Survey Demonstrates That Gaps Are Closing Between Consumer Expectations and Retailer Readiness for Cross-Channel Execution

COLUMBUS, OH--(Marketwire - August 26, 2008) - Sterling Commerce, an AT&T Inc. (NYSE: T) company, today released the results of a recent survey that shows that the gaps are closing between consumer expectations for a seamless cross-channel experience and retailers' abilities to deliver that experience.

"Shoppers see retailers as one brand -- they don't think in terms of multiple channels," said Jim Bengier, global retail industry executive for Sterling Commerce. "Shoppers don't care how difficult or challenging it is for retailers to organize their companies to meet their needs. This survey shows that retailers without cross-channel execution plans already in place will soon be left behind. But, there are opportunities to leapfrog the competition by automating cross-channel processes and achieving global order, shipment, and inventory visibility across all channels."

The survey, conducted by Multi-Channel Merchant and Sterling Commerce, included data collected from 100 retailers with annual revenue of $250 million or more. In a follow-on survey of 115 retailers who reviewed the survey findings, 98 percent agreed that a retailer's inability to meet its customers' cross-channel expectations threatens customer loyalty and competitive advantage in the marketplace. Complete findings can be found at http://www.sterlingcommerce.com/Industries/Retail/.

In a 2007 survey(1) of 5,000 consumers, more than 90 percent said it was important to be able to track the status of their order and subsequent shipment. Today's survey found 87 percent of retailers indicated they are or will be able to provide that capability in the next 12 months through the purchasing channel, and 77 percent will be able to provide that capability via any combination of channels.

Though 81 percent of retailers surveyed are fully or partially integrated across all of their sales channels (e.g., store, call center, Website, kiosk, catalog), many are still not delivering innovative cross-channel capabilities such as allowing consumers to buy online or through a call center and pick up or return to a store. Only 43 percent of retailers polled have an automated process that allows customers to pick up their orders in the store regardless of the purchasing channel. And, only slightly more (48 percent) of the retailers surveyed have an automated process that allows customers to return their orders to the store regardless of the channel through which it was purchased.

Cross-channel execution can also mean saving the sale in an out-of-stock situation by providing product availability information across channels. And, automating the process could be a differentiator. Two-thirds of the retailers surveyed indicated that they will have in the next 12 months the ability to view on-hand, in-transit, and available-to-promise inventory at each location via a single mechanism. Slightly less than two-thirds (60 percent) said they will have in the next 12 months an automated process that enables store associates to find an out-of-stock item at another store location or distribution center and arrange for the product to be held for customer pick-up or shipped to the customer's home -- an ability that 70 percent of consumers considered important.

The Internet has caused shoppers' cross-channel expectations to escalate dramatically, especially when it comes to convenience and availability. And, with U.S. retailers expanding to deliver these capabilities globally, they now face even greater challenges for achieving seamless cross-channel execution. See related release, "Consumer Survey Demonstrates that European Shoppers will Demand More of U.S. Retailers in their Cross-Channel Experience," announced today.

About Sterling Commerce

Sterling Commerce, an AT&T Inc. (NYSE: T) company, helps customers thrive in a global economy by connecting their business communities, processes, people and technology. More than 30,000 customers worldwide -- including 80 percent of the Fortune 500 -- use Sterling Commerce solutions for business process integration, multi-channel selling, and supply chain fulfillment to improve profitability inside and outside their company walls. Headquartered in Columbus, Ohio, Sterling Commerce has offices in 19 countries and most major cities around the world. More information on the company can be found at www.sterlingcommerce.com.

(1) Sterling Commerce study, "What Consumers Want in Their Shopping Experience," July 2007

Contact Information: For more information, contact: Julie Redard Sterling Commerce (978) 513-6386 Jamie Leicht Fleishman-Hillard (619) 237-7711