Pricer’s revenue in the North American market is estimated to grow due to Best Buy orders. Revenue generated from the US increased by 260 % from 2017-2018 as a result of orders from the retail chain Best Buy. So far 240 installations have been made. Best Buy currently have 1008 stores in the US. Orders are expected to continue. Best Buy can also serve as a reference customer which may result in increased activity in the North American market.

Pressure from the emerging e-commerce market will benefit Pricer in the short-term. Retailers face negative comparable sales and declining operating income due to increased activity in the e-commerce space. Retailers are actively looking for solutions to combat these issues. As a result, Pricer will be able to utilise existing product offerings to help retailers increase in-store efficiency to combat the emerging e-commerce space.

Increased competition may lead to a decreased market share. The global ESL market is expected to grow by a CAGR of 19,2 % between 2019-2024E. Hence, new up-and-coming companies will emerge and compete for market share. As a result, Pricer’s market share is estimated to decline to 15 % by 2024E.

Pricer Cloud, a digital data storage platform, will serve as a primary moat going forward. Pricer Cloud is a digital platform where Pricer’s customers can save information about customer activity. This information can in turn be used to optimise product offering. Since the information is only accessable on the Pricer Cloud platform, existing customers are incentivised to stay with Pricer instead of changing ESL provider. Pricer Cloud will therefore serve as a primary moat as it creates a lock-in effect for existing customers who use Pricer’s ESL technology.

ANALYSTS: Sean taylor & Fanny Leffler