Merchandise and Foodservice Price Optimization for a Leading C-Store Chain
A Midwestern convenience chain with over 2,100 stores across 16 states
Merchandise and Foodservice Pricing Strategy and Price Optimization
The c-store chain was currently in aggressive growth mode. Its strategy included disciplined store additions, strategic acquisitions, and increasing same store sales. As part of its Value Creation Plan, the company had identified merchandise and foodservice price optimization as one of its key initiatives to enhance store performance and unlock shareholder value.
A main area of focus was price optimization initiatives for merchandise and foodservice. They sought guidance from Impact 21 to develop a pricing strategy, source effective technology solutions, and create the organizational structure to meet their current and long-term goals.
Evaluated merchandise and foodservice price optimization environment and provided pricing framework and roadmap
Impact 21 gathered substantial data from the client and industry organizations over the course of a few months. First, Impact 21 conducted internal and external assessments to get a full view of the client’s current state and existing pricing strategies. This required thorough research on the company, as well as on merchandise and foodservice price optimization industry best practices. Through this research, Impact 21 was able to find actionable information on emerging trends, as well as share best in class technology and platforms.
Next, Impact 21 performed several different analyses that identified opportunities to improve operational efficiencies and profit margins. Impact 21 also did extensive research and made a recommendation for a 3rd party competitive pricing audit to be conducted.
Finally, Impact 21 helped the client source and pilot a new price optimization tool for their existing SKUs in a group of stores. Once the pilot implementation was completed successfully, the decision was made to rollout the new price optimization tool inside the rest of the c-stores.
Maintained competitive pricing while boosting margins and increasing shareholder value
Through its proprietary insights and resources, along with data gathered during the research and analysis
phases, Impact 21 guided the c-store chain to source and launch a new price optimization tool for merchandise and food SKUs.
The convenience store chain has now fully implemented this new pricing strategy and continues to build data into the price optimization tool. In the most recent 6-month period, grocery and other merchandise sales increased almost 7% with an average margin over 32%, while prepared food increased almost 5% with an average margin of over 61%.
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