The following article, authored by DemandTec President Cheryl Sullivan, was featured in Store Brands and covers how retailers should be thinking about private label promotions as they enter the planning phases of the all-important holiday season. The full article can be found here.
Summary
Cheryl kicks it off with a stark look at how unpredictable the 2020 holiday season will be as the COVID-19 crisis continues to unfold. Unable to rely on historical seasonal promotions to meaningfully engage shoppers this year, retailers should look to AI-based promotions to get the most benefit from their private label items during the holidays.
She notes that science-driven promotion software can give retailers granular insights into what offers and vehicles will best engage shoppers, leveraging the ability to get more accurate predictions and demand signal insights.
All this is against a backdrop of a holiday season vastly different from past years, including:
- Smaller family gatherings as people try to minimize or avoid travel
- Reduced wallet size and increased price sensitivity in the wake of economic devastation and lingering uncertainty
- Fundamentally changed shopping habits, including less frequent outings and a marked shift toward online channels across all retail sectors
Science can yield insights into what KVIs are relevant in 2020, as well predict cross-items effects, including affinity and cannibalization.
The full article can be found here.
