IBM AND KHIMETRICS TO MARKET ELECTRONIC SHELF LABEL SOLUTION THAT ENABLES RETAILERS TO REFINE PRICING AND INCREASE MARGINS
SCOTTSDALE, Ariz. (May 10, 2001) IBM and KhiMetrics today announced an agreement to co-market IBM’s electronic shelf label (ESL) product offering and KhiMetrics’ retail revenue management solution worldwide, giving retailers the ability for the first time to combine strategic pricing with the dynamic pricing capabilities of electronic shelf labels.
The combined product offering will significantly improve profit margins and reduce retailer’s operational costs, while increasing sales and marketing effectiveness. As part of the agreement, both companies will jointly market IBM’s Telepanel ä ESL offering and KhiMetrics’ Retail Revenue Management Application Suite ä.
“This combination of IBM’s electronic shelf labels and KhiMetrics’ retail revenue management solution will begin to change the way pricing is handled at the retail level and provide a stronger competitive edge for the progressive retailer,” said Jocelyn Furniss, director of marketing for IBM Retail Store Solutions. “The IBM/KhiMetrics product combination offers retailers a strategic solution for executing the optimal pricing structure at the store level or even at the product level within a store.”
“This alliance reflects our ongoing commitment to bringing best practice solutions to the retail industry that are practical, build confidence and deliver value,” said Don Harrington, vice president of business development of KhiMetrics. “This combined solution introduces the notion of “frictionless” pricing to the retail industry wherein retailers can make price changes without a variable labor cost component, can react faster to changing market conditions (e.g. costs, competition, seasonal demand, etc) and uncover hidden margin and revenue opportunities that heretofore were simply not accessible. We are already engaged in several client conversations regarding deployment of this solution and look forward to generating a quick and significant ROI for our retailers.”
The combined solution will allow for pricing updates generated from KhiMetrics’ system to be administered dynamically (instantaneously) according to the price change frequency desired by the retailer. Specifically, KhiMetrics’ optimized price files are uploaded to the retailer’s host ERP (Enterprise Resource Planning) system that then sends files to the appropriate store location. Once the store has received the optimized price files, the price changes can be transmitted wirelessly to the shelf display. Immediate benefits include a simplification in the process for implementing prices, a reduction in the “activity” costs typically associated with changing prices and a more rapid creation of incremental revenue and margins.
Telepanel Millennium PLUS Electronic Shelf Labels (ESLs) - available through IBM - - display, update and capture a wide variety of data automatically and deliver everything retailers need to transform simple shelf labels into critical information access points within a global e-business infrastructure.
About IBM
IBM, the world's leading e-business and information technology company, provides the Retail Industry with a full range of e-business solutions, including: hardware and software technology, consulting focused on business transformation, IT strategy and planning, store operations improvement, and supply chain optimization, and with services, such as outsourcing, managed operations, systems integration, and application development and design. IBM has been the leader in retail point-of-sale systems for more than 20 years. For more information on IBM Retail Solutions, please visit www.ibm.com/solutions/retail.
About KhiMetrics
KhiMetrics, based in Scottsdale, Ariz., is the first software company to deliver a comprehensive retail revenue management system, which helps retailers achieve their financial goals through strategic pricing. Clients include leading national and regional grocery, drug and electronics retailers. KhiMetrics’ mission is “to unlock billions in hidden retail revenue”. Privately held, investors include Oracle Corporation, Boston Capital Ventures, RWI Group, Telos Venture Partners, Koch Ventures and others. For more information, call 480/609-2833 or visit www.khimetrics.com
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