$2.6M
Profit increases
8-week
Trial period
44
Locations tested
Actionable insights
The challenge
Finding a sweet spot for retail profitability
A leading U.S. retailer sought to test the impact of either removing or lowering a 25% discount on electronic accessories. Previous promotions boosted sales but often eroded margins. The retailer needed data-driven insights to determine how altering discounts would tip the balance of unit sales vs profitability.
Key challenges
Aligning pricing decisions with observable consumer behavior
Deriving statistically valid results across disparate locations
Optimizing discount strategies for profitability
Evaluating margin vs. volume trade-offs
The solution
A Trial Run retail experimentation
Data-driven insights
POS and product hierarchy analysis
Synthetic control algorithms
Demographic controls
Cloud-based solutions
AWS-powered EMR and S3
PostgreSQL for scalable trials
Automated scenario testing
The impact
Empowering profitability through data-driven decision-making
Financial impact
$2.6M
In annual profit
$26K margin gain across 22 stores
Chain-wide scalability
Improved revenue visibility
Business insights
Optimal
Discount removal identified
8-week trial results validated
Statistically significant findings
Empowered decision makers
Streamlined testing
44
Stores tested
Controlled trial flexibility
Rapid scenario iterations
Faster decision timelines
