Esselunga Sharpens its Pricing Strategy with Oracle® Retail Planning Platform
Italian Retailer Aligns Pricing with Value Strategy to Deliver Margin Improvements and Customer Benefits
NRF 99th ANNUAL CONVENTION & EXPO, NEW YORK – January 11, 2010
Grocery retailer Esselunga is using an Oracle® Retail planning platform to make more profitable and competitive pricing decisions to support its strategy to offer the best value pricing in its 138 supermarkets.
Esselunga was Italy’s first supermarket chain and also the first to introduce online shopping and own-brand organic produce. It remains committed to delivering the highest quality products at the most competitive prices to its customers.
The retailer, which last year achieved sales of Euro 5.8 billion, has developed its pricing strategy using an Oracle Retail solution and can now predict the impact of pricing levels in each category, enabling it to execute price repositioning to maximum effectiveness against competitors, while minimizing negative impacts on margin.
With visibility to competitor pricing figures, Esselunga can now recalculate Index pricing, simulate the effect of any changes and identify the optimal price for key items prior to executing the strategy.
Prior to implementing the Oracle Retail solution, this entire process used to take several weeks and Esselunga has succeeded in reducing time to market by more than 50 percent.
The decision to select Oracle Retail was driven by a need to provide the commercial, buying and marketing teams with an integrated source of information incorporating current and historical sales, inventory and competitor pricing. The system uses this information to make recommendations on pricing opportunities to support decision-making.
The implementation allows Esselunga to maintain centralized control of pricing that reflects the Company’s strategy to remain the best value retailer in Italy.
“Esselunga is a great example of a grocery retailer that is tying a strategic business imperative – its pricing strategy - to measurable value,” said William O’Brien, Vice President EMEA, Oracle Retail. “Oracle Retail is providing Esselunga with insight into consumer demand and has enabled pricing levels that its customers identify as a great value proposition.”
Oracle is the number one provider of innovative and comprehensive industry software solutions for retailers – enabling organizations to serve their customers better by applying insight into daily business decisions for more profitable results. With software that provides supply chain, operations, merchandising, store systems, optimization as well as enterprise applications and infrastructure software, Oracle partners with the world’s leading retail companies, including 20 of the 20 top retailers worldwide, to transform the economics of their businesses.
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