TCS eyes retail opportunity in US

Tata Consultancy Services is betting on growth from retail clients, particularly in the US, who are looking to increase spending on technology solutions in anticipation of the holiday shopping season this year, company CEO Rajesh Gopinathan has said. The robust US economy has resulted in that country's retail industry showing record sales due to increased consumer demand in the last few months. Traditional big box retailers such as Target, Walmart, Best Buy and Home Depot have seen sales jump to decade-long high in July, with higher growth from online sales to compete with e-commerce behemoth Amazon. Retail and CPG (consumer packaged goods) is the second largest vertical for TCS, contributing 16 per cent of its revenues for the quarter to June. The division reported 12.7 per cent growth in the first quarter on the back of large deals from customers such as Marks & Spencer (M&S). TCS has helped firms such as Best Buy and Home Depot in expanding their online presence and show significant business growth. The company expects more such deals as traditional companies look at technology investments to compete with start-ups that look to upend their business with technology as a key differentiator. Gopinathan said: “We are just at the right place. Now it is about our imagination, our conviction, commitment, our ability to utilise the opportunity. The opportunity is huge.”