Pricing

Rising Retail Pricing Pressures Mandate an Elevated Emphasis on Cost Reduction Strategies
August 14, 2024 at 2:33 pm

Despite recent progress in reducing inflation, prices are still high and consumers remain under pressure. Excess savings accumulated during the pandemic have been depleted for a substantial part of the population and credit card delinquencies have reached record levels. We’re also seeing a reduction in job openings and wage growth, among other moderating indicators. As…

Rising Prices in a Crowded Marketplace: What’s a Company to Do?
August 12, 2024 at 8:58 am

There’s no other way to say it: pricing has caught up to everyone. If the recent flurry of TikTok videos about McDonald's Hash Browns has shown us anything, it’s that companies simply can’t raise prices forever. At some point, they’ll price themselves out of the market. Within CPG specifically, prices are rising across the board.…

The Slowdown Retailers Saw Coming
July 29, 2024 at 7:23 pm

Inflation continues to cast a long shadow over American households, with prices soaring to levels 33 percent higher than those seen four years ago. Despite prices easing in recent months, inflation’s cumulative effect has exacted economic strain on many families, who are grappling with a higher cost of living coupled with slower income growth. In…

Navigating the Retail Landscape of 2024: A Strategic Approach to Pricing
July 8, 2024 at 6:29 pm

The retail sector in 2024 faces a confluence of transformative forces. Geopolitical tensions, intricate supply chains and economic fluctuations have created a complex landscape. Challenges like inflation, rising interest rates, and escalating living costs directly influence consumer purchasing power. The e-commerce boom and evolving post-pandemic consumer behavior further reshape market dynamics, presenting both opportunities and…

Walmart to Roll Out Electronic Shelf Labels in 2,300 Stores
June 11, 2024 at 4:53 pm

Paper shelf price labels are going away at thousands of Walmart stores. The company announced late last week an expanded rollout of digital shelf labels that will allow it to update prices on over 120,000 items within minutes. Weekly updates to paper shelf labels typically took a store worker about two days. With digital labels,…

Target Adds More Low-Cost Items to its Assortment
May 27, 2024 at 6:18 pm

Continuing its emphasis on low prices, Target said last week it would be adding more than 1,000 low-cost summer items to its product assortment. The products, including swimwear, outdoor items, snacks, drinks and skin care products, will be priced as low as $1 and more than half will be priced below $15. To encourage summer…

Target to Lower Prices on 5,000 Items
May 20, 2024 at 7:38 pm

Target said Monday it will lower prices on approximately 5,000 frequently bought items as it seeks to stay competitive amid signs consumers are experiencing price fatigue. The company said in a statement that the price cuts are concentrated in grocery staples like milk, meat, bread, fruit and vegetables, as well as paper towels and diapers, with…

Win Customers, Avoid Lawsuits: Minimizing Reference Price Litigation Risk
May 14, 2024 at 12:28 pm

False reference price and deceptive pricing class actions are a growing concern for retailers, with lawsuits multiplying faster than ever. Broadly speaking, these lawsuits allege that retailers that routinely offer items at sale prices or that run regular “limited time” offers are engaging in deceptive advertising. The lawsuits allege the purpose of overfrequent sales is…