, month-by-month basis to give us that dynamic pricing to really make our customers be at the center of everything we do.” -Tim Lowe, President of Lowe's Foods
CPO Commerce Supercharges its Pricing Capabilities
RIS News: CPO Commerce Supercharges its Pricing Capabilities
January 14, 2016
CPO Commerce, America’s leading online tool retailer, has upgraded its big data and analytic capabilities to make more precise pricing decisions across all categories at the speed, scale and frequency needed to compete more profitably.
Girisha Chandraraj, chief operating officer for CPO Commerce granted RIS News with an exclusive interview recently to discuss not only his company's latest technology advancements but the state of the greater pricing landscape.
Chandraraj: Shopper visibility to competitive pricing does not complicate our business model; it is just part of our reality. Price transparency cuts both ways. We have to accommodate for it in the way we go to market and make sure our value proposition is clear to the customer. Understanding how all the pieces fit together is critical.
RIS News: How does the implementation for an advanced price optimization solution help CPO Commerce compete in a cost conscious environment?
Chandraraj: Pricing tools help us manage dynamic pricing at scale. The online marketplace is very fluid and dynamic, and online businesses that resell products need scale to be effective. The only way to manage your business at scale with transparency and pricing fluidity is with automated tools.
RIS News: Can you share any pricing best practices? How often should prices be changed? Best time of day for price changes? Etc.
Chandraraj: We change prices constantly. We don’t really subscribe to a methodology of the "right time of day" to change prices. We constantly monitor the market and make price changes as we see conditions evolve. We can go days or weeks without changing prices on certain SKUs — it all depends on the market and competitive landscape for that product. Each category has its own competitive complexion.
Executive ViewPoints: Written by Girisha Chandraraj, CPO Commerce and Jeff Moore, Revionics
Nearly every multichannel retailer wrestles with increasingly competitive and fast-moving markets, and implementing a dynamic, highly responsive pricing solution is critical to competitive success. With thousands of SKUs in multiple channels with different competitive dynamics and promotion strategies, it’s clear computers using the right technology will do a better job of pricing than human beings. Throwing more people at the problem juggling more lines in a spreadsheet just doesn’t scale.
But few of us have the deep pockets and armies of data scientists of dynamic pricing leaders like Amazon. For the rest of us, here are some pragmatic considerations as you assess, select and implement dynamic pricing.
- ROI Drives The Business Case
- The Technology Is Important — But Don’t Overlook The Science
- Do The Groundwork For A Successful Culture Shift
- Usability Matters
- A Rewarding Journey
Taking on a project as transformative as dynamic pricing can be daunting. But adopting and leveraging pricing science is a true differentiator for you against market players stuck in a beat-the-competition pricing approach, or who just focus on data collection and rules management. Done right, dynamic pricing gives you incredible insights into the economics of your business, in real time and at an extremely granular level, to transform your business agility and pack a powerful bottom-line punch.
Sally Beauty Supply Banks On Price Optimization To Maximize Profitability
Retail TouchPoints: Sally Beauty Supply Banks On Price Optimization To Maximize Profitability
December 6, 2015
A lot of science goes into the business of being beautiful, from the chemistry that creates hair coloring to the design of precision salon tools. Sally Beauty Supply, a 50-year-old company with nearly 3,000 stores in the U.S. and Canada, decided to bring more science to its pricing capabilities by adopting the Revionics Price Optimization solution.
Until now, the retailer had used fairly manual spreadsheet processes for both product pricing and store clustering, according to Group VP of Merchandising Linda Voracek. But these home-grown solutions didn't have the state-of-the-art analytics Sally Beauty Supply needed to optimize profitability and fuel the company's global growth.
"We felt it was important to focus on using more predictive modeling in our pricing," said Voracek in an interview with Retail TouchPoints. "Price is one of the most critical things you do as a retailer, so we want to ensure we're zoning our stores correctly and applying the right pricing strategy to each store, and to each product category."
Sally Beauty Supply stores carry an average of 6,700 SKUs, with hair coloring and hair care the two largest categories, followed by styling tools, nail care, multicultural hair care, cosmetics and tools for professional salons. The Revionics solution will be used across all the retailer's categories, providing transparent, optimized pricing recommendations that will allow the retailer to conduct "what-if" scenario planning and simulations.
In addition to product and category data, the retailer will be able to incorporate shopper insights to improve revenues and margins, and the Revionics Store Clustering and Elasticity Workbench modules will provide additional insights. "We already do some regionalized pricing in different areas of the country, but we wanted to bring a stronger analytics perspective to it," said Voracek. "We're also interested in price elasticity and better determining the categories that will drive traffic versus those that don't. For example, we know that we have to have best-in-class pricing in the hair care and hair coloring categories, but we want to know more about how the rest of our categories behave around those categories in different stores."
The solution's broad range was one of the reasons Sally Beauty Supply chose Revionics: "We are looking to do promotional and markdown optimization along with base pricing and store clustering," said Voracek. "We wanted a solution that would support long-term growth, as well as a partner that would integrate well with our current systems and bring best-in-class modeling capabilities."
Adding In-House Pricing Expertise
"Pricing is not a role we've had at Sally Beauty Supply before, but we're onboarding a director this month and building out the team with some analysts," Voracek reported. "It is a bit of a structural and cultural change, but we felt the need to put people on staff who had worked with these types of systems and had an analytical background specifically in the pricing area."
As for Sally Beauty Supply's goals, they are simple: "It's all tied to profitability," said Voracek. "We want to optimize to ensure we get the best we can out of category performance, and also to maximize the use of vendor partnership dollars in our promotional strategies. We also want to optimize our markdown strategies, but our first pass will be seeing the benefits in the store clustering and categories areas."
“Pricing needs to be strategically driven and technology-enabled. Demand-based optimization provides a granular view of shopper and competitor behavior, blended with business and financial strategy and rules, enabling grocers to surgically execute competitive positions while maximizing proft opportunities,” says the SVP of marketing for the Austin, Texas-based provider of price optimization solutions.
