$800 Million U.K. Department Store Chain`s New Retek® Solutions to Support Strategic Objectives
Minneapolis - APRIL 10, 2002 * Retek Inc. (NASDAQ: RETK), announced today that Allders plc selected Retek solutions for advanced retail planning and optimization, merchandising operations management and supply chain management. This key investment will replace legacy systems with Retek 10, an integrated, modular retail solution, and support Allders` goals for sustainable business growth and profitability.
Allders, with annual sales of over $800 million driven through 42 U.K. stores, announced strategic objectives to double operating margins and to increase square footage by one million square feet by late 2005.
Allders will replace several legacy systems with Retek 10 solutions to help the company effectively manage continued growth of stores and sales transactions.
ADVANCED RETAIL PLANNING
Accurately planning and forecasting inventory is critical to the success of any retail operation. Allders selected Retek`s Advanced Retail Planning and Optimization (ARPO) solution to enable highly detailed and accurate planning, providing improved inventory control. With ARPO fully implemented, Allders expects to reduce lost sales and markdowns.
"In addition to replacing outdated legacy merchandising systems, we also needed to provide the merchandising staff with planning and forecasting capabilities," said John Tangaa, CIO with Allders. "With greater control and understanding of our inventory, we plan to reduce lost sales and markdowns. With the best track record for scalability and integration in the retail technology sector, Retek was the clearly the best choice."
SUPPLY CHAIN MANAGEMENT
Allders also selected a Retek supply chain management solution to manage imported product information. Allders customers have increased the demand for imported goods, particularly private label clothing and furniture, from the Far East and other areas. The Retek supply chain management solution will allow Allders to directly manage imports and reduce duty and tariff expenses the company would generally pay a third party agent. The new solution will also allow buyers and merchandisers to compare the actual landed cost of items from different locations, and make better sourcing decisions based on lowest total cost.
"Retek`s supply chain solution will allow us to take better control of our import process," said Val Selby, Logistics Director with Allders. "With a better understanding of a product`s true landed cost, we hope to improve product margins."
The Retek 10 scalable infrastructure is perfect for companies like Allders who need flexible systems to grow with the company. The Retek 10 open architecture allows retailers to add new capabilities as required by the business, and provide a fast path to realize rapid business value.
"Retek 10 was designed with leading companies like Allders in mind," said Gordon Masson, EMEA president, Retek. "Flexible deployment options in Retek 10 allow retailers to start small and build to larger solutions through its modular architecture. For companies planning to grow in number of stores, sales or services, the flexibility to easily add and modify the retail infrastructure can have an immediate impact on reaching business goals."
About Allders plc
Allders plc is the 4th largest UK department store group with 42 stores in total, 21 of which are Allders department stores and 21 are Allders home stores specializing in furnishings, beds, homewares and home accessories. Two additional department stores are due to open in Oxford Street, Central London in mid 2002 and in Plymouth, Devon in 2005.
About Retek Inc.
Retek Inc. is a leading provider of software solutions and services to the retail industry. Retek`s collaborative solutions help the retail industry create, manage and fulfill consumer demand. The RIS News Leaderboard 2001 ranked Retek the #1 software vendor for retail. Retek`s offering, Retek 10, encompasses Retek`s proven strategies, sophisticated software applications, patented predictive technology, unparalleled services, and the best practices of its customers and partners. Retek 10 provides retailers with the fastest path to sustainable business value. Many of the world`s leading retailers use Retek solutions, including A&P;, Tesco, Best Buy, Family Dollar Stores, Gap, Sainsbury`s, Eckerd Corp. and Kohl`s Department Stores. For more information, visit http://www.retek.com, or call 1-888-61-RETEK. Retek can be contacted in Europe at +44 20 7563 4646.
Retek is a trademark of Retek Inc. Other names may be trademarks of their respective owners. Forward-looking statements contained in this press release are made under the Safe Harbor Provision of the Private Securities Litigation Reform Act of 1995. Any such statements are subject to risks and uncertainties that could cause actual results to differ materially from those anticipated. Such factors are described from time to time in the company`s Annual Report on Form 10-K and other reports filed with the Securities and Exchange Commission.