Tesco Clubcard firm buys KSS retail

Dunnhumby, the market research company that created Tesco Clubcard, has bought KSS Retail, a US based shopper behaviour tracking firm.

Dunnhumby is majority owned by Tesco, the UK’s largest supermarket and has handled its Clubcard Loyalty scheme since it was introduced, providing analysis of shopper activity from over 200 million households worldwide.

KSS Retail tracks the effects of price changes in stores and online and uses the data to predict and analyse shopper behaviour. It then creates optimised price models based on consumer demand that helps inform retailer’s pricing and promotional decisions

The acquisition follows a strategic alliance between the two firms last year and will combine Dunnhumby’s expertise in patterns of customer purchasing with the price modeling and optimisation abilities of KSS Retail.

Lance Jacobs, chief executive officer of KSS Retail, says: “Dunnhumby has a proven reputation in the retail industry for delivering actionable customer insights. By leveraging Dunnhumby’s expertise with our price optimisation technology, we will be able to jointly bring unprecedented value to the retailer, manufacturer and the consumer.”

Last year, Tesco relaunched the Clubcard and went on to double the loyalty points awarded to shoppers in a drive to boost the scheme.

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