One grocery retailer that has validated its approach to price optimization is Milwaukee-based Roundy’s Supermarkets, the $4 billion operator of 150 stores in Wisconsin and Illinois under four banners: Mariano’s, Metro Market, Copps and Pick ‘n Save. “At Roundy’s, we’re looking to increase sales and margins, while improving price perception,” Laura Roehl, Roundy’s VP of pricing, said in a presentation at the recent annual FMI Connect conference and trade show in Chicago. “As you know, those objectives can be at odds with each other, particularly in the short term. So this is where we saw the need for a data-driven tool. We also wanted to improve price integrity and consistency.” Roehl presented five lessons learned from Roundy’s price optimization work with Revionics, which enabled the grocer’s stores “to thrive in hypercompetitive markets.”
“Roundy’s effectively uses the solution with a customer- focused approach,” notes consultant Mark Kelso, of St. Louis-based Price Revolution, who spoke with Roehl at FMI Connect. “Their process has resulted not only in improvements in unit movement, sales and gross margin, but has also reduced the amount of time spent on developing price recommendations.”
Despite such errors, success is still possible. To illustrate that point, Revionics’ Dutch offers one of her favorite grocery client quotes: “Customer-driven pricing is now a way of life and is embedded in our business philosophy. I would equate pricing without optimization to how someone would respond if you took away their cell phone. It would be like wandering around lost in the dark. I don’t know how anyone can compete in today’s complex environment without optimization science and analytics.”
“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 optimisation methodology and is capable of delivering change and project management services,” said Armine Danelyan, director of finance for A5.
A5 Pharmacy Leverages Revionics To Optimize Pricing Strategies
Retail TouchPoints: A5 Pharmacy Leverages Revionics To Optimize Pricing Strategies
August 20, 2015
Armine Danelyan, Director of Finance at A5 said: “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."
Delhaize America Charts Path to Shopper-Centric Pricing
Progressive Grocer: Delhaize America Charts Path to Shopper-Centric Pricing
August 18, 2015
“We truly have embarked on a Lifecycle Price Optimization journey, and we’ve made phenomenal progress,” said Tim Concannon, Delhaize Director of Pricing Services.
“At the same time, we know there is a lot more we can accomplish. This has been an incredibly rewarding project, both for the benefits Revionics brings to Delhaize America and for me professionally. Revionics has proven to be an outstanding partner every step of the way."
Revionics to optimize pricing for Russian pharmacy chain
American Pharmacy News: Revionics to optimize pricing for Russian pharmacy chain
August 15, 2015
“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..." said Armine Danelyan, director of finance for A5, said."
Optimization tool helps determine when the price is right
Hotel Business: Optimization tool helps determine when the price is right
July 24, 2015
“Because we cater to so many different types of customers, we need strategic and precision retail pricing that will motivate purchases among our guests,” said Steve Schnur, MGM Resorts’ director of merchandise planning and analytics. “After an in-depth search, we found that Revionics met all of our criteria—the solution provides full transparency throughout the pricing process, fast time-to-insights, and scalability.”
"…For a facility like, say, the MGM Grand—which contains a number retail outlets and has to contend with competition from nearby hotel-casinos (including some owned by MGM Resorts International), as well as venues up and down The Strip—pricing optimization can be well-served by a software-as-a-service solution."
CPO Commerce Selects Revionics To Drive Pricing StrategiesOptimization tool helps determine when the price is right
Retail TouchPoints: CPO Commerce Selects Revionics To Drive Pricing Strategies
July 21, 2015
“As a fast-growing online retailer, it’s critical to our success to have data-driven dynamic pricing that matches up with shopper and competitive behavior,” said Girisha Chandraraj, Chief Operating Officer for CPO Commerce.
“...This will allow us to drive both shopper and shareholder value."
eBags Soars Above Competition With Dynamic Pricing
Retail Info Systems: eBags Soars Above Competition With Dynamic Pricing
"By gathering industry data and customer insights on a daily basis, we understand what competitors are doing across product categories. This enables us to assess what triggers are impacting sales and categories in real-time,” Neptune says. “Reacting to competition today versus last month or last season has made us more competitive and smarter. Instead of pricing with a machete, now we do so with a scalpel.” – Steve Neptune, eBags Senior Vice President of Financial Planning and Strategy
Reitan Convenience Chooses Revionics Price Optimization and Advanced Analytics Solutions
Virtual Strategy Magazine: Reitan Convenience Chooses Revionics Price Optimization and Advanced Analytics Solutions
June 23, 2015
“After an extensive analysis of vendors in the space, we found that Revionics’ highly scalable solutions offer every aspect of what we were looking for in a pricing optimization and predictive analytics solution,” said Joachim Paulsen, Head of Pricing for Reitan Convenience. “Revionics’ science-driven solutions will take our pricing strategies to the next level and help us localize pricing based on our shoppers’ behavior. We are also impressed by their partnering approach and retail expertise, and their tool’s demonstrated ROI at peer retailers.”
Holdings Corp. (FWM) F4Q 2015 Results – Earnings Call
Seeking Alpha: Holdings Corp. (FWM) F4Q 2015 Results – Earnings Call
May 27, 2015
Fairwaiys addresses price optimization on their F4Q 2015 earnings call.
Jack Murphy, CEO
“I would say that we are in the very early stages of price optimisation. We’ve done pretty extensively in the organics department and seen terrifically good results there, without any degradation of customer account for item cost. I don’t think there’s a whole lot more of investment. If you are talking about investment in terms of margin, I don’t think there’s any investment there. We have actually a very good tool to help us called Revionics, which is helping us.”
