Case Study: Growing Sales and Profit Through Smarter Pricing

Case Study

Growing Sales & Profit Through Smarter Pricing

Merchandise & Foodservice Price Optimization for a Leading C-Store Chain

About the Client

A Midwestern convenience chain with over 2,100 stores across 16 states

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Situation

Creating a More Strategic Approach to Merchandise and Foodservice Pricing

The c-store chain was currently in aggressive growth mode. Its strategy included disciplined store additions, strategic acquisitions, and increasing same store sales. As part of its Value Creation Plan, the company had identified merchandise and foodservice price optimization as one of its key initiatives to enhance store performance and unlock shareholder value.

A main area of focus was price optimization initiatives for merchandise and foodservice. They sought guidance from W. Capra to develop a pricing strategy, source effective technology solutions, and create the organizational structure to meet their current and long-term goals.

As part of its broader growth strategy, the retailer identified price optimization as a key value creation initiative

Key Challenges

Opportunity to strengthen merchandise and foodservice pricing strategy
Need for the right technology to support more data-driven pricing
Organizational structure needed to support pricing optimization at scale

Solution

Evaluated merchandise and foodservice price optimization environment and provided pricing framework and roadmap

1. Current State Assessment & Market Research

Capra gathered substantial data from the client and industry organizations over the course of a few months. First, W. Capra conducted internal and external assessments to get a full view of the client’s current state and existing pricing strategies. This required thorough research on the company, as well as on merchandise and foodservice price optimization industry best practices.

Through this research, W. Capra was able to find actionable information on emerging trends, as well as share best in class technology and platforms.

2. Opportunity Analysis & Strategic Recommendations

W. Capra performed several different analyses that identified opportunities to improve operational efficiencies and profit margins. W. Capra also did extensive research and made a recommendation for a 3rd party competitive pricing audit to be conducted.

3. Technology Evaluation, Pilot & Deployment

W. Capra helped the client source and pilot a new price optimization tool for their existing SKUs in a group of stores. Once the pilot implementation was completed successfully, the decision was made to rollout the new price optimization tool inside the rest of the c-stores.

Impact

Over six months, smarter pricing delivered measurable growth across merchandise and prepared food. The client maintained competitive pricing while boosting margins and increasing shareholder value: