This document provides an overview of technology adoption trends in the retail sector from 1998 to 2012. It summarizes that in 1998, Walmart and Sears were the top retailers by sales, most households owned computers and cell phones but internet adoption was still low, and cash and checks accounted for most retail transactions. By 2012, retailers had more options for sales channels, customer data collection, and payment methods due to advancing technologies. However, many retailers still lagged in fully utilizing technologies and data analytics to improve customer engagement and operations. The document examines specific technologies retailers have adopted, as well as challenges around showrooming, spending priorities, and the role of IT providers and managed services.

1. Research Briefing | July 16, 2012
Retail Sector Technology
Adoption Trends
Why | What | How Much | Where

2. The Retail Sector: Then
1998 Sales
Wal-Mart $118.0 billion
Sears $41.5 billion
Kmart $32.2 billion
Amazon $0.65 billion
1998 Household
Ownership
Computer 42%
Cell phone 36%
Internet 26%
1998 Payments
Cash and checks account for
70% - 75% of customer transactions

3. The Retail Sector: Now
More Options
More Information
More Moving Parts

4. What’s Keeping Retailers Awake at Night?
Top 5 Priorities
Finding/implementing more effective
1
marketing strategies
2 Reducing costs/overhead
3 Improving staff productivity and capabilities
Better leveraging technology to improve
4
customer engagement and sales efficiency
5 Need to enhance or refresh product lines

5. What is Showrooming?
Showrooming: the practice of consumers visiting a physical retail store to assess a product
(aka visiting a showroom) before making the purchase online to get the lowest possible price.
A NET 42% of
retailers express
concern about
the growing
practice of
showrooming

6. Importance of Technology to Retailer Success
Trends Upward, But…
Rating of Importance Today The Conundrum
• Despite growing importance, the
majority of retailers acknowledge the
need for improvement in utilizing
Very technology.
36%
Important
• As a sector, retail spends relatively less
on technology compared to other
industries such as finance or
media/entertainment. That may be
changing slightly though…
37% Important
• The retailers in this study indicate they
21% plan to increase their spending on IT by
an average of 4.2% year on year.
NET Neutral NET
Unimportant Important
Source: CompTIA’s Retailer Technology Adoption Trends study
Base: 500 U.S. retailers

7. Covering the IT Basics [Before the Fun Stuff]
Micro Small Medium Large
Technologies in Place at Retailers Overall Retailers Retailers Retailers Retailers
Desktop or laptop PC 93% 92% 92% 95% 92%
Multi-function Printer 82% 83% 81% 80% 85%
Broadband (aka high speed Internet) 72% 70% 77% 71% 67%
Data back-up (on-site or online) 67% 56% 73% 66% 78%
Network (LAN, WAN) 59% 40% 62% 66% 85%
WiFi 57% 57% 54% 54% 66%
Smartphone 56% 51% 55% 57% 64%
Inventory management system or application 53% 31% 59% 62% 74%
Customer relationship management (CRM) system or
34% 17% 35% 45% 59%
application
Tablet (e.g. iPad, Playbook, etc.) 32% 23% 30% 45% 46%
Micro retailers = 1-9 staff
Small retailers= 10-99 staff Source: CompTIA’s Retailer Technology Adoption Trends study
Medium retailers = 100-499 staff Base: 500 U.S. retailers
Large retailers = 500+ staff

8. And Now for the Fun Stuff

9. Retailers Begin to Experiment with Digital Signage
Micro Small Medium Large
Digital Signage Usage and Intent to Adopt Overall Retailers Retailers Retailers Retailers
Currently using digital signage in some way 33% 22% 34% 37% 53%
No, but plan to implement soon 22% 13% 27% 34% 22%
No, and no immediate plans to adopt 40% 63% 36% 23% 18%
Don't know 4% 2% 3% 6% 7%
Micro retailers = 1-9 staff
Small retailers= 10-99 staff
Medium retailers = 100-499 staff
Large retailers = 500+ staff
Source: CompTIA’s Retailer Technology Adoption Trends study
Base: 500 U.S. retailers

10. Retailer Interest in Digital Signage Uses/Capabilities
% Digital Signage Use or Capability
71% Sales or promotional announcements
46% Photo display (e.g. images of customers using various products)
38% Custom videos (e.g. tutorials, advice, customer testimonials, etc.)
Internet connectivity to display things such as your business website, Facebook, YouTube or
35%
other online content
31% Real-time product info (e.g. inventory quantities, product shipment dates, etc.)
30% Entertainment (e.g. TV or movie) to keep kids or others occupied while parents shop
30% Touch screen display that allows customers to directly engage with the display
25% Product reviews from customers or third parties (e.g. Consumer Reports, Amazon, etc.)
18% App-enabled (could run apps on the display similar to apps found on tablets or smartphones)
Source: CompTIA’s Retailer Technology Adoption Trends study
Base: 500 U.S. retailers

