IT Spending in Australia’s Retail Industry Continues to Outpace the Market

November 30, 2007 (PRLEAP.COM) Technology News
Sydney, Australia – November 30, 2007 – Springboard Research, a leading innovator in the IT Market Research industry, today announced the results from its latest research covering technology usage in Australia’s retail industry. Springboard estimates that IT spending in the retail industry will reach AUD1.54 billion (US$1.36 billion) by the end of 2007, and that the market will grow at a cumulative growth rate of 9% from 2006 to 2010. The market is expected to hit AUD1.96 billion (US$1.73 billion) by 2010.

“Springboard has concluded that after focusing on driving customer satisfaction, increasing retention, and expanding business, IT is the highest investment area for most large and medium-sized retailers,” said Phil Hassey, Springboard Research’s Country Manager for Australia/New Zealand. “Our data also shows that one in five Australian retail companies are on the verge of an IT infrastructure overhaul, and in the process of replacing legacy systems with more modern and cutting-edge technology. This will create many short-term opportunities for IT vendors that are able to effectively communicate the benefits their solutions provide to retailers,” added Mr. Hassey.

A saturated local market has forced Australian retail companies to look at investing in new markets, including geographic expansion and new formats, to boost their business. These retailers consider expansion as key to continued growth and profitability. This focus on new market opportunities – and the pivotal role technology plays in these strategies – will prove to be one of the key drivers for IT revenue growth in the Australian retail industry.

“Our survey of 48 CIOs and IT decision makers shows that a quarter of the retail companies we surveyed have invested significantly in enterprise resource planning (ERP) solutions. This underscores the industry’s need for streamlining back-end operations affected by the dynamic changes retailers face due to expanding markets, developing technologies and evolving business strategies,” said Nilotpal Chakravarti, Senior Analyst for Vertical Industries for Springboard Research. “We have also seen retail companies across all sectors invest in supply chain management (SCM) to streamline business operations. Retail investment in this IT area is viewed as fundamental to industry growth and profitability, and 26% of retail respondents have said that SCM has been their IT focus area of the past 24 months,” added Mr. Chakravarti.

While online retailing in Australia is at a nascent stage, it is on the agenda of a significant number of retailers, especially the larger ones. These retailers see digital storefronts as a complement to their offline business. 23% of surveyed retailers said investment in e-commerce was their major solution category of the past 24 months.

From a competitive standpoint, no clear leading IT vendor emerged from respondent feedback. Most of the retailers surveyed (60%) stated that they implemented their IT solutions in house. MNC vendors were mentioned by 29% of respondents. From its market research, Springboard has seen SAP, IBM, Oracle, HP, and Fujitsu gain traction with the larger retail houses.

About This Study

This Springboard Research study assesses the Australian retail industry and the opportunities the market presents for IT providers. This report examines eight key segments in the retail sector: Food/Grocery/Vegetables, Apparel, Electronics/Electrical (White Goods), Pharmacy, Home Furnishings and Furniture, Lifestyle products (Jewelry/Shoes/Watches), Office Products and Department Stores. For this study, we surveyed 48 IT decision makers at major retail companies in Australia and CEOs of leading IT vendors for the retail industry. Also included is market data, including market size and growth forecasts, to provide insight into the retail sector from an industry perspective.

About Springboard Research

Springboard Research’s core values are value, integrity and insight. Led by a team of dynamic industry experts, Springboard Research provides its customers with high value IT market research that helps them identify new market opportunities, growth engines and innovative ways to go to market. As a result, Springboard’s clients lead rather than follow market trends. Not bound by legacy, Springboard’s cutting-edge research model leverages its offshore research centers, the Internet, and an increased use of technology as engines of innovation to deliver unique research value. Provided as an alternative to traditional IT market research, Springboard’s reports deliver data and knowledge in a more usable and interactive format for our clients. Springboard Research works with the largest IT companies in the world in the software, services, hardware, and telecommunications sectors.

Founded in 2004, Springboard Research serves the needs of its clients globally through offices in the United States, Australia, Singapore and Japan as well as global research centers in India, Pakistan, and Morocco. Springboard has been acknowledged as an emerging leader in the global IT market research industry and was recently named a “Rising Star” by Outsell, the leading research and advisory firm for the information industry.

For more information regarding Springboard Research, please visit

Media Contacts

Chris Perrine, COO & EVP of Sales & Marketing
Springboard Research

Phil Hassey, Country Manager- Australia/New Zealand
Springboard Research

Nilotpal Chakravarti, Senior Analyst- Vertical Industries
Springboard Research