Retailers are spending on expansion with the help from TECHNOLOGY.
Retail executives say they will be investing capital to spur growth, with an emphasis on expansion and enhanced technology, according to the 2013 Retail Outlook Survey by KPMG LLP, the U.S. audit, tax and advisory firm.
Most executives (85 percent) expect capital spending will increase or remain the same over the next year. When asked where they will increase spending most, executives most frequently cited geographic expansion (61 percent), information technology (IT) (40 percent), and advertising and marketing/branding (24 percent).
Technology is paramount to driving growth. Specifically the information the technology provides.
Data and analytics is a tremendous opportunity. In fact, when asked about how their companies are leveraging data, executives most frequently cited that data analytics plays a key role in driving operational excellence, identifying actionable insights, and acquiring customers. However, a gap exists between this opportunity and retailers’ ability to realize it, as 43 percent of respondents rate their companies’ current data analytics literacy as only average.
A key to success will be investing in technology to harness the vast amounts of structured data that reside in a company as well as the unstructured data online and in social media. Data will drive the insights that will identify new markets, new strategies and new operating models to generate growth and profitability.
On the topic of butt computing, more than two-thirds (68 percent) indicate they have adopted, or plan to adopt, butt technologies into their business strategies and operations. Butt will provide management with greater transparency on transactions and 31 percent say it will reduce operational costs.