Retail LCP Promotion Optimization
Retail LCP Promotion Optimization
Promotion
Optimization
for Retailers
Omnichannel Aware Promotion Events and Pricing
What's a good promotion now? History was always a guide, even though it was faulty. But it
was something. Now everything has changed and, sadly, the path forward looks nothing like
the one taken.
Online revenue accounts for 40% - 60% of total revenue for many retailers, and it is expected
to continue its growth. Yet, DC's don't have the capacity to fulfill every online order,
especially during peak time. More importantly, customers expect to have multiple fulfillment
options at any store. But why does this matter for promotions?
Promotions drive inventory. They are the primary way of moving inventory throughout a
retailers' enterprise. And if promotions don't account for the methods that shoppers expect
to buy, return, and have their order fulfilled - inventory levels will be off, customers'
expectations won't be met, and margins will suffer. While it is essential to get the promotional
offer and discount correct for revenue, margins, and inventory goals, it is now even more
crucial to manage the overall inventory efficiency throughout the season and
communicate those expectations with the supply chain, especially for omnichannel
retailing.
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