Dorothy Carlow, CMO
“Pricing optimization is an on-going project for this company. It involves about five stages. When we arrived we set a pricing strategy for the business. We implemented a promotional strategy to maximise productivity through our promotions. We are working on improving our vendor partnership to lower our costs of goods and to maximise the customer experience and continue with the Fairway perception that we have the lowest prices in the market place. Then lastly, we are looking at elasticity of all products on the shelf to maximize sales volume, to tonnage volume to gross profit dollars through the business. It is an on–going project and we are still in the very early phases of doing it in all departments.”
MGM Resorts to install Revionics Price Optimization
Innovate Gaming: MGM Resorts to install Revionics Price Optimization
May 20, 2015
MGM Resorts International has signed a multi-year agreement for Revionics® Price Optimization to enhance retail pricing strategies at its US properties, including Bellagio, MGM Grand, Mandalay Bay, The Mirage and other properties.
Revionics will assist MGM Resorts in driving and measuring profitability across hundreds of its retail locations, scaling pricing processes to accommodate its retail growth and incorporating enhanced reporting, forecasting and analysis.
Revionics signs deal with MGM Resorts International
The Green Sheet: Revionics signs deal with MGM Resorts International
May 19, 2015
Revionics, Inc. announced today that MGM Resorts International (NYSE: MGM) has signed a multi-year agreement for Revionics® Price Optimization to enhance retail pricing strategies throughout its U.S. properties, including Bellagio, MGM Grand, Mandalay Bay, The Mirage and other properties. Revionics will assist MGM Resorts in driving and measuring profitability across hundreds of its retail locations, scaling pricing processes to accommodate its retail growth and incorporating enhanced reporting, forecasting and analysis.
“Because we cater to so many different types of customers, we need strategic and precision retail pricing that will motivate purchases among our guests,” said Steve Schnur, MGM Resorts’ Director of Merchandise Planning and Analytics. “After an in-depth search, we found that Revionics met all of our criteria – the solution provides full transparency throughout the pricing process, fast time-to-insights, and scalability.”
Scandinavian retailer Rema 1000 aligns pricing with promotions
Chain Store Age: Scandinavian retailer Rema 1000 aligns pricing with promotions
April 14, 2015
Scandinavian multinational supermarket chain Rema 1000 will be leveraging Revionics lifecycle pricing solutions in all product categories across all of its retail stores. Utilizing advanced science and predictive analytics, Rema 1000 will be able to strategically manage pricing and consistently align it with brand image, offer promotions that are compelling and profitable and more accurately forecast and measure key financial metrics.
“Rema 1000 prides itself on selling high quality products at the lowest price in the market,” said Stian Mårdalen, head of pricing at Rema 1000. “Revionics was selected for their ability to be both consumer and competitive responsive with a quick turnaround. This gives us the security of always having the lowest price in the market.”
Market Basket expands use of Revionics pricing
Chain Store Age: Market Basket expands use of Revionics pricing
August 12, 2014
Market Basket Grocery Stores, a privately-owned grocer with 34 full-service supermarkets in the East Texas and Louisiana region, has renewed and expanded their agreement for Revionics Life Cycle Pricing Optimization. They expanded the agreement to also include Revionics Advanced Analytics services, such as the Key Value Item (KVI) Analysis, which will enable them to leverage science to better align their KVIs with shopper behavior and the competitive landscape.
Market Basket initially leveraged Revionics Price Optimization to compete more profitable against several large, dominant competitors. Having successfully executed this strategy over the past years, their current focus is on using optimization to grow market share.
“As a Revionics customer since 2009, I can’t emphasize enough how satisfied we are with the results driven from Revionics’ solutions and how much we appreciate their strong partnering approach,” said Skylar Thompson, president of Market Basket. “Since implementing Revionics, we have seen a significant ROI in profits. In addition, we have experienced improved visibility and management of our pricing efforts which has enabled us to become more efficient and execute a consistent price image.”
Fairway bests Whole Foods, Fresh Market in pricing survey: Analyst
Supermarket News: Fairway bests Whole Foods, Fresh Market in pricing survey: Analyst
July 17, 2014
Revionics congratulates their customer Fairway Market on their pricing achievements that are acknowledged in Supermarket News.
Fairway Market maintained a 10% price advantage over Whole Foods Market and The Fresh Market in a recent basket study of 40 like items at natural and organic retailers conducted by investment analysts at Sterne Agee.
The pricing study was conducted in stores in Northern New Jersey and consisted of branded and private label items across produce, beverages and food.
Fairway Market leverages Revionics solution as it continues to grow
RetailingToday: Fairway Market leverages Revionics solution as it continues to grow
July 15, 2014
Fairway Market has doubled in size in the past three years and, to help further its growth strategy, it has renewed its Revionics Price Optimization license for three years and expanded the agreement to include the use of Revionics Promotion Optimization.
Fairway Markets is looking to Revionics Promotion Optimization to help it better manage promotion performance, forecast the results of various promotional scenarios and deliver the most compelling offers to their shoppers.
According to Revionics, its Promotion Optimization solution enables the planning and execution of optimized, relevant offers that provide a highly perceived value to the shopper and bottom-line results for the retailer.
Key benefits include:
- Improved sales and loyalty
- Best offers identified by segment, channel and promotional vehicle
- What–if simulation of possible offer combinations and layouts prior to execution
- Effectiveness measurement and adapted recommendations in order to achieve objectives
Fairway Market renews, expands optimization software deal with Revionics
Chain Store Age: Fairway Market renews, expands optimization software deal with Revionics
July 15, 2014
Revionics announced that Fairway Group Holdings Corp., parent company of Fairway Market, will renew its Revionics price optimization license for three years and expand the agreement to include the use of the company’s promotion optimization.
Fairway Market, which has doubled in size over the past three years, chose the price optimization over two years ago due to its strong capabilities and its ability to help them manage and optimize rapid growth across all product categories, including key value items (KVIs).
