Harry and David plans a $7.7 million systems upgrade

Harry and David Holdings Inc. will spend $7.7 million in fiscal 2006 to update the company’s e-commerce platform and install a new online point-of-sale system.

In its latest initial public offering papers filed with the Securities and Exchange Commission, Harry and David said that in 2006 it will upgrade to new WebSphere e-commerce platform from International Business Machines Corp. “The new IBM e-commerce system is written in Java software, which will make maintenance more efficient and make it easier for our developers to implement future enhancements,” the company says.

Harry and David, No. 81 in the Internet Retailer Top 400 Guide to Retail Web Sites, will also spend an undisclosed amount for an online POS system for about 136 outlet stores.

Harry and David operates a substantial information technology program that can create economies of scale to handle as many as 100,000 orders per day during peak holiday seasons, the company says.