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Clear and Present Value

Retail pricing strategies boost shareholder returns

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retail pricing strategiesFor years, retailers have recognized the importance of pricing as a competitive advantage but have struggled to place pricing as a key strategic imperative at the C-level inside their organizations. Yet until now, there has been little quantitative evidence that effective pricing practices actually enhance shareholder value.

Deloitte Consulting LLP recently commissioned research that analyzed the stock prices of 14 retailers before and after they announced and/or implemented new technology-based pricing initiatives that used advanced analytics. In doing so, clear and dramatic evidence was identified linking these new pricing strategies directly to stock price increases. This article details how this was accomplished.

 

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