Ermes Group To Use IBM Watson Commerce To Engage Customers With Timely In-Store Sales
IBM has announced a new partnership with Ermes Group, the largest and most diversified retailer in Cyprus.
Ermes Group will be leveraging IBM’s Watson Commerce pricing optimization solutions to help ensure product markdowns resonate with value-seeking customers while maximizing profits across all its retail locations relating to Debenhams Department Stores, Next Stores, Oviesse Stores, Peacocks Stores, and Uber Stores.
Product pricing mark downs are a common practice for retailers today. The challenge is identifying the ideal price point and timing of these discounts to deliver cost-conscious customers great deals while avoiding the need to sell items at a loss that erodes potential profits.
This was precisely the issue for Ermes Group, which decided to move from a rather manual approach to IBM’s cloud-based Watson Price Optimization capabilities.
Working with IBM, Ermes is now able to automatically determine which specific products in each store should be marked down due to stagnant sales, what the new price should be and when the reduction should take place.
Previously, teams had to manually go line by line for every product to determine how it was performing and if they should put it on sale. Since going live with IBM, Ermes has significantly streamlined its retail pricing strategy while increasing profits.
“Due to shifts in styles and consumer demands, product markdowns are a reality that all retailers must face. The key is knowing both when to act and what price point will allow the business to still profit on each item left in stock,” said Sophocles Sophocleous, Purchasing Manager of Ermes Department Stores Plc. “With IBM’s cloud offering, our merchandising team can easily and quickly determine which products are lagging in sales and what steps we need to take to get these items moving off the shelf.”
IBM recently released a new study focused on Generation Z, a group that possesses $44 billion in spending power. According to the study, the majority of Generation Z make purchases in the store. Of this group, 66 percent do so because they believe they get good deals and value for their money.