Meijer Stores Commits to Enterprise-Wide Rollout of ProfitLogic's Pricing4Profit™ 2.0 for Use Across General Merchandise BusinessSuperstore Retailer to Use ProfitLogic's Markdown Optimization Technology to Streamline Processes and Improve Financial Performance Chicago, Ill. - Retail Systems Conference - June 24, 2002 - Meijer Stores, a leading Michigan-based superstore chain, today announced its decision to implement ProfitLogic's Pricing4Profit™ 2.0 across its entire general merchandise business for markdown optimization. Meijer selected ProfitLogic, the creator of the first and most widely implemented Merchandise Optimization solutions that provide merchants with visibility into customer demand information that drives more profitable buying, allocation and pricing decisions, based on the positive results that were achieved during a limited implementation of the solution. The full rollout began earlier this month. As part of an initiative to upgrade key merchandising systems, Meijer identified markdown optimization as an area of significant value potential. With 157 stores and more than 350,000 general merchandise SKUs, Meijer's merchants faced a challenging markdown task -determining the right timing and depth of markdowns for each item in each store to predictably clear merchandise while maximizing profitability. To do this, merchants were using limited tools such as spreadsheets and gut feel, and they were looking for a better solution. "Among all the technology initiatives we considered to streamline our merchandising process and drive financial benefits, we knew that markdown optimization had a high potential to deliver benefits quickly," said a merchandising executive at Meijer Stores. "After five months using Pricing4Profit, we saw the compelling benefits. It was an easy decision to proceed with an enterprise-wide rollout this year." During the initial deployment, Pricing4Profit managed 40,000 short-lifecycle and fashion SKUs/zone combinations and resulted in an average 10% improvement in gross margin dollars. In addition to delivering strong financial results, the solution provided visibility into SKU/Store demand, enabling merchants to price at a regional level and to price more optimally during high demand periods. It also increased the ability to effectively manage outdates, and freed up time for merchants to make better strategic buying decisions. Meijer's merchants were particularly attracted to Pricing4Profit's friendly user-interface and its ease of use. By empowering their merchants with this solution, Meijer executives reinforce their commitment to innovation and an extraordinary selection of merchandise at low prices. "We are very excited about Meijer Stores' decision to implement our Markdown Optimization solution across its entire fashion and seasonal merchandise business," said Tom Ebling, Chairman and CEO of ProfitLogic. "Meijer established a reputation for innovation and superior merchandising through its creation of the popular store format - the superstore. Its use of Merchandise Optimization to help streamline processes and improve financial performance is another example of the company's commitment to innovation." For more information about ProfitLogic's Pricing4Profit 2.0 please see the "ProfitLogic Introduces Version 2.0 of Pricing4Profit To Help Retailers Make More Productive Use of Inventory Investments" news release, which was also issued today: http://www.profitlogic.com/pressreleases/2002/6_24_02_P4P2.html About Meijer Stores About ProfitLogic
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