New York, NY, January 13, 2004 — Retailers will participate in the surge of business spending expected this year, according to new research by the NRF Foundation (NRFF) and BearingPoint, Inc. (NYSE:BE) unveiled today at the NRF Annual Convention in New York. The study, "Retail Horizons: Benchmarks for 2003, Forecast for 2004," found that eighty-three percent of retailers expect replacing or upgrading point of sale (POS) software systems to provide real-time customer information at the time of sale.
This second annual study, which surveyed more than 100 retailers, focuses on store and field operations, supply chain, customer relationship management, merchandising, advertising, human capital, information technology and marketing issues.
In analyzing this year’s survey data, NRFF and BearingPoint observed that the three currents of change of last year -- moving toward greater customer-centricity, traveling along the data-knowledge-action continuum and shifting toward a boundaryless business model -- were reaffirmed with the addition of a fourth current: the need for retailers to be on a greatly accelerated path to differentiate themselves from the competition.
"With continued momentum in the economy, now is the time for businesses to invest in new technology," said NRF President and CEO Tracy Mullin. "The retailers who choose to invest today will be rewarded tomorrow."
"As the competition increases, retailers need to figure out how they can differentiate even more," said Scott Hardy, a managing director with BearingPoint’s Retail/Wholesale practice. "Retailers are looking to POS in 2004 to provide real-time information to have a better understanding of the customer."
Other key findings of the study include:
* Cost containment will be the #1 priority for 2004
* 74% of retailers segment their customer base by loyalty and 66% by customer preferences
* 49% cite private label development as a priority
* 82% list sales associate training as a key initiative
* In addition, about a third of the respondents will focus on micro-merchandising and multicultural marketing
The study suggests several approaches retailers can use to differentiate themselves from the competition, including:
* Leveraging a robust understanding of the consumer to create unique, differentiated merchandise assortments.
* Build a brand in an integrated way that resonates.
* Provide a seamless, multi-channel shopping environment.
* Build and sustain a high performance workforce.
The full study may be purchased via the online NRF Bookstore at http://www.nrf.com/bookstore/
BearingPoint, Inc. (NYSE:BE) is one of the world’s largest business consulting, systems integration and managed services firms serving Global 2000 companies, medium-sized businesses, government agencies and other organizations. We provide business and technology strategy, systemsdesign, architecture, applications implementation, network infrastructure, systems integration and managed services. Our service offerings are designed to help our clients generate revenue, reduce costs and access the information necessary to operate their business on a timely basis. Based in McLean, Va., BearingPoint has been named by Fortune as one of America’s Most Admired Companies in the computer and data services sector. For more information, visit the Company’s website at www.BearingPoint.com.
The NRF Foundation (NRFF) is the research and education arm of the National Retail Federation. A non-profit foundation created in 1981, the Foundation conducts industry research, develops education and workforce development programs, and promotes retailing as a career destination. TheNRF Foundation benefits retailers, their associates and business partners and allies, and consumers in many ways. Research provides the basis for education about the industry and its importance to the economy, and provides industry and government leaders with an analysis of public policy decisions on consumers, retailers, and the economy. The Foundation`s education and career development efforts, including NRF University wired, encourage professional development and excellence in performance of retailing for associates and executives at all levels.
The National Retail Federation is the world`s largest retail trade association, with membership that comprises all retail formats and channels of distribution including department, specialty, discount,catalog, Internet and independent stores as well as the industry`s key trading partners of retail goods and services. NRF represents an industry with more than 1.4 million U.S. retail establishments, more than 20 million employees - about one in five American workers - and 2002 sales of $3.6 trillion. As the industry umbrella group, NRF also represents more than 100 state, national and international retail associations. www.nrf.com.
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NRF Contacts:
Scott Krugman/Ellen Tolley (202) 783-7971
Email: krugmans@nrf.com or tolleye@nrf.com
BearingPoint Contact:
Lizette Kodama (212) 954-2461
Email: lkodama@bearingpoint.net
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