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S Group achieves 5 pp increase in the average margins of markdown products with RELEX clearance optimization

Apr 25, 2023 2 min

S Group is one of the largest retail organizations in Finland, with 20 local cooperatives and more than 1,800 outlets. 

After successfully transforming their forecasting and replenishment processes with RELEX, S Group expanded the partnership to include clearance optimization for their consumer goods categories at Prisma and Prisma Rauta stores.  

By working with RELEX, the company has achieved: 

  • 5 pp increase in the average margins of markdown products  
  • Improved visibility and automation 

S Group, a long-standing customer, has successfully utilized the RELEX forecasting and replenishment solution for nearly ten years. They decided to expand their RELEX portfolio with the clearance optimization solution to drive additional benefits by leveraging more accurate forecasts and order projections for markdown planning. The diversity of S Group’s retail formats and product ranges means they manage an abundance of seasonal products. When seasons end, they must efficiently clear inventory to make room for new products. The expansion was completed in December 2022, enabling S Group to utilize the new capabilities for the end-of-year clearance period.  
 
As a result, S Group has considerably streamlined their clearance process. Previously, category managers had to organize clearance products in time-consuming spreadsheets manually. With RELEX, they receive automated lists identifying the product for the clearance assortment and recommending optimal prices to guide decision-making for discounts, significantly saving time. 
 
Since implementation, S Group has achieved a 5 pp increase in the average margins of markdown products, due to improved clearance assortments and campaign categorization in response to changes in consumer behavior and inflation-driven price sensitivity.  
 
“With clearance optimization, RELEX has now expanded into the strategically important area of pricing at S Group,” says Mikko Hänninen, IT Area Lead, Assortment Planning and Space Management at S Group. “For consumer goods categories, clearance is key for profitability as it enables category managers to boost sales and minimize inventory by the end of an assortment period, particularly for discontinued items.”  

“We are excited to see the excellent results S Group has achieved after implementing the clearance optimization solution,” says Emma Aidanpää-Salmi, VP Customer Success at RELEX. “S Group is one of the top Nordic retailers, and we are proud of our long-term partnership with them.” 

“Our unified vision has truly come to life at S Group, with this latest example further showcasing the added value of leveraging our single platform for retail planning,” adds Laurence Brenig-Jones, Director, Product Strategy, RELEX. “It is great to see the benefits of commercial and supply chain teams working together through our unified clearance optimization solution.”