The New Tech Frontier in Retailing

New technology ideas and ways to deliver information were just some of the topics at the NRFtech 2010: IT Leadership Summit, held Aug. 15–17 south of San Francisco at the Ritz Carlton Half Moon Bay.

More than 70 companies participated in the retail tech conference, which was organized by the National Retail Federation, a trade group headquartered in Washington, D.C.

Gap Inc., Ross Stores, Sears, Tory Burch, Kohl’s, Nordstrom and Rue21 all sent chief information officers and other representatives to the event. Seminar discussions covered topics such as adapting to the challenges of mobile-phone commerce, or m-commerce, and how to keep pace with technological change.

While many seminars focused on technological innovation with m-commerce, one speaker advised the assembled executives to be wary of pitfalls when adapting this new platform. American companies must consider governmental regulations and whether consumers are ready for innovation, said Van Baker, vice president and research director for Gartner, an information-tech advisor and research company in Stamford, Conn.

Baker said many customers may not be able to afford a smart phone that delivers m-commerce because of the sluggish economy. He also warned his audience to watch how the federal government as well as local governments might regulate m-commerce in the next few years.

One of those issues is the unresolved territory of net neutrality, or how to govern the bandwidth used to send Internet communications, which has been a hotly debated topic at the Federal Communications Commission. The debate might determine how much bandwidth m-commerce networks will be able to use.

Tim Theriault, senior vice president and chief information officer at drugstore chain Walgreens, said his company will test outfitting store clerks with smart phone–like devices in September, according to an NRF blog on his talk. These wireless devices will act as phones and scanners or even part of a point-of-sale system.

Herman Nell of San Diego–based Petco talked about the troubles information-technology executives have selling IT purchases or upgrades to company presidents and boards of directors. He said executives often balk when they hear a new IT system typically costs between 1 percent to 3 percent of retail sales.

He said executives’ opinions may change when he shows them how business functions are becoming increasingly dependent on new information technology and that a new system might make the company more efficient and profitable. “I find we don’t get that much push back when we have a strong business case,” he said.—Andrew Asch