Ricker's Optimizes Retail Pricing Strategy
INDIANAPOLIS — Ricker's Convenience Stores collaborated with strategy and technology services provider Kalibrate to optimize the chain's retail merchandising pricing strategy.
Ricker's used Kalibrate's new Merchandise Pricing and Promotion solution to identify opportunities for increased profitability, with a strategic objective to increase gross profits at targeted revenue objects in its 56 stores.
Over the course of the implementation, Kalibrate used Ricker's data to build historical consumer demand models for its stores before developing an opportunity assessment for each merchandise category, focusing on individual products and subcategories where price adjustments could drive gross profits by either increasing gross margins or sales.
The findings were immediately actionable and resulted in a significant increase in gross profit dollars, according to the companies.
"Kalibrate has helped us transform our mountain of merchandise and promotional big data into retail price changes that have yielded measurable gross profit increases," stated Ricker's CEO Quinn Ricker.
Kalibrate provides strategic expertise and technology solutions in fuel pricing, location planning, merchandise promotions and global market intelligence.
"We are thrilled that Ricker's has selected our new Merchandise Pricing and Promotion solution to increase profitability of inside store sales. This has been a rewarding collaboration in which Ricker's has achieved increased profits and Kalibrate has defined the solution to meet the specific needs of convenience store operators," said Bob Stein, president and CEO of Kalibrate.
"We are now ready to roll out the new Merchandise Pricing and Promotion solution to our global client base and the convenience store industry at large. The addition of this new solution to our product portfolio now allows fuel and convenience retailers to manage and optimize revenue and gross profit for the total site, fuel and convenience store," he added.
Founded in 1979 by Jay and Nancy Ricker, Ricker's has 56 convenience stores and is known for its RickerPop fountain drinks.