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Blue Yonder > Case Studies > Morrisons Simplifies Fresh Food Clearance with Blue Yonder
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Morrisons Simplifies Fresh Food Clearance with Blue Yonder

Technology Category
  • Analytics & Modeling - Predictive Analytics
  • Platform as a Service (PaaS) - Data Management Platforms
Applicable Industries
  • Retail
Applicable Functions
  • Business Operation
  • Sales & Marketing
Use Cases
  • Demand Planning & Forecasting
  • Predictive Replenishment
Services
  • Cloud Planning, Design & Implementation Services
  • Data Science Services
The Challenge
Morrisons, one of the largest grocers in the UK, operates nearly 500 stores serving 11 million customers weekly. The company prides itself on its in-store point of difference - Market Street - which includes fresh food counters offering fresh butchery, seafood, delicatessen and bakery products. However, as fresh products have a relatively short shelf life, Morrisons was conducting three manual markdown events daily. Often, the price was too low and eroded margins or, conversely, it was too high and products failed to sell. The company estimated that it could save millions of pounds in labor by having an automated, optimized pricing solution.
About The Customer
Morrisons is one of the largest grocers in the UK, operating nearly 500 stores and serving 11 million customers weekly. The company prides itself on its unique in-store experience, known as Market Street, which includes fresh food counters offering a variety of products such as fresh butchery, seafood, delicatessen and bakery items. However, the short shelf life of these fresh products presented a challenge for the company, as it was conducting three manual markdown events daily. This process was not only labor-intensive but also often resulted in prices that were either too low, eroding margins, or too high, causing products to fail to sell.
The Solution
Morrisons partnered with Blue Yonder to implement Luminate Pricing Real Time, an automated, scientific approach to fresh food markdowns. The solution leverages machine learning algorithms to consider store-specific demand, price elasticity and inventory data to automatically achieve the maximum margin while aiming to clear all markdown stock by the end of the day. The solution is delivered via Blue Yonder’s cloud delivery model, which is capital-light and enables Morrisons to move with greater speed. In addition, the solution integrates with the employees’ hand-held devices to support mobility and responsiveness. The solution delivers a direct response within milliseconds that provides the optimal new price and the corresponding discount percentage.
Operational Impact
  • Eliminated two markdown cycles per day, resulting in lower labor costs
  • Improved responsiveness via intraday demand forecasting
  • Store specific optimised markdown pricing
Quantitative Benefit
  • Significant saving in labor costs
  • Improved store associate productivity
  • AI optimized price for each item

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