During periods of crisis, retailers also tend to keep a tighter rein on investment in modern IT systems, with the result that in the year under review spending on new and upgrade technology was frequently postponed. A noticeable increase in competitive pressure reinforced the demand for process automation and optimization concepts as well as the standardization of system platforms that contribute to further rationalization. As regards investment, demand was focused primarily on projects that offer a demonstrably fast return, such as automated checkouts in the checkout area. Generally speaking, retailers adopt retail formats and structure their product ranges in such a way as to stand out from their global competitors. The result is a continuous stream of new concepts whose goal is to boost process efficiency, reduce costs and, at the same time, improve customer service. At the development stage, both systems and concepts are increasingly geared towards the requirements of customers and operational necessity. As a result of the crisis, retailers have clearly put the brakes on their expansion into emerging markets.
Trends in the EPOS Business: Global Downturn in Deliveries –
Market Demands Greater Computing Power and Lower Energy Use.
The hardware segment was particularly hard hit by falling investment. British market researchers RBR predicts a year-on-year decline of around 10% in the number of EPOS (Electronic Point of Sale) systems supplied to the retail industry in 2009. If we break down this figure geographically, the biggest downturn will be in the markets of Western Europe and North America, whereas the Asia/Pacific and Latin America regions are likely to show modest growth (RBR 2009 Global EPOS and Self-Checkout (Glossary) , Food / Non-Food / General Merchandise).
The traditional checkout is increasingly being transformed into a multifunction, high-performance checkout system (Glossary) . From displaying video camera pictures and planning staff rotas to handling customer loyalty program discounts and coupons and linked payment systems, a modern checkout system has to be able to deal with several applications simultaneously without any loss of service or performance. For retailers, this means investing in systems with greater computing power but a lower energy profile. Increasingly, POS (Glossary) computers are being converted to run on energy-saving technology. Peripheral devices with a lower energy profile are also in demand.
As a result of this increased computing power, multifunctional flat-screen monitors are now coming to dominate the checkout area. The great advantage here is that they offer a much more flexible user interface and allow efficient and intuitive operation. We are also seeing the increasing deployment of customer-directed displays that extend the dialog with customers and boost customer loyalty.
Transforming Checkout Processes –
Various Scenarios for Automation and Self-service Solutions (Glossary) .
Encouraged by a positive response from their customers and driven by a pressure to rationalize, more and more retailers are investing in self-checkout systems. The British market researchers RBR anticipates considerable growth in this market segment, with global sales of automated checkout systems set to rise by 15% on the previous year. Leading this expansion are the European markets where investment in this field is now taking off after lengthy test phases. According to analysts, the number of automated checkout systems in place by the year 2012 is likely to triple (RBR 2009 Global EPOS and Self-Checkout, Food / Non-Food / General Merchandise).
Automation of the checkout procedure, which accounts for roughly a quarter of average branch process costs, reduces expenditure and improves customer satisfaction by offering more guidance. A further boost to customer loyalty comes from shorter waiting times at the checkout and the opportunity for customers to control the checkout process themselves, giving the retailer a potentially valuable competitive edge. The increasing acceptance of this innovative technology among consumers is apparent from the overall use of self-service systems (Glossary) , which can be as high as 60% in those branches that have already been equipped with the technology.
A wide range of checkout systems is available with different scenarios for different types of retail outlet including traditional staffed checkouts, mobile self-scanning while shopping and fixed payment terminals operated by the customer. Checkout areas increasingly contain a combination of systems, while standard software platforms with open architectures create the basis for a smooth interplay between varying solutions and facilitate problem-free integration into the retail customer’s existing IT infrastructure. Their role is also to ensure that sales and customer data can be made available rapidly and securely.
Alongside the trend towards self-service systems, there is a growing interest in mobile devices that can be used by customers to display additional product information, including the price of an item. Retailers are increasingly attracted by these solutions, as they increase the level of interactive communication with branch customers and therefore help to strengthen customer loyalty.
Streamlining of Cash Handling and Retail Cash Management.
There is still enormous potential to improve efficiency at retail branch level by optimizing the extremely time-consuming cash processes that are still predominantly carried out by hand. With this in mind, more and more retailers are prioritizing the automation of processes ranging from checkout payment to the consolidation of cash deposits in the cash office (Glossary) .
Investment in Software and Solutions Relatively Unscathed.
According to a survey conducted in June 2009 by Pierre Audoin Consultants (PAC), global investment by the retail industry is set to end the year down by around 4%. International retailers are turning more frequently to globally standardized software platforms that are centrally managed and configured. The primary focus here is on providing the simplest possible support for existing solutions and ensuring the smooth installation of new solutions within existing IT structures. This standardization also helps retail groups to maintain a constant overview of developments in their branches and allow them to access the corresponding data centrally via a web service from any location.
Managed Services (Glossary) .
Growing economic pressure on the retail industry is leading an ever greater number of companies to seek a way of outsourcing (Glossary) technology and business processes to an IT service provider. The main benefit is clear – a significant reduction in costs (Datamonitor Retailing in a Recession: The Opportunities for Outsourcing, April 2009).
