Board Funding Approval: Dynamic Pricing Optimisation

Board Memorandum · Office of the Managing Director & CFO · 11 February 2026

Initiative: Dynamic Pricing Optimisation Funding: $850,000

To: RetailFlow Board of Directors
From: Emma Rodriguez (Managing Director), David Chen (CFO)
Re: Approval of capital allocation for the Dynamic Pricing Optimisation programme

The Board, at its 6 February 2026 sitting, resolved to approve funding of $850,000 for the Dynamic Pricing Optimisation programme. This memo confirms the resolution and sets out the commercial mandate. This is a delivery authorisation, not a further investment review. The decision to proceed has been made.

Commercial rationale

RetailFlow currently sets prices through a quarterly manual review and a fixed promotional calendar. Pricing decisions are slow, broad-brush, and disconnected from real-time demand. On revenue of approximately $150M, even a modest margin improvement is material.

Measure	Current	Year-1 ambition
Gross margin	52.1%	+1.5 to +2.0 pts
Markdown leakage	~$9.4M / yr	−$2.5M
Price changes / week	~120 (manual)	Automated, demand-led
Full-price sell-through	61%	67%+

Board expectation: the Board expects a measurable margin lift this financial year. This is an aggressive timeline and is noted as a point of tension with the delivery team's estimates.

Competitive context

Two of our principal competitors (including a national fashion chain and a large homewares pure-play) are understood to be running automated repricing on core lines. We are reacting late to their moves on key seasonal items, and we are leaving margin on the table on slow-moving stock. The Board's view is that continuing with manual quarterly pricing is no longer tenable.

Governance and accountability

Executive sponsor: David Chen (CFO)
Delivery lead: Dr. Priya Sharma (Head of Data & Analytics)
Technology: Marcus Kim (CIO)
Brand & customer: Lisa Nguyen (GM Customer Experience)

Funds are released against milestone gates. Priya Sharma is asked to return to the executive with a data-readiness assessment and a delivery plan before vendor contracting proceeds.

Note: existing pricing & markdown governance (approval thresholds, promotional calendar, price-perception rules) remains in force and constrains any automated solution. Any deviation requires a separate Board paper.

Emma Rodriguez, Managing Director & David Chen, Chief Financial Officer