Retail executives are grappling with the impact of record-level inflation, knowing their actions will play a major role in their businesses' success for the foreseeable future. While cost increases are not distributed equally across categories, no retail sectors have been spared.
During this inflationary period, winning strategies in each retail sector, even down to each product subcategory, will vary wildly. Inflation alone is only one part of it. Retail experts are also facing the acceleration of consumer activity online, which is known to lead to diminished brand loyalties. They are moving from regional pricing and in-store promotions to integrated online/offline pricing and consumer experiences tailored to optimize customer lifetime value. Inflation's prevalence dramatically reduces the margin for error during an already turbulent time.
In the current environment, consumers' perceptions of prices are also changing as diminishing purchasing power affects what they can afford. Additionally, retailers' price positions relative to competitors' are shifting with higher frequency than in past years. This helps explain the top three pricing challenges cited by retailers in a Retail Systems Research (RSR) study, commissioned by company: increased competitor pricing aggressiveness (64%), changing consumer price sensitivities (40%) and consumer demand for personalized prices (34%).
Continue reading: https://www.forbes.com/sites/forbestechcouncil/2022/01/25/five-tips-for-retailers-to-tap-into-ai-to-combat-inflation/?sh=74ecd5b16542
During this inflationary period, winning strategies in each retail sector, even down to each product subcategory, will vary wildly. Inflation alone is only one part of it. Retail experts are also facing the acceleration of consumer activity online, which is known to lead to diminished brand loyalties. They are moving from regional pricing and in-store promotions to integrated online/offline pricing and consumer experiences tailored to optimize customer lifetime value. Inflation's prevalence dramatically reduces the margin for error during an already turbulent time.
In the current environment, consumers' perceptions of prices are also changing as diminishing purchasing power affects what they can afford. Additionally, retailers' price positions relative to competitors' are shifting with higher frequency than in past years. This helps explain the top three pricing challenges cited by retailers in a Retail Systems Research (RSR) study, commissioned by company: increased competitor pricing aggressiveness (64%), changing consumer price sensitivities (40%) and consumer demand for personalized prices (34%).
Continue reading: https://www.forbes.com/sites/forbestechcouncil/2022/01/25/five-tips-for-retailers-to-tap-into-ai-to-combat-inflation/?sh=74ecd5b16542
