This fed into the development of differentiated pricing rules per item role and, ultimately, the creation of a fully differentiated pricing concept.
By calculating price elasticities at the item level and simulating the economic impact, the team were able to recommend a more aggressive approach to some item roles and a follower-price approach for branded items.
With price changes in over a third of the assortment, getting the implementation right was key.
We recommended a stepped approach, with direct implementation of new prices in those items with a lower customer focus and a more phased approach combined with the renegotiation of supplier contracts in some cases.