The Retail Industry was one of the hardest hit in wake of the recession as consumers sought new ways to save... ultimately reducing the total amounts of products purchased and the price consumers were willing to pay.After drastic price-slashing in late 2008, retailers revamped their strategies to focus on leaner inventories and increased customer interaction with the goal of meeting value-driven consumer demands and returning to profitability. As a result, earnings were much better in 2009 although still significantly less than pre-recessionary levels.

Gartner focuses its prediction on the growing popularity of m-commerce (mobile commerce.) Consumers have actively embraced using mobile devices primarily for research purposes before buying or locating products. Making direct purchases on mobile – which many retailers are considering an integral component of new cross-channel sales strategies - has not yet been adopted by most consumers. As a result, Gartner predicts that “By2010, over 40% of Tier 1 retailers will pursue m-commerce. However, only 20%will be successful in effectively integrating these initiatives to enable cross-channel shopping.” Gartner notes that in order for retailers to be successful that they need to retain focus on customer preferences and cross-channel shopping experiences while trying to drive revenue through m-commerce. 

In Worldwide Retail Industry 2010 Top 10 Predictions, IDC Retail Insights cites some slow recovery efforts in the industry as retailers have implemented huge cost saving initiatives through reducing inventory levels,closing less profitable stores, halting expansion efforts, and more fully relying on IT investments to help them adjust to changing market conditions.Throughout 2010 IDC predicts that all sectors of Retail will increase external IT spending from 2009 levels with drug stores leading with a 4.5% increase and automotive dealers and gasoline service stations experiencing the least with 1.1% growth. Most of the trends IDC predicts for 2010 center around improved customer demand planning and experiences in addition to expanding the functions of IT to improve these experiences and maintain cost reductions.

Other IDC Retail Insights’ predictions for 2010 include:

• Growth strategies will focus on “same shopper sales” and first-time buyers
  
• Retailerswill fully utilize agile supply chains to improve responses to customers,suppliers, and regulations
  
  • Optimizing retail PLM will be integral to supporting agile supply chain goals
    
• Retailers will embrace mobile interaction with customers
• Retailerswill invest in IT programs to support their newly established business models,but reduce traditional IT costs that do not provide that necessary support

• Retailers will try to improve brand performance while cultivating customer loyalty