14
Future of Retail — Customer Engagement
issue 08
the shelf-edge, and to be targeted with more personalised offers and promotions, it’s clear that technology will need to be at the fore as the store of the future takes shape.
THE $104 BILLION COST OF PRICE CHANGES Retailers confirmed that investing in the store is a lead priority to match shopper expectations that are being shaped online. But the research also reveals that the amount of money available to invest could be raised if store operations were improved. For example, the cost of making price and
promo changes is eye-wateringly expensive – 67% of retailers spend up to 4.99% of average monthly store turnover making price and promo amendments. That’s equivalent to approximately $104 billion in sales. This reflects the fact that shelf-edge updates are manually managed in a laborious and time-consuming process. It compares unfavourably with virtual stores (that can change prices on any line in seconds) and it often means that changes have to be prioritised. It’s no surprise then that 78% of retailers say they’d like to increase the frequency at which they make price updates and launch promos. There’s another issue with price changes.
With the best will in the world, manual pricing can lead to errors between the shelf-edge and checkout with 53% of shoppers saying they’re losing faith over pricing errors and inconsistencies. What’s more, if mistakenly charged a higher price at the till, just 18% would shop again with confidence at the store. This statistic is a worry when you consider that for 80% of shoppers price most influences what they buy. Indeed, with price still the lead purchasing factor, a large number of shoppers concerned about accuracy, and retailers still changing labels manually, there’s a strong case for looking afresh at how in-store prices and promotions are managed.
SHOPPERS AREN’T AVERSE TO DYNAMIC PRICING Many retailers with stores are reluctant to use dynamic pricing due to fears about a negative consumer reaction. However, it’s time to
challenge this preconception as price savvy and environmentally conscious consumers are looking for technology to give them the best deals and to help the environment: 65% welcome agile pricing in-store if it saves money or reduces waste.
THERE’S A NEED TO SHOW MORE INFORMATION AT THE SHELF-EDGE An attraction of online shopping is the level of information the retailer can show on-
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