dunnhumby acquires KSS Retail

4 January 2010

Global marketing consultancy dunnhumby brings retail pricing expertise to new markets

International marketing consultancy dunnhumby announced today that it has acquired KSS RETAIL, a leading provider of price modeling and optimization 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 and Casino. This acquisition will enable dunnhumby to combine their know-how and expertise with KSS Retail's innovative price modeling and optimization solutions for existing and future clients around the world.

KSS Retail provides software which generates optimized prices based on consumer demand and that accurately models and forecasts the effects of future pricing and promotional decisions for retailers in the grocery, drug, convenience, on-line and general retail segments. Current clients include 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.

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 recognized the superiority of their science and price optimization 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 optimization technology, we will be able to jointly bring unprecedented value to the retailer, manufacturer and the consumer."

ABOUT DUNNHUMBY

dunnhumby combines proven natural abilities with big ideas to find clues and patterns as to what customers are buying and why. dunnhumby turns insights from over 200 million households worldwide into actionable strategies that create dramatic growth and sustainable loyalty, ultimately improving brand value and the customer experience.

Employing more than 1,200 people in 26 offices in 16 countries in Europe, Asia and the Americas, dunnhumby serves a prestigious list of companies including Tesco, Casino, Procter & Gamble, Shell, Coca-Cola and Mars. For more information, visit www.dunnhumby.com

ABOUT KSS RETAIL

KSS Retail is the leading provider of price optimization solutions for the grocery, convenience, chain drug, general and online retail industries. Retail merchants use KSS Retail software to accurately model, forecast and optimize retail prices for regular and promotional pricing by using an intuitive, fast, merchant-friendly tool that integrates price modeling and optimization into the daily work-flow of a merchant. Retailers using KSS Retail consistently achieve improved market share, sales, profit growth and enhanced competitive positioning, and include leading companies such as Rite Aid, McKesson, Sonae, Raley's, United Supermarkets, dabs.com, and ABC Fine Wine and Spirits.

For more information, visit WWW.KSSRETAIL.COM or contact Lyle Walker at LYLE.WALKER@KSSRETAIL.COM. Media inquiries should contact Roy G. Miller at RMILLER@RGMCOMMS.COM, or call (903) 422-5117.

Visit KSS Retail at the upcoming NRF show in NYC, Jan. 11-12, booth 1959.