Retailers start shopping for IT: the economy is getting stronger, and so are information technology budgets. With capital available, grocers are adding RFID and self-checkout to their priority lists

Grocery Headquarters, November, 2004 by Deena M. Amato-McCoy

Grocers understand that information technology can be a key differentiator in a highly competitive landscape. However, a combination of tight budgets, razor-thin margins and a lagging economy has put a damper on IT spending during the last two years.

As the economy finally begins to pick up steam, supermarkets are taking notice. IT budgets are growing, and CIOs are taking a fresh look at their priorities. Eager to stand out from the competition, many grocers are concentrating on how to incorporate radio frequency identification (RFID) projects and self-checkout systems into their chains.

Three factors have strengthened the supermarket industry's dedication to IT. First, grocers use technology as a weapon to gain market share. For example, the food industry...