Retailers Anticipate Heavier Store Traffic This Holiday Season; Retail Survey Conducted by StorePerform Technologies Finds That a Well Staffed and Well Stocked Store Leads to Holiday Cheer.

DENVER -- A recent survey of retail operations managers conducted by StorePerform(TM) Technologies, Inc. found that despite rising energy costs and predicted low consumer confidence, most retailers are anticipating heavier store traffic for the 2005 holiday season. The survey also revealed that nearly two-thirds (62%) of these respondents, in preparation for the busier holiday season, consider the hiring of additional seasonal staff and the logistics of merchandise stocking the most important holiday initiatives. These activities outranked conducting preseason promotions and clearing out old merchandise through discounts and to secure the top spot on retailers' priority list.

The survey also identified the situations retailers need to avoid to take advantage of heavier store traffic this holiday season. The three most common reasons cited for harming holiday sales include out of stock promoted items (67%), poorly merchandized promoted items (47%) and understaffed stores (33%).

"With retailers installing displays and decorations and promoting holiday wares in September, holiday season continued its tradition of arriving early this year. Because every last consumer dollar is at stake, it's critical that retailers stay competitive through a mix of well-planned discounts and promotions combined with on-time and consistent execution across every store," said Srikant Vasan, president and CEO, StorePerform Technologies. "Having a well organized and sufficiently staffed store not only creates and maintains a consistently positive shopping experience but also improves overall sales volumes and secures customer loyalty."

Due to soft retail sales throughout 2005, many retailers view the holidays as a make-or-break season. According to NRF, 2005 holiday sales may constitute more than the typical 40 percent of annual sales.

Additional findings of the StorePerform survey included:

--Nine out of every 10 respondents pointed to 'out of stock promoted items' as the first or second most harmful factor for holiday sales;

--The majority of respondents identified either discounts and markdowns or special store events/promotions/giveaways as top activities to counter predicted low holiday sales;

--Twenty percent rated understaffed stores as the most harmful factor for holiday sales, and 53 percent ranked it in the top two;

--Fifty percent of the respondents identified coordinating and planning holiday promotions as key activities.

About StorePerform

StorePerform(TM) is the leader in store performance management software that bridges the gap between retailers' sales strategy and program execution. The StorePerform Workbench(TM), the Company's flagship product, is the only software that provides real-time visibility into processes across the retail chain, personalized task management, and closed-loop reporting and feedback. StorePerform's proven technology is used by Sears, Borders and other top 10 retailers to quickly maximize sales opportunities and drive down operational costs by improving on-time program execution and increasing people productivity. StorePerform is privately owned with headquarters in Denver, Colorado. For more information, please visit www.storeperform.com or call (877) 773-PRFM.