Advanced Scientific Models Optimize Prices Throughout Product Lifecycle to Increase Sales and Gross Margin
MINNEAPOLIS - May 13, 2003 - Retek Inc. (Nasdaq: RETK) announced today that the Retek? Markdown Optimization? solution (RMO) enables retailers to maximize revenue and gross margin with improved pricing decisions on short lifecycle, seasonal and discontinued merchandise. The Retek Markdown Optimization solution utilizes advanced statistical models to determine optimal price recommendations at the store/stock keeping unit (SKU) level throughout the products` life cycle to maximize profitability at the individual product level.
Faced with too much information to effectively analyze and limited timeframes for decision making, most retailers make pricing and markdown decisions for short lifecycle and seasonal merchandise a macro level, limiting the opportunity to maximize the lifecycle profitability of individual products. To optimize sales and profitability, retailers must make pricing and markdown decisions at the store/SKU level based on accurate information on demand patterns and price elasticity. To accomplish this daunting task, retailers need sophisticated statistical models and highly scalable forecasting systems that can handle the data intensive microanalysis.
RETEK MARKDOWN OPTIMIZATION
Retek Markdown Optimization, integrated with Retek`s planning and forecasting applications, embeds advanced scientific algorithms to deliver markdown recommendations at the store/SKU level that are based on the most accurate prediction of consumer demand and current price elasticity. The RMO solution dynamically updates pricing strategies and recommendations based on the latest available sales and inventory data. The markdown recommendations incorporate the retailer`s business rules (price point strategies, competitive pricing and vendor negotiated pricing) to ensure that company objectives are met.
Integrating the RMO solution with other Retek solution provides visibility to price changes throughout the planning process (item, assortment and promotion planning) and drives the forecasts for replenishment and allocation. This integrated approach enables coordinated processes and improved merchandising decisions. Retailers can also implement RMO as a serviced solution to achieve a rapid ROI and later integrate it with their legacy or Retek systems to enhance its performance.
Retek Markdown Optimization provides retailers significant benefits, including improved gross margin through increased store revenue and reduced store inventory, and increased customer service and satisfaction.
"Retek Markdown Optimization delivers a rapid ROI with tools that make store/SKU level price management a reality," said Duncan Angove, chief strategy officer at Retek. "Retek continues to leverage its rich heritage in advanced analytic to broaden its capabilities in delivering the tools retailers need to improve their performance."
The Retek Markdown Optimization solution will be demonstrated in a hands-on workshop at Retek World 03 on May 13 in Orlando, FL.
About Retek Inc.
Retek Inc. (Nasdaq:RETK) is the leading provider of mission-critical software and services to the retail industry. Retek solutions integrate collaborative software with patented predictive technologies, consulting services, and the best practices of customers and partners to help retailers create, manage and fulfill consumer demand. Leading global retailers including Tesco, Best Buy, Gap Inc., Sainsbury`s, Eckerd Corp. and Selfridges use Retek solutions. On the net: Retek at http://www.retek.com.
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.