Maximizing Profitability: How Hypersonix Pricing AI Generated a Profit Lift of Over 18% for a Regional Grocery Chain

Background

A regional grocery chain with 37 grocery stores under multiple banners was looking for a solution to manual pricing analysis to maintain competitive pricing on key value items.

Industry: Grocery

Hypersonix Product Implemented: Pricing AI

Goals: More comprehensive data analysis and insights to drive better decisions on pricing.

The Challenge

Manual Processes Hindered a Grocery Chain’s Ability to Offer the Best Prices

Headquartered in Southwest Missouri, Pyramid Foods operates more than 37 grocery stores under multiple banners. They pride themselves on providing consumers with the very best food and service at the very best prices. They came to us looking for a solution to their pricing analysis and for the ability to monitor pricing to stay competitive on key value items. With over 100,000 SKUs, their previous process was time-consuming and relied heavily on spreadsheets. They wanted a solution that would help them automate their data analysis and reporting and provide them with insights to help drive quick, definitive decisions on pricing.

The Solution

Actionable Insights on Pricing Meant a Better Pricing Strategy for Everyone

We connected Hypersonix to their data systems and our machine-learning and generative AI algorithms began to analyze their pricing data. It quickly identified areas where changes could be made to improve profits and provided actionable insights on pricing for Pyramid Foods’ key value items.

The Hypersonix Team set up automated reporting for Pyramid Foods, so they receive reports in their email on Sales and Margins. The Team also set up Pyramid Foods’ dashboard so they can login on their own and run different scenarios around pricing to determine the best strategy – and best price - for key value items.

Hypersonix Impact

Better Data Analysis and Insights Equals a Higher Profit Lift

Hypersonix pricing recommendations have generated a profit lift of more than 18% with a profit to revenue ratio lift of over 2%. Since implementing Hypersonix and making pricing changes based on the insights it provides, the potential yearly lift for all items is $3.6 to $5.8 million.

Automated Sales and Margin reporting has saved their team approximately 1.5 hours per day or 550 man-hours per year. The Pyramid Foods team continues to login to Pricing AI to run their own scenarios to determine the best pricing strategy for their products. Their Leadership Team also receives updates via reports from Hypersonix, to ensure they have the information they need to drive strategy.