Dixons puts SAP rollout on hold

Retailer puts project on hold in an effort to keep costs down

Dixons Retail has decided to halt its rollout of SAP software, as the firm focuses its attention on cutting costs during what is a particularly challenging time for retailers.

"We've gone a long way with SAP, but to achieve some cost savings, we've paused its rollout for a little while," a Dixons spokesperson told Computing.

"We will be postponing some of our SAP programme until spring 2012, when we will recommence our implementation," the spokesperson added.

Dixons recently embarked on a project to replace its legacy business systems with an integrated SAP system and had also been considering using an SAP CRM package, as well as rolling out the technology to its offices and stores outside the UK.

Some parts of the SAP rollout are complete, notably in finance, supplier bookings and some elements of the firm's core data are now on SAP. Dixons said that it has committed to annual cost savings and improved processes across all areas, and the SAP implementation will have contributed to a £50m per year cost saving already.

"We have also completed the design work for other areas, such as supply chain, which will be straightforward to reopen next year. And finally we are also continuing with certain elements of SAP such as product life cycle setup," added Dixons' spokesperson.

The retailer stressed that the decision to pause the SAP rollout was not because of a better deal or better technology from competitors, and that it plans to continue the rollout over the coming years.

"This is purely a cost-saving drive due to the current environment. The whole company has been going through a transformation programme, both in the front of house, in the stores, but also in our systems.

"We're saving £50m a year using SAP but now one way in which we can continue with more cost savings is by pausing the rollout of SAP for a while."