New POS software adoption accelerates as retailers embrace omnichannel

assets/files/images/21_12_22/image002.jpg

This article is brought to you by Retail Technology Review: New POS software adoption accelerates as retailers embrace omnichannel.

There were 8.7 million POS software installations globally at major retail and hospitality operators as of June 2022, according to Global POS Software 2022, the latest study by strategic research and consulting firm RBR. The study covers more than 2,350 projects of firms with 1,000+ POS software installations.

RBR’s research also found that new POS software deployments increased, with nearly 390,000 in the year to June 2022. These were either additional touchpoints in new or existing stores, or as a result of changing software supplier. Indeed, firms across all segments are switching providers to meet evolving consumer expectations as part of an omnichannel strategy.

Expansion of in-store touchpoints drives supplier changes

Many large-scale grocery and convenience retailers are moving to a different POS supplier to expand the range of in-store touchpoints for customers. US grocer Hy-Vee introduced a new application to support self-checkout and curbside pickup in addition to assisted point-of-sale. It also wanted to end the siloed nature of its fuel operations, bringing forecourt and store-based transactions in line.

Reducing friction via the use of mobile devices has been a key driver for change in the general merchandise sector. Chains including footwear and apparel firm Kari, sportswear retailer Lids and discounter The Works have adopted new applications in part to implement POS capabilities away from a fixed point-of-sale.

New POS Software Installations, by Segment, year to June 2022 (thousands)

Source: Global POS Software 2022 (RBR)

Retailers look to modularity to provide agility

In the current fast-changing retail environment, operators are working out how to simplify complex processes, helping them to become more agile. Many are implementing solutions with a modular or open architecture; global fashion brand Benetton has opted for this approach, moving to a different POS supplier to provide software across all its international operations.

The research also shows that retailers are using microservices to take better control of their systems and to make the customer experience more personalised. For example, global fuel station operator Shell has rolled out new software in several countries, which allows it to update all its POS systems in one go. Thai multi-format retailer Central Retail Group is taking a similar approach to meet evolving industry demands.

Fast food operators seek solutions to manage delivery options

Hospitality operators have witnessed major changes in recent years, with the explosion of online ordering and delivery platforms compelling a joined-up omnichannel strategy. Saudi fast-food chain Herfy has embarked on a digital transformation project, including migration to a new POS solution which can be integrated with a range of local delivery partners and provides real-time outlet-level data.

Nearly two million new POS software installations forecast to 2027

RBR forecasts 1.9 million new software installations during the next five years. Many retail and hospitality operators will change POS supplier during this time to enable a broader range of touchpoints, adapt to changing consumer demands and future-proof their businesses. Jeni Bloomfield, who led the research, commented: “A sophisticated POS application is an increasingly important tool for retailers to navigate complex customer and IT requirements. It also helps to maximise customer experience in-store and online”.

Add a Comment

No messages on this article yet

Editorial: +44 (0)1892 536363
Publisher: +44 (0)208 440 0372
Subscribe FREE to the weekly E-newsletter