Retailers reject ecommerce according to E&Y report

The Internet will not have a significant effect on business in the next 12 months, according to top US IT executives in the retail sector.

The shock finding emerged in the latest Retail Information Technology report from Ernst & Young (E&Y). The consultancy questioned nearly 100 US IT professionals, and found that 76 per cent believe the Web will have no significant impact on their business over the next year.

Instead, 95 per cent of respondents view the Internet as an ideal tool for marketing and advertising.

Robin Duke-Woolley, principal analyst at Schema, was surprised. He said that although the ecommerce market is in its infancy, retailers should have "a strategy and should not ignore the Internet." He added that not having a plan of action for ecommerce is a "recipe for difficulty in the future".

Michel Khan, IT director at high-street opticians, Specsavers, said strategies for Web retail should vary depending on the type of products or services a company offers. "For some retailers where it's a very service-orientated environment, ecommerce has less of an impact, but I believe it's nevertheless a relevant part of retail trading.

"The Internet is a key marketing resource for all retailers but for those with a high-service content, ecommerce is less relevant but does have a part to play," he added.