Gap Goes High Tech for Pricing Controls
San Francisco retailer Gap Inc. continues to invest in technology to enhance its profit margins. The specialty chain, which has 1,300 stores, is investing in new profit-optimization software manufactured by Cambridge, Mass.–based ProfitLogic.
Gap will use ProfitLogic’s Pricing4Profit, a tool the retailer has already put into action in its Old Navy division, to produce quick-turning performance-tracking data. The software combines advanced merchandising analytics with historical and real-time sales information to present upto- date in-season performance information and to identify products that need attention. It uses scenario-planning tools that help users determine how to price merchandise to generate the highest grossmargin dollars within the specified selling season.
“Two key benefits drove the decision to use ProfitLogic’s solution in the Gap division,” said Tom Cawley, senior vice president of finance at Gap. “We were impressed by the financial benefits and quick return on investment we saw at Old Navy, and we were equally impressed by the seamless integration into our merchants’ current processes.” —Robert McAllister
