{"id":4478,"date":"2019-12-26T13:19:45","date_gmt":"2019-12-26T07:49:45","guid":{"rendered":"https:\/\/www.intelligencenode.com\/blog\/?p=4478"},"modified":"2026-03-17T13:42:22","modified_gmt":"2026-03-17T08:12:22","slug":"lessons-retail-intelligence-price-optimization","status":"publish","type":"post","link":"https:\/\/www.intelligencenode.com\/blog\/lessons-retail-intelligence-price-optimization\/","title":{"rendered":"Lessons on Retail Intelligence & Price Optimization for 2020"},"content":{"rendered":"

As 2019 slowly winds to a close, the time is ripe to retrospectively analyze a fairly tumultuous year in retail. In this industry defined by rapid growth and evolution, keeping a finger on the pulse is simply necessary.<\/span><\/p>\n

So – let\u2019s look back to assess rising industry trends and better prepare for both the long-term and the short-term holiday season sales boom.<\/span><\/p>\n

A quick recap of 2019\u2019s major retail checkpoints<\/span><\/h2>\n

AI\u2019s importance continued to escalate, established brands dealt with unprecedented challenges (and, often, their consequences), and global politics put everyone on pause. Here are some of the key happenings in the retail solar system this year:<\/span><\/p>\n

Closures of big-name stores<\/b>. FamilyDollar, KMart, Sears, A. C. Moore, and Payless all saw <\/span>their futures put into jeopardy<\/span><\/a>. The latter felt it most dramatically, with some 2,500 store closures.<\/span><\/p>\n

Businesses lashed for destroying excess inventory<\/b>. <\/span>H&M<\/span><\/a> & <\/span>Burberry<\/span><\/a> are still dealing with the ripple effect of their irresponsible stocking malpractices. Both companies even admitted to burning – <\/span>yes, burning<\/span><\/i> – surplus clothing rather than recycling or repurposing it.<\/span><\/p>\n

Walmart made strides to match Amazon\u2019s heavy AI investments<\/b>. The super-retailer is <\/span>adjusting with the times<\/span><\/a>, having funneled tons of capital and resources into intelligent solutions for their marketing and advertising, online shopping, and custom consumer experiences (i.e. smart recommendations).<\/span><\/p>\n

Amazon facing the threat of counterfeit sellers.<\/b> It seems nobody is immune to the growing digital threats of the dark web – not even Amazon. <\/span>Their troubles<\/span><\/a> bring the issue of security into sharp, unavoidable focus.<\/span><\/p>\n

Cause and effect: Nike pulled away from Amazon. <\/b>The danger that counterfeits pose to popular brands\u2019 <\/span>price perceptions<\/span><\/a> and sales strategies is real. So real that, for Nike, it outweighed the benefits of selling through Amazon.<\/span><\/p>\n

Two big, new IPOs emerged this year. <\/b>Even in what may seem like a crowded marketplace, new faces pinpointing underrepresented niches can emerge. Just look at The <\/span>RealReal<\/span><\/a> (pre-loved luxury products) & <\/span>Chewy<\/span><\/a> (an online platform for low-priced pet food & supplies).<\/span><\/p>\n

Amazon expanded its physical stores<\/b>. Digital is obviously huge\u2026 But, apparently, it isn\u2019t everything. Value still exists in physical presence and face-to-face interaction.<\/span><\/p>\n

Trump\u2019s China tariffs have had a cost. <\/b>So far, they\u2019ve been a <\/span>pricey thorn in the side<\/span> of many retailers and may have instilled some cautionary hesitation in would-be buyers.<\/span><\/p>\n

Putting it together: The big-ticket takeaways of 2019<\/span><\/h2>\n

The previous recap may have only scratched the surface, but they offer a fairly multifaceted glimpse into the direction this industry is moving towards.<\/span><\/p>\n

To boil it down, here are of the main lessons we can glean:<\/span><\/p>\n

Instead of over-discounting, focus on intelligent pricing. <\/b>Do what those failing stores neglected to do: Look beyond win-now pricing strategies<\/a> that undervalue your products. Instead, use industry metrics to adapt certain prices in a manner that optimizes their market position.<\/span><\/p>\n

Stock smart and prevent inventory waste<\/b>. Avoiding the egregious errors of H&M and Burberry isn\u2019t hard, but steering clear of the pitfalls of out-of-stocks and aging stock can be.\u00a0<\/span><\/p>\n

Protect your brand. <\/b>Get proactive by shielding your brand with AI-powered MAP monitoring<\/a>, counterfeit tracking, and online seller regulation. Amazon has proven that everyone is at risk and effective solutions are worth investing in.<\/span><\/p>\n

Brand reputation and price perception matter<\/b>. To reiterate, a brand like Nike doesn\u2019t just leave a global marketplace like Amazon out of spite.<\/span><\/p>\n

Get rid of <\/b>legacy systems and dinosaur technology<\/b><\/a>. Unfortunately, they lie at the bottom of many brands\u2019 failures. Luckily – as we\u2019ll discuss below – today\u2019s new tech options can enable you to hit profit targets that those outdated systems were keeping out of reach.<\/span><\/p>\n

In the now: What this holiday season can teach us<\/span><\/h2>\n

Examining <\/span>current holiday trends<\/span><\/a> holds a two-fold purpose: Not only to tap into some of the season\u2019s seismic profit potential before it ends, but also to gain some perspective. After all, this period of time casts light on emerging consumer trends<\/a> more than any other:<\/span><\/p>\n