Revionics Acquires Retail Optimization, Inc.

Retail life cycle price optimization solutions provider Revionics, Inc. acquired Retail Optimization, Inc., a cloud-based assortment and micro and macro space optimization solutions vendor.

This acquisition extends Revionics’ Life Cycle Price Optimization Solutions with the addition of Retail Optimization’s cloud-based Assortment and Micro and Macro Space Optimization Solutions. According to Roseville, Calif.-based Revionics, the combination of these two solutions brings all the merchandise planning levers – price, promotion, assortment, space – together to deliver an end-to-end merchandise optimization solution.

“This acquisition underscores our commitment to continually innovate with cloud-based solutions focused on addressing retailers’ most critical business challenges,” said Marc Hafner, Revionics’ President and CEO. “Retail Optimization has the same approach we do, which is to incorporate next-generation predictive analytics and demand-based science into our offerings to ensure our customers have best-of-breed solutions that drive a competitive advantage.”

Together these solutions help retailers breakdown merchandising organizational silos and improve demand forecasting to better meet shopper needs and ensure retailers have the right product, price, promotion, placement and space allocation for optimal financial results and improved customer satisfaction and loyalty. Offered on a highly scalable, high performance cloud-based platform, the solutions future-proof retailers from Big Data/Fast Data challenges, while providing speed-to-ROI.

“The key to becoming demand driven lies in the ability to effectively manage the intersection of demand, supply and product,” said Kevin Sterneckert, vp at Gartner Research. “Demand-driven retailers gather information at each customer moment of truth, and utilize five interrelated strategies to translate demand insight into effective response and shaping activities, delivering higher return on assets, more inventory turns and greater revenue growth than their peers.”*

The new Revionics products that are now immediately available from the acquisition include:

  • Revionics Assortment Optimization
  • Revionics Macro Space Optimization
  • Revionics Micro Space Optimization

“Our advantage is driven by our unique ‘Simultaneous Top Down / Bottom Up optimization’ capability -- simultaneously optimizing category size, product mix and inventory levels at the individual store level making a true marginal trade-offs by facing, SKU, category, department,” said Karen Dutch, SVP at Revionics.

Additionally, Revionics said that the solutions bring together otherwise separate but critical information in determining an optimal merchandising execution program – shopper demand information, loyalty data, market data, market basket data, store layouts, planograms, business rules and strategy, and financial objectives. Real-time ‘what-if’ scenario planning capabilities allow retailers to compare and contrast the optimized results of different strategies before selecting one for implementation.

This acquisition is part of Revionics’ master product roadmap and vision to be the first and only vendor that can offer retailers a next-generation, fully integrated end-to-end merchandise optimization solution, which eliminates the remaining silos in the merchandising organization by infusing price and promotions into the assortment and space decisions. Bringing assortment, space, and pricing together requires two critical integrations – space-aware pricing and price-aware assortment. Combined with the existing integration available today, Revionics said its integrated end-to-end merchandise optimization will be able to deliver a Coordinated Master Demand Plan, the benefits of which include:

  • Space-aware pricing: enables retailers to optimize price while incorporating space constraints and maximizing shelf performance – resulting in increased on-shelf availability and customer service levels, while reducing lost sales and excess inventory.
  • Price-aware assortment: allows retailers to determine optimal assortments, which are based upon optimized vs. historical prices while considering the price elasticity and predicted demand when products are added, removed, or retained from their assortments.
  • Coordinated master demand plan: provides retailers with a more accurate forecast to drive a more precise demand and supply chain planning and execution, delivering substantial bottom-line improvements.
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