Case Study
Roundy’s Supermarkets Achieves
Significant ROI and
Competitiveness with Revionics
Case Study
Roundy’s
Supermarkets
Overview
Owning 165 stores in a region spanning
Wisconsin, Minnesota and Illinois.
A Revionics Case Study
Roundy’s Supermarkets offers superior
grocery products and services.
CHALLENGE
Roundy’s wanted to increase sales and margins, while
improving price perception. Faced with growing competitive
$
$
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pressures, particularly from Wal-Mart stores and other
supercenters and conventional grocers, Roundy’s knew it
needed a strong pricing strategy. Furthermore, the strategy
The company’s annual revenue tops
$4 billion.
had to be in tune with an increasingly complex, informed
and empowered consumer.
SOLUTION
After an in-depth industry search for the right solution,
Roundy’s chose the Revionics® Price Optimization solution.
Revionics’ Software-as-a-Service (SaaS) model helped
Roundy’s avoid costly and timely implementation scenarios,
while its intuitive user interface offered transparency and
speed. Best of all, baked into the Revionics solution is its
well-honed pricing science.
Its banner brand names include
Pick ’n Save, Copps, Rainbow,
Metro Market and Mariano’s, each
with varying degrees of market
penetration, some capturing more
than 50% of market share.
Case Study
“We wanted improved price integrity,
consistency and to ensure we always
had data-driven pricing decisions,”
said Jason Benish, Roundy’s Vice President of Pricing and Strategic Initiatives. He noted
that the system was easy to use, understand and navigate—needing only three months
to implement and yielding solid results in the first year.
Roundy’s uses Revionics
Next up, Roundy’s plans to
Revionics® Social Com-
software for all stores, all
team up with Revionics to
merce and Revionics®
categories except perish-
further integrate its shop-
Promotion Optimization
ables, which are coming
pers’ buying behaviors into
solutions are also on the
on board soon.
its pricing strategy.
horizon for Roundy’s.
Case Study
Roundy’s
Supermarkets
A Revionics Case Study
RESULTS
After adopting the Revionics Price Optimization solution
two years ago, Roundy’s never looked back. Gross profit
margins increased across the board and ROI was
“significant”. Roundy’s has abandoned its cumbersome
spreadsheet-based pricing strategy, freeing staff for indepth analysis and strategic projects. In addition, Roundy’s
Because Revionics’ solution is able to
optimize all 50,000 of Roundy’s SKUs,
something not possible with a
spreadsheet, Roundy’s is also now
able to easily optimize all SKUs and
identify low hanging fruit—products
that could easily offer margin
improvements.
can now closely monitor pricing and customer demand,
with weekly price recommendations provided by the
Revionics’ technology.
Roundy’s also took advantage of Revionics® Advanced
Analytics, Key Value Item (KVI) Analysis and Store Cluster
Analysis. Tapping into two years worth of data, Roundy’s
used demand-based science and shopper insights to
identify their KVIs and pinpoint the optimal number of store
price zones. This enabled them to zone beyond a geographical basis and reduce the number of price zones by
30% with improved efficacy of pricing.
Price optimization showed positive
results in all 10 categories at test and
control stores during the initial implementation, and particularly drove
results in the candy category, where
gross margin, unit sales and dollar sales
all increased.