Ermes Group, a retailer in Cyprus, is using Watson Commerce pricing optimization solutions from IBM to identify products for mark downs and fix price.
IBM’s Watson Commerce pricing optimization solutions is expected to assist Ermes to maximize profits for across all of its retail locations relating to Debenhams Department Stores, Next Stores, Oviesse Stores, Peacocks Stores and Uber Stores.
Retailers conduct product pricing mark downs for identifying the best price point and timing of discounts to deliver great deals to customers, while ensuring profits by avoiding the need to sell items at a loss.
IBM supports Ermes to automatically determine specific products in each store for marking down due to stagnant sales, finalize new price and timing of the discount sale. Previously, teams identified products manually.
Since going live with IBM, Ermes has significantly streamlined its retail pricing strategy while increasing profits.
“With IBM’s cloud offering, our merchandising team can easily determine which products are lagging in sales and what steps we need to take to get these items moving off the shelf,” said Sophocles Sophocleous, purchasing manager of Ermes Department Stores.
According to IBM’s study on Generation Z, the majority of Generation Z, who possesses $44 billion in spending power, makes purchases in the store. Of this group, 66 percent do so because they believe they get good deals and value for their money.
IBM said the Price Optimization solution automatically monitors a product’s cost and sales and then alerts the retailers to generate a promotion before demand begins to wane. Ermes Group has been able to free merchandisers and buyers to focus on other key areas such as in- season performance monitoring and being reactive in a timely as well as efficient manner.