Telecommunications is expected to account for nearly half of all ICT retail spending this year, according to analyst firm, IDC.
It expects ICT spending within that sector to reach $1.9 billion this year, increasing to $2.02 billion in 2016.
Although IDC expects telecommunications spending to decrease from $838.1 million in 2011 to $734.5 million by 2016, reflecting the shift to software and services.
Spending priorities on telecommunications reflect the focus of spending on payment solutions, employee productivity, logistics and day to day management of the businesses.
IDC said there were a number of large transformational projects have taken place as retailers create integrated omni-channel capabilities covering mobile, internet, bricks-and-mortar, but cost management related technology deployments are still the order of the day with supply chain management, inventory management and investments relating to employee productivity such as enterprise mobility, WiFi, and investments in tablets.
Omni-channel strategy will be focused around the mobile channel but incorporate newer technologies involving analytics, mobile, cloud and social business.
"Some really exciting ICT led innovation is happening in the retail sector, particularly relating to the creation of mobile channel capabilities and investments in analytics capabilities that will enable the value of loyalty card data to drive product, pricing and promotional decisions,” IDC Australia head of Asia Pacific vertical markets, Emilie Ditton, said. “These areas of innovation and investment will continue to grow as Australian retailers seek to differentiate themselves from the competition."