Ahold retail banners Stop & Shop, Giant Landover and Giant/Martin’s will be using Revionics variable pricing technology in their stores.
The system will be used to help the stores price fresh produce, meat, deli, bakery and other products, according to the company.
Revionics looks at consumer data, market data and other information to suggest optimal pricing for various products, so companies can make timely changes to prices.
Using that kind of technology, retailers can make adjustments throughout the day with electronic price displays.
“The initial goal is to leverage the application as an integral part of the category management process to better meet overall strategic objectives, optimize return on future price investments, improve projections to sales and margin impacts, and provide superior support for managing pricing for random-weight fresh products,” said Nick Bertram, senior vice president of merchandising at Ahold USA.
The technology is designed to help retailers keep their prices in range of what consumers will pay, what is competitive in the market, and what the company needs to charge to generate sufficient revenue, according to the Revionics website.
The system also allows for simulation and forecasting, including predicting how competitors will respond to pricing moves.
Ahold describes the technology as positive for shoppers — at least for loyal shoppers — as well as for stores.
“There are two ways in which the AUSA brand customer benefits,” Bertram said. “Firstly, we segment the products and employ strategies that allow us to reward AUSA brand best customers through base price improvements, and the application itself allows us to see how AUSA brand customers react to various pricing strategies.
“Ultimately the strategy that delivers the best possible prices in a way that allows AUSA brands to sustain their overall profit goals will lead to better performance and even better prices for their customers,” Bertram said.
Revionics asserts, based on a recent survey it commissioned, that consumers are on board with the concept of dynamic pricing.
The company stated in a recent news release that 78% of those surveyed said it was fair for retailers to increase and decrease prices based on data as long as consumers ultimately received prices they were willing to pay.
Grocery delivery service Peapod will also be using the Revionics technology.