What’s Pushing Retailers to Rethink Pricing?

At this year’s NGA Show, independent and regional grocers gathered to explore innovations that will shape the future of retail. From AI-powered pricing to electronic shelf labels, from assortment gap management to unified omnichannel experiences, the message was clear: without advanced technology, grocers can’t succeed.

Pricing technology enables grocers to move away from static, ad-hoc strategies and adopt more innovative, data-driven approaches that will improve profitability and enhance the customer experience.

Pricing Is Front and Center

72% of consumers say they’ve changed their grocery shopping habits due to rising food costs. 

Yes, inflation is still impacting consumer spending… and its reshaped shopping habits. People are trading down, looking for deals, and switching to private label at record rates. But even as inflation cools, price sensitivity remains high.

Then there’s the issue of tariffs. New tariffs will add cost pressures, driving up costs for imported groceries. USDA data shows that Mexico is the leading source of fresh fruit and vegetable imports for the US. Retailers face tough decisions: absorb costs, pass them to consumers, or find alternative strategies.

ClearDemand’s price optimization analyzes price elasticity to determine where price increases will have the most impact on demand. ClearDemand’s competitive intelligence ensures you’re not under- or overpricing relative to the market, allowing you to stay competitive without sacrificing margins.

Competitive Intelligence = Competitive Advantage

78% of grocery executives lack real-time visibility into competitor pricing and promotions.

We see grocers are increasingly tracking competitor prices — but many still struggle with incomplete data or inaccurate product matching. During our conversations at NGA, we heard one common frustration: You know you need competitive pricing insights, but you don’t know where to start…

Not all data collection processes are created equal. You want to get pricing, promotion, assortment, and availability data from hard-to-access sites and hard-to-match categories. Plus, you should be able to get the data as often as needed, at the store-level.

The right competitive intelligence programs help grocers immediately compare pricing against local and national omnichannel competitors, spot pricing gaps and margin opportunities, and easily see volume and sales trends.

AI-Powered Pricing Isn’t Optional

63% of retailers plan to increase investments in AI-powered pricing and promotions this year.

For the largest grocers, AI-powered technology is table stakes. Regional and independent grocers are rapidly adopting the latest advancements to enhance pricing and promotional strategies.

From demand forecasting to promotion management, the industry is recognizing that manual pricing adjustments just aren’t enough and older technology solutions haven’t kept pace with today’s evolving market demands.

Your AI-powered pricing platform will assure smarter, data-backed decisions because you can easily identify:

• Which products to discount (and which not to!)
• How to determine what new products you should promote (vs last year’s plans)
• How to respond to competitors without triggering a race to the bottom

It’s Time for Data-Driven Pricing!

The biggest takeaway from NGA Show 2025? Retailers who embrace pricing technology will be the ones that thrive in today’s market.

In today’s fast-moving market, sticking to old pricing tricks just won’t cut it. Margins are slimmer, shoppers are pickier, and the competition is fiercer… The smartest move you can make is to arm your team with top-notch pricing capabilities. It’s not just about keeping up, it’s about turning pricing into your secret weapon.

At ClearDemand, we’re all about helping grocers like you flip the script. Our pricing data, analytics, and optimization tools are designed to keep your profits strong while staying flexible enough to adjust with changing behaviors, shifts, and sales.

Let’s chat about how we can team up to give you an edge that’s as practical as it is powerful. Ready to make pricing your superpower?