Pricing

How Will Retailers Deal With the New Tariffs Heading Into Holiday 2019?
November 19, 2019 at 11:10 am

The retail industry is feeling the effects of 15 percent tariffs imposed on Sept. 1 on a wide range of consumer imports, and is bracing for the impact of their expansion to additional goods on Dec. 15. These tariffs cover a total of about $300 billion worth of imports from China. Increases on tariffs imposed…

Markdown Optimization Helps Apparel Retailers Maintain Gross Profit and Profit Margin
November 13, 2019 at 12:12 pm

Apparel retail is infamous for extremely short collection cycles. This means that businesses are always pressured to get rid of old or surplus inventory to make room for new collections. In this time-sensitive scenario, retail teams usually prefer to clear off shelves at all costs. In many cases, retailers launch promos which attract customers and…

Pricing Elasticities: CPGs Renewed Focus on Pricing
October 3, 2019 at 9:12 am

Despite the availability of voluminous shopper data and advanced analytics, many consumer packaged goods (CPG) companies leave revenue on the table by failing to optimize the link between product pricing, product development and marketing. Marketers rely primarily on elasticity as the primary factor when setting pricing, and think less about how to move the curve…

Why Dynamic Pricing is Retailers’ Answer to Tariff Hikes
October 2, 2019 at 11:12 am

A new survey about the impacts of product tariffs from Intelligence Node, a proven innovator in retail analytics technology, reveals that consumers are concerned that retail prices will soon be on the rise. More than 1,000 respondents took part in sharing their sentiments on impacts to retail pricing as a result of new tariffs going…

How to Sustainably Compete With Retail Giants on Price
September 30, 2019 at 11:12 am

In my previous article on retail pricing excellence, I discussed how traditional retailers are facing threats from all corners. Domestic and foreign competitors, direct-to-consumer (D-to-C) brands, and entrants from nonretail sectors are fighting for market share. Against this competitive backdrop, shifting consumer preferences, high-end expectations, and new business models are adding to the pressure. To…

How Retailers Should (and Shouldn’t) React to Competitors’ Price Changes
August 29, 2019 at 12:39 pm

Shoppers cite the price of a product to be the primary reason to choose purchasing it from a particular retailer. In fact, as many as 60 percent of consumers opt for a seller with the optimal price. In most cases, consumers compare prices offered by retailers for so-called key value items(KVIs). They value such products the…

How Retailers Compete on Price Image
July 25, 2019 at 11:20 am

In the time of Amazon.com, e-commerce and direct-to-consumer (DTC) brands, traditional retailers are continuously having to grapple with how they can compete, and price remains the primary battleground. We're all familiar with the dollars and cents logic behind selling products and maintaining margins, however, winning on price is about more than just hard, tangible figures, it's…

Why Big Marketing Bills Make Retail Price Wars Hurt Much More
July 17, 2019 at 12:40 pm

As retailers fight to win online market share, they're forced to up their game and push boundaries to meet customer expectations. The reality of competition in today’s cutthroat world of e-commerce translates into companies looking to one up or match their competitors, which is doing more harm than good to the industry. Many online retailers…

What Retailers Can Learn From Bed Bath & Beyond’s Current Woes
July 9, 2019 at 11:35 am

The ongoing saga around Bed Bath & Beyond continues to send ripples throughout the retail industry. Once the pre-eminent home goods brand, Bed Bath & Beyond is in the midst of massive upheaval as it struggles to cope with the pressure it's facing from discounters and online pure-play brands, particularly when it comes to pricing.…