Retailers in the News
Customer Feature Stories
Innovative retailers are leading the way for the industry. Revionics is proud to highlight and share recent articles that feature our customer community:
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,”
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!
ALCO Stores CEO touts partnership with Revionics' pricing optimization solutions on Earnings Call
ALCO Stores CEO touts partnership with Revionics’ pricing optimization solutions on Earnings Call
April 19, 2013
"I'd like to discuss one of the company's most
critical initiatives, gross margin expansion. Clearly, delivering
improved profitability is anchored in our ability to increase gross
margins. There are 2 initiatives that are designed to improve overall
gross margin results. First is our implementation of price optimization.
Our new partnership with Revionics, a price optimization software
provider, will enable us to manage pricing based on competition and
ALCO Stores, Inc. Announces March Sales Results
NASDAQ: ALCO Stores, Inc. Announces March Sales Results
Family Dollar Extends Price Optimization Solutions
April 11, 2013
ALCO Stores, Inc. today announced sales from continuing operations, excluding fuel, increased 1.4% to $44.8 million for the five-week period ended April 7, 2013, compared to $44.2 million during the same period of the prior year.
"We are also encouraged by the progress being made as we integrate our new Revionics price optimization software. The project is currently on schedule and we expect to realize benefits during third and fourth quarters."
RIS News: Family Dollar Extends Price Optimization Solutions
Family Dollar Renews Software Agreement with Revionics
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.
Family Dollar Stores renews software agreement with Revionics for price optimization
Chain Store Age: Family Dollar Stores renews software agreement with Revionics for price optimization
More than 31,000 retail locations 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.
February 5, 2013
Family Dollar Renews Multi-year Software Agreement with Revionics
Progressive Grocer: Family Dollar Renews Multi-year Software Agreement with Revionics
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.
February 5, 2013
ALCO Stores Implements Revionics Pricing Solutions
Retail TouchPoints: ALCO Stores Implements Revionics Pricing Solutions
January 30, 2013
Localization is a hot topic among retailers striving to create more relevant offers, inventory assortments and price points across channels. In doing so, merchants across verticals better connect with shoppers in specific geographic areas, but also make more efficient decisions regarding their merchandising, offers and product costs.
ALCO Stores, a broad-line retailer primarily located in small, underserved communities, recently announced the implementation of Life Cycle Price Optimization solutions and Analytic Services from Revionics, Inc. A key goal is to gain more granular and localized pricing and promotions strategies, according to Rich Wilson, President and CEO of ALCO. Through the new partnership, ALCO will leverage the full suite of base pricing, promotion optimization and markdown solutions to improve gross margins, brand image and customer loyalty in all 217 locations across 23 states in the U.S.
“ALCO faces increased competition, rising costs, significant changes in consumer awareness surrounding price sensitivity, and the rising shift in consumer spending via e-Commerce,” Wilson said in an interview with Retail TouchPoints. The solutions from Revionics, he added, provide “the robust, science-backed methodologies we need to provide a more transparent, fact-based decision-making environment. We needed a tool that could take today’s impacts and translate them into customer-centric, demand-based cost strategies.”
Detailed analytics regarding in-store shopping behaviors, as well as overall sentiments on product rates, markdowns and deals, will empower ALCO executives to design and roll out regional and localized initiatives based on the unique preferences of specific geographic areas. Additionally, these insights will help the retailer better predict and respond to shopper demand and behavior, which can lead to a boost in purchases and overall market basket size.
Within the last year, ALCO has focused on implementing regional strategies in select stores to “organically grow our profit base,” Wilson explained. The company also is striving to expand pricing technology and knowledge to team members across the organization. Day-to-day mentorship from Revionics will provide the ALCO Pricing and Leadership team with pricing and solution implementation best practices.
“ALCO and Revionics together are committed to ensuring we serve our customers in their local communities better than ever,” Wilson said. “The relationship between ALCO and Revionics continues to progress into a partnership not just on pricing, markdown, and promotions; but as partners driven on simplifying the customer shopping experience and improving our day-to-day operations.”
