Retail

Retailers compete fiercely for shoppers. In doing so, they optimize a complex array of things including shelf space, to foot traffic, and loyalty. Trade promotions are an essential part of these efforts to compete. And while manufacturers carry a large amount of their cost, defining the right products and prices for promotions is crucial and challenging for retailers.

As retail is one of the lowest margin industries worldwide, every piece of extra profit is welcomed.

Consumers make their decisions less spontaneous and more considerate. The information available for purchasing decisions is increasing and consumers use these, they spend an increasing amount of time researching their purchases.

An increase in product offering causes the number of SKUs to increase as well. Even though this means a bigger customer base, it also in return results in higher cost of customer service and higher overheads.