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.”