SYDNEY: Investment in retail technology could make the difference between success or failure during the downturn, according to attendees at a recent forum.
The Microsoft Future of Retail event saw Simon Nankervis, managing director of Busbrand Group - the Melbourne brand management specialist that represents international brands including Guess by Marciano and Aldo and Travelite - confirming heavy investment in technology had allowed his business to remain profitable by keeping staff expenses and inventory down.
"By investing in technology, if my staff leave I have continuity of business. Technology such as biometric scanning has fixed the poor time theft [recording staff hours] we had previously, and our systems have allowed us to maintain a minimal level of inventory. I would rather spend $50,000 on technology than hire additional staff."
Australian Retailers Association (ARA) spokesperson Michael Lonie said while retail conditions had reached a 30 year low, opportunities remained in the $292 billion domestic retail market. These could be leveraged if retailers used technology to capture information about their customers and improve their efficiencies.
Meanwhile managing director of consultancy The Retail Doctor, Brian Walker, said too little was being spent by Australian retailers on technology.
"Retailers spend less than a third of what insurance, banking or manufacturing verticals do on technology."
Surviving the downturn meant speeding up business and integrating online and offline activities, he said, adding retailers should also harness social networking tools for their business.
"The geographical market is moving to a hybrid model of both geographical and virtual sales. Even when consumers purchase in-store, many are doing their pre-research online."