September 9, 2002, 12:00 AM

Investment researcher SoundView is bullish on retail IT spending

50% of retail IT managers say spending this year will be higher than last year’s while 40% say it will remain the same. Supply- and demand-planning software, revenue and cost containment systems are getting the most attention, SoundView says.

Kurt Peters

Executive Editor

 

Retail information technology spending will remain strong through this year, say results released today from a survey by SoundView Technology Group Inc. SoundView reports that 50% of retail IT managers say spending this year will be higher than last year’s while 40% say it will remain the same. Supply- and demand-planning software are receiving the largest investment while revenue and cost containment are getting the most attention from retailers right now.

“We remain bullish on the retail IT vertical,” said Peter Coleman, senior analyst at SoundView. “As the industry matures and competition grows, efficiency has become a leading driver of success. Investing in IT is no longer an option for many retailers.”

SoundView says that while 47% of retailers say their focus is on internally developed systems, 61% say they expect to spend more on packaged systems from vendors in the next year and a half.

The majority of respondents spend $250 million a year or more on IT while 10% of respondents spend $1 billion or more each year. “This survey confirms that despite the economic slowdown in IT, the retail technology space remains unusually vibrant,” said Renny Smith, managing director of T.H. Lee Putnam Ventures, which invests in companies that develop digital information technologies. SoundView is a research-oriented securities firm that specializes in technology companies.

 

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