Technology Grows in Importance for Retailers, New CompTIA Research Study Reveals

innovations in information technology (IT) continue to transform the retail sector, with digital signage, payment processing, customer engagement solutions and other functions that play increasingly important, according to new research published today by CompTIA, the 'non-profit association for the IT industry,
Seventy percent of retailers surveyed rate technology is important for their business, Retail Sector Technology Adoption Trends CompTIA Study Reveals. That figure is expected to rise to 83 percent by 2014.

But the study also indicates that a large number of retailers have not been able to use technology as well as it could or should. Only seven percent of retailers report being exactly where they want to be in the use of technology, while the rate of 29 per cent as very close.

"Reaching a state of optimal use of technology is a high bar for almost any business to achieve," said Tim Herbert, vice president, research, CompTIA. "But the vast majority of retailers clearly want to improve their use of technology. For some this will lead to adoption of new technologies for the others, improving the use of what they have in place."

A net 63 percent of retailers plan to increase IT spending in 2012, with the remaining 37 percent planning to reduce or hold the line. Large retailers expect to increase IT spending more - 4.8 percent, on average. For all firms, the average expected increase was 4.2 percent.

Innovations Transforming Landscape

New developments in the areas of digital signage, social engagement, mobility, payment processing and other areas given refuge retailers with new tools and functionality, and in some cases the challenges.

One in three retailers currently use digital signage, with 20 percent intending to do so soon, according to the survey conducted by CompTIA. Sales and promotional announcements and other direct engagement with customers are the most popular uses, cited by 71 percent of respondents.

Among all emerging technologies, adoption intention ranks first for geo-localization. Approximately one in five retailers that use geo-location technologies and other location-based clients to reach solutions. One reason for the strong interest may be a defensive threat 'showrooming' practice that consumers visit a physical store to evaluate a product, but to make the purchase from a retailer online for the lowest price possible.

"The location-based technologies can provide retailers the tools to encourage purchases at stores such as special discounts for customers in stores that are recorded in the middle of an application," Herbert said.

Retailers are also experimenting with technologies that improve the point of sale or Leapfrog those systems and exploit entirely new platforms for processing payments. CompTIA in the study, 13 percent of retailers say they are currently using a mobile payment system. Another 19 percent plan to implement the technology in the next 12 months.

But adoption of these new solutions and the other, must be accompanied by a strategy of broad-based technology that meets the basic needs as well.

"Reliable wireless connectivity, robust security, quality end points, data backup and other commodities cannot be overlooked by retailers eager to add new functionality," Herbert said.

Data for CompTIA Retail Sector Technology Adoption Trends study is based on an online survey of 500 U.S. retailers in major business categories, including apparel, home products, health and beauty, sporting goods and types related files. The survey was conducted between March 27 and April 2, 2012.

The complete report is available at no cost to CompTIA members who can access the file at CompTIA.org or by contacting research@comptia.org.