earnest retail pricing

Earnest Retail Pricing uses web derived sku-level data to track retailers’ pricing and discounting trends for insights on gross margins.

Analyze Merchants with Pricing & Discounting Trends

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Track KPIs related to pricing, depth and breadth of discounting, and product/sku offerings

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Access up to 5 years of history of sku-level weekly data, aggregated to the product-level

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Segment the data by product category & subcategory, price points, product release date, and product attributes (best seller, on clearance, online only)

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Analyze the competitive pricing landscape across merchants

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View trends on a weekly, monthly, or fiscal quarter basis

Supplement Top Line with Gross Profit Margin Insights

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Track relationships between pricing/discounting and gross profit margins

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Identify KPIs that matter for each merchant

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Uncover margin-driving product categories

Our Coverage

Bath & Body Works
Bloomingdale’s
Macy’s

American Eagle
T.J. Maxx
Kohl’s

Victoria’s Secret
Hollister
Lululemon

The Children’s Place
Express
Target

Abercrombie & Fitch
Coach
Kate Spade

Ulta Beauty
Best Buy

30-50 merchants expected by the end of 2020 spanning Apparel & Accessories, Department Stores, Electronics, General Merchandise, Health & Beauty, and Home.

Questions Only Data Can Answer

Merchants’ Pricing & Discounting Trends
As a result of the COVID-19 retail slump, how did American Eagle increase discounting across its products?

Competitive Pricing Landscape
How did COVID-19 impact retailers’ Average Selling Prices (ASP) across merchant categories?

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In Apparel, Abercrombie & Fitch had negative YoY ASP trends in April but saw improvements in May. Express saw its pre-COVID-19 negative trends in ASP continue and deepen in April.

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Only Lululemon was able to increase its ASP by 8-10% YoY throughout April and early May, benefiting from the ‘home gym’ trend.

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Health and beauty companies Bath & Body Works and ULTA also saw increasing price trends throughout April and May. Bath & Body Works posted double-digit YoY increases in ASP throughout the period.

Relationship to gross profit margins
Which product category is the strongest driver for Lululemon’s gross profit margins?

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For the entire data history starting in 2Q16, Average $ Discount has the strongest relationship to Lululemon’s gross profit margin, with a correlation of 80% on a YoY basis.

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Over a more recent timeframe starting in 1Q18, % of Products Discounted has the strongest relationship to Lululemon’s gross profit margin, with a correlation of 82% on a YoY basis.

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With the same parameters and over the same recent timeframe as above, the Bottoms product category (representing ~25% of the dataset) has a correlation of 86% on a YoY basis.

Accurate, Actionable Insights for Investors

Proprietary Methodologies

Multi-year sku-level weekly data aggregated to month and fiscal quarter based on transaction volume observed in Earnest’s spend data

Domain Expertise

Data analysts help clients interpret a nuanced and ever changing data set

Granularity

Tools to segment data
and build custom analyses

See a demo