IT No. 1 priority for retailer spending
Wednesday, June 6, 2012 at 10:32AM According to the 2012 Retail Outlook Survey, 77% of retail executives indicate that their companies have significant cash on the balance sheet – up from 72% in KPMG's 2011 survey – and 56% say their companies' cash positions have increased from last year. So,what do retail execs plan to do with their cash?
58% of retail executives plan to increase capital spending over the next year. The highest priority investment area is information technology – including data analytics and digital marketing channels – cited by 51% of the executives in the KPMG survey.
Executives say that the use of data analytics is playing a larger role in their strategic decision making – including areas such as customer insight, brand and product management, pricing decisions and market expansion.
"With consumer behavior, spending and demographic profiles changing rapidly, a key to success will be investing in technology to harness the vast amount of data that resides in a company. That data can drive the insights that will allow retailers to interact with consumers more effectively and capture more 'wallet-share.' It may also reveal information on new markets, new strategies and new operating models that will ultimately generate growth and profitability."
Other significant areas of investment for retailers are new products or services (43%), geographic expansion (33%), and advertising and marketing (24%).
When asked about digital marketing channels, retail executives in the 2012 KPMG retail survey indicate that online shopping (59%), social media platforms (58%), and email campaigns (49%) are having the most significant impact on their businesses. Additionally, executives indicate that the incorporation of mobile technology is also having a significant impact, specifically mobile shopping (36%), mobile promotions (28%), and mobile payments (21%).
Quotes - Mark Larson, KPMG global retail leader
Source: retailingtoday.com
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