RedPrairie Corporation and StorePerform Technologies, Inc. has announced that they have signed a definitive agreement, whereby RedPrairie will acquire StorePerform Technologies, Inc, to become part of RedPrairie’s Retail Productivity Solutions division (formerly BlueCube Software). With this acquisition, RedPrairie will be the only company today that can meet expanding market demand for highly integrated workforce management solutions, integrating store execution management solutions with optimised labour scheduling, time and attendance, learning management, and employee self service solutions. StorePerform President will continue to provide business leadership for the StorePerform group out of Denver, Colorado, and no headcount reductions are planned due to the acquisition.
According to RedPrairie, it is the thought leader and leading solutions provider for Retail Productivity Solutions. Through this acquisition, it is providing customers an end-to-end approach to workforce optimisation by marrying BlueCube Workforce Management with StorePerform Store Execution Management solutions for a unified, end-to-end solution that optimises the retail workforce. With StorePerform, the leader in store execution management, RedPrairie can further enable retailers to ensure that the right product and the right people are in the right place at the right time.
According to RedPrairie, it has led the industry by delivering optimised scheduling based on projected customer traffic and related sales. This workload typically represents two-thirds of the store’s required labor. However, Store Execution Management also plays a vital role in optimising the workforce and, therefore, the retail environment. StorePerform allows retailers to schedule and track the remaining third - task-driven labor requirements, such as inventory resets, new displays, product recalls, etc. These task-driven requirements have dramatically increased in recent years with the advent of advanced price optimisation and merchandising solutions that create added workload for the store operation.
True workforce optimisation requires a labour schedule that considers demand from traffic and task drivers. Combined with world-class time and attendance, workforce analytics and learning management, RedPrairie’s Retail Productivity suite now provides the kind of end-to-end workforce optimisation that retailers will leverage to outperform their competition. This integrated view of the retail operation pays dividends by reducing the costs of operating the business and providing the ability to maximise the performance of every store employee.
According to AMR Research, this is one of the more logical and beneficial retail software deals to have transpired in 2006. Combining workforce management and task management assets makes sense for RedPrairie, which now has an additional store operations product in its arsenal. It can use its installed base and marketing power to penetrate a relatively immature market. More importantly though, the deal makes sense for the retail community, which should find tremendous value from procuring these complementary systems from a single vendor. This acquisition proves that RedPrairie is serious about integrating data and processes between workforce and task management applications.
According to StorePerform, together with RedPrairie they will create the world’s first and only end-to-end workforce optimisation suite that will enable retailers to manage their labour costs with an extremely accurate, real-time view into in-store operations and workloads, while also maintaining compliance with the corporate merchandising strategy required across the enterprise. StorePerform looks forward to growing as part of RedPrairie’s Retail Productivity Solutions division to create important new capabilities for its customers and opportunities for employees.
The agreement with StorePerform underscores the RedPrairie commitment to optimising retail operations by continued investment in its Retail Productivity Solutions business. StorePerform will unify and support its products and services in conjunction with the RedPrairie’s Retail Productivity solution suite. In addition, the acquisition is an important component of RedPrairie’s E2e (end-to-end) Consumer Driven Optimisation strategy, which drives value to every participant in the process by connecting the consumer with store operations, employee performance, distribution and manufacturing.
Extending into store execution management is a natural evolution for RedPrairie. Even companies with good retail and supply chain operations in the world still need to improve the critical last 20 metres, between the backroom and the sales floor. Now with the addition of StorePerform, RedPrairie is the only company that can enable retailers to fully integrate their supply chain with their in-store operations end-to-end.
This acquisition will close in the next 20-30 days.