This is Part 3 of a video series. Ken Ouimet (CEO of Engage3) and Frank Scorpiniti (CEO of Earth Fare) discuss the benefits of using Price Image as a metric over Price Index and how retailers can use it to their advantage.
Earth Fare’s customers have responded positively to recent price changes made by Earth Fare using advanced analytics that have improved their profits and price image simultaneously. According to Frank, “Compelling value is being noticed by [Earth Fare’s] customers. It’s helped our average units per transaction go up.”
Frank goes on to note the improvements that have happened since reducing their dependence on price index alone. “There were items that were asymmetrical, if you will, that were probably really hurting us,” he said. “They weren’t helping us create margin or profit, they were just hurting our image–and we’ve ironed some of those kinks out,” he added.
Earth Fare opened its 50th store in January, and has increased its expansion efforts in the time since then. The retailer announced plans to double its store count in the next five years, allowing them to continue their pricing success on a larger scale.
To view the first two parts of this video series, you can view Ken and Frank’s discussion on improving profitability here and implementing grocery technology here.