11. Many Retailers Still in the Process of Embracing
E-Commerce & Emerging Payment Technologies
Direct sales via own website, using 47%
online processing and payment 20%
Accept orders via website 45%
that are processed offline 18%
Alternative POS payment 30%
processing, i.e. Square, PayPal 17%
Direct sales via a third party 24%
website, i.e. eBay, Amazon, Etsy 15%
19%
Self-service, in-store kiosk Currently In Place
15%
Plan to Deploy/ Adopt
Mobile checkout via payment-enabled 13%
smartphones or tablets 19%
Source: CompTIA’s Retailer Technology Adoption Trends study
Base: 500 U.S. retailers

12. Retailers Rely Heavily on Email and Facebook
for Customer Engagement
Facebook page geared toward 65%
customer engagement 15%
62%
Email-based marketing campaigns
20%
Digital customer loyalty 31%
program (app-based) 27%
Blog geared towards 30%
customer engagement 23%
QR codes used in 25%
marketing material 26% Currently Utilizing
Geo-location initiative, 21%
e.g. Foursquare 28% Planning to Use
Social coupon initiative, 18%
e.g. Groupon 24%
Source: CompTIA’s Retailer Technology Adoption Trends study
Base: 500 U.S. retailers

13. Data Analytics and Business Intelligence Tools Change
the Retailer-Customer Relationship
Incidence of Use Areas of Interest in Applying
Data Analytics / BI Tools
No, but Yes, current
planning to ly using
start using 58% Email marketing campaign effectiveness
21% 55% Optimizing inventory replenishment
54% Merchandising optimization (e.g. store layout)
54% Customer profiling and purchase patterns
42%
50% Forecasting
46% Website traffic patterns
37% 46% Social media monitoring
45% Smart recommendations
No, and no
42% Optimizing markdowns and discounts
immediate
plans to start
using
Source: CompTIA’s Retailer Technology Adoption Trends study
Base: 500 U.S. retailers

14. Connecting the Dots:
The Role of IT Solution Providers

15. Where Retailers Purchase IT Products
Micro Small Medium Large
IT Purchase Channels Overall Retailers Retailers Retailers Retailers
Local electronics/computer retailer (e.g. Best Buy, Office
43% 57% 50% 30% 13%
Depot, Apple Store, Verizon Store, etc.)
Direct from an IT hardware or software vendor(e.g. Dell,
31% 19% 29% 44% 49%
Salesforce.com, Oracle, IBM, etc.)
Online electronics/computer retailer
28% 36% 28% 28% 15%
(e.g. Amazon, CDW, etc.)
Purchased through an IT solution provider,
22% 10% 24% 39% 32%
VAR or tech consultant
Local general retailer (e.g. Wal-Mart, Target, etc.) 22% 27% 20% 20% 18%
Purchased through a business consultant 11% 10% 11% 9% 13%
Source: CompTIA’s Retailer Technology Adoption Trends study
Base: 500 U.S. retailers

16. Types of IT Services Retailers Have Utilized
Past 12 months
Repair or troubleshooting IT problems 74%
Web design 48%
Deployment, installation or
40%
integration of IT systems
General IT consulting / advisory services 29%
Cybersecurity related 23%
Telecom or communications related 19%
Among retailers that do NOT
Mobile app development 14% outsource any IT work, the #1
reason for not doing so is
satisfaction with their current
Audio/Video related 13% in-house arrangement.
Cloud computing initiative 7%
Source: CompTIA’s Retailer Technology Adoption Trends study
Base: 192 U.S. retailers that use IT solution providers (aka outsource IT functions)

17. Managed Services Meet Retailers’ Need for More
Consistent and Reliable IT Operations
Rating of Interest in the Concept Aspects of Managed IT Services
of Managed IT Services Most Appealing to Retailers
40%
1. Consistent and reliable IT operations
2. Lower total IT costs
23% 26% 3. More technical expertise
Very
8% Interested 4. Better security / loss prevention
28% 5. Proactive approach to IT
fixes, maintenance, etc.
17% 18% Interested
6. Greater staff productivity due to less IT
downtime
NET Neutral NET
7. Greater capacity to manage peak busy
Uninterested Interest
times (e.g. holiday season)
Source: CompTIA’s Retailer Technology Adoption Trends study
Base: 500 U.S. retailers

18. Reminders
The full report can be found in the member-only area of CompTIA.org (aka MRC)
http://www.comptia.org/members/research/allreports/RetailSectorTechAdoption.aspx
Solution provider members can share the report with their retail customers or prospects
as a means to facilitate ‘trusted advisor’ discussions
Vendor and distributor members may share the report with their channel partners (note:
as long as they do not post it openly on a public website)
Beyond members, feel free to share the report with prospects, partners or other strategic
stakeholders. Research is meant to be shared!

19. Want to know more?
As the voice of the IT industry, CompTIA has
hundreds of tools, market intelligence reports and
comptia.org
training programs to help IT channel
organizations grow their business through
education, certification, advocacy and
philanthropy.
Check it out at www.comptia.org.