Kroger Modeling Prices, Promos Across Customer Segments

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Kroger Modeling Prices, Promos Across Customer Segments


Grocery chain The Kroger Co. is now able to do customer-segment-based modeling and optimization using a new version of PriceStrat from Florham Park, N.J.-based KSS retail, a dunnhumby company and global provider of price modeling, optimization, and customer insight solutions for retail.

“Our customer first strategy is dependent on a deep understanding of our shoppers, knowing why they buy what they buy, and how to serve them better,” said Chris Hjelm, SVP and CIO of Cincinnati-based Kroger. “Using the KSS Retail tool, we will now have the ability to model prices and promotions across customer segments, to make sure that we deliver a superior shopping experience.”

The new solution allows retailers a deeper means of integrating pricing and promotions into their strategic marketing efforts. “Retailers have historically priced items within traditional store/zone constructs based on physical location, demographics, and competitive landscape, for example,” said Yael Cosset, CEO of KSS Retail. “With retailers now focusing more on using shopper insights to define specific customer segments within their business, the challenge has been incorporating these segments into the daily merchant workflow of pricing and promotions.”

“With the upgraded version of PriceStrat, in addition to simulating the effects of regular and promotional pricing scenarios in real time, retailers can now generate optimized prices, and model category performance, by customer segment,” added Cosset. “This capability will allow retailers to fully integrate segment behavior into their pricing and promotion decisions to ensure they are meeting their customers’ needs to enhance their shopping experience.”

KSS Retail provides price optimization and shopper insight solutions for the grocery, convenience, chain drug, general and online retail industries. Current clients include 7 Eleven, O’Reilly Auto Parts, BI-LO, Sonae, Raley’s, United Supermarkets,, and ABC Fine Wine and Spirits.