It’s no secret that there has been a shift in shopping behavior due to growth in millennial spending power, aging of baby boomers and the growth of online shopping. These changes are impacting pricing and demand, and are creating a disconnect for retailers and brands between what they’re charging and how much consumers will actually spend. First Insight recently released a study, Decoding Price Elasticity to Unlock Revenue and Minimize Risk, which examines how retailers can best price a category to meet demand while protecting margins and avoiding excess inventory.
Our study examined pricing and price elasticity trends on more than 90,000 items between September 2015 and August 2017, along with other sources. These data were processed through InsightSuite, First Insight’s predictive analytics platform, which enables retailers and manufacturers to select, price, market and buy new products with no sales history.