I'll bite on this article. I do agree that some retail segments do spend more on IT than others but on the other hand (eg. specialty tend to spend more than big box as a percent), I think it's not fair to compare Kroger (~60 billion USD retailer) to Abercrombie (~4 billion USD retailer). Obviously 1% of Kroger is a lot more money than Abercrombie's 2%. I think it's more fair to compare similar companies or similar IT initiatives. With that said, there's a lot of merit to how the "needs" retailing category are taking larger portions of retail spending pie than the "wants" retailing category. In that sense, it's typical budgeting 101. Companies who grow tend to get more money next year to invest/spend. Companies who don't grow, they get less money to invest/spend unless the IT organization sells and gains approval on strategic IT project that offer better customer service, reduce costs (which I think is down to a point that you can cut much anymore) or offer a new business capability.
StorefrontBacktalk - The Gas Price Pipeline To Retail IT Spending It’s generally accepted that any key economic issue—whether it’s a housing slump, rising gas prices or tax refund checks—can have a sharp impact on business spending. But the IHL Group is floating an interesting theory that recent gas price hikes are going to have a very specific and direct impact on IT spending next year.
Here’s the IHL theory: Not all IT spending is created equal and some retail segments spend a heck of a lot more on IT than others.