Special Tech Coverage
In some cases, rather than an altogether new approach to a business function, technologies that have been around for a while are becoming increasingly effective doing what they’ve always done, thanks to the application of artificial intelligence (AI), machine learning and related advances that are making them more effective in operation. Grocers may be well served reviewing how, for example, pricing technology has evolved. In a pandemic-related development, the current bout of inflation roiling markets certainly encourages some action on pricing.
In fact, pricing is a way to solve a host of retail challenges ranging from competition to image, given that other elements of a retail business, from store portfolio to merchandising, can’t be frequently adjusted. Increasingly sophisticated tools offer an even more effective way of addressing multiple business challenges.
“Price optimization is a good way to address challenges quickly, efficiently and effectively, if you’re using the right analytics,” counsels Pavich.
Yet pricing can be a tough tool to use because of its inherent complexity. What’s inelastic today may be more malleable in a month as seasonal and situational circumstances change. Subsequently, solutions that once were state of the art may be antiquated, and those relying on them may become less competitive versus rivals employing more sophisticated solutions. The sophistication today is, in large part, driven by AI.