It’s been another eventful fortnight in the pricing news cycle. Surge pricing hit pubs, shrinkflation labels have heated up the grocery wars, and slow holiday sales could be on the horizon for retailers.
Read on for more in this week’s Power to the Pricing People episode and follow us on LinkedIn to be notified as soon as we release new episodes every fortnight.
Dynamic Pricing in the Hospitality Sector
Dynamic pricing was in the headlines after the UK’s biggest pub group, Stonegate, announced it would start increasing prices during busy periods to cover increased costs. The pricing strategy has long been used by online retailers, travel businesses and most famously rideshare businesses such as Uber as a way to maximize revenue during periods of high demand, but is relatively new for hospitality and physical retail businesses. As inflation remains high and demand continues to fluctuate, it won’t be surprising to see more businesses using dynamic pricing principles to safeguard profits and protect margins.
Grocery Sector Price Wars Heat Up in France
Switching gears to the grocery sector, pricing tensions between supermarkets and consumer goods brands appear to have reached a new level in France as Carrefour, the country’s second largest supermarket chain, added shrinkflation labels to its shelves.
Carrefour added price warnings to products ranging from Lindt chocolates to Lipton Iced Tea to pressure suppliers to lower their prices in line with falling raw material costs. With French retailers and consumer goods brands currently negotiating contracts, it appears the grocer is hoping to rally consumer support to secure cheaper prices.
And finally, with, the festive season right around the corner Deloitte has released figures predicting that sales will rise by their slowest rate since 2018 at 3.5%.
Given this volatile consumer landscape, it’s pivotal for brands to have a precise grip on their pricing strategy heading into the holiday season. Being responsive to buyer trends could be key to maximizing your profits during peak.
If you want to find out more about how to protect your margins in this volatile trading market, get in touch.