Target and Toys R Us posted overall sales declines during the holidays.
Ecometry, a provider of e-commerce technology used by retailers including Nordstrom and Coldwater Creek, has merged with back-end systems provider GERS Retail Systems, whose clients include Home Depot and Hot Topic, the companies said today.
Ecometry, a provider of e-commerce technology used by retailers including Nordstrom and Coldwater Creek, has merged with back-end systems provider GERS Retail Systems, whose clients include Home Depot and Hot Topic. The new company, Escalate Retail, will employ about 650 people and is expected to do about $100 million in revenue this year. “We’re basically doubling the size of Ecometry,” says Brian Dean, Ecometry vice president of product strategy and marketing, who will retain the same title at Escalate.
Golden Gate Capital, a venture capital firm that owns Ecometry, acquired GERS from Symphony Technology Group for an undisclosed amount. The deal will combine the front-end technology of Ecometry, which includes order management, Blue Martini e-commerce and customer-interaction technology and the Nextor web-based POS system, with the merchandise planning and execution strengths of GERS, company executives and industry analysts say.
“Hot Topic uses GERS solutions for merchandising, inventory management and analytics and Ecometry’s Blue Martini solutions for e-commerce, online order management, loyalty programs, and marketing analytics,” Tom Beauchamp, CIO of Hot Topic, says in a press release issued by Golden Gate Capital. “The consolidation of these two, highly customer-centric solution providers provides opportunities for Hot Topic to leverage our current investments. The application portfolio of the combined company will provide more efficient integration of applications across our enterprise, both in-store and online, ultimately creating an even more satisfying shopping experience for our customers across all sales channels.”
Rob Garf, a retail industry analyst with AMR Research Inc., says the merged company will compete with enterprise software providers including JDA Software Group, Oracle, Retalix, Tomax and SAP. “We think it’s a good move for Gold Gate Capital, because it complements their existing assets,” he says.
But Garf cautions that Escalate Retail faces the challenge of integrating not only GERS and Ecometry but of continuing the migration of Ecometry customers to a new open-architecture platform. “We caution retailers to understand the integration roadmap and how this will impact their retail operations,” Garf says.