What’s All the Hype? A Day in the Life of an Allocator Using AI with Celect Demo
Sportswear company Nike has completed the acquisition of US retail forecasting and demand analysis firm Celect. Financial terms of the deal were not disclosed.
«With the Celect acquisition, Nike is significantly expanding our digital advantage by adding a platform developed by world-class scientists, ”said Eric Sprink, COO of NIKE, Inc. “As demand for our product grows, we need to be insight-oriented, data-optimized and responsive to consumer behavior. This is how we serve consumers on a larger scale.».
Celect, founded in 2013, has a portfolio of leading edge data science and proprietary software solutions. Celect cloud analytics platform provides information that enables retailers to optimize inventory in a multi-channel environment through hyper-local demand forecasting.
According to Sprink, Nike decided to acquire Celect instead of «spend two or three years», trying to develop a similar platform in-house. «It’s really hard work … to predict the patterns and behavior of retail stores. … This [acquisition] accelerates us», – admitted by the top manager.
The Celect team will be immediately integrated into Nike’s global operations team, while the co-founders will continue to serve as tenured professors at MIT, continuously advising Nike.
«We’re thrilled to join the Nike team, adding our unique and innovative capabilities to the analytics database they’ve built over the years.», – said John Andrews, CEO of Celect.
Nike expects Celect to help reduce the number of items out of stock and face fewer situations where demand for sneakers and apparel is not planned. Less pressure on profitability will be helped by a situation where Nike can better control inventory and keep a surplus of unsold goods in stock..
Prior to the Celect purchase, Nike had already bought Virgin MEGA, a digital design studio based in New York with the support of Richard Branson’s Virgin Group, to engage in its SNKRS app, a commercial footwear platform launched a year earlier. Last March, Nike said it had acquired consumer data analytics company Zodiac in an effort to accelerate its «digital transformation», insofar as sales continued to move online. In April, the company announced the acquisition of computer vision specialist Invertex based in Tel Aviv, Israel. Nike did not disclose how much it spent on any of these deals..
Nike shares are up about 8% since the beginning of the year, bringing the company’s market capitalization to $ 127 billion..