ProfitLogic acquires Spotlight Solutions in price optimization market
Retail price optimization technology provider ProfitLogic has acquired Spotlight Solutions in a merger that combines the two largest players in web-enabled price optimization systems. By taking over second-ranked Spotlight, ProfitLogic gains new merchandising analytics capabilities and an experienced services organization, says Greg Girard, vice president and retail strategist at AMR Research Inc. It also gains Spotlight’s four retail clients: Shopko, Finish Line, Toys ‘R Us and Hallmark Cards, bringing ProfitLogic’s total customer base to 14 retailers.
“With this acquisition, ProfitLogic gets solid intellectual property for markdown optimization that extends its merchandising analytics capabilities,” Girard said in an AMR analysis report. One of Spotlight’s strengths is providing price optimization data on products in each store within a chain.
ProfitLogic also removes its most direct competitor, particularly in its market niche of serving mostly apparel retailers, adds Chris Boone, analyst with IDC.
ProfitLogic is evaluating Spotlight’s product line and technology platform to determine what it will merge into its existing product line, a spokeswoman says. “The primary reason for acquiring Spotlight was for their service people, because there are not a lot of people experienced in merchandise optimization technology,” she says.
"This should make them more attractive to future clients," Boone says.
ProfitLogic’s customers include Gap Inc., The Home Depot Inc., J.C. Penney Co. Inc., Marshall Field’s, Bloomingdale’s and Casual Male Retail Group. ProfitLlogic wold not reveal how much it paid for ProfitLogic.
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