Fairway Market adopted Revionics solution to better serve customers, improve individual store profitability and more effectively price perishable products. With the deployment of the promotion optimization tool, Fairway Markets will be able to better manage promotion performance, forecast the results of various promotional scenarios and deliver the most compelling offers to their shoppers.
“We joined forces with Revionics to support our goals for properly defined category roles, automated price maintenance and price optimization at the individual store level. So far we have been pleased with our progress and the results in those areas,” said Kevin McDonnell, Fairway Market’s co-president and COO. “We look forward to Revionics’ expanded support of our objectives as we fine tune our promotional strategies.”
Revionics extends Markdown Optimisation solution
Retail Asia: Revionics extends Markdown Optimisation solution
The Revionics Markdown Optimisation solution provides new capabilities that enable retailers carrying short life-cycle products to localise and prioritise decisions at speed and scale for increased profitability.
Revionics CEO Marc Hafner said: "Across the board markdowns have challenged retailers for decades. Typically, retailers have struggled with 'too much too soon' or 'too little too late' due to enterprise-wide, emotional decisions which haemorrhage margins and do not achieve financial objectives. Our solution combats this challenge and fuels fact-based markdown decisions that align with local shopper-demand for optimal profitability and a strong competitive edge."
Revionics Markdown Optimisation supports both markdown event planning as well as ongoing in-season markdown recommendation processes and automatically adapts 'next step' recommendations weekly or on-demand as new trends emerge.
Fairway, Revionics Expand Software Agreement
Progressive Grocer: Fairway, Revionics Expand Software Agreement
July 15, 2014
Fairway Group Holdings Corp., parent company of Fairway Market, has renewed for three more years its Revionics Price Optimization license with the global provider of end-to-end merchandise optimization solutions, as well as expanding the agreement to include the use of Revionics Promotion Optimization.
"We joined forces with Revionics to support our goals for properly defined category roles, automated price maintenance and price optimization at the individual store level,"said Kevin McDonnell, Fairway's co-president and COO, noting that the additional software would help the 15-store chain “fine-tune our promotional strategies."
Revionics Promotion Optimization enables the planning and execution of optimized, relevant offers providing a highly perceived value to shoppers and bottom-line results to retailers. Among its key benefits are improved sales and loyalty; best offers identified by segment, channel and promotional vehicle; "what–if" simulation of possible offer combinations and layouts before execution; and effectiveness measurement and adapted recommendations to achieve objectives.
Revionics Extends Markdown Optimization Technology
Apparel: Revionics Extends Markdown Optimization Technology
June 10, 2014
Revionics debuted the latest release of its proven Markdown Optimization solution. This release extends the Revionics® Markdown Optimization solution which provides optimization for long life cycle products with new science, data and business rule sets specifically designed to optimize short lifecycle merchandise such as fashion.
This newly enhanced solution helps retailers optimally localize and prioritize start-date, cadence, depth and DC allocation decisions by taking inventory depletion rates, shopper demand patterns, seasonality, budget and labor constraints into account while driving to strategic objectives for exit dates, profitability, inventory position, sell-through and salvage value.
"Retailers of all stripes must think about the role markdown plays across all kinds of product categories, from short life cycle to long. Shifting consumer demand, continued price sensitivity, and omnichannel pressures has created an environment where unproductive inventory is now a more painful issue than out of stocks," said Paula Rosenblum, managing partner at RSR Research. "Markdown Optimization gives retailers a finer-grained approach to managing their inventory through its life cycle and drives powerful results and improves execution across the enterprise."
Optimizing markdowns provides an opportunity to maximize margin, sell-through, and inventory value while improving velocity of product assortment by making granular decisions based on channel and location specific shopper behavior. This enhanced markdown optimization solution enables retailer of all types to plan and manage localized markdown cadence and discount to achieve Category Management and Merchandise/Assortment Planning objectives.
"This release offers the industry a single, unified markdown optimization solution that benefits all types of retailers – from food to fashion," said Marc Hafner, CEO of Revionics. "Across-the-board markdowns have challenged retailers for decades. Typically retailers have struggled with 'too much too soon' or 'too little too late' due to enterprise-wide, emotional decisions which hemorrhage margins and do not achieve financial objectives. Our solution combats this challenge and fuels fact-based markdown decisions that align with local shopper-demand for optimal profitability and a strong competitive edge."
Succeeding in the New World of the Omnichannel Shopper
Food Logistics: Succeeding in the New World of the Omnichannel Shopper
May 27, 2014
This is a disruptive era in retailing and there is now no question that the structure of retailing has changed dramatically due to changing shopper behavior. Retailers and manufacturers are now competing in an omnichannel market—selling to informed and empowered shoppers that can choose to shop in-store or online.
One of the most important factors to focus on today is customer retention. This is critical to survival in today’s disruptive market.
Social commerce is one tactic that works because of two complementary outcomes:
1) It enables a company to become part of the omnichannel purchase path; and
2) It deepens engagement and enhances loyalty with existing customers.
Manufacturers need new ways to connect with shoppers and promote their brand and enhance loyalty. They can accomplish this goal by teaming up with retailers and pursuing an omnichannel promotional strategy.
Analytics provided through social commerce engines are a valuable source of information to determine how to allocate marketing dollars. By combining these new analytics with the data sources, a brand will gain a richer set of data points and thus more insight into their customers. These insights can then be disseminated throughout the organization in a systematic way to help an organization focus more on the shopper.
A retailer armed with data proving the ROI and effectiveness of social commerce promotional campaigns and events will have a great deal to offer their manufacturer partners. Positioning social commerce as a channel for joint marketing and promotional campaigns is a win-win for both retailers and manufacturers.
