Earth Fare increases topline sales by 3% with no added margin investment.
Earth Fare offers what CEO Frank Scorpiniti describes as “a very curated assortment” of products that comply with its “Food Philosophy”. This translates to a product assortment characterized by a heavy selection of fresh prepared foods with a “compelling value proposition, produce that’s 70% organic, humanely raised, antibiotic-free and hormone-free poultry, grass-fed meats and sustainably sourced seafood.”1
Given such stringent standards, coupled with a multi-year growth pipeline aimed at growing store count by 25% (not to mention the standard brutal competition across the industry), Earth Fare was presented with a challenging situation when it came to its promotional activity, which comprises mainly price-based promotion through weekly ads.
Scott Little, Earth Fare’s CFO, noted that the retailer’s merchandising and marketing teams were “spending a significant amount of time each week on promotion planning with heavy focus given to the best cadence of promoted products”.
Promotional Product Selection
Daisy Intelligence has fundamentally changed our promotional planning processes by reducing the amount of time required for the Merchant Team to plan promotions and creating more effective and predictable sales outcomes.
FRANK SCORPINITI | CEO, EARTH FARE
Earth Fare turned to Daisy Intelligence to help them improve their selection of products to promote, and the promotional cadence of those products. Representing the latest generation of promotion planning and optimization solutions, we use sophisticated data science and artificial intelligence to help retailers identify which products to promote, with the goal of increasing shoppers’ trip frequency and growing individual basket size while protecting margins.
In the high-volume, low-margin supermarket industry, where even slight improvements can deliver considerable increases to bottom line profitability, A.I.-powered promotion optimization is nothing short of transformative. Daisy’s A.I. system helps Earth Fare analyze the cause-and-effect around promoting any item, during the weeks before and after, to determine the longer-term implications of what item they’re promoting and when.
Earth Fare’s experience is typical across all of Daisy’s retail clients in that A.I. powered promotion optimization is consistently able to deliver increases of up to 3% to total topline sales – with no added margin investment. This leads to an added benefit in that the team spends less time in the planning process and more time thinking about product selection. Earth Fare have now incorporated Daisy’s A.I. powered Promotional Pricing Optimization to their decision-making process.
INCREASE YOY TOPLINE GROWTH
Growth to total topline sales.
INCREASE BASKET SIZE
Increase in Net Promotional Effectiveness (NPE) over 28 weeks.
1STORES Magazine, 1/12/2017 – “Earth Fare goes into the future of promotion optimization.”
DAISY IS THE FIRST COMPANY TO USE THE POWER OF A.I. TO SOLVE RETAIL PROMOTION CHALLENGES.
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