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.
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
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
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
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.
Sacramento Business Journal: Revionics lands contract with outdoor outfitter Cabela's
January 8, 2013
“We are thrilled that Cabela’s, one of the largest multi-channel specialty retailers, has chosen Revionics as their ‘partner of choice’ for price and markdown optimization technology,”
Revionics CEO Marc Hafner said.
STORES: Unlocking Data Secrets: BevMo! gets precise with optimization solutions
November 1, 2012
BevMo!’s Bob Graham, vice president of information technology, says
the 123-store chain chose Revionics to optimize its pricing, promotions
and store clustering because Revionics seems “very nimble and has the
ability to deliver.”
“They get that we are a small, scrappy, lean company,” he says. “We
want the technology to drive things, instead of lots of bodies. The IT
staff here is 10 people, with three of them on the help desk, so we
can’t have systems that are complex. And those systems have to be easily
integrated with other ARTS solutions.”
That need to avoid complexity in its IT systems may be borne of the
retailer’s complex product assortment, which includes wine, spirits and
beer, and related products like specialty foods, cigars and glassware.
BevMo! stores average 10,000 sq. ft. in major metropolitan markets in
California, Washington and Arizona; its headquarters are in the San
Francisco Bay area.
“I saw an opportunity to dig into optimization and build a better
BevMo!,” says Graham. “Revionics took a lot of time to review our
business. They had good recommendations and it appears they have a solid
science. When you get smart about pricing, that is a big deal,” he
adds, while also stressing the importance of being ARTS-compliant.
“We move a lot of product out the front end,” Graham says, “and
Revionics is very focused on fast-moving consumer goods. If you can hit
pricing, promotion and have an efficient front end, you can begin to
take your loyalty programs to the next level.”
“What makes BevMo! special is the art of serving the customer,” he says.
“These tools unleash the creativity of our people. And once they have
created a promotion, some kind of event, the systems take over and
execute it. At that point, you have the opportunity to strive for
excellence. I don’t think this optimization system will replace people —
it allows them to be more creative.”
City Farmers Takes a Scientific Approach to Pricing and Promotions
Retail TouchPoints: City Farmers Takes a Scientific Approach to Pricing and Promotions
October 8, 2012
By implementing the Price and Promotion Optimization solutions from Revionics, City Farmers can be more competitive and deliver upon customer wants and needs more effectively, Clayton Hollingsworth, CEO and Managing Director of City Farmers, told Retail TouchPoints.
This multifaceted approach will help ensure that logic is at the center of all pricing decisions. “The entire pricing process will be transparent,”
he added, “so we always know why a price is going up or down and what the effect on the business will be.”
“Letting our data talk and determine our decisions will allow a lot of the ‘smoke’ surrounding our pricing and promotion strategies to disappear,” Hollingsworth explained. “We will be able to make decisions quickly and more logically. We will also have better team congruence regarding price, which will free up time at both a management and store level to better drive the business.”
RetailBiz.com: Revionics' solutions help pet supplier grow profits
September 18, 2012
Clayton Hollingsworth, City Farmers CEO, said partnering with Revionics was an easy decision.
“As a data-driven company we needed a more fact and science-based
approach to our pricing and promotion strategies that would create a
stronger value proposition for our customers, “he said.
“Furthermore, we were impressed with how the Revionics’ platform is a
‘dynamic learner’ and are essentially the brains of the operation – the
more data you throw at it, the smarter it becomes.”
The Integrated Retailer: Australia's City Farmers chooses Revionics life cycle price optimisation solutions
September 13, 2012
“Partnering with Revionics was an easy decision
,” commented Clayton
Hollingsworth, City Farmers Chief Executive Officer. “As a data-driven
company we needed a more fact and science-based approach to our pricing
and promotion strategies that would create a stronger value proposition
for our customers. Furthermore, we were impressed with how the
Revionics’ platform is a ‘dynamic learner’ and is essentially the brains
of the operation – the more data you throw at it, the smarter it
,” continued Hollingsworth.
