For an increasing number of retailers, price optimization software is viewed as a competitive tool. For Penn Traffic, it may be a matter of survival. In April, the Syracuse, N.Y.-based company emerged from Chapter 11, one year after it signed a price optimization contract with Demandtec, San Carlos, Calif. Its newfound financial stability is owed, in part, to its price optimization strategy, according to Don Dikeman, director of retail pricing, Penn Traffic. "In order to become a long-term ...

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