Case Study from Family Dollar, Discount Retailer
The Challenge: Highly Price Sensitive Consumers
For Family Dollar, meeting the needs of their target market has always been a focus. However, meeting pricing expectations of their consumers was challenging. "Typically, the household income is $40,000 dollars or less, so these people are focused on value and search for products to be priced right."
Family Dollar recognized that in order to remain competitive, they needed much more than a solid pricing strategy. They needed a complete pricing solution.
The Solution: Adopt a Holistic Pricing Strategy
After exploring several pricing solutions and price optimization software, Scott knew exactly what Family Dollar needed. "When we looked at pricing solutions, core to our strategy was finding one that took a holistic approach spanning everyday, markdown, and promo. We found that solution with Revionics."
The Results: Improved Profit Margins at 7,000+ Stores
"Working with Revionics and their solutions has really allowed us to have a better handle on our pricing portfolio." By addressing multiple aspects if pricing strategy, Family Dollar was able to extrapolate a marginal improvement on multiple products sold at over 7,000 stores, producing a significant financial improvement.