The Sacramento Business Journal: Revionics lands deal with Australian chain City Farmers
September 11, 2012
“As a data-driven company we needed a more fact and science-based
approach to our pricing and promotion strategies that would create a
stronger value proposition for our customers
,” Clayton Hollingsworth
, City Farmers CEO, said in a news release.
Retail TouchPoints: eBags.com Chooses Revionics For Shopper-Centric Pricing Strategies
August 21, 2012
… eBags.com chose Revionics’ analytics-based Price Optimization tool to help improve its pricing strategies
. The move “will ensure we are competitively priced for today’s increasingly-informed shopper,” stated Vince Jones, CEO of eBags.com
RIS News: eBags.com Selects Revionics Price Optimization Solution
August 27, 2012
The choice of Revionics "will ensure we are competitively priced for today's increasingly informed shopper,
" said eBags.com CEO Vince Jones in a statement. "Revionics will ensure that these customers also continue to find competitive prices on everything on our site, whether they're shopping for a well-known brand with category-leading products, or more of a specialty brand with niche products."
Retail TouchPoints: BevMo! Enhances Customer Satisfaction With Price And Promotion Optimization Tools
August 13, 2012
“Pricing and promotions are two of the key areas that we wanted to attack,” Graham said. “We recognize that we must be more nimble, now more than ever, and tackle new opportunities.”
As part of its head-on attack, BevMo! has entered a three-year partnership with Revionics, a provider of merchandising solutions, in which BevMo! will implement multiple Revionics tools. These include Price Optimization, which provides base price management; Promotion Optimization, to improve overall promotion planning and success; and Store Clustering Analysis, to ensure more efficient price alignment across its 118 brick-and-mortar stores.
This approach will allow BevMo! “to become more intelligent in pricing strategies in order to delight customers, while remaining a cost-effective and solid competitor in our marketplace,” Graham explained.
“At the end of the day, it’s all about having the right product, at the correct price, at the right location, which opens the door to the best way to interact with our customers.” Moreover, BevMo! will be able to determine the impact of specific pricing decisions, said Graham, and pinpoint demand based on specific market locations and conditions.
Progressive Grocer: Prudent Pricing
"The results are there, and we're happy with them. And every year, our comfort level with optimization has grown." –Frank Cannon, Van's Markets
And this is where Revionics really delivers, according to Cannon, who recalls that prior to using the system, "We used to have 700 or 800 price changes a week. But once you start a pricing strategy off a targeted gross margin, depending on the sensitivity of the item, you might not have to change a lot of those items to maintain that target. So your price changes go down pretty dramatically using price optimization, which boosts gross margin, and that saves on labor."
Tractor Supply Company Optimizes Inventory Pricing and Planning with Weather-Driven Demand Intelligence
Retail TouchPoints: Tractor Supply Company Optimizes Inventory Pricing and Planning with Weather-Driven Demand Intelligence
April 19, 2012
“The solution will help us identify sales trends and take a more proactive approach to pricing by location, which will improve our margins and profitability.
By utilizing this solution, we will have a deeper understanding of weather-driven trends and outcomes." stated a Tractor Supply Company spokesperson.
“Weather is a significant and often dominant driver of demand for some product categories,”
said Jeff Moore, VP of Science Development and Innovation at Revionics. “We wanted to offer the ‘de-weatherization’ of history, meaning that the effects of historical weather are accounted for in the demand models in such a way that they bring the models back to ‘normal.’
Retailers have gravitated to price intelligence solutions in order to make more efficient business decisions. Integrating weather intelligence allows organizations to optimize these areas further, and preserve additional margin when and where demand will be stronger due to specific climate,
according to David Frieberg, VP of Marketing for Planalytics.
