ARMONK, N.Y., Jan. 12, 2017 /PRNewswire/ -- IBM (NYSE:
IBM) today announced that Ermes Group, the largest and most
diversified retailer in Cyprus, is
leveraging its cloud-based Watson Commerce pricing optimization
solutions to help ensure that product markdowns resonate with
value-seeking customers while maximizing profits for across all of
its retail locations relating to Debenhams Department Stores, Next
Stores, Oviesse Stores, Peacocks Stores and Uber Stores.
Product pricing mark downs are a common practice for retailers
today. The challenge is identifying the ideal price point and
timing of these discounts to deliver cost-conscious customers great
deals while avoiding the need to sell items at a loss that erodes
potential profits. This was precisely the issue for Ermes Group,
which decided to move from a rather manual approach to IBM's
cloud-based Watson Price Optimization capabilities.
Working with IBM, Ermes is now able to automatically determine
which specific products in each store should be marked down due to
stagnant sales, what the new price should be and when the reduction
should take place. Previously, teams had to manually go line by
line for every product to determine how it was performing and if
they should put it on sale. Since going live with IBM, Ermes has
significantly streamlined its retail pricing strategy while
increasing profits.
"Due to shifts in styles and consumer demands, product markdowns
are a reality that all retailers must face. The key is knowing both
when to act and what price point will allow the business to still
profit on each item left in stock," said Sophocles Sophocleous,
Purchasing Manager of Ermes Department Stores Plc. "With IBM's
cloud offering, our merchandising team can easily and quickly
determine which products are lagging in sales and what steps we
need to take to get these items moving off the shelf."
"Effective customer engagement doesn't just happen. It comes
from a commitment to several factors, from personalized offers and
flawless services to delivering value. Retailers must deliver
value, but it cannot come at the expense of the bottom line," said
Harriet Green, General Manager, IBM
Watson Customer Engagement. "IBM has decades of experience in
working with leading retailers around the world, helping them not
just align to the needs of their customers but to the best business
decisions, those that put them on the path for long-term
success."
IBM recently released a new study focused on Generation Z, a
group that possesses $44 billion in
spending power. According to the study, the majority of Generation
Z make purchases in the store. Of this group, 66 percent do so
because they believe they get good deals and value for their
money.
Delivering in-store value to customers has always been a
priority for the Ermes Group. However, the company was exhausting
significant time and manpower when it came to markdowns. As a
result, markdowns were often put in place when product demand was
on the decline which forced teams to increase the savings to move
stock. While these low prices satisfied the growing number
deal-seeking Generation Z shoppers, they represented significant
loss in profits for the retailer.
IBM Price Optimization automatically monitors a product's cost
and sales and then alerts the retailers to generate a promotion
before demand begins to wane. In addition to increasing profits,
Ermes Group has been able to free merchandisers and buyers to focus
on other key areas such as in- season performance monitoring and
being reactive in a timely as well as efficient manner.
IBM Watson Customer Engagement provides organizations across all
industries and of all sizes with the capabilities to integrate
cognitive into its current systems to more effectively engage with
customers when and how they need to.
Today's announcement follows the release of IBM's new IBV study
titled, "Uniquely Generation Z: What brands should know about
today's Gen Z consumers." The study surveyed 15,600 consumers ages
13-21 in 16 countries across six continents in an effort to
understand Generation Z and what drives them in choosing a brand.
The full report can be accessed here.
About Ermes Group
The Ermes Group is a member of The
CTC Group, the leading and most diversified private Group in
Cyprus with an annual turnover of
300 million. The CTC Group is also one of the largest employers in
Cyprus. Today Ermes is the leading
retail company in Cyprus in
Apparel, Cosmetics, DIY and Electronics operating more than 70
retail shops. Ermes Fashion brands portfolio includes Debenhams,
NEXT, Oviesse, Forever 21, Armani Exchange, Tommy Hilfiger, Diesel, Superdry, Desigual, Pepe
jeans, Springfield, Cortefiel, Oasis, Warehouse and many more!
About IBM Watson Customer Engagement
IBM powers a full
spectrum of cognitive engagement offerings delivered as a service
and on premise for more 17,000 companies around the world. These
businesses include 7 of the top 10 companies on the Fortune 500.
and companies such as 1-800-FLOWERS.COM, Yoox Net-a-Porter,
Moosejaw Mountaineering, The North Face, Luxottica, The Works UK
and hhgregg. For more information follow us at @IBMforMarketing or
@IBMCommerce and #WatsonCE.
Media Contacts:
Doug
Fraim
IBM Media Relations
+1 617-501-6376
dfraim@us.ibm.com
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SOURCE IBM