Top 12 IT Vendors Dominate 30% of Western European Retail and Wholesale Industry IT Spending

IDC: In the Western European retail and wholesale sector competition is heating up. Estimates that the top 12 IT vendors accounted for approximately 30.2% of the total Western European retail and wholesale industry IT spending during 2005, while the market leader, IBM, achieved more than $2.9 billion in revenue in the sector.

IBM stands out as the leading IT vendor in the sector during 2005, while 2006 will prove to be an interesting year to assess the outcome of IT vendors' strategies for the Western European retail and wholesale industry. The common foundation in each IT product area is that the higher the retail vertical alignment the stronger the retail market success.

Wincor Nixdorf is at the top in terms of percentage of revenue achieved in the Western European retail and wholesale sector. SAP and Accenture stand out as the top software vendor and the top IT services vendor in the sector.

With an expected CAGR of 7.0% for software and 5.2% for IT services, for an overall IT spending CAGR of 4.8% from 2006 to 2010 for Western European retail/wholesale, competition is heating up as global IT vendors and best-of-breed retail solutions providers refine their vertical solution offerings, sales policies, marketing, and partnership strategies to capitalize on these opportunities. Growth opportunities for global and specialized hardware, software, and IT services vendors are increasing, and the overall market size is one of the most attractive from a vertical market perspective.

• Total Western European retail and wholesale sector revenue.

• Percentage of Western European retail and wholesale sector revenue over total Western European revenue of each vendor.

• Vertical alignment of go-to-market approach. Vertical alignment was evaluated through the combined scoring of five elements of go-to-market strategy in the retail and wholesale sector: vertical solution offering, marketing message, partnerships, stronghold in Europe, and sales organization.

Western Europe, Retail/Wholesale Sector, 2006, Top IT Vendors Competitive Assessment Publ 20060727