Ahold USA has partnered with Revionics to implement new pricing technology. The Price Suite will be used by all of Ahold’s retail brands including Stop & Shop, Giant Landover, Giant/Martin’s and Peapod.
Initially, the deployment will focus on center store and perishable grocery items.
“Revionics will help Ahold USA brands deliver on their ‘better place to shop’ promise,” said Nick Bertram, senior vice president of merchandising at Ahold USA. “Our brands will leverage Revionics Price Suite to better align pricing with their customer preferences in their diverse and growing customer base while delivering powerful business impact.”
Ahold USA made the decision earlier this year to move to the Revionics solution. The initial goal is to leverage the application as an integral part of the process to better meet the retailer's overall strategic objectives, optimize its return on future price investments, improve projections to the brand's sales and margin impacts, and offer support for managing pricing for random-weight fresh products.
"The application allows the flexibility to manage strategies across both the product and the geographic hierarchies," Bertram told FierceRetail. "Segmentation is also very dynamic, to allow a combination of strategies targeting specific areas of the business, and does it in such a way that allows for very quick implementation."
And the technology not only benefits Ahold but also the brand's customers in two ways. First, it allows Ahold to reward its best customers through base price improvements, and second, the application itself allows the brand to see how customers react to various pricing strategies.
"Ultimately, the strategy that delivers the best possible prices in a way that allows us to sustain our overall profit goals will lead to better performance and even better prices for our customers," Bertram said.
In the ultracompetitive grocery market of 2017, Bertram says a tool like Price Suite is imperative.
"Moving to a true science-based pricing application allows for much better simulation of changes, easier execution, and an infinite combination of strategies. Managing this level of complexity using other technologies has always been a challenge," Bertram said.