Global marketing consultancy acquires KSS Retail
LONDON -- International marketing consultancy dunnhumby has announced that it has acquired KSS Retail, a leading provider of price modeling and optimization solutions for retailers worldwide. For the past 20 years, dunnhumby has been finding patterns in what customers are buying and why for major retailers such as Tesco, Kroger and Casino. This acquisition will enable dunnhumby to combine its knowledge and expertise with KSS Retail's solutions.
KSS Retail provides software that generates optimized prices based on consumer demand and that accurately models and forecasts the [image-nocss] effects of future pricing and promotional decisions for retailers in the grocery, drug, convenience, online and general retail segments. Current clients include Kroger, Sonae (Portugal), Raley's, McKesson, Associated Food Stores, Brookshire Brothers, Balls Food Stores and many others. KSS Retail will operate as an independent business unit of dunnhumby and maintain its existing management structure.
Over time, KSS Retail will bring elements of dunnhumby capability to the marketplace.
Commenting on news of the acquisition, Kevin Sterneckert, research director at AMR Research said, "AMR sees a fantastic potential in the combination of dunnhumby's thought-leading consumer marketing techniques and the proven demand sensing and shaping capabilities of software provided by KSS Retail. AMR sees this acquisition as market disrupting and will likely cause many software providers angst as they assess the potential strength this transaction represents. AMR believes the customer will win in the end as retailers continue to increase their ability to sense and shape consumer demand."
"I am delighted that we now have the chance to bring the great retail pricing expertise from KSS Retail to a wider retail audience," said Edwina Dunn, co-founder and CEO of dunnhumby. "We have worked with KSS Retail for the past year and quickly recognized the superiority of their science and price optimization tool. I am tremendously excited about the opportunity to bring some exceptionally talented and motivated people into the dunnhumby family."
Lance Jacobs, CEO of Florham Park, N.J.-based KSS Retail said, "dunnhumby has a proven reputation in the retail industry for delivering actionable customer insights. By leveraging dunnhumby's expertise with our price optimization technology, we will be able to jointly bring unprecedented value to the retailer, manufacturer and the consumer."
Employing more than 1,200 people in 26 offices in 16 countries in Europe, Asia and the Americas, dunnhumby serves a prestigious list of companies including Tesco, Casino, Kroger, Procter & Gamble, Shell, Coca-Cola and Mars.
Retail merchants use KSS Retail software to accurately model, forecast and optimize retail prices for regular and promotional pricing by using an intuitive, fast, merchant-friendly tool that integrates price modeling and optimization into the daily workflow. Retailers using KSS Retail include leading companies such as Rite Aid, Kroger, McKesson, Sonae, Raley's, United Supermarkets, dabs.com and ABC Fine Wine & Spirits.