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SCOTTSDALE, Ariz. - KhiMetrics Inc. today announced that Winn-Dixie Stores Inc. will use its new Retail Revenue Management Application Suite to optimize pricing and promotions.
Version 3.0 of the KhiMetrics suite, a patented business application developed to help retailers achieve their financial goals through strategic pricing, was enhanced in cooperation with Winn-Dixie to help Tier One retailers optimize promotional prices.
"The needs of Tier One retailers concerning retail revenue management are evolving rapidly and close cooperation between retailers and vendors is absolutely fundamental to creating sustainable value for consumers and retailers," said Brent Lippman, president and CEO of KhiMetrics. "Our work with Winn-Dixie underscored this market reality and helped produce an important product expansion designed to meet this complex set of needs. Now, in one solution, retailers can optimize, visualize and manage prices and promotions from a single user interface."
According to Lippman, despite the enormous deal volume that is transacted between retailers and manufacturers, retailers generally do not have the ability to determine the best promotional price in order to maximize the economic opportunity associated with manufacturer deals. To successfully optimize promotions, retailers must understand and model the dynamics between cost, price, margin and unit sales.
The promotions management capability within Version 3.0 of the KhiMetrics suite allows retailers to measure item elasticity and forecast the lift of future price reductions, enabling a retailer to see the impact in unit sales, margin and price image of a given deal before implementation at the store level. Now, retailers can also schedule promotional events, add product and stores to promotions and create "what-if" analysis of promotional events.
The promotion management capability also makes a retailer's promotional budget more efficient by allocating discounts to products that yield the largest increase in sales. By doing so, it gives shoppers lower prices on the products they want most, while generating more profit for retailers.