Drug Chains
Consumers shop in your stores for numerous reasons, including pharmacy services, convenience, variety and competitive pricing. Understanding and measuring consumer’s perceptions of pricing and promotions is critical, but immensely challenging.
With over 30,000 items, it has been almost impossible – until now. Issues for chain drug stores are somewhat unique. You have the same time management and product-mix complexity problems of grocery stores, with as many as 30,000 to 50,000 items-but your stock is generally focused on pricier wellness and beauty-care items.
These items are likely to represent a broad spread across private labels and national brands—with key categories driving sales. Your pricing tactics are also more likely affected by promotions and seasonality, which play into the product lifecycle. And, with so many items available in various sizes, you must ensure pricing parity across the range.
Like many retail managers of stores with fast-moving consumer goods, you probably manage pricing by a set of pricing rules that lean heavily toward average gross margins and rounding rules.
The KSS Retail price optimization solution offers you a faster, easier—and far more effective method—one you can use on a daily basis.
Our solution allows you to develop pricing that aligns with consumer demand. By understanding how consumers react to pricing on each item, you can:
- Understand what items you need to price according to competitive items, and what price to set
- Learn what the optimum spread of private label to national brand is, by category
- Find the items that are under-priced, as well as the ones that are over-priced
- Determine which promotions are driving store traffic and increasing category purchases
- Better evaluate promotions that are increasing volume but diminishing category profits