Promotions are important to retailers, often 20-50% of turnover is discounted or in other ways activated. However, determining whether or not promotions are profitable, and whether they truly drive incremental sales after all side effects are accounted for, has, until now, proved very difficult. By using Formulate’s Retail DecisionCloud, users get a comprehensive analysis of all their past promotions, and reliable forecasts of all their planned promotions. They can also simulate the effect of promotions in the ideation phase. This enables retailers to continuously improve and to collaborate with suppliers in an innovative way.
The founding team started their journey together in 2016 with a consultancy project to analyse a retailers promotion data. They soon realised that most analysis and forecasts were based on gut-feel alone, without proper tools to manage, analyse and visualize results in order to make data-driven decisions. Since then, they have designed, developed and begun to sell their Retail DecisionCloud. The company’s founding team, consisting of Andreas Willgert, Arvid Stenback and Robin Bartholdson impressed us from the first meeting. They showed us that they managed to build a scalable solution, that is loved by their customers, for an extremely complex and significant problem in retail. In addition, they have proven to be able to attract exceptional talent with a strong retail background to their team of which Anna Blomdell, as Chief Product Officer, is a great example.
Our investment in Formulate further establishes our commitment to the Nordic ecosystem in B2B software (4 out of the last 6 deals announced are in the Nordics). Based in Stockholm and currently gearing up for their European expansion, Formulate was looking for an international investor that could support them in that next step. “It all came together when we met henQ. Their fund is focused on B2B enterprise software, they are skilled in supporting companies like ours in international expansion, and they know what is required to eventually enter the US”, says Andreas Willgert, CEO of Formulate.