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High-Low Supermarket Pricing is a Losing Battle. Here’s What You Can Do About It.

Updated: Jan 26

If you are a grocery CEO, Chief Merchant, or VP of Pricing, you've probably been around long enough to remember the days (a decade ago?) when the high-low pricing model could keep your registers humming profitably. But let's face it, that tune's gone stale. While the vast majority of independents are still singing the high-low song, fewer and fewer consumers are listening because independent pricing just isn’t competitive anymore.


While the high-low model works great in theory, with the tightening of margins over the last 10 years and the fact that most grocers only understand their small margins 6-12 weeks after the fact, it is no wonder that supermarket leadership has become more and more conservative with pricing.  And that’s why every year 1% of the independent customer base is leaving for more competitively priced options like Walmart, Aldi, Lidl, and Dollar General.


So why aren’t the big national chains struggling with competitiveness?  Sure, they have superior cost of goods (and that’s a different topic for a different day).  But critically, they have upgraded to a whole paradigm: future-focused margin forecasting.


Yes, Walmart, Aldi, and Lidl are equipped with sophisticated tools that allow them to peer into the grocery crystal ball, understanding and actively managing their gross margins weeks ahead of time.  As a result, they can deliver vastly superior, more competitive pricing faster than you can say "stockpiled sunscreen." Meanwhile, most high-low grocers are left squinting at blurry sales reports, feeling like dial-up in a 5G world.


But all is not lost!  There's a brand new tool, designed by high-low grocers for high-low grocers, that is changing the game - Puzl.  With Puzl and its comprehensive AI, high-low grocers nationwide are ditching their rearview mirrors for real-time gross margin insights 6-12 weeks in advance. Imagine knowing with certainty what your pricing wiggle room is 3 weeks from now. We're talking laser-targeting promotions, avoiding mountains of markdowns, and boosting your bottom line like a true grocery warrior.


With Puzl, you can:


  • Optimize your promotions like a pro: Forget shotgun blasts – pinpoint the exact products and times where hyper-aggressive discounts can explode your profits.


  • Maximize dollar profit in base pricing: 99% of grocers don’t think twice about passing all price changes along to their guests.  But Puzl shows you when it makes sense and when it doesn’t.  Puzl gives you the tools to keep your margins competitive, but your dollar profit higher than ever before.


  • Zero in on optimized promotional ordering: Save those tears (and lost cash) for the onions you're chopping, not the unsold artichokes.  Grocers using Puzl are seeing their inventories go from 35-45 days of stock-on-hand to 14-21 days of stock-on-hand.


So, ditch the inherent limits of the high-low playbook and embrace the future of grocery. With Puzl, you can outmaneuver the giants, one crystal-clear margin at a time. Remember, visibility is power (and profit!) in the grocery game. Now go forth, grocery leaders, and unleash your inner AI-driven grocery gladiator!


If you would like to know more about how Puzl’s AI can help you drive profitability, please contact us at info@puzl.ai.


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