Retailers’ IT spending will grow 9% a year through 2006, says a new report
In an ongoing effort to be competitive, retailers will steadily invest in information technology that increases operational efficiency and improves relationships with customers, a new study says. Retail industry spending on IT will reach $39.4 billion by 2006, a compound annual growth rate of 9.3% between 2001 and 2006, predicts Framingham, Mass.-based research firm IDC.
IDC predicts that certain segments of the retail industry--catalogs, building materials and pharmaceuticals--will exceed the 9.3% rate based on strong sales for these segments in 2001 and early 2002.
Despite strong consumer spending during the recent economic downturn, "retailers continue to struggle to maintain their profit margins along with their customer bases," said Christopher Boone, IDC senior analyst. "Although the retail industry may lag other industries in IT adoption rates, leading retailers will continue to turn to IT to improve operational efficiencies and customer intimacy to gain market share from their competition."
Boone said the study covered investments in all areas of IT spending, including technology for improving internal operations as well as for connecting with customers and trading partners.
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