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Definition Promotional incrementality measures the sales lift solely caused by an offer. It isolates volume that would not have occurred without the discount from sales that would have happened at full price. Why it matters Retailers use this to determine if a promotion created new value or if customers simply
Executive Brief The promotional profitability paradox Promotional budgets have grown steadily year over year. So has the gap between what companies invest and what they actually get back. Incremental lift is flat or declining. Post-event analysis confirms what many already suspect: a significant share of promotional spend generates little to
What is retail forecasting? Retail forecasting is the process of predicting future customer demand, sales volume, inventory needs, and revenue. In simple words, it’s the process of predicting what customers will buy, when they’ll buy it, and how much you need on hand, before the demand actually shows up. It
Executive Brief The future of price & promotion This brief explores how leading retailers are responding to increasing complexity in price and promotion by closing long-standing gaps between systems, teams, and decision-making processes. With fragmented workflows, aligning merchandising, marketing, and vendor teams becomes critical to maintaining control and competitiveness. Retailers
Introduction Retail promotions don’t run on discounts alone, they often run on vendor funding. Yet for most retailers, deal management; the process of negotiating, tracking, and activating that funding; is held together with spreadsheets, emails, and manual work. The result is lost revenue, eroded margins, and conflicts. This guide is
Definition Margin erosion happens when a promotion drives sales but reduces overall profitability because the discount and associated costs outweigh the incremental gains. Why it matters Promotions are meant to generate growth — not just volume. When margin erosion goes unnoticed, retailers may see strong top-line results while profit quietly
Key takeaways Margin erosion is preventable with proper planning. Focus on high-margin, high-demand items that drive traffic and basket growth. Leverage data, AI, and predictive analytics to guide decisions. Optimize discount depth using price elasticity insights. Monitor real metrics: margin per transaction, ROI, halo sales, incremental lift. Introduction Seasonal
Promotions are a crucial part of retail, but many fail to deliver a positive return on investment. Too often, retailers rely on slashing prices or running ad hoc deals without a clear strategy. This approach is inefficient: between 30% and 40% of retail promotions are either unprofitable or actively undermine
Definition In retail, ad planning is the process of organizing, scheduling, and optimizing promotions across stores and channels to support merchandising strategies, align with business goals, and maximize sales. It includes selecting the right products, timing, and promotional formats to drive the best results. Why it matters Effective ad planning
Introduction The retail landscape is transforming faster than ever, challenging retailers to move beyond traditional, siloed approaches. Success today demands a unified strategy, one that aligns pricing and promotion to where the industry is heading, builds the right capabilities, and ensures both levers work seamlessly together across strategy, planning, and