Delhaize Improves Shopper Demand Insight
Integrated Solutions for Retailers: Delhaize Improves Shopper Demand Insight
April 14, 2014
Revionics Life Cycle Price Optimization solutions consist of Revionics Price Optimization, Promotion Optimization and Markdown Optimization, providing Delhaize with planning and management techniques involving store markdowns, special promos, and every-day base pricing. Benefits of implementing strategies based on data include maximizing margins, cutting down inventory, improvement of sales and traffic according to best-selling items, predictions of shopper behavior, enhancing company image, and development of effective prices. Retailers utilizing Revionics Life Cycle Price Optimization solutions experience 1-3 percent increases in sales, 2-5 percent increase in profit, and 1-3 percent gains in gross margins.
By implementing Advanced Analytics solutions, retailers experience 2-7 percent increase in sales and 2-5 increase in profit along with enhanced customer satisfaction and decreased excess inventory.
News of partnership with Revionics came shortly after the grocer announced developments to be made of store brand items and CEO, appointed in November 2013, Frans Muller, announced upcoming priorities for future growth and success, putting more emphasis on customer value, stating “The overall improvement in customer perception has not been enough.”
Delhaize America Utilizes Data-Driven, Shopper-Centric Pricing
RIS News: Delhaize America Utilizes Data-Driven, Shopper-Centric Pricing
April 14, 2014
The price optimization suite enables retailers to execute shopper-centric pricing and competitive strategies across the pricing life cycle, aligning price strategies with category, corporate and financial objectives. Revionics Promotion Optimization improves sales and traffic by identifying the best items and the most effective and profitable offers. Revionics Markdown Optimization maximizes margin and sell-through by optimizing cadence and depth.
- Image enhancing, profitable prices that achieve strategic and financial objectives
- Targeted, loyalty building that incentivize shoppers to purchase
- Effective end-of-life and end-of-season markdowns that clear inventory at the highest possible margin
Delhaize America optimizes pricing, promotions
Chain Store Age: Delhaize America optimizes pricing, promotions
April 8, 2014
Delhaize America has entered into a multi-year agreement for Revionics Life Cycle Price Optimization solutions, which include Revionics Price Optimization, Revionics Promotion Optimization and Revionics Markdown Optimization. The agreement also includes Revionics Advanced Analytics services: key value item (KVI) analysis, item clustering and market basket analysis.
The Revionics Life Cycle Price Optimization software will help Delhaize America streamline its capabilities to execute data-driven, shopper-centric pricing, promotion and markdown strategies as well as tactics to enhance price image, foster stronger customer loyalty and respond quickly to dynamic market conditions. Leveraging Revionics’ core price management capabilities, Delhaize America hopes to be able to efficiently and consistently execute their pricing business rules.
Delhaize to implement new pricing technology
Supermarket News: Delhaize to implement new pricing technology
April 8, 2014
Revionics said Tuesday that Delhaize America has entered into a multi-year agreement to use its suite of price optimization and analytic services.
“We are proud that Delhaize America chose us to help them compete more profitably while enhancing customer loyalty in their highly-competitive market,” Marc Hafner, CEO of Revionics, said in a statement. “This new partnership underscores the strong global market need for our proven life cycle price management and optimization solutions, which on average, provides a 10-fold return on investment every year.”
Russian retailer, Victoria Supermarkets, looks to optimise prices with Revionics
Retail Times: Russian retailer, Victoria Supermarkets, looks to optimise prices with Revionics
January 14, 2014
Revionics’ SaaS-based solution was said to be particularly attractive to Victoria Supermarkets due to its ability to enable rapid time-to-value, lower total cost of ownership and on-demand scalability.
“Through a comprehensive industry search, we found that Revionics solution would help us adopt a smarter pricing strategy that would result in not only improving our customers’ shopping experience and our price image, but also help us obtain optimal profits and margins – it’s a win-win for us,” said Irana Katsiyeva, marketing director for Victoria.
Raley's Selects Revionics Social Commerce Solution
Integrated Solutions for Retailers: Raley's Selects Revionics Social Commerce Solution
January 6, 2014
Revionics, Inc., the leading provider of End-to-End Merchandise Optimization solutions, announced recently that Raley’s Family of Fine Stores, a privately held 128-store supermarket chain which includes Raley’s, Bel Air, Nob Hill Foods and Food Source, selected the Revionics Social Commerce solution to power an effective and measurable social media rewards program called Extra Friendzy.
“We are continually evaluating and adopting innovative ways to improve our marketing and customer loyalty efforts,” said Tom Hutchison, Director Marketing, CRM and Analytics for Raley’s.“Our Extra Friendzy! program powered by Revionics Social Commerce solution leverages the powerful social media channel to keep our customers engaged, excited and motivated to shop. In addition, this effort will help grow our social media advocates and referrals, drive more in-store traffic and help draw members to our loyalty program.”
Raley's hires Revionics to offer social media rewards program
Drug Store News: Raley's hires Revionics to offer social media rewards program
January 6, 2014
Supermarket chain Raley's Family of Fine Stores has hired an Austin, Texas-based company to help it launch a new social media rewards program.
“We are continually evaluating and adopting innovative ways to improve our marketing and customer loyalty efforts,” said Tom Hutchison, Director Marketing, CRM and Analytics for Raley’s.“Our Extra Friendzy program powered by Revionics Social Commerce solution leverages the powerful social media channel to keep our customers engaged, excited and motivated to shop. In addition, this effort will help grow our social media advocates and referrals, drive more in-store traffic and help draw members to our loyalty program.”
Raley's uses social-media sales system by Revionics
Sacramento Business Journal: Raley's uses social-media sales system by Revionics
January 6, 2014
Grocery chain Raley's signed up for a social-media sales system developed by Revionics Inc. The service lets Raley's customers get time-sensitive and limited quantity offers over social media such as Facebook online and on their smart devices.
Until this week, customers had to find the application on the Raley’s site and use it. The supermarket company now will push the service out to customers and market it. One successful promotion was one Raley’s developed where customers could shop and donate a bag of groceries to needy families. It sold out in five hours.
