Addition of Markdown Optimization Capability Responds to Need for Single Pricing Solution Across All Merchandise Types
NEW YORK, Jan. 12 -- At the National Retail Federation Show today, KhiMetrics, Inc., the global leader in retail revenue management (RRM) solutions, introduced markdown optimization capabilities, resulting in the retail industry`s first and only complete pricing solution to manage sales and profitability throughout the entire merchandise product lifecycle.
This pioneering development combines markdown optimization with regular price and promotion optimization in one solution, producing a single integrated demand forecast, and is being demonstrated at the show, Jan. 11 - 14 in New York City.
KhiMetrics` patented approach to retail revenue management allows retailers to develop enterprise-wide pricing, promotion and markdown strategies and execute these strategies consistently in order to meet long- term financial and competitive goals. According to AMR Research Alert, November 24, 2003, "the total sales increases from RRM of between 1.5% and 8% supported by margin improvements of 5% to 16% are simply too impressive to ignore any longer."
"This software development is a direct response to the need retailers now have for a single pricing solution that supports long and short life cycle products," said Brent Lippman, president and CEO of KhiMetrics.
Lippman said the firm launched the first retail revenue management application in 2000, with the vision of delivering a single comprehensive pricing solution to support all retailers, bringing efficiencies and creating additional value. Currently, more than 3,700 stores license KhiMetrics suite, including Albertsons, PETsMART, Safeway U.K., Pamida and ShopKo Stores and Big Y.
"Markdown optimization is a building block towards offering retailers a `total category`, `total store` view of their enterprise," Lippman said.
Currently, retailers who offer fashion, seasonal merchandise and commodity merchandise, which account for a large percentage of the retail industry, must use different systems and vendors for regular price optimization, promotion optimization and markdown optimization. KhiMetrics presents an alternative, where retailers using a single pricing system realize cost savings, more accurate forecasting and streamlined workflows for users.
The patented KhiMetrics Retail Revenue Management Suite(TM) helps retailers improve profitability without sacrificing sales or competitive price image. Also, it supports retail business processes for pricing, promotions, markdowns and demand forecasting through modeling customer demand, measuring price image relative to competition, and optimizing prices and promotions to meet the retailers` concurrent goals for market share, sales, profit and price image. KhiMetrics has consistently proven to increase retailer profitability, often generating a positive return on investment in less than six months. For more information, visit www.khimetrics.com.
both for KhiMetrics, Inc.,