dunnhumby acquires KSS Retail
Global marketing consultancy acquisition aims to bring retail pricing expertise to new markets Marketing consultancy, dunnhumby has announced it has acquired KSS Retail, a provider of price modelling and optimisation solutions for retailers worldwide.
Global marketing consultancy acquisition aims to bring retail pricing expertise to new markets
Marketing consultancy, dunnhumby has announced it has acquired KSS Retail, a provider of price modelling and optimisation solutions for retailers worldwide.
For the past 20 years, dunnhumby has been finding patterns in what customers are buying and why for leading retailers such as Tesco, Kroger and Casino, according to the company. This acquisition will enable dunnhumby to combine its know-how and expertise with KSS Retail's innovative price modelling and optimisation solutions for existing and future clients around the world.
KSS Retail provides software to generate optimised prices based on consumer demand and accurate models and forecasts on the 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.
Potentially market-disrupting ramifications
Commenting on news of the acquisition, Kevin Sterneckert, research director at AMR Research, stated: “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 chief executive of dunnhumby. “We have worked with KSS Retail for the past year and quickly recognised the superiority of their science and price optimisation tool. I am tremendously excited about the opportunity to bring some exceptionally talented and motivated people into the dunnhumby family.”
Lance Jacobs, chief executive officer of 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 optimisation technology, we will be able to jointly bring unprecedented value to the retailer, manufacturer and the consumer."