35 Year History Pace has a 35-year history of developing state of the art technology, implementation and training. We were the first company in the world using scanning technology before bar code had been developed. For many years, we have been invited internationally to present our strategies and innovative technology to retail audiences. Numerous business newspapers and magazines have featured articles regarding Pace solutions. Cost Benefit Without exception, our clients have experienced increased turnover and higher margins with greater sales per square foot than prior to Pace involvement. We value this achievement and will decline any engagement in which we do not think we can deliver improved profits at a minimum of triple all costs. In larger companies, it is often in the hundred-fold cost to benefit ratio. The key factors involve precise, yet easy to use strategies and tools. Whether yours is a large, multinational chain or small local establishment, the process is the same. Pace has been engaged by apparel, accessory, footwear, home, art and scientific companies to improve inventory management processes. We have worked with specialty store chains such as Quiksilver and Bata and department store chains such as Beall's and Federated Department Store's. Repositioning Due to the consolidations in wholesale and retail that have taken place over the last decade, retailers have fewer resources and almost no exclusivity. This means that it is much more difficult to differentiate your store from your competitors. Fashion has moved more and more toward being a commodity. Unless you are a low cost operation, you are not able to compete on price alone. In fact, recent surveys indicate that price is third down from the top of what shoppers deem important. The consolidations that have taken place have made retail more challenging in some aspects but have also brought new opportunities. The largest retailers leave a lot of business on the table for specialty stores and independents. Their inventories are not as precise to their markets as what can be achieved and almost all department stores utilize the matrix buying system. Under the matrix system, buyers are restricted to a set group with whom they can do business. This leaves vendors that are excluded and an opening for differentiation with less price pressure. Repositioning can take place in many ways. We always look at assortments, vendor structure, sizing and service to improve differentiation and add value to your customers. With other engagements, repositioning can involve relocation and marketing programs. The key is to decrease each client's dependency on price. Unless you are one of the largest retailers in the US, you can be price-competitive, but not a price-leader. You do not have the cost structure to win that game.