OPERATIONS

IDC: Walmart takes the lead in another area

BY CSA STAFF

The word “big” is often associated with Walmart, and that adjective also applies to the discount retailer’s IT spending.

According to data from IDC, Walmart Stores Inc. spent more on IT than any other company globally in 2015, to the tune of more than $10.5 billion. No other retailer, not fellow large tech-focused organization Amazon.com, cracked the top 10 list.

Walmart spent substantially more on IT in 2015 than any other company analyzed by IDC. Financial services firm Wells Fargo & Co. came in second at $6.5 billion. The only other organizations on the top 10 list with any real retail affiliation were AT&T Inc. ranked fifth at $5.05 billion, Verizon Communications which ranked seventh at $4.4 billion, and Alphabet Inc., the parent company of Google, which ranked ninth at $3.7 billion.

IT spending includes hardware, software, IT services, telecommunications services, and internal IT spending. Notable technology projects Walmart has been undertaking include expanding e-commerce, with $2 billion earmarked for e-commerce spending by 2017. The company has also been growing its curbside grocery pickup offering, and operates a proprietary innovation lab in San Bruno, California.

IDC data also indicated that across industries, managed services are starting to reduce the need for internal IT personnel. IT services, or hosted service such as managed cloud computing, represented 32% of CIO budgets in 2015, up from 30% the prior year. Internal personnel costs, which formerly represented the largest single IT line item, came in second at 27% of IT budgets Other leading IT budget areas included hardware (18%), software (15%) and telecommunications (8%).

keyboard_arrow_downCOMMENTS

Leave a Reply

No comments found

TRENDING STORIES

Polls

Are you hiring seasonal employees this year?

View Results

Loading ... Loading ...
OPERATIONS

Aeropostale gets delisted from NYSE

BY Marianne Wilson

Troubled teen retailer Aeropostale Inc. has been dealt another blow.

On Friday, the New York Stock Exchange suspended trading of the retailer’s stock with immediate effect, due to an "abnormally low" trading price.

Aeropostale does not intend to appeal the delisting. It said its shares will instead be traded on the OTCQX Best Market, an over-the-counter market operated by OTC Markets Group Inc. The new ticker is "AROP".

Aeropostale stock last traded on the NYSE at 15 cents on Thursday afternoon before being halted for pending news, which turned out to be a report from Bloomberg that the chain was moving closer to a Chapter 11 filing.

keyboard_arrow_downCOMMENTS

Leave a Reply

No comments found

TRENDING STORIES

Polls

Are you hiring seasonal employees this year?

View Results

Loading ... Loading ...
OPERATIONS

Sears Holdings closing 78 more stores

BY Marianne Wilson

Sears Holdings announced its latest round of store closings as it continues to look for ways to cut expenses and return to profitability after five years of losses.

The embattled retailer, which has been steadily shrinking its physical portfolio over the last few years, will close 68 Kmart and 10 Sears stores this summer. (See list of locations at end of story.) In February, Sears warned it would speed up the closing of unprofitable stores.

The chain said the new store closures come after comprehensive evaluation of the company's store portfolio that took into account historical and recent store performance, and the timing of lease expirations. All of the Sears stores and nearly all of the Kmart stores will close in late July. Two Kmart stores will close in mid-September.

"The decision to close stores is a difficult but necessary step as we take aggressive actions to strengthen our company, fund our transformation and restore Sears Holdings to profitability," said Edward S. Lampert, chairman and CEO of Sears Holdings. "We're focusing on our best members, our best categories and our best stores as we work to accelerate our transformation."

Sears expects the store closures to generate “a meaningful level of cash” from the liquidation of store inventory and from the sale or sublease of some of the related real estate. This, combined with the over $1.2 billion in debt financing that Sears announced it had raised earlier this month to provide capital to execute its transformation and to meet its financial obligations, will help the company move toward its primary 2016 objective to restore profitability, according to Sears.

The closing Kmart and Sears stores will start their liquidation sales on May 12 and April 29, respectively. Following is a complete list of the impacted stores:

* These stores will close in mid-September. All others will close in late July.

keyboard_arrow_downCOMMENTS

Leave a Reply

No comments found

TRENDING STORIES

Polls

Are you hiring seasonal employees this year?

View Results

Loading ... Loading ...