Planning for Pricing: Winn-Dixie Among Retailers Embracing Price Optimization
Supermarketnews.com: Planning for Pricing: Winn-Dixie Among Retailers Embracing Price Optimization
February 13, 2012
Another retailer using price
optimization in decision-making is Longo’s, a 24-store EDLP operator
based in Vaughan, Ontario. “It’s provided us with an opportunity to
look at the entire enterprise in a customer-focused manner vs. working
in silos,” said Tom Sfetkopoulos, manager, merchandising and pricing for
Longo’s, which has been using a price optimization system from
Revionics, Roseville, Calif., for everyday pricing over the past 1.5
years. “You can look at a category and how it impacts a department and
the entire enterprise.”
For example, Sfetkopoulos said, the system allows
Longo’s to stay competitive on certain items and “look at other options
to make up the profit you may be giving up.” And the system enables the
chain to pass through a major commodity cost increase and “look to
offset it in other parts of the enterprise.”
Longo’s employs price optimization on a
software-as-a-service basis, providing Revionics with historical and
current sales data and costs. The system covers all Center Store
products and is starting to be applied to fresh departments. The chain
has experienced some “very significant successes” in both sales and
margins with the system, and achieved an ROI “in a shorter time than
anticipated,” said Sfetkopoulos, declining to provide specifics. Longo’s
plans to start promotional forecasts in the next few months.
Supermarket News: Transcript: Zaucha Award Winner McGregor Has Community Focus
February 13, 2012
The stores have also installed Revionics to do price monitoring and also to keep track of product movement vs. movement among competitors, “and it helps us keep our gross margins in line by category
,” he added.
….The decision to invest in Revionics, for example, was made by his sons on their own, McGregor pointed out. “I challenged them and questioned whether that system would really change the way we price, but now I believe they made the right decision
Tractor Supply Earning Calls Highlights
Seekingalpha.com: Transcript: Tractor Supply's CEO Discusses Q4 2011 Results
February 2, 2012
"First of all, we chose Revionics for Price Optimization and we are convinced they were the right choice for us. Remember, price op is one of the four drivers of the gross margin equation that we talked about."
Seekingalpha.com: Transcript: Tractor Supply's CEO Discusses Q2 2011 Results
July 20, 2011
"Gross margin which increased 30 basis points to 34.1%....we have been making progress on our strategic gross margin initiatives which include improved strategic sourcing, private branding, price optimization and inventory management."
Tractor Supply shares hit all-time high on strong outlook
Reuters.com: Tractor Supply shares hit all-time high on strong outlook
January 12, 2012
Tractor Supply Seen As Having Right Strategies
Investors.com: Tractor Supply Seen As Having Right Strategies
October 24, 2011
Gander Mountain Adopts Revionics Price Optimization To Boost Customer Satisfaction And Sales
RetailTouchPoints.com: Gander Mountain Adopts Revionics Price Optimization To Boost Customer Satisfaction And Sales
October 24, 2011
Holiday Stationstores Puts Revionics Technology Behind Its Prices
CSNews Retail Technology Blog: Holiday Stationstores Puts Technology Behind Its Prices
July 19, 2011
"We [Holiday] realized we needed the science of a system in order to understand
the price sensitivity of the items we sell, which offers an elasticity
of demand calculation. A system removes some of the emotion
that is built into pricing decisions and allows us to develop pricing
that is consistent with our view of the strategic role of each
category." Solyntjes said."
"...Overall, Holiday is impressed with the [Revionics] system and the results achieved
so far. Solyntjes said the company is on track to achieve the gross
profit improvement it anticipated..."
Whole Foods looks Appetizing to Stock Analysts
MarketWatch.com: Analysts ring up Whole Foods, Fresh Market - Higher-end customer base seen benefiting natural-foods retailers
June 20, 2011
Family Dollar's Price Optimization Noted as Part of Success
Benzinga.com: Deutsche Bank Provided Color on Family Dollar Stores - Buy
May 25, 2011
Fuel Related Cost Increases Tackled with Price Optimization
Charlotte Observer: Family Dollar - Talk From The Top, Howard Levine, Call Him the Family Man
January 29, 2011
Price Optimization Feeding Family Dollar Growth Boom
RIS News: Download Executive Insight Article
January 25, 2011