“But we will never be able to - at least in my foreseeable, before retirement, future - be able to move at the speed that our digital competitors can do,” said Carmel. Competing with a differentiated product mix and stoking the perception of valueĬreating a value perception among consumers, she said, will come from offering a differentiated assortment and compelling promotions, including leveraging the coupons that the company is known for. The turnaround plan also includes a $400 million investment in store remodels and supply chain improvements. The retailer, in the midst of a restructuring to revive sales led by CEO Mark Tritton, who joined the chain from Target last fall, set plans last week to cut 500 positions to reduce annual expenses by $85 million. “It’s not about being the cheapest, because being the cheapest is not a sustainable competitive advantage.” “It’s a huge challenge for us,” Carmel said, citing the company’s existing legacy, discount coupon program as a particular challenge for the retailer. The company has also been testing the use of electronic shelf labels, which would facilitate a more dynamic approach to pricing, but Carmel said that could still leave the company behind its e-commerce competitors because of the difficulties in integrating shelf labels with legacy point-of-sale systems.
That is a very realistic thing for us.”īed Bath & Beyond, which uses price optimization technology from Revionics, is coping with those challenges by fostering collaboration among its merchandisers and data scientists and looking beyond having the lowest prices to communicate an overall impression of value, she said.
I push a button, and 1,000 people need to make 1,000 changes in the stores. “A digital can change price by pushing a button, and the price changes instantaneously. “We have more than 1,000 stores in our fleet, which gives us tremendous leverage, scope and reach to the customer, but it’s very different when we are competing against a digital-only presence,” said Carmel. The company’s efforts to implement data-driven price optimization are running up against legacy systems and processes that make it difficult to keep up with pure-play e-commerce retailers such as Amazon, she said.
Home furnishings retailer Bed Bath & Beyond is grappling with the challenge of demonstrating value to its customers amid nimble online sellers in an omnichannel shopping world, said Barrie Carmel, chief value optimization officer, during a presentation at NRF 2020, the National Retail Federation’s annual trade show in New York City. Home retail chain Bed Bath & Beyond discusses its pricing strategy as it relates to technology and its competition against digital retailers within the industry.
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