Pricing 2016: Life Becomes Unmanageable
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RSR has been benchmarking retailer pricing for nine years. Back in 2012, we began expressing serious concerns about both strategies and
tactics, but retailers seemed convinced they could win the race to the bottom on price — or at least, by participating in the race, they could
stay in the game.
Fast forward to 2016, and retailers are now starting to feel the negative impacts of their past pricing decisions. Consumers may be sensitive about price,
but no retailer, not even the lowest-priced retailer, can win on price forever. This year’s main benchmark finding: pricing practices simply aren’t effective and the race to the bottom is claiming more victims than proclaimed winners. And
retailers know it.
Pricing 2016: Life Becomes Unmanageable contains analysis of the business drivers, opportunities, and organizational constraints
surrounding retailers’ pricing strategies. It also offers baseline recommendations for navigating the future of pricing, particularly as retailers
struggle with evolving consumer technology and its impact on shopping behavior. The report is part of RSR Research’s ongoing efforts
to provide market intelligence on retail technology trends, is sponsored by Precima and supported by dunnhumby and Upstream Commerce.
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