The consumer goods retail industry is facing a fundamental dilemma. There is no historical data that can guide today's strategy, but market-standard models for pricing and promotions have typically relied on regressing the past. The industry has long leveraged historical data to extrapolate what might work today, and while there may be value in that analysis, what worked yesterday may not fit today's context. If the past two years have taught us anything, it's that "now" is always changing. The dynamics at play in today's environment quickly reveal why the techniques and algorithms the industry has traditionally deployed when it comes to prices and promotions are no longer enough.

Leading apparel retailers are embracing advanced analytics and blending intuition with science to price smarter. The competitive landscape in apparel is shifting rapidly as new price leaders capture market share. The battle for value has never been harder fought. The very definition of value is evolving quickly, pressured by Amazon's entry into apparel, fast-fashion retailers, flash sales, and the arrival of ultravalue players. Between 2012 and 2017, only the value sector of apparel retail, including off-price players, showed any growth as both the middle and premium tiers shrank.