Retailers fail to grasp tech potential

Retailers still see technology as a means of cutting operating costs and lowering overheads rather than using it to drive revenues and innovate, gaining a competitive edge over rivals.

According to research carried out for Fujitsu Services, almost three-quarters of retailers surveyed said technology is still being used to streamline their business and reduce costs rather than improve customer experience.

It's a common refrain, with IT directors often bemoaning the fact they must fight for budget every step of the way. Of those surveyed, almost all (91 per cent) said budget constraints are a major business challenge.

However, the advent of chip and PIN and trials of other changes at the point of sale (PoS) - such as contactless payments - have seen many retailers forced to update older IT infrastructure.

More than two-thirds (69 per cent) of those surveyed said updating PoS systems is important, while other priorities include better integration of store systems and managing information security risks.

Bill Waterson, UK head of retail at Fujitsu Services, said retailers should see tougher times as motivation to innovate and consider the long view - which in the past saw many pick the right time to embrace technologies such as the internet, electronic point of sale and self-scanning which all improved customer experiences.