|How Retailers Can Improve Their Price Image |
Consumer shopping behavior has become increasingly polarized. Consumers will hunt assiduously for bargains on everyday items, but they're willing to splurge on a few luxury items; a trend that is squeezing mid-tier retailers, which need to adapt their pricing strategies to survive competitive encroachment from above and below. However, pricing is not just about pricing; companies need a new strategic model to include several other partners within the enterprise. Based on our experiences with clients, a retailer that adopts a cross-functional and actionable "price+value" strategy can improve near-term earnings by as much as 4 percent and put the company on a much firmer competitive footing.