Case Study: Family Dollar achieves a 4% gross-margin gain with Revionics' localized zone pricing

Family Dollar Adds Value with Localized Pricing Strategy

Family Dollar, a U.S. discount chain with over 8,000 locations and a highly price‑sensitive customer base, needed a more strategic, scalable approach to pricing as it expanded into varied competitive markets. Enterprise‑wide pricing and spreadsheet workflows were no longer sufficient; the company sought a data‑backed, transparent zone pricing strategy that would protect its value perception while unlocking margin opportunities.

Partnering with Revionics, Family Dollar adopted a crawl‑walk‑run rollout—starting with data‑driven Everyday Pricing and moving to localized Markdowns—using machine learning and store‑level elasticity estimates to optimize prices and markdown cadence. The initiative delivered a 4% gross‑margin lift on base pricing, a 6% margin improvement and 10% higher sell‑through on markdown inventory, and evolved into a long‑term (10+ year) partnership.

Family Dollar

Apollo Whited

Vice President of Pricing