Amid supply chain disruptions, record-breaking inflation, and growing costs all weigh on global merchandise trade and result in lower margin rates, Shoptalk Europe 2022 brings together 3000+ retailers to discuss how to address the industry's top challenges. Alex Galkin, CEO and co-founder of Competera Pricing platform, also stepped into the discussion on June 7 to highlight how the cutting-edge pricing approach helps retailers transact in a demanding retail landscape.
As of 2022, most retailers still apply reactive, SKU-centric, and limited factors while repricing, most commonly resulting in price wars and sacrificing rational business and customer-wise decisions to gain competitive advantage. The consequences of such a race to the bottom are not long in coming. On average, the retailers across different verticals lose from 4 to 8% in gross profit annually and can't increase prices while keeping customers satisfied with traditional pricing approaches.
Modern pricing solutions allow retailers and brands to sustain margin-healthy prices and identify true competitors without taking the risk of swamping into price wars. Competera pricing platform helps retailers conquer these challenges by employing elasticity-based portfolio pricing, driven by demand patterns, non-linear dependencies, and products cross impact. Therefore, by calculating 20+ internal and external factors, the platform allows retailers and brands to keep optimal prices across all channels and guarantee gross margin and revenue uplifts.
At the same time, to keep up with the modern retail landscape, market players should embrace their future customers' expectations and offer personalized and unique shopping experiences. At this point, switching to elasticity-based pricing is the first step to covering the gap between customer preferences, such as prices tailored to their expectations and purchase history, and the current state of pricing art in retail.
"I see the future of retail pricing as a smart and adaptive environment where retailers can regularly recalculate optimal prices to make sure their offers always meet customers' expectations without compromising the business goals," - states Alex Galkin, CEO and co-founder of Competera Pricing platform.