Download our White Paper:
“Set and Measure Everyday Low Pricing with True Net Cost Analysis”
It’s no secret that 2020 was a challenging year for retail businesses. Although overall sales have gone up in many sectors such as grocery, there has been a drastic change in prices, cost of goods, and promotions due to the impact of the COVID-19 global pandemic.
According to Nielson Intelligence Analytics, in November 2020, the percent of products sold on promotion in the UK was down a little under 15% year over year. Early in the COVID-19 pandemic that percentage variance was considerably greater as retailers sought to secure supply over volume-led promotional activity.
Putting the COVID-19 pandemic aside, the grocery market in the UK was already on the path towards more of an everyday low price (EDLP) strategy to address:
- Increasing market share, of “discounters”, like Lidl and Aldi;
- Reduced cost of managing a high/low pricing strategy, and a more predictable demand profile; and
- Consumer changes – which have led to a rethink of pricing strategy.
In this white paper, we outline how true net cost analysis can assist with setting everyday low pricing by providing key data related to products and categories, as well as information to assist in negotiating with suppliers to establish the best pricing and margin targets. We will also explore:
- True Net Cost and Margin Analysis: a deeper level of visibility into product and vendor performance
- Every Day Low Price (EDLP) Strategy: Using True Net Cost Analysis to set targets and measure effectiveness