Seven in 10 UK businesses are lacking in terms of proper data management ahead of the implementation of the General Data Protection Regulation (GDPR) on 25 May.

This is according to a new study from Claranet, which surveyed 750 IT decision-makers in the UK. It found that 69 per cent of respondents were not able to secure customer data effectively, with 45 per cent encountering challenges around securing customer details when making digital improvements.

More than half (56 per cent) of retail businesses are planning to increase their IT budget across their entire organisation by at least five per cent next year, according to the survey. However only 13 per cent of retail businesses are planning on prioritising security improvements.

Information security was cited as the biggest challenge for 37 per cent of organisations, while 41 per cent stated that their security procedures and requirements hold back their ability to innovate.

Michel Robert, Claranet’s UK managing director, said: “There can be little doubt that data security is one of the most pressing issues facing retail businesses today and that sound security practices are the foundation upon which a positive customer experience is built, but our research confirms this is an area in which most retailers are failing.

“The GDPR is on our doorstep, but it is clear that many have their work cut out if they are to comply with the regulation. Thinking more broadly, the fact that almost seven in ten organisations can’t guarantee the security of their customer data is particularly concerning.”

“Businesses are aware of the challenges they face, but the current level of available expertise can hold back initiatives. By working with expert third parties, retailers can rapidly gain an extra layer of cybersecurity expertise, identify vulnerabilities and define priorities for improvement,” Robert concluded.

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