The deal, which covers around 2,500 stores, was announced in the UK yesterday by Hamish Brewer, JDA's CEO, at a customer conference in London. No financial details were released.
Brewer said Tesco had been looking for a store planning system that would accommodate each store's unique characteristics. At the time, the available applications could cope with "clustered" stores, he said. These were stores that fitted a predefined model for location, number of items carried, customer footfall, and so on. Tesco felt it wanted greater insight into each store to manage it better.
"They asked us if we could do it, and we said yes," Brewer said. While JDA did the coding, Tesco specified the system and tested what became the Intactix application.
Intactix allows retailers and consumer packaged goods firms to see on screen in colour how their products will appear in an individual store. This allows packaging designers to optimise designs to catch consumers' eyes in the fraction of a second they give a shelf as they shop.
It also allows retailers to plan promotions better and to locate bulky items in places where they are most likely to attract buyers. It produces a full colour 3D image that shows shelf packers precisely how to load the shelves with a particular product.
Brewer said Intactix' development was integral to the way JDA now develops products. He said the firm, for a long time, made products it hoped people would buy. It changed its approach when this proved frustrating. Now customers largely drive JDA's product development strategy, he said.