Case Study: Family Dollar achieves up to 6% higher gross margin and 10% higher sell-through with Revionics

Family Dollar - Customer Case Study

Family Dollar, a value-focused retailer with over $10 billion in sales and 8,000 U.S. stores—half of whose shoppers use government assistance—faced the challenge of replacing manual, spreadsheet-based pricing with a localized, scalable lifecycle pricing strategy. With small baskets, high price sensitivity, diverse competitive environments and constrained store labor, the company needed to automate and prioritize pricing decisions and manage item-level pricing by exception to protect its price image while improving profitability.

Family Dollar implemented a phased Revionics lifecycle pricing solution—everyday pricing first (2010), a six-month markdown pilot, full markdown rollout during the 2013 holiday clearance, and plans for promotions—to bring more science, transparency and speed to pricing. Results included a 4% GM$ gain for margin-focused categories with no unit or sales loss, a 6% higher GM$ in profit-driven markdown test stores, 10% higher sell-through for inventory-driven categories, plus improved forecast accuracy and faster workflow cycle times.

Family Dollar

Scott Zucker

SVP Merchandise Operations