Challenges:

• Cost pressures of 7.5% inflation environment
• Question of how to push through client’s desire for aggressive price increases
• Lack of data-driven insight for price optimisation in order to protect volumes and customer perceptions
• Competitive pressure in the market, especially from other online retailers (e.g., Zalando, Amazon)
• FY23 retail market pressures add concern over the impact of price changes

Outcomes:

• Client’s adoption rate of new model allows for a + €9.9m margin uplift (3.5% of FY22 margin)
• Special focus on Winter Sports universe with recommendation for more aggressive price increases
• PH recommended an average weighted price increase of approx. +2% pts above forecasted market inflation
• New model means client has more targeted approach to individual price changes at supermodel level (as opposed to blanket price increases)