Intertop Optimizes
Markdowns While Boosting
Margins by 2%
This case study examines how a leading Eastern European
retailer transformed its markdown strategy using Competera's
customer-centric, AI-driven platform, achieving 2% profit margin
improvement while effectively clearing seasonal inventory.
Executive Summary
Intertop, managing 114 brick-and-mortar stores and 14 mono- and multi-brand chains across 25 Eastern European cities, needed to replace its traditional "blanket" discount strategy with an intelligent solution. By implementing Competera's Contextual AI technology, Intertop optimized markdown pricing across its vast portfolio of 5 million SKUs and 60+ prestigious brands.
Challenges
- High pressure to clear inventory while maintaining margins
- Lack of demand elasticity consideration in pricing decisions
- Time-consuming manual repricing processes
- Data-overwhelmed brand managers
Solution
Intertop implemented Competera's AI-powered pricing platform, integrated with SAP's infrastructure, featuring:- Elasticity-based markdown suggestions for weekly repricing
- Smart markdown logic for apparel retail
- Advanced cross-elasticity management
- Intelligent constraints management
Key Results
Premium Fashion Brand: 18.2% sales surge, 14.4% revenue boost
Footwear Brand: 7.6% revenue boost, 10.3% gross profit increase
2%
profit margin savings
15 minutes
Reduced repricing time
to 15 minutes
10.3%
gross profit savings
Conclusion
The partnership continues to expand, with Intertop now scaling the solution across its entire collection and leveraging Competera's competitive data capabilities to monitor 13,000 SKUs.
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Decreased time for manual assortment analysis
Decreased time for manual assortment analysis
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