Project Description
Current state assessment and benchmarking against industry leading practices to identify and prioritize pricing and promotions opportunities relative to people, process, and technology.
The Client
A $1B+ multi-channel, multi-banner specialty retailer offering women’s and men’s fashion and home furnishings.
The Challenge
While undergoing a strategic evolution from catalog to an eCommerce business model, the retailer was also facing increased business risk and heightened competition. To combat these forces, company leadership recognized the need to standardize and update their overall pricing strategy, while defining the processes and policies related to setting regular, clearance and promotional prices across multiple banners.
The Parker Avery Solution
Parker Avery’s overall objective was to help the company drive increased revenue, improved margins, and greater operational efficiency by defining future-state pricing and promotional capabilities. Parker Avery also developed a detailed roadmap to deliver those capabilities, prioritize opportunities, and sequence technology, process, and organizational changes.
To develop the roadmap, the Parker Avery team performed an in-depth current state analysis to understand existing pricing and promotion capabilities relative to people, process, and technology, as well as fully comprehend the company’s overall operating model.
The team then benchmarked current capabilities against industry leading practices, which served as an input to prioritizing the opportunities.
After defining future pricing and promotion management capabilities and the “ideal future-state” vision, Parker Avery built a high-level business case and implementation roadmap.
The Result
Parker Avery presented recommendations as a roadmap with a three-year horizon, including short-term “quick wins,” medium-term objectives, and long-term visions, as well as a high-level assessment of implementation impacts and business benefits. Parker Avery was subsequently engaged by the client to support implementation of the roadmap.
After completing the roadmap’s initiatives, the client expects to achieve an ROI of up to $68M annually with notable savings in sales, margin, turn, and inventory performance.