Our latest thinking on promotions analytics
When it comes to retail assortment there is a question that's crucial for both growth and profitability. How large share of your assortment should consist of Private Label Brands (your own brands) vs. National Brands?
Our data suggests that promotions typically account for 10 to 45 percent of a retailer’s total revenues. And for sure, promotions are a powerful instrument for increasing sales and margins, but they are also difficult to use effectively.
Retailers spend between 3-10% of their revenue on promotions. Our research indicates 20-30% of all these promotions are unprofitable. In this article we outline how retailers can increase the %-share of profitable promotions and improve overall margins with 2-5%.