Abstract

The case discusses the implementation of price optimization software at Northern Group Retail, a major clothing and accessories retailer based in Toronto, Canada. The Northern Group was experiencing a decline in performance due to its pricing strategy, which followed nation-wide pricing rather than zonal pricing. Due to this, the company was not tuned-in to local conditions and implemented the prices uniformly. This led to the company losing out on substantial revenues by implementing mark-downs in places where the goods had the potential to sell at full price.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Nature of pricing strategy in the retail sector.

Keywords

Implementation, price optimization, software, Northern Group Retail, clothing, accessories, retailer, Toronto, Canada, pricing strategy, zonal pricing, tuned-in, local conditions, prices uniformly, substantial revenues, implementing, mark-downs, goods, full price