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Retail

Portugal’s Sonae To Employ PriceStrat for New Formats and Expansion

By Branislav Pekic
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Portugal’s Sonae To Employ PriceStrat for New Formats and Expansion

Portuguese retail group Sonae has agreed to extend the use of dunnhumby’s PriceStrat price optimisation software license to new retail formats and geographic regions.

The company has been using the software since 2008 to help build and maintain its competitive price position in the grocery market. This agreement enables Sonae to use PriceStrat to manage and enforce compliance with its pricing strategy as the company expands in new regions such as Spain, America, Africa, and the Middle East. The retailer will also implement PriceStrat at its non-food formats, including its growing sports equipment and clothing retail chain.

Sonae chose PriceStrat, developed by KSS Retail, in part because of the software's highly sophisticated rules-management capabilities, according to Goncalo Peixoto Fernandes, Commercial Director for IT. In real time, Sonae analysts can test the impact of a wide variety of constraints, such as competitor pricing rules, brand and size-parity rules, maximum/minimum price differentials, and supplier cost changes. Furthermore, PriceStrat enables Sonae to identify where rules may be relaxed to achieve more favourable outcomes.

As a result of the pricing rules, Sonae has been able to: improve pricing logic and consistency on store shelves; tailor prices by store type and geography; and enhance its competitive positioning while maximising gross margin and other financial objectives.

Sonae operates a mix of multi-format food and non-food chains, with more than 1,425 locations under a variety of brand names. It operates in 60 countries with more than 1,304 retail stores. In Portugal, Sonae is the food retail market leader with a number of distinctive formats (including Continente, Continente Modelo, Continente Bom Dia and Meu Super).

© 2015 European Supermarket Magazine – your source for the latest retail news. Article by Branislav Pekic. To subscribe to ESM: The European Supermarket Magazine, click here.

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