What this means: With consumers focused so much on value this year, shoppers are placing even more pressure on pricing and promotions at retail. But, pricing can often be a convoluted process within retail, and a need for more agile options arises. Agile pricing technologies such as digital shelves allow retailers to be more in control of their promotions throughout the organization.
"The inflationary environment made it very hard for essential retailers to solve the complexity of rising costs, increased competition and shifting demand patterns while also dealing with disruptions in supply chains and labor,” Pavich said. “Solving one of these issues is hard enough for one merchant across a range of products, but it becomes even harder when one considers additional channel complexities, and the business portfolio of a retailer as a whole, across multiple regions and formats.”
According to Revionics’ survey, more than half of all essential retailers are worried their pricing is perceived as unfair while three-quarters of them are struggling with margin. Only 22% of retailers in the survey said they were completely satisfied with the speed at which they could respond to competitive price changes.
“Going beyond that, we’ve seen massive shifts in loyalty and share in the past year as consumers are looking for better deals,” Pavich said. “The retailers that don’t have advanced pricing tools are suffering while others are stealing their share. This isn’t just happening in the U.S., but globally. One example is a major market in Europe where one retailer captured 41% of all grocery shoppers who changed their top grocer in 2022 by offering better prices using sophisticated pricing practices."
Technology is essential in helping retailers offer competitive, transparent prices to consumers.