Overview
User Survey Analysis: Retail
Supply Chain Trends, Europe, 2010 Jeff Roster, As of September 2010
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• The intent of the survey: - To advise technology and service providers regarding the European retail sector's current and future adoption plans and investment priorities for IT. - To identify what retailers perceive to be the key trends, drivers of and barriers to technology spending.
• The study was conducted in the fourth quarter of 2009. This document completes a series of three documents looking at European IT spending behaviors. • Respondents to the study were located in France, Germany and the United Kingdom.
Key Findings
Recommendations
• Supply chain spending will build steam through the second half of 2010 and will increase in 2011.
•
Develop an RFID point of view. Retailers are increasingly likely to consider the impact of RFID capability for their supply chain and in store experiences. It is critical that you help clients understand what RFID can and can't do.
•
Prepare for moderate spending recovery in supply chain initiatives through 2011. Prioritize your client base, focusing on quick and late adopters, and nonadopters who are planning more projects than aggressive adopters.
• Order management systems will enjoy the strongest demand through 2011. • RFID has gained traction in general and specialty retail. Grocery is now embracing RFID. • Quick and late adopters of IT will start the majority of new initiatives in order management systems, sourcing systems, transportation management, warehouse management systems and RFID.
- Lead with order management systems through 2010 and sourcing systems in 2011. - Focus on general retail. In all the categories surveyed, this segment offers the largest growth opportunity.
•
Develop software as a service (SaaS) offerings with built-in best practices to attract more Tier 2 and Tier 3 retailers. Tier 2 retailers are interested in many supply chain applications, but this group will be unreachable selling currently priced enterprise software.
Survey Objective and Methodology
Respondent Demographics
• The intent of the 2009 Western European retail survey is to understand the European retail sector's current and future adoption plans for IT.
Size of Retailers
Grocery/Supermarket 20%
• Methodology statement: - The data was collected from November and December 2009. The respondent pool consisted of 61 senior-level executives in retailing.
Subsegment
$1 Billion or More 41%
- This data, while older, still illustrates trends Gartner is observing in inquiry patterns, trade press coverage and ongoing Gartner research.
General Retail 28%
$250 Million to Less Than $500 Million 46%
Specialty Retail 24% Hotels/Restaurants 28%
$500 Million to Less Than $1 Billion 13%
N = 61
Respondent Demographics (Continued)
European Retailers Resume Moderate Spending on Supply Chain Initiatives Question: What best describes your company's status with supply chain systems?
Country
Order Management Systems
United Kingdom 28% Germany 39%
70
Sourcing Systems
54
Transportation Management Systems
43
Warehouse Management Systems
41
RFID
Up-to-Date Technology
N = 61
10
0
France 33%
N = 61
5
3 3
3
7
10
2
8
23 3
2 7
5
7
20
Started but Not Finished
40 60 Percentage of Respondents Will Start This Year
80
100
Will Start Within Two Years
General Retail Provides Best Opportunity in Order Management
Nonadopters Plan to Outpace Other Profiles in Spending on Order Management Systems
Question: Please check the one column that best describes your company's status with order management systems.
Question: Please check the one column that best describes your company's status with order management systems.
Tier (Percent)
Segment (Percent) Grocery/ Supermarket
Tier 1
83
Specialty
67
General 63
Leading-Edge Adopter
75
7
47
18
Quick Adopter
18
73
Late Adopter
9
70
5
9
10
25
Hotel/Restaurant
0
8 8
444
76
Tier 2
Adoption Profile
20 40 60 80 Percentage of Respondents
Up-to-Date Technology
0
100
Started but Not Finished
66
29
Nonadopter
20 40 60 80 100 120 Percentage of Respondents
Will Start This Year
60
0 Up-to-Date Technology
Will Start Within Two Years
20
20
40 60 Percentage of Respondents
Started but Not Finished
20
80
Will Start This Year
100
Will Start Within Two Years
N = 61
N = 61
General Retail Planning Major Investments in Sourcing Systems Through 2011
Nonadopter Retailers Planning Major Investments in Sourcing Systems
Question: Please check the one column that best describes your company's status with sourcing systems.
Question: Please check the one column that best describes your company's status with sourcing systems.
