Discover Optimization: Benefits, Best Practices, Technology 

Innovative retailers are leading the way for the industry.  Revionics is proud to highlight and share recent articles that feature our customer community:

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.

ALCO Stores, Inc. Reports Operating Results for Third Quarter and Year-to-Date Fiscal 2014

GlobalNewswire: ALCO Stores, Inc. Reports Operating Results for Third Quarter and Year-to-Date Fiscal 2014
December 18, 2013

Richard Wilson, ALCO Stores' President and CEO, commented, "Moving forward, ALCO is focused on executing five major initiatives to improve profitability and deliver value for shareholders. One of these actions includes Expanding gross margins by completing the price optimization initiative with Revionics, which increases top-line sales and gross margin by adjusting prices store-by-store and item-by-item based on detailed demand data." 

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
November 2013

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
November 2013

“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
(Rouses Supermarkets)
August, 2013

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!

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 geography."

ALCO Stores, Inc. Announces March Sales Results

NASDAQ: ALCO Stores, Inc. Announces March Sales Results 
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."


Family Dollar Extends Price Optimization Solutions

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.

 

Family Dollar Renews Software Agreement with Revionics

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
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.

 

Family Dollar Renews Multi-year Software Agreement with Revionics

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.

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'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. 

 

Roundy's Sees ROI in Price Optimization

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.