Loyal customers, the wrong habit.
Vertexa runs 340 home and lifestyle stores across five European markets. Yet 41% of sales were made on promotion, margins were sliding and every campaign pulled demand forward instead of growing it.
- 41%of sales made on promotion
- −3.8ptsgross margin over three years
- 5markets, each pricing its own way
The board knew the brand could hold its price. What it lacked was evidence of where customers were truly price-sensitive, a promotion calendar that stopped training them to wait, and one pricing logic across five markets.
Three workstreams, one pricing logic.
A partner-led team of four worked alongside Vertexa's commercial and finance teams, with a fixed fee and monthly board check-ins.
- 01
Model elasticity
We modelled price elasticity for 60 categories and separated the lines customers compare from those they simply buy.
- 02
Reset promotions
We replaced always-on discounting with a calendar of fewer, sharper events, each with a margin floor agreed by the CFO.
- 03
Zone the estate
We grouped 340 stores into pricing zones by competition and footfall, and trained store managers to run them.