ROSEVILLE, Calif. & NEW HAVEN, Conn. -- Revionics Inc., a supplier of retail price-optimization solutions, announced it has acquired Retail Optimization Inc. and its related assets, increasing its expertise in the areas of "cloud" technology, merchandising and space allocation.
The combination of these two firms and their products brings together several merchandise-planning elements, including price, promotion, assortment and space. Together, the solutions help retailers break down merchandising organizational "siloes" and improve demand forecasting to better meet shopper needs, company officials said.
The announcement comes on the heels of Revionics making JMP Securities' list of "Hot 100 Best Privately Held Software Companies." The San Francisco-based investment bank uses its software-research team to develop the Hot 100 report.
Revionics' solutions, offered on a scalable, cloud-based platform, prepare retailers for the future, taking on challenges of data speed and amount.
The new Revionics products that are now immediately available from the acquisition include Revionics Assortment Optimization, Revionics Macro Space Optimization and Revionics Micro Space Optimization.
Assortment and space-optimization technologies that can effectively provide simultaneous top-down, bottom-up recommendations are required to enable a shopper-centric merchandising strategy, protecting retailers against out-of-stocks while reducing excess inventory and carrying costs, officials said. Improving shelf-availability at a lower cost helps to maximize return on inventory and store real estate while improving customer satisfaction.
"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."
Revionics received the Hot 100 award for its strong customer traction, revenue growth, quality of leadership and its cloud-based products and services.
Revionics experienced an 88% revenue-growth rate and over the last three years a compound annual growth rate of 69%. The company has provided price-optimization technology for a decade and expects continued growth after going global.
Revionics provides an end-to-end merchandise optimization solution, enabling retailers to execute a fact-based, shopper-centric merchandising strategy. The solutions leverage predictive analytics and demand-based science to ensure retailers have the right product, price, promotion, placement and space allocation for optimal results. With more than 30,000 retail locations using the solution, Revionics takes in $73 billion in annual revenue across grocery, drug, building materials, convenience, general merchandise, discount and sporting goods channels, as well as online sites.
Retail Optimization, New Haven, Conn., works with retailers and wholesalers in the supermarket and drug channels as well as with consumer goods manufacturers. The company's cloud-based assortment, micro-and-macro space optimization solutions allow retailers to examine the impact of proposed space and assortment changes on the revenue and profit potential of the total store.
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