Fortune 500 Department
Store Boosts Online Revenue
by 40% with AI Price
Optimization
This case study explores how a major US-based Fortune 500 department store
chain revolutionized its digital retail performance through AI-driven price optimization.
By implementing more coherent and attractive pricing strategies, the retailer
achieved a 40.1% increase in online revenue while
significantly improving customer retention.
Executive Summary
A leading US-based retailer with 1,000+ department stores across 49 states needed to transform its legacy pricing model to compete with more dynamic retailers. By implementing Competera's AI-powered pricing platform designed for e-commerce operations, they achieved exceptional improvements in both customer retention and business performance.
Challenges
- Legacy business model resulting in market share losses
- Reactive pricing causing operational inefficiencies
- Complex promotional campaigns creating pricing pressure
- Need to transition from High-Low to Everyday Low pricing
Solution
-
AI-powered price optimization with automated recommendations
-
Advanced impact modeling for strategic decisions
-
Unified platform for streamlined pricing processes
- Systematic transition support to new pricing strategy
Key Results
30%
Increase in new customer acquisition
50%
Increase in reactivated customers
40%
increase in revenue
59%
Increase in units sold
25%
Increase in margins
30%
Increase in page views
71%
Increase in visits with purchase
CONTINUED PARTNERSHIP
Following the successful fragrance pilot, the partnership continues to evolve as demand-based pricing expands to all data-rich regions. This ongoing collaboration showcases how innovative pricing technology can address complex operational challenges while driving significant business results in cruise retail.
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Decreased time for manual assortment analysis
Decreased time for manual assortment analysis
Coherent and flexible Competitive Data covering 9 countries
More optimal discounts lead to gross margin gains and well-handled sellout
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