Sally Beauty enters pricing zone
Pricing can be a mysterious and dimly lit dimension for many retailers.
Sally Beauty Supply LLC is emerging from the pricing twilight and entering the zone of effectively targeted price strategy in a new partnership with Revionics. The specialty beauty chain will deploy Revionics Price Optimization solution, which includes price management, strategic price simulation and optimization.
In addition, Sally Beauty will leverage two complementary advanced analytics solutions from Revionic: Store Zone Clustering, to make data-driven decisions on the optimal number of store zones and align stores to the zones, and Elasticity Workbench, designed to quickly asses the most profitable pricing opportunities across the business.
Carrying more than 7,000 beauty products across more than 3,600 global stores, Sally Beauty generates annual revenues of $2.3 billion. Revionics’ price optimization solution will be leveraged across all the chain’s product categories.
“We conducted in-depth evaluations of various pricing solutions, and Revionics stood out from the crowd,” said Linda Voracek, Sally Beauty Supply’s group VP of merchandising. We like their impressive track record with other retailers, depth of industry expertise and their solutions’ ease of use and integration. Partnering with Revionics lets us embrace a proven solution that we expect to help us make better pricing decisions that incorporate detailed product and category data and shopper insights to drive enhanced revenues and margins.”
The solution integrates and balances retailers’ pricing rules, strategies, and operational policies with consumer demand to deliver more effective shopper-centric pricing recommendations that align with category plans and corporate financial objectives.
By adopting Revionics’ data-driven science, Revionics said Sally Beauty Supply will be able to obtain transparent, optimized pricing recommendations and conduct “what-if” scenario planning and simulations, which it believes will result in more accurate and successful pricing decisions. The solution is also scalable, so it can grow along with the company’s continuing global expansion.
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