How Can Retailers Balance Pricing Amid Ukraine-Russia War?

Global supply chain strains and increasing inflation remain one of the top concerns of global retailers as they navigate the after-holiday sales season. However, Russia’s invasion of Ukraine has made its way to the list. The only way out is to allow digitalization into your business such as LS Retail ERP. Various retailers have suspended operations in Russia, either due to corporate condemnation of the war or because of the impact of sanctions against logistics.  

Some ventures like Victoria’s Secret, are signing about the uncertainty this war creates. It can put pressure on the business in the first quarter and probably beyond. An analyst with Gordon Haskett, Chuck Grom said, its duration is the major concern of the crisis. “You have to think the longer it goes the more problematic it gets.”  

In an interview with economic times, PTI, Chakraborty says, high-frequency information states that in various nations, inflation has crossed the expected rates. There are more supply chain disruptions and greater volatility in financial markets.  

Retailers need a way out of this distress. They desperately require digitization in their businesses. LS Retail ERP tremendously helps balance pricing, especially amid the Russia-Ukraine Crisis. It reduces the cost of inventory management, saves your business from loss and fraud, enhances supplier and vendor performance, boosts staff functions, and improves customer services tremendously.  

How can LS Retail ERP Ease Business Disruptions and Uncertainty Amid the War? 

LS Retail ERP covers all the areas which can help balance pricing during the war. It forecasts demands and upcoming challenges while ensuring enough time to think of a tackling strategy. Given below are some of the benefits firms can avail themselves of globally.  

Demand Forecasting 

On one hand, where businesses are trying to lure customers back into their business as people are getting immune, a Pittsburgh-based apparel retailer American Eagle Outfitters said the outlook on the war could not define the definite fiscal impact this war will lead to the customers. 

Under so many uncertainties, retailers fail to forecast demand accurately. Hence, they make mistakes and end up overstocking and understocking. Embedded with Power BI tools, LS Retail extracts data from different touchpoints, brings it into the data center, filters them, and creates actionable reports forecasting demands and potential challenges. Demand forecasting becomes easier and more accurate, leading to balanced pricing throughout the market. This powerful AI-driven demand planning decreases inventory costs and out-of-stock planning errors. LS Central can be enhanced using LS Forecast, an Azure cloud-driven predictive suite leveraging the advanced algorithms of Microsoft Cortana Intelligence.  

Financial Management  

The world’s largest food group, with well-known brands such as Nestle coffee and KitKat chocolate, has successfully passed on higher costs to their customers. They claim they stepped up pricing in a responsible manner and witnessed sustained customer demands. Followed by increasing inflation, which further requires mitigating and pricing action over the year.  

Furthermore, American Eagle Outfitters’ Chief Financial Officer Michael Mathias said at an earning’s conference that the retailers are aware of numerous factors currently impacting the economy: increasing inflation. American Eagle has begun to lap a period during which stimulus was issued to several consumers and followed supply chain disruptions in the global supply chain. 

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