Business Services Industry
Leading Multinational Retailer Expands License Agreement for Fresh Market Manager with Park City Group
Business Wire, June 5, 2008
Annual Sales in Bakery Department Grew 20% with Improved Margins since Implementing Fresh Market Manager
PARK CITY, Utah -- Park City Group, Inc. (OTCBB:PCYG), developer and marketer of patented computer software and consulting services designed to enable its retail customers to increase sales while reducing inventory and labor costs, today announced that as a result of its customer experiencing ongoing and substantial increases in both sales and profits, a leading international supermarket retailer is expanding its license agreement with Park City Group for its Fresh Market Manager (FMM) product in an Asian-based 70 store subsidiary with annual sales of over $2 billion.
Fresh Market Manager is a fully integrated management solution that helps grocers to achieve improved economic performance in bakery, deli, food service, meat, seafood, frozen, floral and produce departments. The product is licensed on a per-department and per-store-basis. This new agreement will generate revenues of approximately $200,000 to Park City Group.
Park City Group successfully identified to the retailer exactly where and how it could positively impact both sales and the bottom line. Among other benefits, Park City Group precisely identified where and when product waste occurred, implemented FMM Production Planning, optimized store-level assortment plans, managed shrink and out-of-stocks, and retrained stores on production standards. During the first year of the program in Bakery, average annual sales of produced items were up over 20% while unsold product (shrink) significantly declined, resulting in a substantial increase in net margins.
Randall K. Fields, Chairman and CEO, said that, "The increased deployment of our Fresh Market Manager by this top-tier retailer is the most recent validation of the value of our fresh item management solution. This retailer has experienced first hand the rapid cost savings/revenue generating benefits of our program and is increasing the number of stores in its chain to use the product. As our software and consulting services continue to deliver on the promise to help all of our retail customers to deliver the 'right product in the right quantity at the right time,' we look forward to continuing to expand the depth of our Fresh Market Manager program, and to also exploring how our other solutions and products can benefit this retailer.
"Market trends are driving demand for our products as supermarkets and convenience stores have difficulty competing in commoditized products," Fields continued. "As a result, they increasingly shift the emphasis to perishables - which have a significantly shorter shelf life - thus creating an increasing requirement to manage those products. The unique combination of software and consulting services provided by Park City Group bridges the human and technical resource gap and converts data into effective operational actions for the retailer. We have a growing track record of delivering dramatic and tangible results to our clients."
About Park City Group
Park City Group, Inc. develops and markets patented computer software and consulting services addressing a multi-billion dollar market. Our products and services help our retail customers to increase sales while reducing inventory and labor costs -- the two largest, controllable expenses in the retail industry. The technology has its genesis in the operations of Mrs. Fields Cookies, co-founded by Randy Fields, chief executive officer of Park City Group. Industry-leading customers such as The Home Depot, Victoria's Secret, The Limited, Anheuser Busch Entertainment and Tesco Lotus benefit from Park City Group software. To find out more about Park City Group, please visit www.parkcitygroup.com.
Statements in this news release that relate to Park City Group's future plans, objectives, expectations, performance, events and the like are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and the Securities Exchange Act of 1934. Future events, risks and uncertainties, individually or in the aggregate, could cause actual results to differ materially from those expressed or implied in these statements. Those factors could include changes in economic conditions that may change demand for the Company's products and services and other factors discussed in the "forward-looking information" section and the "risk factor" section of the management's discussion and analysis included in the Company's report on Form 10-K for the year ended June 30, 2007 and in any risk factors or cautionary statements contained in the Company's periodic reports on Form 10-Q or current reports on Form 8-K filed with the Securities and Exchange Commission. This presentation is comprised of interrelated information that must be interpreted in the context of all of the information provided and care should be exercised not to consider portions of this release out of context. Park City Group uses paid services of investor relations organizations to promote the Company to the investment community. Investments in any company should be considered speculative and prior to acquisition, should be thoroughly researched. Park City Group does not intend to update these forward-looking statements prior to announcement of quarterly or annual results.
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