This regional supermarket chain with more than 140 stores and 144,000 SKUs strives to give back to its communities while also providing their team with the tools they need to be successful. They were looking for ways to streamline and automate the pricing and price change processes and gain better insights on the performance of items within both categories and stores.
Hypersonix Products: Pricing AI
Goals: Automating a manual price change process and having better insights on Key Value Item (KVI) performance.
Relieving the Burden of Manual Processes
With 144 stores and more than 144,000 SKUs, the cost change process for this regional supermarket was time consuming. Price optimization was a manual process involving pulling prices into an Excel spreadsheet and using a calculation that increased prices by X% margin. Then those changes had to be manually entered into other systems and changed on the shelves of every store. They were looking for ways to save time and resources, while gaining better insights into the performance of products. They needed better data on KVIs and insights on which items were performing poorly by category and store. With so much data to analyze and clean up, they needed a platform that could automate the ingestion and analysis processes to quickly cut through the noise and provide the insights they needed to identify opportunities and minimize risks.
Transforming Data into Actionable Insights
The Hypersonix Team connected ProfitGPT to the grocer’s databases and started ingesting the data. During the analysis, the machine learning and generative AI algorithms identified more than 100,000 items that had mismatches in the price sold versus the effective price. ProfitGPT’s analysis quickly identified key value items by category, making it easy to identify which items were performing well and which were dragging down margins.
Harnessing Generative AI to Overcome Pricing Challenges
The grocer was able to clean up price discrepancies on more than 100,000 items and has an easier, automated way to track that information, helping prevent future price discrepancies. They continue to have better insights into their key value items and how they are performing by both category and store. ProfitGPT helped automate the rolling out of price changes due to changes in cost, saving the grocer’s team 10 days of time making those changes. The category teams can now quickly identify items that are dragging margin and see how items are performing by category and store, making it easy to quickly identify items not aligned in terms of price or margin to similar items in the same category or family and make changes to improve margins.