Tier
Segment Grocery/ Supermarket
Tier 1
38
13
13
83
67
General 61
4
47
20 40 60 Percentage of Respondents
Up-to-Date Technology
N = 61
Leading-Edge Adopter
50
Quick Adopter
50
7
18
18
Late Adopter
14
14
3 3 3
60
11 Hotel/Restaurant
0
8 8
13 Specialty
Tier 2
Adoption Profile
80
Started but Not Finished
29
0 Will Start This Year
66
Nonadopter
20 40 60 80 100 120 Percentage of Respondents
0 Up-to-Date Technology
Will Start Within Two Years
N = 61
20
40
10
20
30 40 50 Percentage of Respondents
Started but Not Finished
Will Start This Year
20
60
70
80
90
Will Start Within Two Years
General Retail Looks to Be the Best Bet for New Opportunities in TMSs
Quick Adopters Provide the Best Growth Opportunity
Question: Please check the one column that best describes your company's status with transportation management systems.
Question: Please check the one column that best describes your company's status with transportation management systems.
Tier
Segment Grocery/ Supermarket
Tier 1
48
67
Quick Adopter
50
41
6 12
12
Late Adopter
5
3
37
5
5
3
4 4 4
Hotel/Restaurant
20 40 Percentage of Respondents
Up-to-Date Technology
50
53
General 45
0
Leading-Edge Adopter
4 4
Specialty
Tier 2
Adoption Profile
0
60
Started but Not Finished
18
Nonadopter
20 40 60 Percentage of Respondents
Will Start This Year
80
40
0
Will Start Within Two Years
Up-to-Date Technology
10
20 30 40 Percentage of Respondents
Started but Not Finished
50
Will Start This Year
60
70
Will Start Within Two Years
N = 61
N = 61
Tier 1 Retailers Planning WMS Investments Through 2011
Quick Adopters Look to Be the Best Bet for Growth
Question: Please check the one column that best describes your company's status with warehouse management systems.
Question: Please check the one column that best describes your company's status with warehouse management systems.
Tier
Segment Grocery/ Supermarket
Tier 1
44
8
53
20 40 60 Percentage of Respondents
Up-to-Date Technology
N = 61
50
41
Quick Adopter
18
12
36
Late Adopter
5
40
14
3
9
3
13
Hotel/Restaurant
0
Leading-Edge Adopter
8
General 38
8
67
Specialty
Tier 2
Adoption Profile
80
Started but Not Finished
12 6 6
0 Will Start This Year
20 40 60 Percentage of Respondents
Nonadopter
80
60
0
Will Start Within Two Years
Up-to-Date Technology
N = 61
10
20 30 40 Percentage of Respondents
Started but Not Finished
Will Start This Year
50
60
70
Will Start Within Two Years
Grocery/Supermarket Aggressively Developing RFID Capabilities
Nonadopter Retailers Could Become Largest Users of RFID
Question: Please check the one column that best describes your company's status with RFID.
Question: Please check the one column that best describes your company's status with RFID.
Tier
Segment
Specialty Tier 1
12
Tier 2
4
14
8
20
12
General
18
6
Grocery/ Supermarket
17
8
6
Quick Adopter
14
Late Adopter
5
3
7
5
14
3
9
10 20 30 Percentage of Respondents
Up-to-Date Technology
Leading-Edge Adopter
7
7
4
Hotel/Restaurant
0
Adoption Profile
40
6
0
Started but Not Finished
Will Start This Year
Nonadopter
10 20 30 Percentage of Respondents
40
0
Will Start Within Two Years
5
Up-to-Date Technology
20
20
10
15 20 25 30 Percentage of Respondents
Started but Not Finished
Will Start This Year
35
40
45
Will Start Within Two Years
N = 61
N = 61
Methodology
Definitions
• The data was collected during November and December 2009 from a respondent pool of 61 senior-level executives in retailing. Screening questions were used to determine detailed IT strategy and spending plans. Survey respondents had significant IT decision-making authority.
•
Gartner defines retail tiers by revenue. Tier 1 retailers have yearly revenue of more than $1 billion. Tier 2 retailers have yearly revenue of from $250 million to $1 billion. Tier 3 retailers have yearly revenue of from $50 million to $250 million. Retail subsegments are made up of general retailers (nonspecialized stores), specialty stores (building materials, hardware, automotive, fuel, apparel, furniture, miscellaneous and nonstore), grocery stores (food, beverage and tobacco stores) and, finally, convenience stores.
•
The retailer adoption profile includes four classifications:
• While this data is older, it illustrates trends Gartner is observing in inquiry patterns, trade press coverage and ongoing Gartner research.
- Leading-edge adopter — These retailers are at the cutting edge of technology. - Quick adopter — These quickly follow the leaders in technology adoption. - Late adopter — These retailers typically wait until a technology has been proved, then consider adoption. - Nonadopter — These retailers adopt new technology only when it becomes necessary.
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