As humans, we are dependent on food. There’s not much we’d be able to accomplish without the energy source provided by the assortment of carbohydrates, proteins and fats we consume on a daily basis. This necessity seems to echo in a prevalence of food everywhere we go, from the restaurants we visit to our workplaces, schools and homes, but the heaviest volume of food in our cities is typically found at the grocery stores we shop at. While these hubs are prime places to stock up on food, they are also top contributors to the worldwide problem of food waste.
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.
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.