Demandware Inc. the industry-leading provider of enterprise cloud commerce solutions, announced that it has agreed to acquire Tomax, an enterprise cloud software company that provides an integrated solution for retail point-of-sale (POS) and store operations. The combination of Tomax’s enterprise-class POS with Demandware’s robust, scalable cloud platform creates a breakthrough unified commerce platform that empowers retailers to deliver seamless experiences across all consumer touch points, including POS. The acquisition of Tomax is expected to close in January.
Connected consumers, empowered by the pace of technological innovation, are driving the digital transformation of retail. While 90 percent of all retail transactions take place in the store, digital is expected to influence approximately half of all in-store sales by 2015(1). To navigate this transformation, retailers are incorporating digital functionality into the store experience, such as personalized merchandising, detailed product information, ratings and reviews, product recommendations and the mobilization of store associates. In addition, retailers increasingly want to move to a single consumer-facing platform to extract value from disparate back office systems and leverage data, business rules, functionality and processes across the enterprise.
The acquisition of Tomax will enable Demandware to deliver a unified platform, powered by the cloud, that provides retailers with access to comprehensive consumer, product, inventory, order and price data, giving retailers real-time information as a basis for continuous innovation in the store. The combination of Demandware and Tomax will uniquely enable retailers to provide personalized and consistent experiences throughout the consumer shopping journey — increasing sales opportunities and driving revenue growth. In addition, Demandware’s single platform for consumer engagement and transactions will help retailers optimize margins by lowering IT expenses, reducing operational complexity, empowering store associates and improving inventory visibility across the enterprise.
“The retail landscape is rapidly changing with more than 70% of specialty stores saying their next POS will be a unified commerce platform,” says Greg Buzek, Founder and President of IHL Group. “Traditional siloed systems are not meeting the needs of the consumer who requires the same experience across channels and devices. Retailers need to have a ‘single version of the truth’ — one view of the enterprise organization and information about the consumer from point-of-sale to digital commerce. Demandware’s acquisition of Tomax significantly advances its One Platform strategy, making the company one of the early leaders in delivering this important solution to market.”
Tom Ebling, CEO, Demandware, stated, “We have demonstrated that our cloud solution is a superior model for managing consumer engagement across channels. The addition of Tomax’s POS technology and deep in-store domain expertise allows us to accelerate our One Platform strategy by extending our reach further into the physical store. This transaction creates a tremendous opportunity for Demandware, by expanding our market to include in-store retail sales.
“The experience of the Tomax team, led by Eric Olafson, CEO Tomax, will be invaluable as we execute our long-term strategy. We are delighted to have them join the Demandware team,” continued Ebling.
Tomax has more than 20 years’ experience delivering robust POS technology that meets the data volumes and sophisticated requirements of large enterprise retailers, including Hallmark, L.L. Bean and Party City. Tomax has a proven track record as a leader in enterprise POS. The retail innovator has overcome the critical challenge of cloud delivery in the store, including real-time cloud transaction processing, while ensuring redundancy for continuous operations and high-performance in low-bandwidth or disconnected store environments.
“By joining Demandware, we will continue to drive transformational change into retail through a single platform powered by the cloud,” stated Eric Olafson, CEO, Tomax. “The One Platform strategy will help retailers reach omni-channel nirvana — a single point of control and digital backbone that continually innovates and provides actionable consumer and product intelligence to drive growth and optimize margins across the retail enterprise.”