UPDATED 07:00 EDT / APRIL 16 2015

RetailNext takes home $125 million in growth funding to power tomorrow’s smart stores

shopping-tripAnalytics may not have evolved far enough yet to capture the full complexity of the climate system, but the technology can help retailers figure out how weather changes will influence the shopping habits of their customers. That’s one of the many features touted by RetailNext Inc., which just raised a massive $125 million in funding to expand the predictive capabilities of its data crunching platform.

The in-store analytics suite implements the tried-and-tested method of collecting as much information from as many sources as possible to provide brick-and-mortar businesses with what is touted as an unparalleled understanding of their operations. Although that has become a rather common theme in vendors’ messaging lately, RetailNext apparently does manage to live up to its claim.

The company taps into every practically conceivable wellspring of data in stores, including point-of-sale systems and surveillance cameras as well as less obvious sources like Wi-Fi hotspots, to capture the different aspects of a retailer’s activities. That information is then meshed up with staffing lists and other back-end records as well external intelligence like weather forecasts to produce a complete view of business.

RetailNext provides an interface for decision-makers to expose useful patterns in that data. The company’s namesake platform can visualize the traffic inside a store to reveal the best locations for showcasing different products and measure the effectiveness of the advertising placed throughout the premises through a collection of built-in metrics.

The platform also provides higher-level functionality to monitor the performance of marketing campaigns across regions, which is essential for the large franchises that RetailNext is targeting, as well as online. To that end, the service packs a native mobile analytics component that allows retailers to shoppers searching for deals on the web while inside a store and adjust their merchandising accordingly.

Added up, all of that makes for a comprehensive value proposition that has proven a hit among brick-and-mortar chains, with RetailNext counting 160 of the world’s largest franchises among its clients and expanding its reach at a rate of about 1,000 stores per month. The predictive analytics features and operational expansions that the company plans to fund using the new $125 million investment from Activant Capital Group, Siguler Guff & Company and existing backers should go a long way toward sustaining that momentum.

Activant founder Steve Sarracino is joining the RetailNext as part of the round, which brings its total raised so far to a hefty $184 million.


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