Increasingly, shoppers are leveraging the internet and mobile phones to research and instantly compare retail pricing. Shoppers are also fragmenting their shopping trips at an increasing rate to find the best value. Retailers recognize that simply matching the lowest cost provider is not a sustainable strategy in response to this new shopping phenomenon. To address this challenge, many retailers are transforming their pricing analytics and planning processes with a renewed emphasis on their target shopper’s price sensitivities. They have also recognized that speed, flexibility and category expertise are critical to executing this new pricing practice. Fortunately, retailers building these new capabilities have proven that pricing continues to be a critical part of their overall market positioning and drives shopper loyalty.
Retail Buying and Merchandising
What We Do
TPG’s retail pricing team assists the world’s leading retailers in corporate pricing strategy, advanced pricing analytics, planning, pricing tool selection, and capability development. A partial list of our pricing consulting includes:
- Pricing Benchmarking: Benchmarking the target shopper’s perception of the retail client’s pricing in comparison to the competition including a review of actual price gaps (versus perceived). A pricing loss vs. gain analysis to assess revenue and profit opportunities among plausible scenarios.
- Price Sensitivity Analysis: Using internal databases or third party data, TPG provides a high level analysis of price sensitivity across key product departments and categories.
- Corporate & Departmental Pricing Strategy: TPG will work on the development or facilitation of corporate and departmental pricing strategies to optimize the retailer’s positioning and create an executable roadmap for ongoing achievement.
- Pricing Guidelines: TPG will work with our clients pricing team to create pricing guidelines that cascade pricing strategy to the item and store level.
- Pricing Ideation Workshops: TPG will facilitate corporate, departmental or category workshops designed to identify innovative retail techniques and initiatives for creating the desired pricing perception among target shoppers.
- Store Cluster Price Testing: TPG will assist in the execution of new pricing strategies to determine the overall impact and feasibility.
- Pricing Planning: Design and implementing of new pricing planning will incorporate the latest retail best practice processes, tools and data.
- Pricing Capability: TPG will identify the required pricing competencies and training regimen necessary to build the desired pricing organization capabilities. TPG will also assist with the design and implementation of a Pricing Center of Excellence to build leading capabilities.
- Pricing Tool Evaluation & Installation: TTPG facilitates the review, piloting and installation of a pricing tool, database and or system.