The democratization of data has caused a dramatic shift in power from the retailer to the consumer. 2016 must be the year that retailers restore balance.
Today’s shoppers are always on the hunt for the best bargain – regardless of where the products are being sold – online or in store. The beauty of it all for them is that they now have an infinite universe of options to buy what they want at the price they want – online or in store.
That obsession is making it tough for retailers to end their dependency on promotions. In fact, they are obsessed with pricing competitively and rightly so. However, that obsession can lead to a knee-jerk reaction to aggressively price match or discount across their entire assortment against both online and traditional retailers. The result? An ugly vortex of “death by discount” in a no-win race to the bottom. You’re sucked into a black hole where you’re killing your margins and profits – and your customers are hooked on this discount addition. Now what? Before your entire pricing and promotion strategy becomes unhinged with this insanity, let’s take a step back, rethink and reset before you get too far along in 2016. This is the time of the year when you can truly embrace smart analytics and apply them to your pricing and promotion decisions – so you’re protecting your margins, sales and profits while giving your customers exactly what they want. This means harnessing real-time competitive, customer and market data to help and execute your pricing and promotion decisions – profitably.
Retail Problems We’re All Facing
At NRF 2016, retailers will get valuable insights on this topic by attending our exciting panel with Sally Beauty, RSR Research and Revionics titled: “How to Break the ‘Death by Discount’ Cycle.” Brian Kilcourse of RSR, Linda Voracek of Sally Beauty and Cheryl Sullivan of Revionics will cover the problems we’re all facing in retail and what’s driving retailers to promote more and more often – aggressiveness from competitors, price transparency and consumer sensitivity to price as a key component of value.
In the face of these disruptions, the panelists will explore the top business opportunities and drivers for retailer – and what over-performers are doing differently versus the under-performers.
There is a great piece that Linda Voracek of Sally Beauty did with Adam Blair of Retail TouchPoints. I’d encourage you to read it.
We look forward to seeing you in NYC for NRF 2016. And feel free to stop by our booth #2962.