Use of Artificial Intelligence in Supermarkets

Imagine the difficulty of this supermarkets large medium HEyou should give small price HEthousands inside available products inside your shelves. And it treats a lot. inside stipulating a value for each item, how much inside monitoring the movements and promotions of competitors, insidesections inside consumers do not buyHE insideTo leave inside side HE stock, to ensure good coverage at all times.

It takes a lot of agility to do all this while maintaining competitiveness and a good margin. inside snow. And that agility, HE to use inside Answers inside based on pricing inside Intelligence artifactofficial (IA).

It is a fact that technology is indispensable in this demanding task. can monitor pricing solutions Various real-time data that have an impact on priceswhether they belong to the company, the market, or even the economy. On top of that, these solutions identify the ideal moment to change prices and can suggest and apply optimal values, taking into account the costs, business strategy and financial goals of the business, among other variables.

The enormous amount of produce is just a feature of the supermarket industry. A very common challenge with this retail model is pricing the same product with different packaging. Like rice, which can be sold in 1kg or 5kg packs.

There are other products with the same characteristics in the supermarket sector and this creates a very complex scenario for the prices of these different packages to remain consistent for the same product.

When looking at the packages one by one, there is a risk that the price of only 1 kg package will decrease, thus the 5 kg package will be irrelevant for the consumer. After all, it becomes more profitable to buy five packages of 1 kg. This failure also affects the image of the supermarket in the eyes of the consumers. There is an impression that the business manager uses his intelligence to earn more, creating a negative image. This is a complexity where technology can help with scale, intelligence and consistency of prices.

The flexibility – volatility of prices – is another point to note, because it’s a highly dynamic thing, it changes from establishment to establishment and is influenced, above all, by other variables such as seasonality and expiration. Sensitive items such as cooking oil, beans, rice that are part of the basic basket are repetitive purchases, so the customer knows the prices and notices when there is a change. This change directly affects the quantity sold and the consumer’s purchase intention.

After all, how does AI work in supermarkets?

Pricing technology can dynamically measure the flexibility of each product, taking into account the characteristics of each. It’s not just about bringing the flexibility of the product from supermarket A to supermarket B and vice versa, because they are not the same, they do not have the same costs or the same context. The question is to find the ideal price within the specifics of each.

The technology helps to measure the effects of seasonality on price changes. Naturally, the customer is willing to pay a little more at Christmas, when everyone is fine dining. Some products are also in greater demand during this season’s dates.

In general, the supermarket is where people get their basic daily needs such as not only food but also hygiene, cleaning and housekeeping. It is the place where perishable and non-perishable products, that is, products that can cause damage because they have an expiration date, and others that can be forgotten because they do not have an expiration date and can be sold at inappropriate prices. they will be displayed in gondolas long after they are sold.

Since it is common for this type of establishment to always introduce new products to its customers, there is a lot of rotation on core products. This is where Artificial Intelligence comes in!

How to determine the price of a product that has never been sold before?

Another very compelling and common point in this area is seasonality sensitivity as stores operate with products that are very responsive to the seasons of the year, such as fruits and vegetables. These items are offered in addition to various other items that have an expiration date.

So what is the optimal point of an operation? supermarket? It is your manager who can quickly determine product prices. to achieve the best possible yield over the shelf life without remaining stock.

Supermarkets in general They set the price and put the product on the shelf. When the validity period approaches, they apply wide discount intervals as they are not efficient in selling within the stipulated time.

So there was remaining stock and it needs to be liquidated. Or, conversely, some markets start the cycle so that they are out of stock. marketing at low prices, reducing profit margins and causing stockouts, which is not desirable.

As for non-productsHE perishable, undated inside validity as kitchenware inside kitchen made inside plastic HEyou metal HE risk is to set a priceHE and when HE product sold, cost inside replacementHE it got so high HE no resale valueHE able inside to cover

This problem is more common inside fairyHEbetween inside high inflation and insideavoid trouble inside track too many items daily inside manual way. Once again, artificial intelligence manages to solve this problem because technology never forgets a discontinued product and inside reset priceHES inside sales so HE No furnitureHE be stranded or bartered for a priceHE unsuitable.

AI is a tool that makes everything possible business and all strategy including pricing of your products. In the past, it was common for a retailer insideend HE value inside sell it and keep it for a long time. But today is different. A product that costs 20 BRL in the morning can be 10 BRL in the afternoon and 20 BRL the next day, this always depends on market conditions and insidestrategic definitions, inside transparent shape.

HE insidenail inside Answers inside Pricing in the supermarket sector comes exactly to solving these points.HE big pain inside managers. healthy onesHE AI-powered scale speed and transparency in pricingS during all HE loop inside marketingHEallows to reach HE great spot with educationHE inside priceHEthose who attract more insideorders and breaks, remaining stock, inconsistencies and insideupdateHE inside priceHEQ. All this margin of delivery, becauseHE There is no point in selling without financial results.

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*Ricardo Ramos is CEO of Precifica – [email protected]