Background
Sephora UK (formerly FeelUnique), integrated Quicklizard’s pricing optimization platform to manage pricing for an assortment of 8,000 selected items across key categories from its extensive portfolio, including Body, Fragrance, Hair, Makeup and Skincare.
Prior to this, Sephora relied on manual pricing strategies, which required significant human resources and were prone to errors and inefficiencies. This manual approach also limited their ability to swiftly adjust prices in response to market changes, impacting their competitive edge.
The Goals
Sephora aimed to leverage Quicklizard to achieve several key objectives:
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Drive profit growth by implementing dynamic and strategic price adjustments.
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Optimize pricing across an assortment of 8,000 SKUs, a task that was impractical to manage manually.
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Establish a competitive pricing strategy to position themselves as the most attractive option in their product categories.
The Solution
Sephora efficiently implemented Quicklizard’s pricing platform, achieving full integration within just 12 weeks. The pricing team then tested the results and fine-tuned the strategies, achieving fully automated price changes. In addition to the main platform, Sephora also rolled out several key features:
Profit Optimization
This feature dynamically adjusts pricing strategies using real-time data and predictive analytics to maximize profitability and maintain a competitive edge.
Competitor Sensitivity
By monitoring only relevant competitors, this tool helps Sephora save margins and avoid unnecessary price wars, ensuring smart, strategic pricing decisions.
The Results
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25%
Increase in gross profit
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8,000
Items with fully automated pricing
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12 weeks
To full integration
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By implementing pricing optimization across 8,000 products, Sephora achieved a remarkable 25% increase in gross profit compared to its non-optimized assortment.
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Sephora successfully met its strategic goal of offering the most attractive prices in its product categories.
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Pricing for assortment of 8,000 selected items is now fully automated.
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The pricing engine has freed up hours of admin work each week, that is now spent on generating insights from the data provided by the platform.
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