01.02.2005 12:12:00

Safeway Selects DemandTec for Consumer Demand Management

SAN CARLOS, Calif., Feb. 1 /PRNewswire/ -- DemandTec, Inc., the leading provider of Consumer Demand Management (CDM) software for retailers and consumer products firms, announced that Safeway , one of North America's largest food retailers, has selected the DemandTec Price(TM) and DemandTec Promotion(TM) applications for Consumer Demand Management.

Safeway Inc. is a Fortune 50 company that operates 1,815 stores in the United States and Canada, and had sales of $35.6 billion in 2003. DemandTec software is expected to support Safeway's sales and marketing objectives goals by enabling the company to determine and plan pricing and promotions based on the needs and wants of Safeway customers.

"Safeway has a well defined strategy to accelerate sales growth and enhance the shopping experience for our customers," said Brian Cornell, Safeway Executive Vice President and Chief Marketing Officer. "In this context, the careful management of prices and promotions is important both for our customers and for the company. We chose DemandTec as our software provider in this area because they have the best solution in the marketplace."

DemandTec Price(TM) and DemandTec Promotion(TM) are part of an integrated application suite that optimizes Complete Lifecycle Pricing and includes DemandTec Markdown(TM). All built on the DemandTec CDM Platform(TM), these applications enable retailers to strategically plan and execute optimal pricing strategies throughout the product lifecycle -- new items, everyday priced items, promoted items, and markdowns -- based on a holistic and actionable understanding of consumer demand.

"Safeway is among the most respected retailers in North America and a company with which we are proud to be associated," said Dan Fishback, CEO of DemandTec. "As the pace of change in retail increases, the ability to make merchandising decisions based on a comprehensive, quantified understanding of consumer demand has become a must-have capability. We are thrilled that Safeway has selected DemandTec for this strategic endeavor and we look forward to a long-term, successful relationship."

About DemandTec

DemandTec's Consumer Demand Management software helps retailers and consumer products manufacturers strategically plan, optimize and execute demand-driven merchandising and marketing programs based on a quantified understanding of consumer demand. Retailers have ranked DemandTec #1 in Strategic Value, Customer Satisfaction, and Quality of Service among the top 50 retail software vendors in the 2004 RIS Leaderboard survey. DemandTec customers include B&Q, Best Buy, Brookshire Grocery Company, Duane Reade, Foodland, H-E-B Grocery Co., Longs Drugs, RadioShack, and Safeway. DemandTec software is provided via the IBM OnDemand program. For more information, please visit http://www.demandtec.com/ .

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