For many grocery retailers, battling low-priced competitors doesn’t make a lot of economic sense. A “race to the bottom” is challenging to win, especially in today’s highly competitive retailing landscape.
A far better approach is embracing artificial intelligence and optimizing promotional product selection and price mixes to drive increased sales and sustainable profitability.
One of the keys to successful promotions and larger, more profitable baskets is recognizing the complex relationships between products, cannibalization, promotional and price elasticity, forward buying, and seasonality.
Without this knowledge, retailers risk leaving money on the table and losses to their competitors.
A retailer with 50,000 SKUs would have to evaluate 103600 possibilities every month to get to the best item and price mix, which is beyond human capabilities.
Daisy’s artificial intelligence-powered platform, which leverages reinforcement learning, runs billions of simulations on transaction data to help retailers create optimized promotional product selection and price mixes.
Using Daisy’s platform, retailers can quickly identify the combination of promotional products that will drive higher sales and profits, and how trade incentives can be leveraged to generate the biggest financial benefits.
Retailers using Daisy have driven year over year same store top-line sales by an average of 2.9% without investing in margin. Some retailers have increased their total company profits by as much as 100%. At Daisy, we believe fully integrating AI into merchandising process can grow total company sales by 10%.
Using Daisy, retailers can also dramatically reduce the time spent by merchants on promotional product selection and pricing.
This allows merchants to focus much more on strategy, negotiating with vendors, new product discovery, and improving the customer experience.
This post is sponsored by Daisy Intelligence