How Leroy Merlin uses AI-based Dynamic Pricing to optimize margins

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

Tags: pricing

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mariajose.guerrero
Maria Jose Guerrero
Content Manager

The first dynamic pricing solution designed by and for retailers