The Effect of Multi-products Price Promotion on the Profit of Retailers

In the increasingly fierce competition of the retailing business, price promotion is one of the frequently used strategies. Marketing scholars often do research from the angle of manufacturers. However, in the view of retailers, they are more concerned about the promotion effect on the store sales. Using the daily sales records from a large chain supermarket, we analyzed the effects of price promotion on the retailer, and also explored which product, in which promotion way, performs better when multiple products are promoted simultaneously by retailers. The results showed that price promotion can significantly affect the total profits of the retailer, and the effect of price promotion is related to promotion time, whether in weekend or not, and the sales of the category. This fact will stimulate retailers to develop more scientific and reasonable price promotion strategies for individual products.