Innovative Retail Technologies

SEP-OCT 2016

Innovative Retail Technologies (formerly Integrated Solutions For Retailers) is the premier source for innovative yet pragmatic technology solutions in the retail industry.

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Page 29 of 39

Hariharan asks the question rhetorically. "Even for emergency purchases, consumers are pulling up apps, price comparing, and go- ing to the store where they can get the best price. Seldom is there room for a sacred cow." Cross-Channel Price Strategy Moore says merchants that sell both online and in stores face a conundrum. "Elasticity is generally more pronounced online," he says, "If most of your business is brick-and-mortar and you unify on a pricing strategy skewed only around brick-and-mortar patterns, you may lose online business to, say, Amazon." At the same time, he says reducing prices online to always meet the lowest competitor — and reducing in-store pricing for complete consis- tency — create painful margin loss. "These is- sues are especially acute for high-price-point items in specialty goods," says Moore. Both he and Hariharan agree that determining where you want to compete with whom is central to solving this challenge. "Pricing should be set based on where you want to compete online – do you want to just complement your in-store presence or take on Amazon and other e-tailors directly?" asks Moore. Hariharan says competitive price strategy becomes even more complex for multi-channel retailers. "Should Home Depot compete on price with Amazon or with Lowe's? Of course, there is no straightforward answer. A merchant might choose to compete on price in just a few categories with Amazon and in a few more with their head-to-head, more traditional competition," he says. "In these times of fast-changing competi- tive landscapes and consumer shopping patterns, it's an ever-evolving story — which is another compelling reason to ensure you have self-learning models that continuously retune," says Moore. Many retailers use pricing to help estab- lish their identity, but Moore recommends data-driven testing of your long-cherished assumptions about what customers value and how they form price perceptions about your company. "Knowing the true image at the item level can protect retailers from giving away excess margin where they don't need to," he says. "Within your business imperatives, you benefit from good analytics- based insights to give life to your price strate- gies at the shelf." Hariharan says identifying the categories you want to be price competitive in and those you want to drive margins in equates to taking some control of your own sales and profit destiny. Big Price Data In The Cloud Modern cloud-based SaaS pricing applica- tions are giving merchants deep visibility into the competitive environment, inventory levels, scenario modeling, costs, and more. "The SaaS approach delivers incredibly pow- erful tools for up-to-the-minute intelligence, all consolidated to make it easy for pricing analysts to know what's happening, to test and fine-tune strategies, know in advance the impact of price recommendations or overrides, and take action," says Moore. Retailers increasingly look at data daily or even a few times per day rather than just weekly or biweekly. "This creates a volume of incredibly rich data from a variety of sources to proactively suggest price updates and change recommendations, enabling a highly automated 'central nervous system,'" he says. Moore predicts that we'll see dynamic pricing become more mainstream in the not-so-distant future. "With up-to-the- minute data on competitive prices, online and in-store, as well as inventory stock levels and costs, retailers will be able to implement genuinely responsive merchandising and pricing," he says. "Our analytics have demon- strated quantifiable value in more frequent — and more responsive — price updates," he says. Hariharan concludes that the market for price optimization solutions is only getting stronger as disruptive retailers continue to push the boundaries — and as disruptive consumers continue to leverage the power of price transparency. A merchant might choose to compete on price in just a few categories with Amazon and in a few more with their head-to-head, more traditional competition. Guru Hariharan CEO, Boomerang Commerce 27 Sept-Oct 2016 Statement of Ownership 1. Title of PublicaƟon: InnovaƟve Retail Technologies 2. PublicaƟon Number: 1553-5894 3. Date of Filing: 09/19/16 4. Frequency of Issue: Bi-Monthly 5. No. of Issues Published Annually: 6 6. Annual SubscripƟon Price: $197.00/ year 7. Complete Mailing Address of Known Office of PublicaƟon: 5340 Fryling Rd., Suite 300, Erie PA 16510-4672 8. Complete Mailing Address of Headquarters or General Business Offices of Publisher: Same 9. Full Names and Complete Mailing Addresses of Publisher, Editor and Managing Editor: Publisher, Tim Ulrich, 5340 Fryling Rd., Suite 300, Erie, PA 16510-4672; Editor, Erin Harris, same as above; Managing Editor, Michael Thiemann, same as above. 10. Owner(s): Richard J. Peterson, 5340 Fryling Rd., Suite 300, Erie, PA 16510- 4672, Terence C. Peterson, same as above. 11. Known Bondholders, Mortgagees, and Other Security Holders Owning or Holding 1 Percent or More of Total Amount of Bonds, Mortgages or Other SecuriƟes: None 12. Tax Status (For CompleƟon by nonprofit organizaƟons authorized to mail at special rates): Not Applicable 13. PublicaƟon Title: InnovaƟve Retail Technologies 14. Issue Date for CirculaƟon Data Below: September 2016 15. Extent and Nature of CirculaƟon: Average No. Copies Each Issue during Preceding 12 Months/Actual No. Copies of Single Issue Published Nearest to Filing Date. A. Total Number of Copies: 24,864/23,879 B. LegiƟmate Paid and/or Requested DistribuƟon: (1) Outside County Paid/Requested Mail SubscripƟons Stated on Form 3541: 22,422/22,335 (2) In-County Paid/Requested Mail SubscripƟons Stated on PS Form 3541: 0/0 (3) Sales Through Dealers and Carriers, Street Vendors, Counter Sales and Other Paid or Requested DistribuƟon Outside USPS: 472/540 (4) Requested Copies Distributed by Other Mail Classes Through the USPS: 1/1; C. Total Paid and/or Requested CirculaƟon: 22,895/22,876 D. Non- Requested DistribuƟon: (1) Outside County Non-Requested Copies Stated on PS Form 3541: 0/0; (2) In-County Non-Requested Copies Stated on Form 3541: 0/0; (3) Non-Requested Copies Distributed Through the USPS by Other Classes of Mail: 175/206; (4) Non-Requested Copies Distributed Outside the Mail: 1,733/725 E. Total Non-Requested DistribuƟon: 1,908/931 F. Total DistribuƟon: 24,803/23,807 G. Copies Not Distributed: 61/72 H. Total: 24,864/23,879 I. Percent Paid and/or Requested CirculaƟon: 92.31%/96.09%.

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