ADAPTABLE RETAIL PRICING ENVIRONMENT AND ELECTRONIC EXCHANGE, DELIVERING CUSTOMIZED RETAILER OPPORTUNITY REWARDS AND DISCOUNTS

An individualized discount and reward server includes one or more linked databases to store customer data associated with a loyalty program of a retailer. The server includes a processor to select a retail product purchased at least once by a loyalty customer. The processor determines, from at least a purchase history associated with the loyalty customer, an amount the loyalty customer spends on the selected retail product and an amount each customer from a plurality of customers forming a peer group spends on the selected retail product. Further, the processor compares the amount the loyalty customer spends on the selected retail product to the amount the peer group spends on the selected retail product to form a comparison result and allocate at least one customized offer to the retailer account according to at least the comparison result.