Sonae Retail Selects dunnhumby to Extend Price Optimisation to New Formats and Regions
PriceStrat Solution Proven to Help Portugal's Largest Retailer Maintain a Competitive Price Strategy and Promote Customer Loyalty
LONDON, Sept. 9, 2015 /PRNewswire/ -- dunnhumby, the customer science company, has announced that Sonae has agreed to extend its PriceStrat price optimisation software license to new retail formats and geographic regions around the world. The largest retailer in Portugal, Sonae operates a mix of multi-format food and non-food chains, with more than 1,425 locations under a variety of brand names. The company has trusted PriceStrat since 2008 to help build and maintain its competitive price position in the grocery market.
Logo - http://photos.prnewswire.com/prnh/20150903/263683LOGO
In addition to extending its current use in Portugal, this agreement enables Sonae to use PriceStrat to manage and enforce compliance with its pricing strategy as the company expands in new geographic regions such as Spain, America, Africa, and the Middle East. Sonae will also implement PriceStrat at its non-food formats, including its growing sports equipment and clothing retail chain.
Sonae chose PriceStrat, developed by KSS Retail, in part because of the software's highly sophisticated rules-management capabilities, according to Goncalo Peixoto Fernandes, Commercial Director for IT. In real time, Sonae analysts can test the impact of a wide variety of constraints, such as competitor pricing rules, brand and size-parity rules, maximum/minimum price differentials, and supplier cost changes. Furthermore, PriceStrat enables Sonae to identify where rules may be relaxed to achieve more favorable outcomes. By creating and automating the enforcement of these advanced pricing rules, Sonae has been able to:
- Improve pricing logic and consistency on store shelves, which strengthens overall customer perception of prices and brand value
- Tailor prices by store type and geography to maximise their relevance to customers
- Enhance its competitive positioning while maximising gross margin and other financial objectives
"Competitive pricing is highly transparent to customers today. It's important to Sonae's corporate and brand strategy that shoppers know us as the overall low price leader," Fernandes said. "PriceStrat is a pivotal tool for our category managers and buyers, giving us the visibility and control we need to maintain and fine-tune our pricing, so that we continue to win in our markets and on the products that matter most to our shoppers."
"It's clear that retailers like Sonae are realising significant benefit and return from their investment in PriceStrat and see price optimisation as a strategic priority in helping them demonstrate value to shoppers," said Howard Langer, Managing Director of Price & Promotions practice for dunnhumby. "This new opportunity re-affirms our belief in working collaboratively with clients and empowering them to make smart, data-driven decisions based on proven science – choices that ultimately lead to both shopper loyalty and bottom-line improvements. We look forward to extending this success story across the combined Sonae organisation."
About Sonae
Sonae is a Portuguese business that operates in 60 countries with more than 1,304 retail stores. Sonae's retail business includes two main core areas:
- Sonae MC is responsible for the food retail area of Sonae and is today a benchmark in the market, after having launched a true revolution in consumer habits and the Portuguese commercial landscape with the opening of the first hypermarket in Portugal in 1985 (the Matosinhos Continente). Sonae MC is food retail market leader in Portugal with a number of distinctive formats, which offer a varied range of high quality products at the best prices: Bom Bocado (cafeteria/restaurants), Note! (book shop/stationery), Continente (hypermarket), Continente Modelo (hypermarket close at hand), Continente Bom Dia (convenience supermarket), Continente Ice (frozen products), Meu Super (franchised supermarket) and Well´s (health, well being and eye care), ZU (Dogs and cats products and services).
- Sonae SR has a range of brands in benchmark positions in their respective market segments. The offer is wide ranging: MO (clothing, footwear and acessories), Sport Zone (sports clothing, footwear and equipment), Worten (consumer electronics and entertainment), Worten Mobile (mobile telecommunications) and Zippy (clothing, footwear and acessories for babies and childcare products). Over the last few years, these companies have built up a strategy of value generation, based on a combination of sustained growth and strong investment in the value proposal of each of their brands and underpinned by the motivation and quality of their employees and by the setting up of sustained partnerships with their suppliers.
About dunnhumby
dunnhumby is the world's leading customer science company. We analyse data and apply insights from nearly one billion shoppers across the globe to create personalised customer experiences in digital, mobile, and retail environments. Our strategic process, proprietary insights, and multichannel media capabilities build loyalty with customers to drive competitive advantage and sustained growth for clients. dunnhumby employs over 2,000 experts in offices throughout Europe, Asia, Africa, and the Americas and works with a prestigious group of companies including Tesco, Monoprix, Raley's, Macy's, Coca-Cola, Procter & Gamble, and PepsiCo. For more information, please visit us at www.dunnhumby.com.
Media Contacts:
Antonella Scimemi at W
antonella@wcommunications.co.uk
07530 815 018
Share this article