As a consumer, it has been fantastic to see how the grocery retail industry has evolved over the past year, making the necessary changes to keep up with the ever-changing demands their shoppers. Not only have they made great strides to improve existing store footprints, but grocery retailers are now taking a cue from their fellow retail peers and are working to make the entire shopping experience more fun, engaging, and most importantly – more convenient. Can I get a show of hands for those of you who now take advantage of either curbside pick-up or home delivery of your groceries? Chances are, the majority of you are indeed raising your hands.
Retail pricing has been in the news of late – especially in relation to making sure offers are always priced accurately. But making sure prices and promotions are correct is more demanding than it seems. Here we look at why that is and, what can be done about it.
Every grocer – from a giant chain to a small corner shop, faces the same challenge: how to change prices quickly to respond to fluctuations in demand, local conditions (such as a heatwave or a sporting event) and competitors’ moves. And, in the drive to protect margins and reduce food wastage it’s critical too to continually graduate the pricing of time sensitive goods – e.g. fruit / vegetables, flowers, the deli counter and more.
Topics: electronic shelf label, worldwide, grocery, automated pricing, omnichannel pricing, in-store promotions, Customer Services, in-store efficiencies, grocers, esls, operations, staff, replenishment, compliance
Andrew Dark, CEO, Displaydata
At Displaydata, we are encouraged by the new standard leading
grocery retailers worldwide continue to set for the rest of the industry. And, as we blogged about last October, tecnology’s role in the effort to reduce food wastage globally is continually growing. In retail, dynamic pricing is being implemented by grocers to strategically price perishable items throughout the day, to encourage shoppers to purchase those items. In our experience, we’ve found retailers that decrease pricing by 1% throughout the day, see an increase in sales of 2.62% on average. To further reduce their environmental impact, retailers are using digital signage like ESLs to display the pricing changes instead of traditional paper tags, allowing for a more flexible pricing strategy without excess waste.