Price Optimization Facilitates Growth For SMB Grocer

More retail companies are realizing the value and potential of price optimization. In fact, the number of companies that ranked price optimization software are somewhat to very effective quadrupled in 2010, from 4% to 18%, according to the National Retail Federation’s 2011 Retail Horizons study.

The Retail Horizons report noted that this trend may be due in part to the fact that “pricing preferences can vary significantly from one customer segment to the next: Some may prefer promotions, others bundling, and still others may tolerate premium pricing if the perceived value is high. Understanding the pricing preferences of key customer segments is critical to profitability.”

Rouses, a 36-store grocery retailer, is banking on price optimization to help the chain succeed and grow. With locations across Louisiana and Mississippi, Rouses considers its Revionics Price Optimization solution a key contributor to same-store sales increases and an improved competitive edge. The retailer has re-committed to the solutions and is using them to help open new stores in 2011.

“The speed, transparency, flexibility and ease of use of Revionics’ solutions allows us to quickly adapt to our customers’ shopping needs, wants, and patterns in a confident, strategic way,” said Malcom Landry, director of administration for Rouses Enterprises, LLC, “Investing in solutions that drive customer satisfaction is how we continue to succeed and grow.”


Rouses uses two key components of the Revionics price optimization solution:

  • Everyday price planning models strategies and optimizes Key Value Items (KVIs).  Using Revionics’ real-time ‘what if’ solutions, the grocer is able to compare the results of different price strategies to make fact-based decisions. 
  • The weekly re-optimization capability allows Rouses to fine-tune pricing decisions to adapt to shopper insight.

Revionics Price Optimization is a component of its life cycle price optimization solution which also includes Revionics Promotion Optimization and Revionics Markdown Optimization. “Retailers are facing some daunting challenges — cost increases, increasing competition, and a still fragile economy ― and retail leaders that have implemented Revionics Price Optimization Software are seeing a 1% to 3% sales growth and 2% to 4% gross margin improvements to their bottom line,” stated Marc Hafner, President and CEO of Revionics.

In other Revionics news, the company has appointed Steven Leven Senior Vice President of Customer Operations. Previously, Steve was Senior Vice president of Sales and Account Development for the Fortune 500 clients of M-Factor (acquired by DemandTec). Leven also served as the Vice President, Professional Services for Infor’s Workbrain consulting business unit. During his career, Leven has managed large customer programs to clients including Walmart, JCPenney, Gap, Lowes and numerous international retailers.

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