Challenges and goals
Southern Co-op, a regional consumer co-operative in the United Kingdom, has implemented Retail Insight's markdown optimization solution, WasteInsight, for use in its 200+ stores operating across 11 counties in the south of England. By optimizing and automating its markdown processes, Southern Co-op will achieve better visibility into which items require markdown and how to optimize prices to reduce food waste.
Before implementing Retail Insight’s markdown solution, Southern Co-op relied on traditional fixed price markdown percentages based on time of day which did not make any allowance for factors such as volume, weather, or within-day sales profiles. Whilst this was a well-established process, it resulted in imbalances of sell-through of short life, reduced-price items which in turn impacted customer availability, waste levels, and profitability.
The Southern Co-op team also lacked the ability to track store performance to ensure that markdowns were being carried out within their specified time bandings and to the correct price. By standardizing and automating processes, the Southern Co-op team now has much more visibility into the effects of their decisions, allowing them to analyze and understand the projected impact of those markdowns.
Partnership and solution
“The new markdown process is far more transparent and proactive than it was before. Retail Insight enables us to steer our markdown strategy toward a more optimized way of working, with clear goals and improved visibility into outcomes,” says Charles Duthie, Head of Commercial Operations, Southern Co-op. “In-store teams have found WasteInsight easy and efficient to use, and it reduces a great deal of the manual work we struggled with previously. It’s great that we now have much better visibility of how our store teams are complying with the markdown values and timings, which is insight that we did not previously have."