StORES Magazine - September 2007 - (Page B3) 2007 Retail IT Budgeting Study Initial insights from NRF/AMR Research’s fourth annual Retail IT Budget Benchmarking Study show healthy growth for 2007 retail technology budgets. Retailers in all segments continue to invest aggressively in backbone technologies and infrastructure to provide flexible and efficient systems that allow employees throughout the organization to respond effectively to ever-changing consumer demands. (AMR Research will publish a comprehensive analysis later this year.) AMR Research and the National Retail Federation’s CIO Council are conducting this study of specific retail IT budget financials and application investment plans, and this STORES Magazine supplement provides a preview of the data collected and analyzed to date. The study collects line-item level detail on retailer technology spending in all major budget categories: operating expenses, capital spending and labor costs. It also provides strategic insight into retail software application priorities, security initiatives and outsourcing plans. The CIOs of 20 companies across all major retail segments directly participated in the study. Each participating retailer submitted its specific budget details to a structured retail technology budgeting tool, allowing for normalization of unique budgeting methodologies and making comparative and trending analysis more accurate. Retailers participating in the 2007 study had average revenues of $4.4 billion. The average store count was 1,144, with the average number of employees 33,525. Direct comparisons between each year’s study results will show inconsistencies because of the variance in retailers participating from year to year. In this initial review of the data, any trending analysis between 2006 and 2007 comes only from retailers that provided historical information with their 2007 submissions. Robert Garf, Janet Suleski and Fenella Sirkisoon AMR Research, Inc. AN AMR RESEARCH PUBLICATION IN CONJUNCTION WITH NRF DISTRIBUTION SPONSORS: Manhattan Associates Manhattan Associates provides supply chain solutions to retailers that consider supply chain software, processes and technology strategic to their global market leadership. Since 1990, Manhattan has led the supply chain industry in research and development investment focused on advancing the innovation, reliability and cost-effectiveness of supply chain solutions. Retailers use these solutions to enhance profitability and maintain sustainable competitive advantage. Manhattan is proud to partner with these global enterprises to create and deploy innovative supply chain strategies that are literally changing our customers’ industries. en customer relationships, build high value business connections and improve operations. More information can be found at http://www.microsoft.com/retail better by applying insight into daily business decisions for more profitable results. Microsoft Microsoft helps retailers in today’s competitive global marketplace by enhancing their ability to make the best decisions and produce the best results at every stage of the retail value chain. A peopleready business is able to harness information, enabling people to turn data into insight, transform ideas into action, and turn change into opportunity. Microsoft and its network of industry partners are focused on solutions that help retailers strength- STORES STORES is the magazine of the National Retail Federation (NRF), the world’s largest retail trade association. STORES reports on the broad spectrum of strategic issues facing senior retail executives, including: Retail Technology, Supply Chain and Logistics, Credit and Payment Systems, Loss Prevention, Human Resources, Online Retailing, Communications, Marketing, Merchandising and other vital store operations. Oracle Retail Oracle partners with the world’s leading retail companies to transform the economics of their business. From supply chain, operations, merchandising, store systems, optimization and information technology solutions, Oracle Retail is the single source for innovative and comprehensive industry solutions — enabling organizations to serve their customers © 2007 by AMR Research, Inc. No portion of this report may be reproduced in whole or in part without the prior written permission of AMR Research. Any written materials are protected by United States copyright laws and international treaty provisions. AMR Research offers no specific guarantee regarding the accuracy or completeness of the information presented, but the professional staff of AMR Research makes every reasonable effort to present the most reliable information available to it and to meet or exceed any applicable industry standards. AMR Research is not a registered investment advisor, and it is not the intent of this document to recommend specific companies for investment, acquisition, or other financial considerations. WWW.STORES.ORG STORES / SEPTEMBER 2007 B3 http://www.microsoft.com/retail http://WWW.STORES.ORG
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