ProfitLogic Delivers Industry`s Only Proven, Scalable Markdown Optimization Solution
Enterprise-wide rollout of Pricing4Profit(TM) at Fortune 50 Retailer Has Been Live for One Year, Proving Industry-leading Scalability and Delivering Impressive Financial Results
BOSTON, March 25 -- ProfitLogic, the leading provider of Merchandise Optimization solutions that help retailers make more profitable buying, allocating and pricing decisions based on customer demand, today announced the one-year, go-live anniversary for the industry`s largest enterprise-wide rollout of Pricing4Profit(TM) at a Fortune 50 retailer. Pricing4Profit(TM) is acknowledged as the industry`s first and most widely used markdown optimization solution in the retail industry, based on its intuitive design, its ability to scale to handle hundreds-of-millions of unique store/item decisions, and its ability to deliver significant financial results.
Markdowns, which are typically managed by instinct and spreadsheets, account for up to 30% of a retailer`s gross sales. There is no easier or faster way to improve a retailer`s financial performance than to help merchants make more efficient use of markdowns to drive sales and gross margin. In fact, industry analysts have been touting the financial benefits of this technology for some time. "The advent of markdown optimization technology represents an opportunity for retailers to make more informed decisions about the timing, depth and location of markdowns. Retailers can move inventory out the door more effectively, while at the same time potentially gain a higher gross margin return," said Geri Spieler, research director in Gartner`s G2 retail practice, a research and advisory firm that identifies and analyzes the trends and technologies that have shaped the course of business.
Although optimization technology has been available in the manufacturing industry for many years, fundamental business issues and scalability problems have prevented its adoption in retail. Manufacturing-oriented solutions are not appropriate for the retail industry. Michael Levy, Charles Clarke Reynolds Professor of Marketing at Babson College, co-editor of the Journal of Retailing, and co-author of Retailing Management, the most widely read textbook in the retail industry explained, "First, retailing and manufacturing are fundamentally different businesses with unrelated structures and processes. Second, retail companies function on an exponentially larger scale than manufacturing companies. They have hundreds, if not thousands, of store locations, and hundreds of thousands of items, which traditional, manufacturing-oriented solutions aren`t built to handle."
In the past twelve months, four additional retailers went live on Pricing4Profit(TM) to help improve markdown decisions and achieve significant results. Merchants are spending less time figuring out which items are not selling and more time focusing on key items with the highest leverage and planning for next season. Each of these retailers has achieved a 5-to-10 times return on investment (ROI) in the first year, if not the first season, of use. These financial results are based on 5-15% improvements in Gross Margin, 5-10% increases in Sell-Thru by a specified outdate, 15%- 25% improvements in GMROI, and Inventory Turn increases of up to 20%.
About ProfitLogic
ProfitLogic is the leading provider of Retail Merchandise Optimization solutions that help retailers make more profitable buying, allocating and pricing decisions based on customer demand. Retailers have achieved a quick return on investment and significant benefits with ProfitLogic`s solutions, including increased gross margin, accelerated inventory productivity, and improvement in overall financial performance. The company`s Merchandising4Profit(TM) suite of analytical applications empowers merchants at each point in the merchandising decision-making process by providing insights into store-level demand and the effects of their decisions on sales and profitability. Areas of support include key item and assortment planning, allocation / replenishment and price, promotion and markdown management. ProfitLogic`s clients include JCPenney, Casual Male, Meijer Stores, and KB Toys. For more information about Cambridge, Massachusetts-based ProfitLogic, call (617) 218-1900 or visit http://www.profitlogic.com/.
Contact:
Jakki Glivicky
ProfitLogic
617-374-5959
jglivicky@profitlogic.com
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