8 opportunities for sports retail

The price war in sports retail reduces margins and damages the brand image and credibility in the long term. Adler therefore relies on brand optimization using dynamic price management with AI-supported price algorithms.

This allows factors such as demand, competitor prices, seasonality and stock levels to be analyzed in real time.

Prices are adjusted flexibly and strategically in order to maximize sales and margins – and remain competitive at the same time. Adler adds:

‘The idea is not fundamentally new and has been used in dynamic pricing with machine learning for years. What is new is the speed, accuracy and depth of data.

Thanks to AI-controlled price adjustments in real time, the online price of bicycle accessories, for example, can react flexibly to demand, stock levels and competition. This protects margins, especially during seasonal peaks. AI can also be used to tailor offers even more precisely to customers.

Risk: Frequent price changes can create mistrust among customers and damage the brand image in the long term. In addition, AI can screen competitors through data analysis of prices, discounts, bestsellers and customer behavior and thus spark targeted price wars through dynamic price adjustments that put everyone under pressure. Adler warns:

Instead of engaging exclusively in price competition, retailers should focus on customer loyalty, personalization and high-quality products. Consumers are willing to pay more for added value and trust. It is therefore important to find a balance between competitive prices and sustainable profitability.