First Post-Crash Benchmark Reveals Retailer Pricing Plans

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Retailers view "localized pricing" - the ability to offer different prices to different customers - as a critical strategy for 2009, but are challenged to deliver such differentiated pricing without alienating consumers. RSR Research's latest research study finds that retailers are turning to promotions and loyalty offers as a way around this challenge. While past efforts at promotion optimization have stalled, retailers show renewed interest in the technology, along with tools for customer segmentation and analysis.

Going Local: Emerging Best Practices in Localized Pricing

RSR's newest research study, "Going Local: Emerging Best Practices in Localized Pricing," sponsored by Revionics, finds that retailers view localized pricing and promotions as critical to successfully navigating a challenging economic environment.

In RSR's first survey to retailers after the tumultuous events in September and October 2008, respondents report that while they are concerned about shoppers' price perceptions, they view localized and customized promotions as an important way to attract and retain them in difficult economic times. In particular, retailers are returning to customer analysis and promotion optimization, to design the right customer offers, along with improving store level ability to deliver those offers to consumers.

"While it's true that retailers see big opportunities in promotions, it's stunning to see the extent their existing IT infrastructures get in their way," said Paula Rosenblum, managing partner at RSR Research and co-author of the report. "Retailers already 'on the bubble' before the economic downturn are in a particularly bad place, with technical and cultural barriers preventing them from moving quickly to take advantage of customer-facing strategies. Those retailer who are unable to leverage customer insights will find the environment that much more challenging."

"One of the most surprising outcomes for me is the leadership role of grocers in particular," added Nikki Baird, managing partner at RSR Research and co-author of the report. "Six months ago we would have said that grocers are IT investment laggards - they historically built their own applications, they suffered from thin margins, and only grudgingly invested in IT. With the economic downturn, that's all changed. As consumers start to eat in, grocers are taking share of wallet from restaurants. The retailers who want to take advantage of this shift have realized that they need packaged applications to get the promotion capabilities they need up and running quickly."

RSR's new study, "Going Local: Emerging Best Practices in Localized Pricing", explores the specific opportunities for retailers as they turn to customized promotions and prices to combat declining discretionary spending. The report, with data captured after the October finance market meltdown, provides a fresh look at technology adoption intent, along with recommendations for what retailers need to do now to combat reduced consumer spending.

To obtain a complimentary copy of the report, click here or .

About Retail Systems 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 or


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