Price cutting – the true cost for retailers
Thanks to Retail Voices for publishing our article on “The true cost of price cutting for retailers”. The article discusses the challenges retailers face in navigating the cost-of-living crisis and the pitfalls of continued price-cutting strategies. It emphasises the need for retailers to find alternative ways to assist consumers without compromising their own financial health.
Readers will learn:
- The Dangers of Price-Cutting: Continuously lowering prices exacerbates long-term problems such as inflation and eroding profit margins, leading to a race to the bottom among competitors.
- Finding Operational Savings: Retailers must focus on creating operational efficiencies to lower prices sustainably. Areas such as waste reduction, adopting alternative payment methods, optimising supply chains, and fighting fraud offer avenues for savings.
- Examples of Operational Savings: Innovative solutions like Wasteless, which reduces waste and boosts revenues through dynamic pricing, and Luxochain, which combats fraud using blockchain technology, showcase practical approaches to operational savings.
- Long-Term Strategy: Retailers need to implement a comprehensive strategy that balances customer assistance with financial sustainability. This involves leveraging technology and optimising processes to lower prices without jeopardizing profitability.
By understanding and implementing these strategies, retailers can better support consumers through the cost-of-living crisis while maintaining a healthy financial outlook for their businesses.
