Apps Run The World

Ermes Group Digital Transformation Initiatives

Apps Run The World

About the Customer

Ermes Department Stores Plc, a member of CTC Group, is the largest retailer in Cyprus with more than 90 retail stores.

Scope and Challenges

Product pricing markdowns are a common practice for retailers today. The challenge is identifying the ideal price point and timing of these discounts to deliver cost-conscious customers great deals while avoiding the need to sell items at a loss that erodes potential profits.

This was precisely the issue for Ermes Group, which decided to move from a manual approach.

Outcome and Implications

In 2017 the company realised the perfect option for them is  IBM’s cloud-based Watson Commerce.

Since working with IBM, Ermes is now able to automatically determine which specific products in each store should be marked down due to stagnant sales, what the new price should be and when the reduction should take place. Previously, teams had to manually go line by line for every product to determine how it was performing and if they should put it on sale. Since going live in 4Q 2016 with IBM, Ermes has significantly streamlined its retail pricing strategy while increasing profits. 

Quotes

“Effective customer engagement doesn’t just happen. It comes from a commitment to several factors, from personalized offers and flawless services to delivering value. Retailers must deliver value, but it cannot come at the expense of the bottom line,” said Harriet Green, General Manager, IBM Watson Customer Engagement.

“Due to shifts in styles and consumer demands, product markdowns are a reality that all retailers must face. The key is knowing both when to act and what price point will allow the business to still profit on each item left in stock,” said Sophocles Sophocleous, Purchasing Manager of Ermes Department Stores Plc. 


154, Giannou Kranidioti Avenue, 2235 Latsia
Nicosia, 1584 Nicosia , x
Cyprus
357 22 365 000
httpS://www.ermes.com.cy/
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Enterprise Software & Cloud Applications Purchased by Ermes Group


Vendor Old Product New Product Function Market Users VAR/SI When Live
IBM Legacy Applications IBM Watson Commerce eCommerce eCommerce n/a n/a 2016 2016

IT Decision Makers and Key Stakeholders at Ermes Group


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