New RSR Research Study Finds Retailers Feel Forced To Respond To Online Dynamic Pricing Practices

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Despite Dangers, Price Changes On The Rise Again

The impact of constantly changing prices will start to eat into labor costs - and the bottom line

Retail Systems Research, LLC today released its findings from its 2015 Benchmark Report, Pricing 2015: Learning To Live In A Dynamic, Promotional World. The report, based on a survey of 123 retailers, found that retailers continue to struggle with both consumer price sensitivity and price transparency, particularly as online pure-play retailers increase their use of dynamic pricing. The research is available for free download (registration required).

"On the plus side, retailers seem to have figured out how to survive in a hyper-promotional world," reports Paula Rosenblum, managing partner at RSR Research and co-author of the report. "But if they're not careful, the impact on stores of constantly changing prices will start to eat into labor costs – and the bottom line."

Key Findings include:

  •     After a slow year in 2014, retail respondents report an upsurge in price changes being sent to stores, partially in response to a reliance on promotions and partially in response to increased use of dynamic pricing by online pureplays
  •     Percent of retail respondents reporting challenges from consumer price transparency nearly doubled from 2014 to 2015, from 24% to 47%
  •     While 64% of respondents overall say they have effective promotions processes, only 21% of struggling retailers say they regularly eliminate ineffective promotions, and only 14% say they regularly measure the impact of cannibalization or halo effects on a promotion.

Pricing 2015: Learning To Live In A Dynamic, Promotional World contains analysis of the business drivers, opportunities, and organizational constraints surrounding pricing technologies in retail. It also offers baseline recommendations for navigating the complex and shifting environment of dynamic and promotional pricing. The report is part of RSR Research's ongoing efforts to provide market intelligence on retail technology trends, is sponsored by dunnhumby, is supported by 360pi, and can be downloaded here:

About RSR Research: Retail Systems Research (“RSR”) is the only research company run by retailers for the retail industry. RSR provides insight into business and technology challenges facing the extended retail industry, and thought leadership and advice on navigating these challenges for specific companies and the industry at large. To learn more about RSR, visit

RSR Research, LLC
Linda Wolfe, 774-284-4679

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