News Feature | April 14, 2014

Delhaize Improves Shopper Demand Insight

By Megan Zielinski, contributing writer

Delhaize Retail Commerce With Revionics

Grocery retailer, Delhaize America, has signed onto a multi-year agreement with Revionics, software based merchandise optimization solutions to incorporate analytic services to strengthen the company’s retail commerce capabilities.

Revionics Life Cycle Price Optimization solutions consist of Revionics Price Optimization, Promotion Optimization and Markdown Optimization, providing Delhaize with planning and management techniques involving store markdowns, special promos, and every-day base pricing. Benefits of implementing strategies based on data include maximizing margins, cutting down inventory, improvement of sales and traffic according to best-selling items, predictions of shopper behavior, enhancing company image, and development of effective prices.  Retailers utilizing Revionics Life Cycle Price Optimization solutions experience 1-3 percent increases in sales, 2-5 percent increase in profit, and 1-3 percent gains in gross margins.

Advanced Analytics, including Store Cluster Analysis, Key Value Item Analysis, and Market Basket Analysis will deliver solutions for Delhaize to improve overall company functions, modifying store structures accordingly and improving shopper demand insight.

Store Cluster Analysis reviews data and offers solutions based on analyzing customers’ spending habits in geographical locations, competitive landscapes, distribution center proximity, cost to service and more. By optimizing stores into clusters, Delhaize will have the opportunity to enhance profit and revenue by making pricing adjustments within each zone.

Through Key Value Items Analysis (KVI’s), Delhaize will be capable of making effective pricing decisions by viewing product’s sensitivity to price changes and customers’ reactions according to changes, delivering better promotional strategies. Results of KVI’s analysis will help Delhaize to define item elasticity by zone, predict effect of sensitivity on profit margin, and determine ideal price points for sensitive and insensitive products.

Market Basket Analysis tracks customer’s purchasing habits over lengths of time, allowing for Delhaize to offer incentives based on popular purchases, develop cross-selling opportunities, and up-selling of more profitable brands.

By implementing Advanced Analytics solutions, retailers experience 2-7 percent increase in sales and 2-5 increase in profit along with enhanced customer satisfaction and decreased excess inventory.

“We are proud that Delhaize America chose us to help them compete more profitably while enhancing customer loyalty in their highly-competitive market,” says Marc Hafner, CEO of Revionics.

News of partnership with Revionics came shortly after the grocer announced developments to be made of store brand items and CEO, appointed in November 2013, Frans Muller, announced upcoming priorities for future growth and success, putting more emphasis on customer value, stating “The overall improvement in customer perception has not been enough.”

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