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Grocery's High/Low Model is Broken. Here's How to Fix It.

Updated: Jan 26

Friends, let's shoot straight. We all know the grocery game. We've played it for years, decades even, with the trusty High/Low model as our playbook. Lure 'em in with dirt-cheap toilet paper, then reel 'em in with fancy cheeses and organic kale. It used to work like a charm. But let's face it, those days are long gone.


Margins have shrunk. We're talking paper-thin, fingernails-on-a-chalkboard-thin. The industry is living on the hope of making 1-2% per year, but weekly margin variability of 2-5% makes it a real struggle to achieve what your parents did without breaking a sweat. If that weren’t enough, there is the fact that everyone is flying blind - forced into making conservative pricing decisions because no one really understands their grosses until 6-12 weeks after the fact.  


As much as you might want to be aggressive, you can’t afford to be wrong. And guests are feeling it. They're heading for the bright lights of Walmart, Aldi, and Dollar General, where the siren song of consistently low prices drowns out muffled mumbles coming from many independents.


But, believe it or not, there is hope!  The good news is that technology, the kind that used to belong only to the bigwigs, has finally found its way to independents. And AI, that buzzword everyone throws around, can now be your secret weapon. 


Leading the charge is a new AI-based gross margin manager called Puzl (www.puzl.ai). Imagine this: knowing your true margins 12 weeks in advance. Not just the headline numbers but the nitty-gritty, blended picture - promotions, markdowns, the whole shebang. With Puzl, that crystal ball isn't just for fortune tellers anymore. It's on your screen, showing you exactly where to squeeze every last drop of profit from your aisles.


But Puzl isn't about squeezing margins, it's about unleashing them. It shows you where to play it safe and where to throw a price punch so powerful it'll knock the socks off those national chains. Think loss leaders on bananas, buy-one-get-one-frees on coffee, and deals with customers lining up around the block. And guess what? You'll do it all without sacrificing your target margins. Puzl’s AI is your pricing and promotions copilot, navigating the stormiest pricing seas with steady hands and a laser focus on your bottom line.


The results speak for themselves. Stores using Puzl are hitting their target margins like clockwork, boosting profits by a cool 1-1.5%. They're changing their price image faster than a chameleon on caffeine, keeping customers on their toes and cash in their registers. And their cash flow? Transformed. No more mountains of unsold stock clogging the shelves. Puzl helps them order smarter, with the confidence to keep inventory lean and mean, down from 35-40 days to a nimble 14-21.


This, my friends, is a revolution. Not just for independent grocers but for the heart and soul of our communities. Independents own main streets nationwide.  You are the glue for your communities -  the friendly faces, the places where kids ask for bubblegum, and moms confide in the cashier. Puzl isn't just about numbers; it's about reclaiming your cities and towns, about showing the world that the little guys, armed with AI and fueled by grit, can still outmaneuver the giants.


So, the next time you feel the squeeze of a shrinking margin, don't just tighten your belt. Raise your fist! Embrace the power of Puzl’s AI.  Together we can show those national chains what independent spirit truly means. The future isn't bleak, friends; it's bright. Let's paint it the color of profit, of community, of independent grocery stores with a fighting chance. 


Onward, friends! The AI revolution starts now.


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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