Sally Beauty Supply is approximately four months in with data and business rules integration processes. “We wanted a solution that would support long-term growth, as well as a partner that would integrate well with our current systems and bring best-in-class modeling capabilities.” The solution’s broad range was one of the reasons Sally Beauty Supply chose Revionics: “We are looking to do promotional and markdown optimization along with base pricing and store clustering,” said Voracek. For example, we know that we have to have best-in-class pricing in the hair care and hair coloring categories, but we want to know more about how the rest of our categories behave around those categories in different stores.” “We’re also interested in price elasticity and better determining the categories that will drive traffic versus those that don’t. “We already do some regionalized pricing in different areas of the country, but we wanted to bring a stronger analytics perspective to it,” said Voracek.
In addition to product and category data, the retailer will be able to incorporate shopper insights to improve revenues and margins, and the Revionics Store Clustering and Elasticity Workbench modules will provide additional insights. The Revionics solution will be used across all the retailer’s categories, providing transparent, optimized pricing recommendations that will allow the retailer to conduct “what-if” scenario planning and simulations.
#Sally beauty supply store professional
Sally Beauty Supply stores carry an average of 6,700 SKUs, with hair coloring and hair care the two largest categories, followed by styling tools, nail care, multicultural hair care, cosmetics and tools for professional salons. “Price is one of the most critical things you do as a retailer, so we want to ensure we’re zoning our stores correctly and applying the right pricing strategy to each store, and to each product category.” “We felt it was important to focus on using more predictive modeling in our pricing,” said Voracek in an interview with Retail TouchPoints.
But these home-grown solutions didn’t have the state-of-the-art analytics Sally Beauty Supply needed to optimize profitability and fuel the company’s global growth.
#Sally beauty supply store manual
Until now, the retailer had used fairly manual spreadsheet processes for both product pricing and store clustering, according to Group VP of Merchandising Linda Voracek. and Canada, decided to bring more science to its pricing capabilities by adopting the Revionics Price Optimization solution. Sally Beauty Supply, a 50-year-old company with nearly 3,000 stores in the U.S. A lot of science goes into the business of being beautiful, from the chemistry that creates hair coloring to the design of precision salon tools.