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Precision pricing
Reducing the strain on retail with the biggest profit driver .
By Chris Dieringer
Across the world , retailers are feeling the strain of a volatile market , characterized by persistently high inflation , rapidly changing consumer behaviors and the threat of global recession . With 2023 off to a shaky start , leading the IMF to adjust its initial forecast for the year , in April , anticipating higher global inflation and decreased economic growth , retail is being challenged to recall and bolster the resilience it showed throughout the pandemic .
Now more than ever , retailers are feeling the financial squeeze , pinned between rocketing supplier costs and increasingly price-conscious shoppers . With total retail sales worldwide expected to grow by only plus 3.9 percent in 2023 , down from plus 6.9 percent the previous year , retailers are fully focused on the bottom line and how to protect their margins .
Falling back on old solutions
In times of economic downturn , many businesses default to cost-saving measures , limiting expenses by reducing headcount , closing stores or downsizing sites . While these actions can offer short term margin relief , they also run the risk of inhibiting growth in the long term by scaling back the business . Moreover , the current rate of inflation is so significant and chronic that cost-cutting
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