Oracle is to buy Profitlogic, a provider of retail profit optimisation solutions, to offer users a more complete...
retail analysis platform.
Profitlogic's software analyses customer demand patterns to help retailers make inventory, pricing and merchandising decisions.
Profitlogic's current customers include a number of top US retailers such as Bloomingdale’s, Nordstrom and Toys R Us.
Oracle intends to combine Profitlogic's technology with its recently acquired Retek retail business software operation.
“Profitlogic's software provides analysis that helps retailers put the right product, in the right store, for the right customer, at the right time,” said Duncan Angove, general manager of Oracle’s Retek global business unit.
"With Profitlogic's retail profit optimisation software, Retek’s end-to-end retail products and Oracle’s infrastructure software and ERP [enterprise resource planning] applications, we will be able to offer an integrated solution for retailers of any size and in any industry,” said Angove.
Scott Langdoc, an analyst at AMR Research, said: “The top priority for retailers in 2005 is to inject insight from all aspects of customer demand into every retail process flow.
“Benefits include tighter execution, more accurate forecasting and a reduction in out-of-stocks, resulting in a potential 10% increase in sales and a 5% jump in margin growth for an average tier-one retailer,” he said.
The amount Oracle is paying for Profitlogic has not been disclosed.