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Retailers' IT investment holding strong

23/02/2007

A statement by Michael Gerling,
CEO of EHI Retail Institute GmbH, Köln

Every year, German retailers invest a good one percent of gross sales in upgrading and expanding their IT systems. That adds up to a total volume of 4.2 billion euros - about 50 percent of which is spent on hard and software as well as external services.

Key changes to the IT landscape have been brought about primarily by new opportunities for inter-branch networks. High-capacity, permanent Internet connections have long since established themselves as the norm, opening the door on a host of new options for designing technical systems. The ability to transmit large volumes of data swiftly, securely and inexpensively has resulted in a complete transformation of IT architectures.

While for a long time the decentralisation of systems topped agendas, today many applications can once again be consolidated at a central location. For mega-retail chains in particular, the upshot is substantial cost savings on technical equipment for individual branches and the associated system maintenance.

At the same time, business operations benefit from increased transparency because nowadays, updated reports on sales and stock figures can be called up at any time. What's more, vertical integration between retailers and industry can be improved since manufacturers can also be provided with precise, real-time information on articles and store locations. Planning processes at every link in the supply chain are significantly streamlined as both surplus stocks and stock shortages can be reduced.

Last but not least, Internet connectivity also plays a vital role in internal communications. VoIP, for one, has gained acceptance as an important technology within a very short space of time and continues to win an ever greater following.

The retail industry's tremendous demand for new technical solutions combined with hard and software suppliers' accelerated innovation cycles means that EuroCIS, the leading European trade fair for retailers' information and security technology needs, has established itself as a yearly event.

In line with this trend, the number of highly specialised suppliers of IT and security solutions to the retail industry that have registered for EuroCIS has crossed the 200 mark for the first time in 2007. Spread across almost 5,000 square metres of net exhibition space, they will be presenting to visiting members of the trade both tried-and-trusted as well as innovative, new solutions. A total of roughly 5,000 trade visitors from Germany and many of its neighbouring European countries are expected to attend.

EuroCIS is a prime example of how, with highly specialised concepts, very successful IT fairs can continue to be staged in future. Boasting double-digit growth rates, EuroCIS is a small but high-powered event and an unmissable date for IT decision makers on the retail industry calendar.