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.

The consumer packaged goods (CPG) and Retail industry are going through a period of significant change. Both retailers and manufacturers are struggling to find growth and improve profitability. One strategy is through consolidation - e.g., Kraft-Heinz, Keurig- Dr Pepper Snapple Group on the manufacturer side, as well as Safeway-Albertsons, Ahold-Delhaize, Walgreens-Rite Aid on the retailer side. The thinking here is that these mergers would lead to large operational efficiencies and focused growth strategies. Another important lever to drive growth is pricing and promotion.