Master pricing: The blueprint for grocery price optimization

“The days of spreadsheets and gut-feel pricing are behind us,” said Steve Thornberry, VP of Sales at ClearDemand. “Retailers need science-backed decisions that align with their brand, business goals, and customers’ expectations.”

Tariffs, cost volatility, shifting consumer loyalty, and aggressive competition are all forcing grocery retailers to rethink their strategies.

In a recent webinar, ClearDemand pricing experts Sarah Stockton and Steve Thornberry outlined what it really takes to gain control of pricing in today’s market and how you can use smarter forecasting and optimization to protect margin, drive traffic, and cut through the noise.

The Chaos in Grocery Retail

You're not alone. Retailers of all sizes and in all locations are battling rising costs, unpredictable tariffs, and increasing labor expenses, not to mention, trying to meet consumer demands for affordability and value.

Thornberry noted, “Chaos is the perfect word for what grocers are experiencing. But in that chaos is exactly where smarter pricing delivers clarity."

You’ve probably had weeks where it felt like every cost changed at once, your promo calendar was locked, and competitive pressure was rising. That’s why it’s critical to get out of reactive mode and into strategy.

ClearDemand’s mission is to bring predictability and visibility back into your pricing decisions so teams can act with precision rather than pressure.

Pricing Toolkit (3 Must-Haves)

Our approach to price and promotion optimization is built on these essential capabilities:

1. Demand Modeling - Understand What Shoppers Care About
   ClearDemand measures item- and store-level elasticity to predict how customers will respond to price changes. This reveals where grocers have pricing power—and where they don’t.
   
   “Elasticity tells you: Where does it matter if I’m 50 cents higher? Where can I take margin? Where do I need to invest?” Sarah Stockton, VP of Product, explained.
   
2. Rules - Put Smart Pricing Rules in Place
   A dynamic rules engine allows grocers to maintain guardrails—around competitor pricing, margin protection, key-value items, and more. It’s rules + data, not rules vs. data.
   
   “Our system respects your brand and pricing strategy,” Stockton continued. “It’s not a black box. It’s your business, automated."
   
3. Optimization - Simulate then Execute
   Using advanced forecasting and opportunity curves, ClearDemand identifies the sweet spot between maximum profit and maximum revenue. This gives retailers the confidence to make pricing decisions that drive sustainable business outcomes.

https://youtu.be/wQk0E6nkqtk?si=oNOB6x9MbOjNPlur&t=16

Why Forecasting Matters

Forecasting is at the heart of smart price optimization.

Before any price change is implemented, the system provides a forecast of its impact on units, revenue, and profit—not just at the item level but across the entire category. This level of insight is what transforms pricing from reactive to strategic.

Fixing the Spreadsheet Problem

“You’ve got these huge spreadsheets full of copied-over costs, incomplete data, and version control nightmares,” Thornberry called out. “You can’t run a pricing strategy that way—not with thousands of SKUs and daily cost changes.”

Far too many grocery retailers are still managing pricing in spreadsheets. ClearDemand replaces this patchwork with a unified, automated system that ensures accuracy and agility.

From Optimization to Execution

“ESLs are only as good as the prices behind them,” Stockton pointed out. “If you’re just pushing bad pricing faster, that’s not a win.”

Make sure your ESL strategy is backed by strong forecasting and rules so you can price with purpose.

The Bottom Line

You’re not here to play pricing games. You’re here to win customer trust, stay competitive, and drive sustainable business outcomes. Modern tools help you do exactly that—with your strategy in the driver’s seat. “This isn’t about racing to the bottom,” Thornberry added. “It’s about knowing what price drives the best outcome—and making that decision on purpose, not by accident.”

Let us show you how forecasting and strategy-first automation can bring clarity, margin, and confidence to your pricing decisions. Book a demo!