Countless ideas, a great deal of discussion, yet no progress on moving to a modern tech architecture. Does this sound like your retail business?
In a recent blog we asked if your retail business is spending enough on IT and shared some critical indicators that can mean you’re underspending. At a time when retailers are increasing their IT budgets, when technologies like AI are moving at pace and when your competitors aren’t just local but global, getting stuck in disagreements over where and how much to invest can leave you playing catch-up, at best.
Today technology isn’t just there to “keep the lights on” – it’s a crucial driver for efficiency, customer satisfaction and sustainable growth.
The problem, of course, is that any increase in IT spend needs to come from somewhere and must be balanced against other priorities.
So how can you push tech investments to the top of the agenda and make sure your business can become stronger, smarter and prepared for the future? In this blog, we look at what gets in the way of scaling up investment and how to make the case for increasing spend.
Retailers face three challenges when it comes to adopting new technologies:
Challenge 1: Money’s tight and priorities are stretched
In today’s competitive environment, budgets are under pressure and retailers often need to prioritise expenditures that ensure immediate survival, such as inventory, rent and staffing. The pressure to focus on immediate competitive tactics, such as price wars, maintain low prices and manage operational costs can leave few resources for innovative IT spending, with execs opting to chase quick wins instead of playing the long game with investment. It’s all about juggling priorities, and sometimes tech just doesn’t make it to the top of the list.
Challenge 2: Risk aversion and wanting to stick with the tried and true
Even at times when a new technology such as AI takes off, or when the benefits of adopting a unified commerce approach are clear, retailers can suffer from risk aversion. They fear not achieving the anticipated return on investment, especially if they’ve been burned by failed tech projects in the past. This scepticism is fuelled by rapid technological changes and a market flooded with new solutions, making it difficult to tell whether the investments will achieve the touted benefits.
Challenge 3: Desire to avoid downtime and disruption
Upgrading IT infrastructure can be a complex task involving downtime and retraining. For some retailers, the disruption to current operations presents an operational challenge they’d rather not face, especially if it means missing out on precious revenue while incurring extra cost. On top of everything else, compatibility issues with existing and future systems can make the transition to a modern IT infrastructure seem a daunting task.
So how do you navigate the budget blocks to start over?
Making a business case for increasing IT spend involves a mix of strategy, foresight and clear communication.
Here's how to justify the investment:
1. Understand the solution: Make sure you understand the solution you’re proposing. Know its features and benefits and be confident that it’s the right fit for your business. You won’t convince the c-suite to spend money on a solution that doesn't address the issues you face and that can’t deliver the benefits they expect.
2. Show real ROI: Demonstrate how the investment will help achieve your strategic business goals by allowing you to take advantage of new opportunities. Illustrate its benefits with concrete data and case studies. Show how a modern tech infrastructure increases revenue, reduces costs over time and enhances operational effectiveness.
3. Check out the competition: Highlighting what others in retail (and other sectors) are doing is a powerful motivator, especially if they're gaining a competitive edge through technology. Show how changing consumer preferences and rising expectations for speed, convenience and personalisation are creating new growth opportunities, with retailers that deliver a tailored omnichannel CX best positioned for long-term growth and loyalty.
4. Include a roadmap that addresses risk aversion: Any implementation plan needs to address the presence of risk aversion in the c-suite. Present a clear, phased plan for how the IT investment will be rolled out that minimises disruption and leaves store staff ready to roll. Include timelines, milestones, budget requirements and expected outcomes. Show you know how to select the right technology that delivers the expected returns for your retail business, and that you have a plan for what to do if things go wrong.
5. Highlight the importance of compliance: Detail how IT investments will ensure compliance with data security and privacy standards. Demonstrate the operational necessity and legal imperatives for the IT upgrade that will protect against the reputational damage that comes with data leakage.
6. Showcase scalability and sustainability: Explain how investing in IT is not just a short-term expense but a step towards making the business scalable and future-proof. Demonstrate how the solution you’ve chosen will adapt and scale as the business grows, rather than acting as a brake on expansion and flexibility.
7. Present data-driven insights that support efficiency: Show how a better IT infrastructure can lead to more effective data collection and analysis, which can shift your business strategies from guesswork to smarter, data-driven decisions. You’ll have insights into how your new solution can help you get a real-time view of stock levels and sales patterns, predict trends, deeply understand your customers' behaviours and optimise your operations for efficiency and satisfaction. This optimisation leads to a reduction in tied-up capital, freeing resources for other strategic investments.
By focusing on these seven strategies, you can craft a compelling case for increasing investments in IT, showing it’s a crucial driver for efficiency, customer satisfaction and sustainable growth.
Originally published in February 2024 and republished in January 2026.
If you want to ensure your retail business accelerates innovation while lowering costs and risk, get in touch. We’d love to help you navigate the budget blocks and craft a compelling business case.
