Shell forecourt pilots flexible pricing in the Netherlands

December 1, 2009

Dutch forecourt retailer Shell De Lucht is successfully piloting flexible pricing through electronic shelf edge labeling at its petrol stations in conjunction with Toshiba.

Speaking at the Insight Future of International Convenience Retailing event in London this autumn, Shell De Lucht owner, Clemens Van Hutton, revealed prices are changed four times during the course of the day.

Sales are reported to have increased by achieving optimum pricing, said Van Hutton.

The flexible pricing system has been tested in a two-stage approach. Initially, Van Hutton introduced day and night pricing. Prices were increased by 10% at night and sales increased by 10%, he said.

Van Hutton said the business understood the impact of flexible pricing on store sales because petrol prices also fluctuate in his business.

Stage two of the implementation included a move towards dynamic pricing based on actual prices and best buys per category to achieve optimum price points.

According to Van Hutton, the day and night pricing pays for the system but it has brought further operational benefits including labour and print savings, low investment, flexible reaction, improved margins and timely promotions.

According to Toshiba, the company is now working with Albert Heijn, the supermarket chain, to introduce flexible pricing on fruit and vegetables where it will help to reduce waste.