Retail downturn hits specialist mid-size retailers hardest
Survey of Retail CIOs shows specialists are changing IT priorities to compete more effectively
Aldata Solution has revealed that mid-size retailers, are being affected much more than larger retailers by the economic downturn, according to its 2011 Global Retail CIO Survey.
To combat this threat, mid-sized retailers are reacting fast and are investing more to get closer to their customers, with close to a quarter prioritizing IT spend on store and ERP systems, as well as solutions available through the Cloud which will address this challenge.
The research of more than 130 retail CIOs globally, conducted by retail research specialist Martec, reveals that almost double the amount of mid-size retailers (38%), consider the economy to be the biggest issue affecting their business, compared to only 22% of all retailers.
Allan Davies, EVP Market Development at Aldata Solution comments: “Being a mid-sized retailer has never been harder than it is today, but a key differentiator is the close relationship they can have with their customers by being more local and this is where the larger retailers are trying to play catch up. The old 80-20 rule is still valid and retailers able to pinpoint the 20% of customers generating 80% of their revenues will be able to serve better and make more money.”
As rising costs threaten specialist stores it seems that they are turning to new systems to drive efficiencies, with almost double (20%) planning to invest in ERP and cloud computing (15%), compared to 11% and 5% of all retailers, in a bid to improve store based customer service and to reduce their existing IT costs.
Dilip Popat, Industry Principal, Retail and Distribution, Microsoft Business Solutions added: “Mid-size retailers are looking at a new generation of connected IT solutions because their existing software is not giving them the visibility, integration, or ROI that they need to compete effectively in these tougher times.”
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