U.S. Retail Industry’s IT Spending to Reach $39.4 Billion by 2006, IDC Reveals
FRAMINGHAM, MA – AUGUST 5, 2002 -The U.S. retail industry's IT spending will reach $39.4 billion by 2006 with a 2001-2006 compound annual growth rate (CAGR) of 9.3%, a new report from IDC reveals. Based on strong retail sales through 2001 and early 2002, IDC predicts that food stores, general merchandise, catalog retailers, building materials, and drug stores will exceed the industry average CAGR for IT spending over the course of the forecast, while home furniture and restaurants will lag the furthest behind in terms of growth.
"Consumer spending has buoyed the U.S. economy during the current downturn, including an unexpectedly strong holiday season in 4Q01," noted senior analyst Christopher Boone. "Nevertheless, retailers continue to struggle to maintain their profit margins along with their customer bases. Although the retail industry may lag other industries in IT adoption rates, leading retailers will continue to turn to IT to improve operational efficiencies and customer intimacy to gain market share from their competition."
Despite the shakeup and subsequent shakedowns of high-profile corporate leaders and auditing firms, economic indicators for early 2002 seem to be positive, IDC's research indicates. The question remains whether consumers will continue to increase their shopping, and if so, how will these sales increases affect retailers' IT spending budgets.
IDC's new study, U.S. IT Spending by the Retail Industry, 2002-2006 (IDC #27690) presents the IT spending forecast for the U.S. retail industry by the following subindustries of retailers:
Building materials, hardware, garden supply, and mobile home dealers (SIC 52)
General merchandise (SIC 53)
Automotive dealers and gasoline service stations (SIC 55)
Apparel and accessory stores (SIC 56)
Home furniture, furnishings, and equipment stores (SIC 57)
Eating and drinking places (SIC 58)
Drug stores (SIC 59, pt)
Catalog retailers (SIC 59, pt)
Miscellaneous retailers (SIC 59, remainder)
To purchase this document, call IDC's volume sales hotline at 508-988-7988 or email Jim Nagle at firstname.lastname@example.org.
IDC is the foremost global market intelligence and advisory firm helping clients gain insight into technology and ebusiness trends to develop sound business strategies. Using a combination of rigorous primary research, in-depth analysis, and client interaction, IDC forecasts worldwide markets and trends to deliver dependable service and client advice. More than 700 analysts in 43 countries provide global research with local content. IDC's customers comprise the world's leading IT suppliers, IT organizations, ebusiness companies, and the financial community. Additional information can be found at www.idc.com.
IDC is a division of IDG, the world's leading IT media, research and exposition company.
# # #
All product and company names may be trademarks or registered trademarks of their respective holders.