Cheshunt, U.K. -- Tesco U.K. buyers and category managers are using KSS Retail PriceStrat’s science and analytical tools to help plan and understand the impact of potential offers. Facing increased competition and consumer price sensitivity due to a slow economic recovery, Tesco has made price and promotion key areas of focus.
The PriceStrat solution provides merchandising teams with accurate forecasts and gives retailers like Tesco real-time insights on shoppers’ responses to different promotional offers. Through “what-if” scenario planning, managers can test various offer mechanics and variables, as well as display and space options, before promotions are executed. Promotions can be tailored by store type and geography to maximize relevance.
Tesco has already begun to extend the implementation of PriceStrat to other regions initially in Eastern Europe. In addition, the retailer is collaborating with KSS Retail and dunnhumby on PriceStrat enhancements, including the ability to better predict customer response to promotions across the total store.
“It’s clear that retail customers value promotions, but many offers are too complicated and don’t work for shoppers in the right way,” said John Scouler, commercial director at Tesco U.K. “With the forecasting and analytics capabilities available in PriceStrat, we can understand, based on what our customers tell us, where it’s most important to offer promotions or reduce prices. We will continue to rely on PriceStrat to help us provide shoppers with stable, logical and competitive pricing, as well as the most compelling offers possible.”