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Successful Performance Prompts Penn Traffic to Renew Pricing Software License

WASHINGTON -- Increased product category margin performance at the Penn Traffic Co. has led the retailer to renew the license of its consumer demand management software, the retailer said at the 2005 FMI Marketechnics event being held here this week.

Since 2003 Penn Traffic has been implementing new strategies designed to generate sales and operating income in an evolving competitive environment, including enhancing merchandising, improving store operations, and reducing and containing costs.

San Carlos, Calif.-based DemandTec's software has helped Penn Traffic achieve both margin percentage and margin dollar increases within implemented store product categories.

"Our results from implemented categories were very positive," said Don Dikeman, Penn Traffic's director of pricing. "Based on these results, we plan to continue with a full-scale rollout throughout additional store product categories."

The Penn Traffic Co. operates 107 supermarkets in Pennsylvania, upstate New York, Vermont, and New Hampshire under the Bi-Lo Foods, Riverside, P&C Foods, and Quality Markets banners. Penn Traffic also runs a wholesale food distribution business serving 80 licensed franchises and 39 independent operators.
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