Accenture and Profitlogic Team to Help Retailers Enhance Revenues and Gross Margins Through Improved Merchandising

CAMBRIDGE, MASS., January 10, 2001 - Accenture, a leading global management and technology consultancy, and ProfitLogic (formerly TSI), a recognized leader of Price and Revenue Optimization solutions, today announced an alliance to help retailers enhance merchandising capabilities -- improving buying, allocating and pricing decisions -- to boost margins and revenues. Additionally, ProfitLogic will become a preferred provider of Retail Price and Revenue Optimization solutions for Accenture.

The alliance offers retailers end-to-end merchandising and inventory optimization solutions based on mathematically-derived inventory planning, allocation and pricing recommendations. Accenture’s broad industry knowledge and ProfitLogic’s best-of-breed analytical solutions delivered via an application service provider (ASP) model, create an opportunity for retailers to generate millions of dollars in incremental profit. Specifically, Accenture will work with ProfitLogic to help retailers solve merchandising challenges by aligning strategies, enhancing human performance and applying innovative technology to achieve business goals. Ultimately, these solutions can help retailers maximize revenues throughout the merchandise life cycle -- improving gross margins by up to 15 percent.

"In their effort to increase shareholder value, retailers are searching for ways to maximize their inventory productivity and revenues,” said Patricia Walker, partner in the Accenture Retail practice. “Over time, retailers have tried a variety of merchandising strategies, many of which have not produced the desired improvements. But, by leveraging ProfitLogic’s solutions, our alliance focuses on helping retailers adopt merchandising and pricing practices that quickly deliver significant improvements to their bottom line."

"ProfitLogic’s strength is its ability to quickly enable analytically and data-intensive applications that optimize retail inventory and merchandising decisions for optimal profit. Accenture brings industry and technology skills that improve retail performance,” said Scott Friend, President and CEO, ProfitLogic. “By teaming these core competencies, we will bring an astonishingly robust, results-driven solution to the complex retail marketplace."

ProfitLogic’s analytical solutions uncover natural demand so price and inventory can be optimized dynamically to deliver improved gross margin and revenue results. This robust proprietary approach creates a competitive edge for retailers who apply ProfitLogic’s answers to weekly merchandising decisions.

As part of the alliance, Accenture will receive a performance-based equity stake in ProfitLogic.

About ProfitLogic
ProfitLogic, formerly Technology Strategy Inc. (TSI) is a leading provider of price and revenue optimization solutions that enable retailers to make more precise buying, allocating and pricing decisions. To date, Bain Capital, General Catalyst, Athena Technology Ventures and others have invested over 18 million dollars in ProfitLogic. ProfitLogic’s solution suites, Planning4Profit, Allocating4Profit, and Pricing4Profit, help savvy merchants realize increased sales and margin, decreased markdown rates and more predictable performance. Headquartered in Cambridge, Massachusetts and staffed by a unique team of retail professionals, mathematicians and physicists, ProfitLogic’s clients include JC Penney, Eddie Bauer, Gymboree, The TJX Companies, Ross Stores, KB Toys and Ann Taylor. For more information about ProfitLogic, call (617) 218-1900 or visit

About Accenture
Accenture is a $10 billion global management and technology consulting organization. The firm is reinventing itself to become the market maker, architect and builder of the new economy, bringing innovations to improve the way the world works and lives. More than 70,000 people in 46 countries deliver a wide range of specialized capabilities and solutions to clients across all industries. Under its strategy, the firm is building a network of businesses to meet the full range of client needs – consulting, technology, outsourcing, alliances and venture capital. Accenture’s home page address is


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