Cypress Retailer Taps IBM To Improve Customer Engagement

Ermes Group has partnered with IBM to leverage the company’s Watson Customer Engagement solution to maximize profits from markdown items.

Thanks to IBM’s cloud-based technology, Ermes can now automatically determine whether or not any specific item, in any given storefront, should be discounted to move stagnant sales. Furthermore, IBM also provides recommended pricing and timing for when exactly the discount should take place.

Ermes Group is the largest retailer in Cyprus, operating more than 70 retail shops in the country. It is common practice for retailers to mark down items that are still in stock to make room for new inventory after a business quarter or fashion season is complete. One hurdle for many retailers, however, is to find the optimal price point that can move the product from store shelves while still generating revenue for the company.

Whereas Ermes previously calculated this price point manually for each individual item and store, the retailer now partners with IBM to automatically calculate the recommended prices via Watson.

“Due to shifts in styles and consumer demands, product markdowns are a reality that all retailers must face,” states Sophocles Sophocleous, purchasing manager of Ermes Department Stores Plc. “The key is knowing both when to act and what price point will allow the business to still profit on each item left in stock. With IBM’s cloud offering, our merchandising team can easily and quickly determine which products are lagging in sales and what steps we need to take to get these items moving off the shelf.”

Since partnering with IBM, Ermes asserts that they have seen increases in profits while streamlining their retail pricing strategy.

 

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