16
HORIZONS
MAKING RETAIL TECHNOLOGY PAY
2010 could be a ‘make or break’ year for some technology deployments, as retailers
come under pressure to fi ght harder for customers and growth
M
any retailers will perhaps be glad These closures correspond to around £14 through the point of sale, to aftersales service
to see the back of 2009. Global billion of consumer expenditure in retail and repeat custom, will be called upon to
fi nancial turmoil, and increased price Verdict estimates. be more integrated and appear even more
and margin pressures proved to make the last Matthew Piner, Verdict Research retail seamless than ever before.
twelve months a tough year for many. analyst added: “Big, high-profi le collapses, such
Despite the fact that the recent bumper as Woolworths, have had all the coverage, but Winning more custom with
Christmas season will have served to dull the relentless closure of small stores has done smarter IT
memories of those unprecedented numbers just as much to push up vacancy rates. This “The extra spend freed up for survivors by
of retail casualties, like Principles, The Pier has freed up extra sales, which have been casualties is a one-off gain, and we do not
and Land of Leather, that couldn’t survive absorbed by the bigger, stronger players, lifting predict that there will be as many casualties
the recession, many analysts and retail IT their sales.” in 2010 – most of the weakest have already
specialists are predicting this year is going to But, while this may be good news for collapsed. But consumers will be concerned
be far from smooth sailing. those that have survived the downturn about job prospects and higher taxes, as
“One of the main reasons these retailers so far, it means that existing technology whoever wins the coming general election
have done so well is that as much as £14 infrastructures will be called on to handle will have to impose some tough measures
billion has been freed up by retail casualties heavier transaction loads. Merchandising to make UK plc a viable proposition again,”
for survivors to grab,” said Maureen Hinton, and supply chain systems will be put on added Hinton. Verdict forecasts low growth in
lead retail analyst at Verdict Research. Based more pressure to ensure more of the right retail for many years to come, so retailers will
on fi gures provided by the Local Data products are available in the right channels at have to work much, much harder at winning
Company, shop vacancies in UK high streets the right time. And the technologies retailers a share of consumer spending. We forecast
and town centres were up from 5% in use to support the entire customer journey, growth of 1.1% in 2010. This will be the
December 2008 to 13% in December 2009. from internet or store-based research, second lowest growth rate, after 2009, since
our records began in 1966.”
So while technology that retailers rely
on to refi ne and deliver their customer
proposition will really have to start making
a competitive difference, the very software,
hardware, networks and IT services that
underpin specialist retail processes will also
have to deliver additional cost savings. So
much so that the KPMG/Synovate Retail
Think Tank (RTT) said that successful
retailers will be those that continually adapt
to the changes in consumer behaviour and
changing levels of demand by fi nding new
and innovative ways to exploit what few
opportunities are available.
“The focus on cash will remain critical
again this year and retailers must continue
to improve their oversight and integration
of costs, cash and forecasting – particularly
as the multichannel model becomes more
important,” it stated. And “cost-saving
initiatives, which many retailers implemented
last year will need to be reviewed regularly,
as costs will have inevitably started to creep
back up again. Margins, the most infl uential
driver of retail health in 2009, will also need
close attention and the RTT predicts that
successful retailers will be those that fi nd
innovative ways to do this.”
RETAIL TECHNOLOGY JANUARY/FEBRUARY 2010
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