The Inflation Challenge and Retail Price Optimization
Description
The Inflation Challenge and Retail Price Optimization
This IDC Perspective discusses the inflationary pressures that retailers face and the implications of pricing tied to merchandising and operating when under these pressures. This study outlines the causal insights that lead to dynamic events during inflationary times and how to moderate these pressures with the appropriate pricing mechanisms. The study goes further to examine the multifold impact to retail and the ripple effects across pricing, assortment, and brand that are often transformed by inflation, supplemented with action steps to address each."At its core, inflation is an increase in price. Too often, retailers miss that retailing is fundamentally grounded in price — for every transaction. Managing price autonomously and with the right tools is needed whether inflation exists or not," says Ananda Chakravarty, research vice president, IDC Retail Insights Merchandising & Marketing Strategies.
Please Note: Extended description available upon request.
This IDC Perspective discusses the inflationary pressures that retailers face and the implications of pricing tied to merchandising and operating when under these pressures. This study outlines the causal insights that lead to dynamic events during inflationary times and how to moderate these pressures with the appropriate pricing mechanisms. The study goes further to examine the multifold impact to retail and the ripple effects across pricing, assortment, and brand that are often transformed by inflation, supplemented with action steps to address each."At its core, inflation is an increase in price. Too often, retailers miss that retailing is fundamentally grounded in price — for every transaction. Managing price autonomously and with the right tools is needed whether inflation exists or not," says Ananda Chakravarty, research vice president, IDC Retail Insights Merchandising & Marketing Strategies.
Please Note: Extended description available upon request.
Table of Contents
11 Pages
- Executive Snapshot
- Situation Overview
- Energy, Supply-Demand Disparity, and a Tight Labor Market Drive Inflation
- Retail Customer Demographics Determines Inflation Impact
- Inflation Squeezes Retail Profitability
- Retailers Must Tackle Reduced Profits Due to a Price Squeeze
- Increased Prices Lead to Replacing Products and the Assortment Squeeze
- Addressing the Assortment Squeeze
- Changing Assortments Pushes Loyal Customers Away and Squeezes Brand Value
- Addressing the Brand Squeeze
- Price Gouging During Inflation Does Not Matter in Competitive Markets
- Advice for the Technology Buyer
- Learn More
- Related Research
- Synopsis
Pricing
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