LONDON, March 9, 2016 /PRNewswire/ -- NetSuite Inc. (NYSE: N), the industry's leading provider of cloud-based financials / ERP and omnichannel commerce software suites, today released the results of a study conducted with retail industry research firm, Planet Retail, which reveals the negative effect discounting has on UK retailers' overall profitability, costing them £38bn in lost revenue and UK PLC £20.3bn in GDP contributions.
The study indicated that discounting is here to stay. But price wars that erode margins and entrench consumer expectations necessitate obligatory and unsustainable markdowns. Retailers surveyed agree they need better visibility into their entire retail operations to create profitable discounting and promotional strategies in the long-term.
The research study, "UK Discount Pricing Strategies," surveyed 150 of the UK's leading retailers and 6,000 consumers on the impact of current discounting strategies in the UK retail sector. The report found:
- Fragmented and disparate systems cannot provide a single view of inventory, sales and customer data, making it difficult for retailers to deliver sustainable and profitable discounting and promotional strategies that include personalised or location-based discounts and offers.
- 66 percent of retailers researched agree omnichannel systems that offer a single view of customer, orders and inventory would advance their business.
- The warnings of a growing number of industry stakeholders, including John Lewis and Asda, question the long-term viability of events such as Black Friday and Cyber Monday.
According to Miya Knights, Planet Retail Research Director: "With access to real-time inventory data, retailers can compare modest markdowns early in the season against deeper reductions later on to maximise revenue and expose unsold merchandise. Value-based promotions drive sales and improve price perception. Irrelevant promotions lead to lower sales or require deep discounts that destroy price perception and margins."
Mark Woodhams, Managing Director, EMEA for NetSuite, says: "Discounting is a necessary evil that isn't going away. However, retailers that can execute on personalised discounts, offers and promotions can win over UK shoppers. Unifying the back-end of retail operations with front-end, customer-facing systems helps retailers improve business viability, profitability and customer satisfaction with timely, targeted discounts."
Learn More at the Retail Business Technology Expo
NetSuite will share the complete results of this exclusive research during the bootcamp session, "Getting Discounting Right in 2016," at this year's Retail Business Technology Expo (RBTE). NetSuite retail experts will also be at stand 591 to discuss how they help retailers achieve a 360-degree view of their business. To book time with one of the team, please email firstname.lastname@example.org
Retailers and brand manufacturers increasingly turn to NetSuite for a single, unified cloud platform, which delivers the scalability, agility, flexibility and advanced functionality required to transform their business operations and deliver experiences today's consumers expect. NetSuite enables retailers to:
- Gain a 360-degree view of the customer, helping them to deliver innovative experiences that are differentiated and more personalised.
- Deliver true omnichannel shopping and service experiences through a single commerce platform that combines ecommerce, point of sale and order management with back-office systems.
- Empower sales associates with the tools and information to assist and engage shoppers.
- Help to accelerate growth and drive expansion across business models, channels, brands, and countries.
For more information about NetSuite for Retail, please visit: http://www.netsuite.co.uk/portal/uk/products/industries/retail.shtml
Today, more than 30,000 companies and subsidiaries depend on NetSuite to run complex, mission-critical business processes globally in the cloud. Since its inception in 1998, NetSuite has established itself as the leading provider of enterprise-ready cloud business management suites of enterprise resource planning (ERP), customer relationship management (CRM), and commerce applications for businesses of all sizes. Many FORTUNE 100 companies rely on NetSuite to accelerate innovation and business transformation. NetSuite continues its success in delivering the best cloud business management suites to businesses around the world, enabling them to lower IT costs significantly while increasing productivity, as the global adoption of the cloud accelerates.
For more information about NetSuite please visit www.netsuite.co.uk.
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SOURCE NetSuite Inc.