Business

Saturday August 8, 2009

Hypermarkets out to make IT happen

By EILEEN HEE


PETALING JAYA: Hypermarkets are raising their game these days by becoming more IT-savvy as they recognise the battle between the big retailers will largely be won in the information technology department.

According to Tesco Stores (M) Sdn Bhd public relations manager Dazrene Azmil Darus, with almost 40% of the store already IT-centric, IT played a big part in its business.

“We are a modern day retailer. From our cashier, pricing and ordering system, it’s all wired,” he told StarBizWeek.

He said IT investments by the hypermarket, which “run into the millions,” continued to focus on pragmatic, cost-reducing projects such as inventory control and workforce.

“Initiatives, such as managing savings in the areas of communications and multimedia, will have a big impact on the business and we can use the savings to invest back into making shopping cheaper for the consumer,” he said.

He added that the hypermarket continued to invest to improve its overall IT capabilities, such as back-end systems, to grow its business and compete in the dynamic retail industry.

But, he said, it would take a lot more for IT to be the defining factor. “Each department must work together as a team to win in the modern day retail scene. Departments such as marketing, commercial and store retail operations all play vital roles.”

Meanwhile, Carrefour Malaysia Sdn Bhd marketing and communications director Low Ngai Yuen said from mid-2008 and the next five years, the hypermarket had budgeted RM75mil for its IT initiatives.

She said the initiatives were key for the growth of the hypermarket “while we finalise the best working model of the mini-market.”

Other areas Carrefour is concentrating on this year are human resources, supply chain and customer relationship programmes.

“One of the IT initiatives is our Mobile Top Up where it is done on the same receipt as the other purchases for quicker and more competent transactions,” Low said.

The hypermarket was raising the bar on efficiency rather than just pure automation, she said, adding: “IT spending’s motivation is not cost reduction but efficiency in the long run. For example, human resources’ projects that require IT updates are not aimed at reducing manpower working on them but rather for the new system to serve the growing workforce.”

Ultimately, she said, the idea was to improve customer satisfaction.

She said while IT played an important role, retail was still very much about the human touch. “Positive human interactions are infectious – more than a hi-tech store.

“We are constantly innovating to create a better atmosphere, help customers with their choices and better conveniences. One interesting update is how we are working with Point Cast on the Starling Scent Protocol, a breakthrough technology that incorporates ‘smell’ from LCD screens,” she said.

GCH Retail (M) Sdn Bhd, the operator of Giant chain of hypermarkets, declined to be interviewed for this article. It is learnt that GCH Retail is in the midst of upgrading its IT system.

  • E-mail this story
  • Print this story