The AI-powered Platform Drives Intelligent and Dynamic Pricing Strategies, Enhancing Action’s Competitive Advantage
Discount stores are gaining market share, serving customers of all budgets. But the competition is high, with frequently changing products. To keep up their game, innovation and a solid pricing strategy are crucial. TCS has helped Action Group, a fast-growing Dutch international non-food discount retailer, transform its pricing strategy using TCS Optumera™ AI-powered retail strategic intelligence platform.
Action is the fastest growing retailer in Europe. It has a simple and successful formula and operates a chain of 2,000 stores across ten countries in Europe. Action leads on price and differentiates on surprise. It is known for its affordable everyday products and its brand promise of ‘Small Prices, Big Smiles’ is powered by a unique business model of regularly refreshing 60% of its product assortment and making volume purchases through an efficient supply chain.
Unique business challenges
From a pricing perspective, Action’s unique business model comes with a few challenges. About 60% of Action’s assortment is ever changing, which means every new item should have a competitive and an attractive price. It operates in many countries and must deal with inflation due to currency fluctuations. It must also ensure price parity across markets