PROFILE

Matthew Pavich

Managing Director, Global Strategic Consulting at Revionics

Matthew is the Managing Director, Global Strategic Consulting at Revionics, an Aptos Company. He specializes in pricing and retail strategy, corporate strategy and customer focused solutions. Matt is a leader in pricing strategy development, business strategy development and overall corporate strategy. Matt has a strong merchant background and experience with C-Level presentations. He has more than 20 years of experience in retail, encompassing consulting, buying, pricing and marketing across a variety of retail verticals, industries and regions. Matt has lived and worked in France, Germany, Hungary and South Africa (with additional long-term engagements in other markets) and has more than seven years of driving customer-focused success at Revionics.

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  • Posted on: 05/06/2021

    Will a new subscription program make Circle K a daily stop for members?

    More so than most retailers, c-stores are a frequency game. While a lot of retailers are able to grow traffic via omnichannel capabilities, it still remains a strategic imperative for c-stores like Circle K to leverage their numerous physical locations to grow sales via new customers and increased frequency. This program appears to be a logical way to achieve that objective. Based on the GA/SC test, it seems to be achieving its intended objective. For Circle K to remain successful, they will need to monitor the program, learn about their customers and continue testing ways to make the program even more successful. One low-hanging fruit example is understanding which products are appearing in the same baskets as the Sip & Save ones and figuring out ways to maximize each trip. In all cases, frequency will increase as vaccinations progress and the economy improves - the best retailers will find ways to drive even larger increases.
  • Posted on: 04/29/2021

    Will Americans open their garages and homes to Amazon and Walmart?

    10 years ago these questions were being asked: Will Americans ever buy groceries online? Will Americans ever get into a stranger's car for a ride somewhere? Is it wrong to wear a mask when entering a convenience store or a bank? Things change and both people and retail evolve using the best technologies and safety measures possible to ensure that the end-consumer and team members feel safe and comfortable. There will be adopters who love the convenience of freshly delivered groceries which don't only go "the last mile" but also "the last 20 feet." Others - including most of my extended family - will never let a stranger into their homes. The key is to keep innovating and listen to the customer, understand their needs and use the right consumer data to inform how to evolve and explore new opportunities. This service may not be for everybody - but like Halal, Kosher or Gluten Free, it serves a unique customer need and could be incremental for those who do it correctly.
  • Posted on: 04/19/2021

    Will American consumers push back against higher grocery prices?

    Consumers won't push back if grocers are using the right analytics, best practices and pricing strategies to meet the shifting demand of their consumers while remaining competitive. As somebody who has worked with numerous grocers on developing winning price strategies, I can attest that using consumer data and having the right solutions and practices can be all the difference. The beauty of price optimization is that, when used correctly, it reduces as many prices as it increases -- meaning that consumers will get better pricing on key items and grocers will balance that by increasing margins on items that are less likely to drive price perception. It's a win-win in a tough economy where consumers can benefit from better prices on top items and grocers can leverage advanced capabilities to achieve business objectives.
  • Posted on: 04/16/2021

    Can omnichannel be as profitable for retailers as in-store sales?

    Online can be very profitable - just ask Jeff Bezos. As mentioned in this article, pricing and promotions will be critical. I've personally witnessed the enormous value that can be derived by upgrading these practices to support online growth. The time is now for most retailers to re-evaluate their online pricing practices - are the right items priced competitively? Which promotions are being offered? Are the right competitive strategies in place against the right competitors? How fast can prices be adjusted to remain relevant in an increasingly dynamic landscape? With the right practices, analytics and pricing platforms, the best retailers can grow both share and profitability.
  • Posted on: 04/15/2021

    How should grocers decide which SKUs to bring back?

    The answer will be different for every grocer based on their business objectives and their general brand promise (i.e Whole Foods is not Costco). Having said that, there are a lot of analytics that can help inform these decisions and take a lot of the guess work out of the equation. Does an item drive price perception? Does it have great financials? Does it offer something unique and incremental that other products in its range don't? Does it drive affinity and larger baskets or is it more of a cannibalization type of product? Blending the right analytics with solid merchant sense and the right vendor strategies will help grocers figure out which items to keep, which ones to add and which ones to remove for a better overall assortment.
  • Posted on: 04/14/2021

    Is e-grocery killing or inspiring impulse buys?

    Generally speaking, I think that shopping online will reduce impulse buys - it's something I can personally attest to in the way my family buys groceries. Having said that, smaller baskets could be a small price to pay if having a great online platform drives enough frequency and transactions to even out the equation. As with many things, a lot of answers lie in the data where smart retailers can offer high-affinity products to online shoppers or leverage shopper analytics to increase baskets. Another needed consideration is that not all smaller baskets are due to lack of impulse -- some could be competitive siphoning that is occurring now that shoppers are able to directly compare groceries at the same time and decide to buy the chips and wine from one retailer and the produce from another to all get delivered on the same day. The impulse buy was still there - it just went to a competitor. Again - the truth lies in the data and having the right competitive analytics can help retailers better understand their basket trends.
  • Posted on: 04/12/2021

    Amazon’s Prime Day is coming earlier and possibly twice

    Although it does run the risk of losing its "specialness," having an addition Prime Day event seemed inevitable. There aren't many businesses in the world who would bring in $10.4 billion from an event and not try to find ways to do "more of that." The challenge for Amazon will be in carefully monitoring impacts and making sure that they don't dilute something that has been very successful. Much to the chagrin of most of Amazon's competitors, I do have a feeling that Amazon knows what it is doing and will make this event successful.
  • Posted on: 03/23/2021

    Is AI adoption moving too fast?

