How Leroy Merlin uses AI-based Dynamic Pricing to optimize margins
05/05/2025 - Dynamic pricing
The pricing challenge in specialized retail
In the DIY and home improvement sector, where there is a huge choice and competition online gets fiercer every day, an effective pricing strategy is not optional: it offers an unmissable competitive advantage.
This was the case for Leroy Merlin Italia, a leading retailer in the sector, looking for an innovative solution to optimize margins without turning their back on their competitive advantage. The solution? Artificial Intelligence-based Dynamic Pricing, from Reactev, the retail dynamic pricing software specialist.
Leroy Merlin chooses intelligent Dynamic Pricing
With more than 100,000 active references on their online channel and a never-ending eCommerce price war, Leroy Merlin’s pricing team faced three key challenges
The challenge: how to optimize margins without losing competitiveness
- Maximize the profit margin without impacting sales volume.
- Keep prices competitive against other actors in the online market.
- Automate price analytics and changes, freeing resources for more strategic decision-making.
The volume of data — and updating frequency required — meant that manually handling these tasks was impossible. The company needed to adopt a dynamic, intelligent and automated pricing tool.
The solution: AI-powered dynamic pricing
Since implementing Reactev’s AI- and Deep-Learning-based Dynamic Pricing software, Leroy Merlin Italia has been able to transform the way it sets prices:
- Analyzing thousands of data on sales, competitors, elasticity and consumer behaviours daily.
- Receiving more than one million price suggestions a month, adapted to the competitive context.
- Automating price changes according to rules defined by the in-house team, guaranteeing consistency and strategic management.
This system allows the company to rely on a scalable solution, in real time, that is fully integrated with its digital operation.
Tangible results: more sales, better margins and increased operational efficiency
The benefits of implementing the tool were clear and measurable: Among the results that stand out most, the Leroy Merlin team were able to:
- Increase sales with prices that are more in tune with the market and demand.
- Improve profit margins for many key stock references.
- Save time and operational resources by automating manual and repetitive tasks.
All this while never losing sight of the primary goal: always offering the customer the best price possible, even in highly volatile markets like online.
Client testimonial: insider’s perspective
“With Reactev, we are setting the right price automatically, considering variables like competitors and the market. As well as increasing our profits, our prices are always competitive.”
— Loic Borsato, Leroy Merlin Italia, Pricing Department
This testimonial reflects the real impact a solution like Reactev can have on leading retailers’ pricing operations.
Want to transform your pricing strategy too?
Leroy Merlin demonstrates how AI-based Dynamic Pricing improves financial KPIs and allows more agile decision-making, based on real data.
Download the full success story and discover all the details about the strategy, implementation process and results. Access here.
Category: Dynamic pricing