Revionics offers retailers price optimization and other software-as-a-service programs for pricing, promotions and markdown management. The management can be at the chain level, the store level or the shelf level. The software allows retailers to set prices and track inventory using equipment most of them already have, such as cash registers and payment systems.
Raley’s selects social commerce solution from Revionics
Chain Store Age: Raley’s selects social commerce solution from Revionics
January 6, 2014
Raley's Family of Fine Stores has selected Revionics’ Social Commerce solution to power a measurable social media rewards program called Extra Friendzy!.
“We are continually evaluating and adopting innovative ways to improve our marketing and customer loyalty efforts,” said Tom Hutchison, director marketing, CRM and analytics for Raley’s, which operates 128 supermarkets.
Raley’s Deploys ‘Extra Friendzy!’ Social Commerce Solution
Progressive Grocer: Raley's Deploys 'Extra Friendzy!' Social Commerce Solution
January 6, 2014
Revionics Social Commerce was developed to enable a deeper, more profitable dialog between the retailer and the shopper by engaging shoppers across their preferred touch points with targeted, personalized offers designed to create a sense of urgency and excitement. It allows retailers to target and motivate their most loyal, influential shoppers and turn them into vocal advocates in their social networks.
“Our Extra Friendzy! program powered by Revionics Social Commerce solution leverages the powerful social media channel to keep our customers engaged, excited and motivated to shop. In addition, this effort will help grow our social media advocates and referrals, drive more in-store traffic and help draw members to our loyalty program,” said Tom Hutchison, director marketing, CRM and analytics for Raley’s, which operates 128 supermarkets.
Spotlight Retail Group Implements Revionics Price Optimization
Retail TouchPoints: Spotlight Retail Group (SRG) Implements Revionics Price Optimization
November 4, 2013
Using the Revionics Price Optimization solution, SRG will be able to tap demand-based science and predictive analytics software, in order to ensure that the correct product, price, promotion, placement and space allocation has been implemented across all touch points.
“Being more shopper-centric and data-driven is essential in today’s hypercompetitive market,” said Quentin Gracanin, CEO of SRG.“There are several reasons we selected Revionics to help us with this initiative such as their strong track record of delivering results and partnering with retailers to ensure their strategic and financial objectives are met.”
Price Optimization 3.0
Progressive Grocer - Special Section
Case Studies: Price Optimization 3.0
Big Y's new price optimization strategy involves the collaboration of category managers.
As such a cutting-edge company, Big Y is no stranger to price optimization solutions. A big believer in the value of science-backed decision-making, Big Y teamed up with Austin, Texas-based price and promotion optimization solutions provider Revionics four years ago because the grocer was experiencing competitive positioning and price image challenges not addressed by its existing system.
Since that time, Big Y has successfully used Revionics to combine shopper insights and competitive data to strengthen its price image and drive loyalty while exceeding profit objectives. "For Big Y, customer-driven pricing is now a way of life and is embedded in our business philosophy," says Lee McKay, the grocer's retail pricing manager.
"I would equate pricing without optimization to how someone would respond if you took away their cell phone: It would be like wandering around lost in the dark. I don't know how anyone can compete in today's complex environment without optimization science and analytics." –Lee McKay
Family Dollar thrive in a tough, competitive industry segment
STORES - Information Technology:
When the Price is Right: Scientific pricing helps Family Dollar thrive in a tough, competitive industry segment
“We’re constantly looking for opportunities to gain insight into what’s going on in our marketplace,” says Apollo Whited, vice president of pricing strategy for Family Dollar, which has more than 7,900 stores across the country. “We want to be in a position to either profit from or combat the competitive pressures we face.”
Which are considerable. While the sluggish economy has been terrific for discount stores, this same opportunity has created a great deal of competitive price pressure. The major players in the category are all competing for the same customers — and they’re all competing on price.
To help Family Dollar develop and implement these pricing strategies, Whited and his team enlisted the aid of Revionics.
In other words, a balance must be struck. The way retailers do that, increasingly, is through price optimization — setting the right price, per item, every day. That requires Whited and his team to balance science, business rules, operational constraints and strategic and financial objectives.
Price elasticity can also be overridden by competitive position. There may be a product inelastic enough that a 15 percent price increase would give a retailer a nice little margin bump without losing too much traffic. If the retailer does that, however, it could threaten the consumers’ perception of it as a value leader. In other words, effective price optimization has to drive toward the company’s strategic and financial objectives.
Family Dollar, says Whited, is making solid progress toward doing exactly that. “We started out by focusing on our everyday value pricing strategy,” he says. “We wanted to balance our value price perception with our customers’ and to analyze it from a financial standpoint, as well.” As the company moves into promotional and markdown pricing — and eventually to full lifecycle pricing — it is doing so with a firm eye on its core objectives.
“We think there continue to be a lot of synergies in our organization as we look at ways to, for example, pool promotions and clearance pricing together,” Whited says. “But we’re also focused on making sure we continue to resonate with the consumer in our everyday value pricing strategy.”
Aussie Retailer Spotlight selects Revionics pricing tech
Retail Customer News: Aussie Retailer Spotlight selects Revionics pricing tech
October 29th, 2013
After an in-depth industry search, Spotlight chose Revionics due to its proven demand-based science and predictive analytics software, which will help Spotlight leverage their large volumes of data to improve margins, increase top line sales and enhance customer loyalty, the companies said in a press release.
"Being more shopper-centric and data-driven is essential in today's hypercompetitive market," said Quentin Gracanin, SRG Group CEO. "There are several reasons we selected Revionics to help us with this initiative such as their strong track record of delivering results and partnering with retailers to ensure their strategic and financial objectives are met."
"We are very excited to welcome The SRG Group as one of our customers in the Asia Pacific market," said Marc Hafner, Revionics President and CEO. "When a large retailer like Spotlight chooses our solution it further demonstrates the need in the marketplace for a more sophisticated and disciplined approach to pricing. We are excited with our relationship with Spotlight and are committed to delivering quick time-to-value and a positive impact to their top and bottom line."