    The reality is that AI adoption isn't moving fast enough. In today's complex, highly evolving retail landscape, AI is absolutely required to drive better, data-informed decisions that can drive key business objectives. Some of the concerns cited can actually be ameliorated through AI (an example being that AI pricing can actually result in more ethical outcomes through more efficient enforcement of anti-discriminatory pricing rules). The biggest barrier to adoption will always be change management and the ability of an organization to embrace new technology while understanding the delicate balance between science and the "art of retail." One thing is clear, the retailers who are adopting AI and using best practices today will be tomorrow's winners.
  • Posted on: 03/17/2021

    Why is gaining meaningful insights from data still so hard?

    In my experience, the largest barriers are almost always organizational willingness to transform into a data-informed culture. Whether it is CRM, supply-chain or pricing data, the capabilities exist and can drive enormous value if retailers are able to do "the hard work" and employ all of the needed best practices to achieve their business objectives. Unfortunately, some retailers purchase Ferraris and then spend the next several months trying to convert them into bicycles. The best retailers embrace the top solutions, remove data silos internally and transform their organizations to meet the demands of their consumers profitably using the best analytics available.
  • Posted on: 03/03/2021

    Target CEO says record-setting 2020 was no ‘fluke’

    As mentioned earlier on this thread, Target's investment in Grocery over 10 years ago (PFresh initiative) is one of the reasons that Target saw such growth in a year when a lot of retail segments struggled. More recently, their investment in supply-chain and their partnership with Shipt have proven to be very timely and effective. Their commitment to safety and higher wages for their store employees is another thing they got right - people feel safer shopping and working there which is critical during COVID-19. If Target continues to focus on areas that are important to consumers, they will continue to grow share - but it is also safe to say that 2020 will be a hard year to replicate on numerous fronts.
  • Posted on: 02/22/2021

    Do grocers need to get better at planning for weather-related disasters?

    Having lived through the winter event (in Austin), I can definitely speak to both the challenges and the opportunities of last week. I don't personally believe that grocers should "take the lead" in preventing or mitigating disasters - but they should have plans in place for such event and should respond appropriately. H-E-B won on the PR front by allowing shoppers to take home their items without paying when their power went down in their Leander store - something everyone in Central Texas will remember. After a futile week of shopping frustration, Amazon ultimately won my dollars as it was the first retailer to actually be able to provide my family with groceries. Meanwhile other grocers remained closed, canceled pickup times or filled their trash bins with spoiled products when they lost power. Even if nobody had the imagination to think that Texas would run out of energy, it was clear that some retailers were more prepared and reacted better than others and it benefited them last week and may have gained them some new loyal customers.
  • Posted on: 02/11/2021

    Should Aldi’s growing store count and digital progress keep rivals up at night?

    Aldi is doing all of the right things to continue its growth in the US. Aldi has always offered a unique value proposition for a specific segment of US grocery and done a fantastic job at meeting the needs of those shoppers. It has also shown a willingness to go beyond and expand from its model to attract new customers. Very few people would bet against Aldi growing share in the years to come -- and that share needs to come from somewhere.
  • Posted on: 02/02/2021

    Can a volunteer-run grocery store successfully work through the pandemic?

    Having lived in South Minneapolis, I can attest to the strength of the co-op and local food movement that exists in that market. The concept is a winner on numerous fronts. People want to support local businesses. The math also makes sense as a lot of families would gladly surrender 2.5 hours of their time every month for a 20 percent reduction to their grocery budget. It also aligns nicely with the growth of local and sustainable products. This trend has been large in progressive markets like Minneapolis for some time, but is now becoming more of a national trend. Finally, people want to be a part of something important and this gives them the opportunity to contribute to their community in a meaningful way.
  • Posted on: 01/29/2021

    Are small brands eating big food’s lunch?

    The data definitely shows that 2020 was a year where consumers tried new things. New products, new brands, new retailers and new hobbies. The brands that met or exceeded expectations will likely continue to win share vs. larger brands. Those that didn't may fade away. The growth of craft beer, gourmet coffee and varietal apples has shown that consumers will turn away from major brands if there is a better alternative. Retailers will continue to do what they do and monitor these trends and ensure that they are investing in the right growing segments.
  • Posted on: 01/29/2021

    Not every retailer is sold on curbside pickup

    As others have stated, these trends are all likely to continue and were growing trends that COVID simply accelerated. The devil will be in the details of how they will grow, as "Health & Wellness" in 2020 meant hand sanitizer and home gym equipment, but could have a different flavor moving forward. BNPL also has different flavors as does Livestreaming. The best retailers will monitor how these trends evolve and leverage the right analytics to stay on trend and evolve as their consumers do to ensure they are always offering the right products, experiences and prices.

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