Retailers to spend more on technology this year
More than half of retailers plan to spend more on technology in 2015 than last year, according to survey
Investing in technology is seen as a key driver for growth and sales by 100 of the top UK retailers surveyed for law firm TLT’s Retail Growth Strategies Report 2015.
According to the survey, conducted by Conlumino conducted the research on behalf of TLT, websites and mobile apps and improving IT systems are expected to be the two most popular areas of investment. Other top areas for investment include replacing old systems and ensuring that different systems talk to each other (44%).
Better web presence
Creating a better website presence is also a priority, reflecting that retailers are trying to satisfy customer demands in an increasingly global marketplace. When looking at how technology can improve a customer’s retail experience, ‘personalising’ interactions with customers will dominate investment in 2015 for more than half.
Click & collect will also be important for retailers. A third of retailers currently offer click & collect for products purchased from their own website with almost a quarter planning to in 2015.
Negotiation and disputes
Perran Jervis, partner and head of retail and consumer goods, said: “Our survey revealed that almost half of retailers rarely or never negotiate contracts for new technology. This may in part explain the high level of serious disputes with technology providers, more than two on average for each retailer last year.
“So while retailers understand that investment in technology is a priority to deliver sales as well as reducing costs, it also may be their biggest challenge over the next 12 months.”
For this research, Conlumino interviewed 100 of the top UK retailers. It was combined with consumer research, secondary research and market data to bring together insights and forecasts. In all cases, interviews were carried out with senior management. The sample was representative of all sectors within the retail space.