Supermarket Chain Faces Tough Decisions After Rapid Expansion
Integrated Solutions for Retailers (ISR):
Supermarket Chain Faces Tough Decisions After Rapid Expansion
Within a few weeks, the team decided to go with Revionics’ price optimization solution chain-wide. The initial rollout started with 200 of the company’s core items. Information for all of these products had to be integrated with the new solution.
“With all of the automated pricing procedures, we feel like we actually have a better handle on 16,000 items than we did on the 200 on a spreadsheet,” Rouse comments. “The more we automate the process, the more efficient it becomes, and our managers can focus on getting the most out of their categories by focusing on assortments and products instead of prices.”
Rouse notes that the solution is helping the company grow same-store sales at the same time it increases margins, which is a tough thing to do in grocery during a sluggish economy. “It is traditionally a lot easier to do one of those things at a time,” Rouse says. “As I grow my sales, I might be hurting my profitability, or I can get more money out of a dollar, but I’m not going to sell more product. The Revionics solution is helping me do both at once on a sustained yearly level.” The pricing optimization is helping the company maintain its high standards.
Social Connection: PacSun uses social media to inform, entice and reward customers
Stores Magazine: PacSun uses social media to inform, entice and reward customers
May 31st, 2013
When the retailer wanted to expand its “Golden State of Mind” message to its customers, the company knew where to connect with them: via Facebook, YouTube, Twitter and their smartphones.
PacSun was able to create those links to customers with a social commerce solution from Revionics, which specializes in optimization to ensure retailers have the right products, pricing, promotions, placements and space allocations.This solution comes as a result of Revionics’ recent acquisition of SkuLoop, a provider of social commerce-driven promotions.
Retailers “are starting to migrate more and more to make commerce social vs. social commerce,” says Crames, the founder and former CEO of SkuLoop. “They can start by putting programs in place to become more educated about their shoppers, and then spread those concentric circles with more programs and projects. The more they use the platform, the more value they will gain.
With many social commerce companies focusing on engagement metrics, “Revionics focuses on how retailers can serve their customers so well that they will want to spread that word to their friends. And then we use those metrics to drive sales,” she notes.
PacSun’s website is full of invitations. “Want to keep up with all things Kendall & Kylie?” it asks. E-mail sign ups are rewarded with “exclusive offers, early access to sales & more!” PacSun has its own blog with content filtered by topic, ranging from products, brands and fashion to music and art. It’s loaded with pictures of attractive young people having fun in the California sun in their PacSun apparel. Visitors are advised to “tag your Instagrams and Tweets with PacSun’s hashtag” to be posted live on the blog.
Details about Revionics Social Commerce platform’s purchase price and the duration of installation are fairly straightforward, especially in the return on investment.
“Our solution is offered on a SaaS model that allows a retailer to pay as they grow their use,” Crames says. “Our customers typically see a 10-times ROI. The time to implementation is typically measured in a few weeks and doesn’t require development on the retailer’s side to get it up and running.”
Top 25 Global Food Retailers 2013
Supermarket News: Top 25 Global Food Retailers 2013
May 28th, 2013
SN's Top 25 worldwide food retailers for 2013 include annual sales for food, nonfood and wholesale operations; sales were based on current exchange rates. Store counts include franchised or licensed locations and may include nonfood outlets. #20: Safeway (USA)
Price Optimisation Strategies Increase Profits at City Farmers
Power Retail: Price Optimisation Strategies Increase Profits at City Farmers
May 15, 2013
How can a retail business provide better value for its customers while increasing profits? With the right price optimisation strategy, says City Farmers’ Clayton Hollingsworth.
Rather than increasing profit by simply pushing up the price unilaterally, City Farmers was able to clear more volume by reducing prices in many cases, resulting in higher profits regardless.
Since implementing its new data analysis platform, City Farmers has grown gross profit by several percentage points – but it doesn’t end there.
“This is just the start of our program when it comes to optimisation science,” Hollingsworth explains. “Next we need to consider how the technology can help us improve our promotions, including EDMs, print catalogues and segmented offers. Then we’ll also look at optimising how we replenish stock in a very similar manner.”
Roundy's Expands Initiatives at Pick 'n Save
Supermarket News: Roundy's Expands Initiatives at Pick 'n Save
May 9, 2013
Roundy's Supermarkets here plans to expand its new pricing and service initiatives beyond its 14 test stores here to additional Pick 'n Save locations during the balance of the year based on "early improvements in key operating and financial metrics across those stores, which give us increased confidence," Robert A. Mariano, chairman, president and chief executive officer, told analysts here Thursday.
Roundy's launched the program in mid-2012 at the 14 conventional stores based on merchandising, promotional and service programs at its upscale Mariano's Fresh Markets in Chicago.
Asked about competitive responses to the initiatives, Mariano said, "We have not called out the 14 locations, so it's hard for competitors to discern the efforts we have made. The customers at those stores see the differences, but an outside observer won't, and the programs are designed to impact shoppers, not necessary competitors."
Vallarta Renews Price Optimization System
Supermarket News: Vallarta Renews Price Optimization System
April 30, 2013
“We are very satisfied with the results experienced from leveraging Revionics’ price optimization solution — including the ability to price products more accurately for improved sales and customer loyalty,” said Ray Jones, vice president of procurement and marketing for Vallarta, in a statement.
Vallarta to Enhance Price Optimization Services
Progressive Grocer: Vallarta to Enhance Price Optimization Services
April 30, 2013
Vallarta Supermarkets has renewed its agreement for Revionics price optimization solution and plans to implement the vendor’s promotion optimization solution in the near future.
The grocer renewed its contract based on prior results, which include a more shopper-centric pricing strategy that has helped it improve margins, customer loyalty and price image in a highly competitive market.
