Read Bennett Gold LLP's privacy policies and practices regarding this web site.
LINK TO: Bennett Gold LLP's Privacy Policies and Practices. E-CommerceALERT.com is part of the Bennett Gold LLP web site network.
LINK TO: Bennett Gold LLP, Chartered Accountants, home page.
LINK TO: E-CommerceALERT.com Home Page.
CLICK to GO BACK to Main Page.

Research and retrieval of news articles by Bennett Gold LLP, Chartered Accountants


SPECIAL NOTE TO ALL VISITORS:
Effective December 31, 2012, articles are no longer being updated on this web site.
The site is now maintained as an historical archive, covering articles from the period 1999 to 2012.


REDUCED I.T. SPENDING MAY RUIN SOME RETAILERS

Source: CyberAtlas

Posted on December 28, 2001

      With the U.S. economy in recession and consumer confidence down, U.S. retailers are continuing to hold back on new I.T. investments, including B2C applications and e-commerce infrastructure, according to International Data Corp. (IDC).

      An IDC survey of U.S. consumers done before the holidays found that 72 percent of Americans planned on spending the same or more this holiday season compared with last year. The big change, however, comes in the way the money is being spent. Survey results show 46 percent growth in the value of online orders over the same period last year.

      "Although e-shopping is expected to increase at a level in 2002 comparable to that in 2001, the opportunity for retailers to take advantage of this opportunity is threatened by reduced I.T. spending," said Carol Glasheen, IDC's vice president of Global Market Models and Demand-side Research.

      Here's the problem: In 2002, U.S. holiday e-commerce will reach $26 billion, a 49 percent increase over 2001, according to IDC. Although consumers will spend more of their holiday budgets online, e-shopping and consumer e-commerce in general will be constrained by supply, as reduced I.T. investments resulting from the economic slowdown limit some e-retailers' ability to meet the demand. Businesses will not have invested in the channels and logistics required to meet an expanded supply.

      This means e-retailers will miss the opportunity as the number of online customers increases over the next year, including the next holiday season.

      "There will be 100 million online buyers in the U.S. by 2005. All retailers need to do is reach them," Glasheen said. "However, reduced investment in B2C applications such as online order processing or order fulfillment in 2001 will impact consumer e-commerce in 2002 because the channels, logistics and infrastructure needed to support an expanded supply will not be in place for all would-be e-retailers."

      IDC warns that retailers skimping on I.T. investments now will be out of the online holiday market altogether next year. According to IDC, the lost revenue associated with the decreased investment is approximately $4 billion in 2002.




CLICK to GO BACK to Main Page.

E-Commerce Alerts are issued by Bennett Gold LLP, Chartered Accountants as situations develop. Bookmark this site and check back often. Our e-mail address is: info@BennettGold.ca

In accordance with United States Code, Title 17, Section 107 and Article 10 of The Berne Convention on Literary and Artistic Works, the news clippings on this web site are made available without profit for research and educational purposes.


ALERT
ARCHIVES
Final Entries
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
1999


LINK TO: Bennett Gold Chartered Accountants: A Licensed Provider of WebTrust Services.

WebTrust Is Your
Best Defense
Against
Privacy Breaches.

Get WebTrust
Working For
Your Site.