Promotion profitability for a retailer: the role of promotion, brand, categor…

The purpose of this article is to quantify the net unit and net profit impact of promotions for a retailer and to understand the key correlates of this impact. Using data on all promotions offered in 2003 by CVS, a leading U.S. drug retailer, the authors (1) quantify the gross promotional lift; (2) decompose this into switching, stockpiling, and incremental lift for the retailer; (3) estimate t…