Subscription Follows Completion of SCPL Opportunity Identification Program
PARK CITY, Utah – October 31, 2008 – Park City Group, Inc. (OTCBB: PCYG), a developer of patented retail supply chain solutions and services, today announced that a 225 store southeastern grocery chain has signed a subscription agreement for Supply Chain Profit Link (SCPL). The subscription for the first product category, ice cream, comes after the completion of a successful SCPL opportunity identification program in three categories, in which a $5.2M opportunity gap was recognized through out-of-stock identification and promotion optimization. The opportunity gap in ice cream represented over 50% total gap uncovered. The grocery chain plans to expand SCPL into the other categories in coming months.
The grocery chain will initially utilize SCPL as the foundation for collaboration across 20 brands with multiple suppliers. SCPL will allow the retailer to view category and item product movement at various aggregations including corporate, division, region, and department level, down to hourly increments. This visibility allows for unprecedented tracking and continuous correction of store and shelf-level issues, eliminating out-of-stocks and reducing shrink. The retailer and its suppliers will be working together to focus on mutual opportunities and realize the sales and profit improvement identified in the significant opportunity gap.
SCPL is a service offering for both perishable and non-perishable product categories which analyzes retail data and provides specific action steps to improve sales and implement cost savings measures not previously recognized by retailers and suppliers. Results of these engagements with other retailers have historically uncovered tens of millions of dollars in lost opportunities, including improvements to assortment/store clustering, increased service level and improvement in distribution voids.
Randall K. Fields, Park City Group Chairman and CEO, commented, “Our opportunity identification program provides retailers just a taste of what SCPL can do. The millions of dollars in cost savings and/or lost sales we have uncovered to date will most definitely increase as we expand across additional suppliers and categories. We take pride in the level of cost savings and increased revenue we provide our customers.”
About Park City Group:
Park City Group, Inc. develops and markets patented computer software and consulting services that help retailers and their suppliers to increase sales while reducing inventory and labor costs — the two largest, controllable expenses. 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, 2008 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.