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4/14/2009 Paula Rosenblum
Why Not Lease?
We all know we’re in the middle of the most capital-constrained time of our lives. Both individuals and retailers alike are challenged to get credit from banks. So it would seem that this issue is bigger than ever. And certainly early results from our current benchmark survey, “Walking the Razor’s Edge: Managing the In-store Experience in an Economic Singularity” show that’s exactly true.
But there’s something it seems very few business leaders know. The largest technology vendors also have financing arms or arrangements with partners who have them. In other words, there are other ways to make technology investments than paying cash out of pocket – specifically operating and/or capital leases. In fact, right now, we're working on our annual benchmark study on the state of “the store.” The Customer-centric, profit-driving, brand-building, retailer-face-to-the-world store. Invariably, the number one rated organizational inhibitor to investing in store technologies is “capital requirements… we never even get to the subject of ROI.” But so far, only 8% of our respondents to this survey find this to be a very important way to overcome what holds them back. My question is simple. Why not lease?




keywords: Retail, IT, Technology, Leasing, Economic Crisis

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