Inflation: How to optimise prices with data?

Rising costs of raw materials, energy and transport are shaking up the value chain of retailers. With their specificities, the challenge is to maintain a triple logic of attractive offers, customer satisfaction and profitability. How can price increases be passed on in the current context? What are the tools and technological solutions in place to manage prices effectively?

Through . Published on 08 April 2022 à 13h22 - Update on 14 October 2022 à 10h30

The context 

From grocery to specialised trade, all retailers are facing a generalised cost increase. They have never seen as many price increases during the year as in 2021. Some, like Adeo, Kingfisher and Action are particularly suffering from price inflation. However, many have yet to pass on increased costs to end consumers. In the food sector, everyone is watching the market and waiting to see who will be the first to raise prices and to what extent. Previous prices were based on two factors; alignment with the competition plus an overall margin rate. Now retailers must make strategic choices in a context of great variability and uncertainty. 

Unequal categories. Inflation varies by category. As more products are linked to imports, the greater the impact is. This is the case for products made in Asia, with a lot of plastic, such as garden sheds, which have an unfavourable price-to-bulk ratio. With containers at €20,000 between Asia and Europe, the cost of transportation per unit has soared. Large appliances (fridges, washing machines…) and electronic components are also affected. In food, the price of cereals is soaring due to war in the breadbasket of Ukraine.…

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