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As we head into 2024, the retail landscape continues to face uncertainty regarding the economy, geopolitical climate, increased digitalization, and life post-COVID. However, in the face of this uncertainty, BoF–McKinsey’s Executive Survey shows that retail executives are working to balance managing ongoing uncertainty and seeking new opportunities. For example, the survey reports, “In 2024, 71 percent of surveyed executives said they will focus on increasing sales, compared to 63 percent the previous year. Achieving that growth will likely require laser-sharp attention on pricing and promotion strategies…”
The report explains how many cost-saving measures have been exhausted, leading to the need to focus on growing sales. One way this growth can take place is through implementing new pricing and promotional strategies.
A retail intelligence platform is a critical tool for successfully executing these goals. By utilizing AI-driven software, retailers can quickly and efficiently access both internal and market data regarding how their strategy compares to competitors and understand how their strategies performed historically and in real time.
Retail intelligence helps your business increase sales by providing you complete visibility on pricing strategies in the market with a connected view into profitability, product performance, and your customers. By having all of this data in one place, your team can more quickly identify the right price for a product and assess its impact on your margins to optimize pricing.
According to the BoF survey, “Among the surveyed executives, 44 percent expect to raise prices by up to 5 percent, while 25 percent plan price increases of more than 5 percent. Companies that succeed in driving growth through price rises will likely take a precise, carefully tailored approach.”
To remain competitive, it is essential to have the information available regarding price changes in your market.
With AI-driven retail technology, you can make more lucrative decisions by evaluating prices of similar products across the market, getting recommendations on price, forecasting financial impact, and automating price and discount changes to align with demand, stock, and competitor promotions.
In this time of uncertainty, having the tool to create a pricing strategy that is dynamic and customer-centric is crucial to profitability. Using a retail intelligence solution ensures you can process all of the data that you wouldn’t be able to manually, and surface relevant metrics quickly.
Navigating the competitive landscape in retail to develop a strong promotional strategy requires a deep understanding of market trends and competitors’ promotional activities.
Implementing a retail intelligence tool for comprehensive analysis enables businesses to gain insights into promotional activities, marketing messaging, and product positioning across their own and competitors’ email communications and direct sites. You can access reports and data on major promotional periods throughout the year, leveraging accumulated information for better campaign optimization and sustained success.
There are years of data accessible in a retail intelligence platform that allows you to review the success of the market and your own campaigns. With access to this breadth of data, you can ensure your promotions are in line with the competition while being profitable and that they align with market demand and resonate with your customers.
By tailoring your promotional strategy to your customers and the market with decisions backed by data, you can drive business and growth for your company even during a period of economic uncertainty.
As examined by BoF and McKinsey, the key to navigating uncertainty in the retail landscape lies in a nuanced emphasis on pricing and promotional strategies. AI-powered retail intelligence platforms provide a comprehensive view of internal data and market trends, enabling you to make informed decisions on pricing and promotions.
The ability to adapt dynamically to market trends and customer preferences ensures sustained success, making retail intelligence an indispensable asset for growth-oriented businesses. In this time of uncertainty, embracing transformative technologies positions retailers to not only weather the storm, but emerge stronger, more resilient, and ready to thrive in the retail landscape of 2024 and beyond.
Discover how EDITED can improve your pricing and promotional strategies here.
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