After years of spending their IT dollars to help them cut costs, comply with Y2K requirements, and compete in a world of multiple ways to shop, retail companies are ready to re-invest in their number one channel ­ their stores.

To get a sense of the challenges facing retail and consumer product businesses, consider the once straight-forward sports shoe. Not too long ago, the choices regarding these shoes, quaintly called sneakers, consisted of a couple of brands (remember Keds vs. PF Fly...