Progressive Grocer - April 2009 - (Page 98)

Technology GREEN ISSUE THE Priced to Sell Retailers view price optimization as a key to surviving the recession, and vendors are factoring the economy into their solutions. vide retailers with much-needed relief to help with their closeout inventory,” says Todd Michaud, president and CEO of Revionics. Like its price optimization software, the solution is offered as a subscription-based software service that is accessed over the Internet, and can be integrated with the various other components of the Revionics Advanced Pricing System (RAPS) such as the Base/Everyday Price Optimization and Promotion Optimization modules. In February, Revionics launched its Price Optimization Test Drive Program, which allows retailers interested in price, promotion and markdown optimization technology to pilot the Revionics RAPS system for minimal start-up costs and without a long-term commitment. “Retailers today are being forced to revisit how they attract and retain customers,” says Michaud. “There is an increasing trend in the retail industry to leverage advanced retail pricing science based on demand intelligence and consumer-centric merchandising. Retailers are recognizing that legacy pricing technology simply does not support the complexities of courting today’s discerning shopper.” Under the program, retailers can launch a pilot program in 90 days — compared to a typical one to two years — and can select from a number of programs customized to their specific needs. Extended Families By Joseph Tarnowski T he recession has been a boon for price optimization vendors, as more and more retailers look to them to help develop new pricing strategies for cash-strapped consumers. The half-dozen food retail deployments of the technology already this year are a testimonial to its effectiveness. Yet, the vendors haven’t stopped there. Taking things a step “The full impact of the current recessionary climate remains unclear, but two things are clear: consumer behavior changes are already occurring, representing both challenges and opportunities for grocery retailers, and extra scrutiny is being placed on technology investments,” says Marc Dietz, VP of marketing for DemandTec. “The Price-to-Win Recession Package is specifically designed to address both of these issues.” Revionics followed suit in December with its Markdown Optimization module designed for retailers. The system recommends pricing for products at the end of their life cycle, such as clearing seasonal inventory, eliminating products with outdated packaging, overstock situations and product closeouts. Markdown prices are Grocery List optimized to control the The Price-to-Win Recession Package includes: pace of inventory reduction • Strategic pricing insights and recommended (but configurable) over a period of time, while strategies for 10 key categories maximizing profit margin • Price optimization software access for unlimited users contribution and revenues • Software-as-a-Service delivery that only requires a Web connection for these items. • Flexible term subscription plans “December is a tough • Consulting, training and implementation time to be a retailer, and the • Benefits measurement to understand projected ROI Markdown Optimization module is designed to proA H E A D O F W H AT ’ S N E X T further, they’ve developed new versions of the software with algorithms that are tweaked for today’s economy. Consumer demand management software vendor DemandTec, Inc., of San Carlos, Calif., last November launched its Price-to-Win Recession Package, a bundled offering for grocers looking to address specific pricing challenges created by the current economic environment. The offering consists of a bundle of services developed to help grocers better understand changing consumer behavior, and to address these changes by optimizing pricing for 10 key categories directly impacted by today’s economy. Recent months have also seen price and promotion vendors expanding their reach into retailers’ IT infrastructure through acquisitions and partnerships — more in the past More ONLINE few months alone For additional tech news, than during the go to Progressivegrocer. entire preceding com/tech year. These partnerwww.progressivegrocer.com 98 • Progressive Grocer • April 2009 http://www.progressivegrocer.com/tech http://www.progressivegrocer.com/tech http://www.progressivegrocer.com

Table of Contents for the Digital Edition of Progressive Grocer - April 2009

Progressive Grocer - April 2009
Contents
Nielsen's Shelf Stoppers/Spotlight: Salty Snacks/Variety Snack Packs
Market Snapshot: Cleveland, Ohio
Independents Report: How Jax Markets' MacAloney Triumphed Over Adversity
Lempert Report: Consumers in Command
Nielsen Report: Keeping Up With the Economy: Insights and Opportunities in Uncertain Times
Store of the Month: Close to Home
Sustainability Best Practices: It's Not Easy Being Green
Give Green, Get Green
Store of the Month: The Collection
Household Cleaners: Green Clean Is Growing
Meat Conference: Annual Meat Conference Rustles Up Retailers, Vendors to Denver
Produce: Organic Opportunities
Meat: Premium Possibilities
Reusable Bags: Paper, Plastic or Yours?
Technology: Priced to Sell
Equipment: A Flash of Green
What's Next: Editors' Picks for Innovative Products

Progressive Grocer - April 2009