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Retailers suffering ‘promotion fatigue’

A survey commissioned by Aldata Solution has revealed that retailers are suffering from ‘promotion fatigue’. The retail and distribution improvement software specialist commissioned Martec International to survey more than 130 retail CIOs around the world.


Retailers suffering ‘promotion fatigue’

It found that after two years of focusing on promotions,  46% of the retailers surveyed plan to shift their attention to gaining a full view of their customers’ buying patterns in-store, online, and via catalogue.

By implementing a complete 360˚ view of customers and their buying patterns, Aldata says that retailers can reduce both overstock waste and understock gaps, saving costs and improving customer satisfaction across all buying channels.

Allan Davies, CMO of Aldata comments: “The ongoing economic situation has altered the way the retail industry operates and forced a change in tactics in the fight for customer spend.  Promotion management changing from the number one investment priority in 2009, fourth in 2010 and ninth in 2011, is just one example of this change in tactics.”

He continued, “Going forward into 2011 and during the coming three years, ‘promotion fatigue’ will give way to more focus on understanding consumer buying behaviour better and getting a full view of what, how, and where, customers are buying.”

The survey’s other key findings showed that as the cost of raw materials and fuel increased, 39% of CIOs will invest in enterprise demand forecasting to reduce overstocking and optimise the frequency and delivery of supplier orders to meet customer demand, to further reduce transport and wastage costs.

Davies concludes: “The 2011 survey clearly shows that retailers are now prioritising customer knowledge and optimization of their supply chain and demand forecasting over even more promotions. The new competitive edge is enabling customers to buy exactly what they want, when and how they want it and manage the goods flow more efficiently."


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