Delivering End-to-End Merchandise Optimization

A shopper-centric approach for improved performance and customer satisfaction

In today’s hyper-competitive market, retailers are compelled to take a shopper-centric approach to developing and executing their merchandising strategies. Demand-based science and optimization technologies provide retailers with a deeper understanding of their shoppers' behavior, enabling them to make better strategic decisions based on facts rather than ‘gut feel’. 

The acquisition of Retail Optimization, Inc. further extends Revionics’ leading demand-based Life Cycle Price Optimization solution set to include Assortment, Micro and Macro Space Optimization solutions. The combination of these two suites unifies all components of an organizations’ strategic vision - Product, Price, Place and Promotion -  to deliver the most powerful End-to-End Merchandise Optimization Solution available on the market today.

Together, these solutions enable retailers to take their shopper-centric initiatives to a new level by ensuring the RIGHT product assortment, price, promotion, placement and space allocation.

Assortment, Macro and Micro Space Optimization

Predictive space and assortment optimization enables retailers to make the most profitable product selection, category space allocation, product placement and inventory investment decisions at the individual store or store cluster level.

Revionics’ new Assortment and Space Optimization solutions take profitability to a new level by:

  • Simultaneously optimizing category size, product mix and inventory levels at the individual store level by making true marginal trade-offs for facings, SKUs, categories and departments
  • Recommending assortment additions, deletions and retentions
  • Incorporating and blending multiple merchandising strategies and tactics with a science-based bottom-up/top-down optimization process 
  • Enforcing merchandising and supply chain rules to balance and reduce excess inventory while protecting against out-of-stocks
  • Providing real-time ‘what-if’ scenario planning simulation, allowing retailers to compare and contrast the results of different strategies before selecting one to implement

Key proven benefits include:

  • Improved financial performance: 4%-5% increase in sales, 5% increase in profits  
  • Improved customer satisfaction
  • Reduced excess inventory
  • Reduced out-of-stocks

Life Cycle Price Optimization

Price matching, cost plus and other ‘gut’ level approaches are not winning strategies in today’s hyper-competitive, price sensitive, fragile market where prices are transparent and shoppers are more informed, less loyal and continuously morph their purchasing behavior.

Revionics allows retailers to make smarter, fact-based pricing decisions with confidence:

  • Enabling a deep understanding of local shopper and competitor behavior through the granular application of optimization science and predictive analytics
  • Projecting the desired price image and executing competitive positioning objectives through the planning, simulation and execution of the best strategies at all stages of a product’s lifecycle
  • Achieving revenue, profit and customer loyalty goals with optimized base prices
  • Presenting shoppers with the most relevant promotional offers by channel, maximizing event results
  • Maximizing margins and sell-through by optimally clearing inventory through localized markdowns that adapt to changing market conditions, inventory depletion rates and shopper preferences 
  • Measuring the effectiveness of pricing and promotional decisions against defined business objectives for sales, margin, and profit

Key proven benefits include:

  • 8-18 fold yearly ROI with 1-5% sales improvements, 2-5% profit improvements, and 1-3% gross margin gains
  • Increased sell-through
  • Ability to compete and win against encroaching competitors
  • Increased customer loyalty