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: 07/27/2021

    Will the Delta variant keep shoppers and unvaccinated workers at home?

    It remains to be seen how the Delta variant will impact retail as it continues to spread across the U.S. Without getting political, there are clearly segments of the population and regions that will be more impacted than others. There will also be specific retailers, verticals, brands and items that will be more impacted than others. What will be essential for retailers is the ability to react dynamically as the situation evolves while also having the flexibility to make regional adjustments when national moves aren't necessary. Having the right analytics and AI can help on this front. In all cases, there won't be a one size fits all answer to this unique challenge, but the best retailers should weather the storm.
  • Posted on: 07/23/2021

    Will an enhanced rewards program turn Gap’s customers into ‘lifelong loyalists’?

    This approach sounds like a winner -- it makes sense to combine all banners to drive loyalty across brands while also providing incentive to shop at other GAP banners. The ability to support worthy causes is also a nice touch that is not only smart business, but can actually drive meaningful change. Brand and retailer loyalty is increasingly important as customer leakage remains at very high levels. In order to allow this program to drive sustainable loyalty and lifetime value, GAP will need to leverage the best customer and loyalty analytics and make sure to promote the right offers and products for their most loyal consumers.
  • Posted on: 06/18/2021

    Retailers must centralize their data to thrive

    Having robust, centralized, accurate data is absolutely critical for retailers in today's retail landscape. Every aspect of business including supply chains, operations, pricing, assortment planning and loyalty programs rely on a robust foundation of data. The more data that is available - the more levers a retailer can pull to achieve strategic objectives and the more AI can accelerate that success with better forecasting and results.
  • Posted on: 06/10/2021

    Will grocery basket sizes be cut down to their former size?

    On a macro level there will be a natural increase in frequency and decrease in basket sizes as the economy recovers and vaccination rates rise. The good news for retailers is that they can control their own destiny on this front as there are several proven strategies and tactics to increase frequency and/or basket sizes depending on priorities. The right analytics and technologies can help. Some classic examples are advanced affinity/cannibalization analyses and having effective "trade up" strategies. Great customer analytics can also help identify pantry loaders vs. frequency shoppers and allow grocers to create more targeted approaches to help achieve intended objectives. The best grocers don't have to sacrifice frequency or basket sizes if they take a balanced, customer-informed approach and make the right choices.
  • Posted on: 06/09/2021

    Is now a good time for retailers to open new stores?

    As others have pointed out, the answer varies based on retail vertical, e-commerce capabilities and the shoppers you cater to. Despite the hype surrounding omnichannel, it remains true that c-stores, dollar stores and pharmacies (and others) will always need to provide brick-and-mortar locations in the right areas to serve and expand their pool of customers. Regardless of retail vertical, the best retailers are investing in numerous channels and capabilities to exceed the expectations of their shoppers and grow share. Simply adding stores can grow sales in the short-term, but building smarter, more customer-centric shopping experiences across numerous channels is a better approach in the long run.
  • Posted on: 06/01/2021

    Will other retailers follow Costco and bring back food sampling?

    With all of the omnichannel experiences now available to consumers, sampling remains an important way to entice customers into stores and is a useful promotional lever and way to showcase a brand or product. Sampling will come back but, as the article states, it will need to come back in a way that makes shoppers feel safe. As with other promotional activities, retailers will need to monitor the impact of these events and adapt as conditions change. You can't taste things on the internet and you can't replace the joy of seeing a free sample while making a shopping trip -- so this practice should come back in full force once retailers and consumers are fully ready.
  • 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.

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