5 Intra-Day Pricing Strategies Learned at NRF 2024

Highlights from Revionics' Session at NRF 2024

The retail industry is evolving rapidly, with technology playing a major role in shaping consumer behavior and preferences. As retailers strive to keep up with these changes and stay ahead of their competition, pricing strategies have become more crucial than ever before.

Intra-day pricing, or the ability to change prices multiple times within a single day, has emerged as a key strategy for retailers to stay agile and competitive in the market and was discussed at length at this year's NRF 2024: Retail's Big Show!

In a session hosted by Revionics' own Matthew Pavich, Senior Director, Retail Innovation, we learned how REMA 1000 delivers optimized prices to their stores throughout the day to maintain their price leadership. During the session, we delved into pricing with the Head of Pricing at REMA 1000, a Reitan Retail brand, and how the fusion of a state-of-the-art data platform and electronic shelf labels drives innovation and empowers pricing in the fast-paced retail industry.

Check out our key takeaways below.

REMA 1000 at NRF: Key Takeaways

1. Competitive Pricing Demands Near-Real-Time Adaptability

Partap Sandhu, Head of Pricing at REMA 1000, shared insights on how REMA, Norway's largest grocery chain with over 675 stores, gathers competitor pricing data daily.

"We get about 1 million [competitor] price observations, on the item level, per week," Sandhu said during the session. "The whole pricing process and cycle time from identifying a change in price at our competitor stores to having prices change in our store would be about 15 minutes."

Thanks to their integration with Revionics, REMA can swiftly implement new prices. This seamless process ensures timely and effective pricing strategies for the company.

2. Deeper Customer Insights Informing Ever-Changing Markets

REMA leverages comprehensive customer insights and in-depth market analytics to meticulously craft and fine-tune its pricing strategy.

"We have 4.5 million customers visiting us each week, so we got a lot of customer insight," Sandhu said. "One example is that it shows us 'downgrading' opportunities, like when the customer buys a cheaper type of bread. We saw that the customer was downgrading towards lower-priced bread, so using some of the data, we decided we needed to introduce another bread option for our customers."

By diligently analyzing customer preferences, market trends, and the competitive landscape, REMA ensures a strategic approach that optimizes value for the company and its customers.

3. Effective Private Label Strategies Require Complete Control

Private label pricing is crucial in REMA's ability to compete on price effectively. By strategically incorporating guardrails and rules into their pricing solution, REMA can efficiently execute pricing changes at scale while maintaining complete control over the process.

"We have a pretty clear private label strategy at REMA. We want to have a certain amount of level between the different prices and the end brands," Sandhu said. "So, we aim to have that level, and we need to have that level. To do that, Revionics allows us to stay in control all the time."

This ensures that REMA remains agile and responsive to market dynamics, enabling them to stay ahead of the competition and deliver exceptional value to their customers.

4. True Efficiency Lowers Costs & Customer Prices

By strategically implementing guardrails and rules into their pricing solution, Rama can efficiently execute pricing changes at scale with a small team. This streamlined approach not only boosts productivity and allows REMA to accomplish more with limited resources but also reduces operational costs.

"Efficiency is everything for us — efficiency lowers the cost," Sandhu said. "Everything we do, everywhere we see, everything we touch, we ask ourselves, 'What is the best solution to have even lower prices?'"

As a result, REMA can pass on these savings to their customers, offering competitive prices and enhancing customer satisfaction.

5. Streamlined Systems Create Limitless Possibilities

REMA's integration of a state-of-the-art data platform with electronic shelf labels has opened up infinite opportunities for the company to innovate and drive value through its pricing strategies.

"Once you have the right system in place, it doesn't matter, does it? We can do anything we want," Sandhu said. "We can implement 456,100 price changes each day. The sky's limit once you have a system that supports all of these changes."

By seamlessly connecting their systems, REMA can now swiftly implement optimized prices throughout the day, respond quickly to market changes, and deliver exceptional value to their customers.

More in Store: Watch the Full Session

The NRF 2024 session on intra-day pricing strategies provided valuable insights into how retailers like REMA 1000 harness technology and data to stay agile and competitive in the ever-changing retail landscape.

REMA’s experiences underscore the importance of near-real-time adaptability, deep customer insights, control over private label strategies, cost-efficiency and the power of streamlined systems. By strategically implementing these principles, retailers can optimize pricing strategies, drive value and ultimately enhance customer satisfaction. Businesses that effectively leverage these strategies will likely emerge as industry leaders, setting new benchmarks for innovation and excellence in retail pricing.