Overhauling IT At BevMo!
Integrated Solutions For Retailers: Overhauling IT At BevMo!
April 19, 2013
BevMo! is in the early stages of a cloud-based price management and optimization initiative with Revionics, also an ARTS advocate. “We’re turning to Revionics to help us optimize our pricing scheme to optimize sales and margin,” says Graham. “The solution utilizes solid science coupled with our business rules to drive base and promotions pricing, which will help us make smarter merchandising and product placement decisions.”
Karen Dutch, SVP at Revionics, says the science behind pricing and promotions is based on predicting demand, setting business rules to meet demand, and applying brand-specific strategy to the equation. The first element requires retailers to tap into Big Data — which in the case of BevMo! lives in its cloudbased data warehouse — to understand and predict consumer demand by analyzing shoppers’ engagements with the brand at every social, mobile, and physical touch point.
To provide some context for the volume of data required of price and promotion optimization solutions, consider that Revionics pulls loyalty/CRM, POS transaction log, historical pricing, and even weather data — among other sources — into its algorithm. “With this data we can analyze shopper response to changing prices and promotions, weather conditions, and more at the store SKU and personal levels,” says Dutch. “This helps retailers understand which products drive consumer baskets, which get dragged in, and why.”
While BevMo! is in the early stages of its price and promotions optimization effort with Revionics, Graham sees promise in the implementation. “Revionics has a well-organized process behind its price optimization software, and they collaborate well with us,” says Graham, VP of IT at BevMo!
RIS News: Family Dollar Extends Price Optimization Solutions
February 8, 2013
Family Dollar Stores, a discount retail chain, has renewed its End-to-End Merchandise Optimization solutions software contract with Revionics. The renewal agreement will extend the retailer's services with Revionics Price Optimization across more than 7,600 stores in 45 states.
"As one of the fastest growing discount retailers in the United States, we rely on our partners to deliver innovation to support our growth and success so that we can focus on providing more value to our customers," said Mike Bloom, Family Dollar president and COO. "Over the past three years, Revionics has proven that they are a great partner for Family Dollar through their cutting-edge technology and pricing analytics that protects our strong value perception while assisting us to improve our profitability."
For this major initiative, Revioncs' solution provided Family Dollar with sophisticated price optimization software to support their market growth plans, expanded product mix and shopper-centric Everyday Day Value Pricing (EDVP). In addition, Revionics is helping family Dollar balance competitive and value-based pricing with profitability.
CSP Daily News: Family Dollar Renews Software Agreement with Revionics
February 5, 2013
The retailer selected Revionics Price Optimization in 2009 after an extensive search for base-price management and optimization as part of their merchandising initiative, Project Accelerate, which focused on a merchandising transformation in pricing, space productivity, assortment planning, and workflow capabilities.
Chain Store Age: Family Dollar Stores renews software agreement with Revionics for price optimization
February 5, 2013
More than 31,000 retail sites and $95 billion in annual revenue across grocery, drug, building materials, convenience, general merchandise, discount, sporting goods stores and e-commerce sites use Roseville, Calif.-based Revionics' solutions.
Progressive Grocer: Family Dollar Renews Multi-year Software Agreement with Revionics
February 5, 2013
Revionics delivers an end-to-end merchandise optimization solution, developed to enable retailers of all sizes to execute a fact-based Omni-channel merchandising strategy utilizing a comprehensive set of shopper demand signals to enhance financial performance with improved customer satisfaction.
RetailWeek's Store of the week: Food retailer Longo's flagship, Toronto, Canada
RetailWeek: Store of the week: Food retailer Longo’s flagship, Toronto, Canada
January 21, 2013
Longo’s is a family owned grocer that operates 24 stores in the Greater Toronto area, and this one, in Maple Leaf Square in the city’s downtown area, is its flagship.
Accessed by an escalator from street level, this 48,000 sq ft store is as much a feast for the eyes as the mouth and really is about giving food its fair shout in the visual merchandising stakes.
This is achieved through the effective use of food islands - cheese counters, coffee and tea areas and suchlike, as well as large, arresting graphics in the mid-shop and around the perimeter. It is also, in keeping with much of the new wave of supermarket design, about not making everything white. The ceiling void is black with lighting used to highlight merchandise areas instead of flooding every corner with high-level ambient light.
It is also about reminding the onlooker about the provenance of the food that is being offered. The tea and coffee island is a good example - it has wooden barrels filled with coffee beans and bags of the unground product sitting on top of them. The barrels serve little function other than mood creation and the sensation is that you have left the environs of a supermarket and moved into a coffee-roasting emporium.
This form of presentation is used across large parts of the store and is what used to be called ‘zoning’ when laying out non-food in department or electrical stores.
Longo’s takes the lessons that are available from sectors outside food retailing and applies them to this space to create drama in a way that will be unfamiliar but appealing. It also works as a series of market-style counters. The only thing similar to this in the UK is Whole Foods Market and this is better.
Supermarket News: Roundy's Sees ROI in Price Optimization
January 15, 2013
Roundy’s Supermarkets has found a “significant ROI” in the price optimization system it has employed over the past two years, said Jason Benish, vice president of pricing and strategic initiatives for Roundy’s.
In a study of price optimization’s effect on 10 categories at test and control stores, the chain found “the [trend] lines diverged” for year-over-year gross profit dollars, said Benish at a session here Monday at the National Retail Federation’s Annual Convention. “If I could make that kind of return on my [personal] money, I would probably not be here right now.” The system is provided on a software-as-a-service basis by Revionics, Roseville, Calif.
Roundy’s applies the system to all categories at its 165 stores, not including perishables, although the chain is looking at including produce, said Benish. “We wanted to make more fact-based decisions about prices that we did in the past,” using history to make forecasts of customer demand.
The system has also allowed Roundy’s to price by individual store clusters that have similar customers, he added.