We’re back from the Super Bowl of Retail… NRF, which really does just get bigger and better.
From Web3 to ChatGPT, there was a lot to get excited about. Major retailers including Walmart and Macy’s talked candidly about the importance of embracing innovation and technology, sharing insights on their latest digital investments and tales of success. Yet despite the good news stories, thoughts of recession lurked in the background. Here are my three main takeaways from the show…
1. Do more with less. Retailers are looking for solutions that outperform on ROI. While the media headlines from NRF focus on the shiny new stuff, most brands were there to find smart, cost-effective solutions that make a tangible difference to productivity and profitability. Think capsule wardrobe, not the latest fashion item.
2. Next up its price. From the holiday dining table to the boardroom table, this is what people are talking about. For the consumer it’s about adjusting to cost changes, for retailers, it’s all about margin and keeping hold of it. Price has been neglected in recent times while businesses have focused on customer acquisition and revenue, but when it’s the most important issue for the consumer, it needs to be the most important issue for businesses.
3. Finally, 2023 looks set to be a year when retailers will need to strengthen resilience across their operations. Most people are anticipating a tough year ahead with a global recession on the cards, but instead of adopting the brace position, it’s time to tool up. Unlike the shocks of 2020, this time we have more forewarning. With sound operational infrastructure in place, retailers can adapt to tougher trading conditions as well prepare for a return to growth.
So, what’s the solution?
An intelligent pricing platform can help retailers maintain margins through good times and bad, but it’s more than that. Price is the single biggest driver of profit. Flintfox lets you use pricing to its full profit potential. With Flintfox, retailers can see new margin opportunities or where profits are being squeezed and gives them the power to make instant changes across thousands of products in seconds.
You can see it in the results of The Very Group, one of the largest online retailers in the UK. Before Flintfox the team was running 28 pricing spreadsheets and struggling to maintain them. Flintfox has given The Very Group the ability to analyze product performance across tens of thousands of items on a single platform and see in real-time where price changes are needed to maximize margins. Better pricing decision-making and precision execution through Flintfox has delivered over $5 million in additional profit for the business.
So, if after NRF you still can’t decide where your focus should be, start with pricing!