When the Weather Outside Is Frightful&

Movie Gallery selects app to position inventory for weather-driven demand

Wayne, PA  January 15, 2003  Supply chain planning technology company Planalytics Inc. said that Movie Gallery Inc. has signed an agreement to access Impact LR, an Internet-based application that measures the specific effects of future weather on consumer demand by product, location, and time. Movie Gallery will use Impact LR to shift inventory to areas of the United States and Canada where future weather changes will boost consumer demand for DVD's, videos, and video games.

"Other than the quality and popularity of newly-available movie titles and games, weather is the biggest driver of demand in this business," said Jeffrey Stubbs, executive vice president of operations at Movie Gallery. "Detailed analysis by Planalytics has quantified the relationships between store traffic and different types of weather throughout our operating regions, and Impact LR gives us advance intelligence needed to optimize our inventory in line with future demand."

Impact LR provides retailers and manufacturers with knowledge of how weather has and will influence their business up to one year in advance in order to support more effective planning and forecasting, product distribution and allocation, and advertising and promotion timing.

Movie Gallery, based in Dothan, Ala., owns and operates 1,783 video specialty stores in 43 states and six Canadian provinces. Movie Gallery is a home video specialty retailer primarily focused on rural and secondary markets.