Research Conferences Publishing Trade Shows

"POS Trends in Retail: Visions and Reality"

Partner-Tech „Catch the Spirit“ Event, Athens 2010Ulrich Spaan, EHI Retail Institute

Research Conferences Publishing Trade Shows

Some basic facts about EHI...

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EHI Retail Institute e.V.

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Trade Shows EuroShop EuroCIS

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More than 550 Member Companies

Agrarmarkt Austria Marketing GesmbH.

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Tabakwarengroßhändler und Automatenaufsteller (BDTA)

Charles Vögele Trading AG coop eG Danske Slagterier DBA Branded Apparel Italia s.r.l. Deutsche Post AG Zentrales

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…

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Retail CIO Roundtable

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Survey „POS Systems“

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…

Retail Technology is one of the main business areas of EHI

Research Conferences Publishing Trade Shows

POS Trends in Retail

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EuroShopEuroShop19961996

Visions are allowed....Once upon a time in 1996

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Vision 1: The do-it-yourself customer

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Self-checkout is spreading – into

other sectors, too

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Self-checkout and self-scanning – mission accomplished?

Already widely used in many countries

Generally limited to grocery retailers, but other retail segments will follow

No uniform system, a variety of different approaches

Introduction generally has the goal of improving customer service

Development not yet concluded; systems still offer great potential for improvement through new technologies and the development of RFID

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0%

10%

20%

30%

40%

50%

60%

70%

Nicht vorgesehen Self Checkout bereits im Einsatz Self Checkout wird getestet

Are you planning to use self-checkout/self-scanning in your stores?

Source: EHI Retail Institute 2009

Not planned Already in use Currently tested

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She had no idea what was coming...

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Was that what she really wanted???

How would you like to pay? By contactless

card? Fingerprint? With your mobile phone? Surely not cash??

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Mobile payment using NFC

technology –

Is this the way our children will pay for purchases?

Vision No. 2....

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Contactless payment – the reality:Few projects, many players

Pilot projects in supermarkets, including Real,- future Store

PayTer in the Netherlands

Transport of London/Oyster Card

Payez Mobile project, France

Mobile ski pass in Davos/Klosters, Switzerland

Regional public transportation in Frankfurt am Main

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Is the smart phone going to be our future shopping assistant? According to most of the retailers: Yes

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Mobile commerce – who’s in the driver’s seat?

Manufacturers of mobile phones?

Mobil phone companies?

Retailers?

Credit cardcompanies?

Banks?

Technology providers?

Customers??

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0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

Einsatz möglich in 1-3 Jahren Einsatz möglich in 3-5 Jahren

Einsatz möglich in über 5 Jahren In absehbarer Zeit keine Relevanz

When do you think you’ll begin using mobile payment via mobile phone/NFC in your stores?

Source: EHI Retail Institute 2009

In 1-3 Years

After more than 5 years

In 3-5 years

Not at all

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EuroShopEuroShop19961996

Vision 3....RFID = future technology at the POS

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RFID: when will the breakthrough (finally) take place??

There are meanwhile lots of projects in textile retailing: Charles Voegele (Switzerland), Marks & Spencer (UK), American Apparel (USA), C&A (Germany).

Focus: optimization of logistics and merchandise availability, avoidance of out-of-stock situations

At the article level, a combination of source tagging and use for theft prevention (article surveillance) would be useful, but the technical preconditions are not yet available.

The price of an RFID tag is still at 10 -15 euro cents

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0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Keine Projekte geplant Testinstallationen werden vorbereitetTeilweise bereits in Echtbetrieb RFID Pilotprojekt läuft

What RFID projects are planned for your stores in the medium term?

Source: EHI Retail Institute 2009

No projects plannedPartly already rolled out

Pilot in preparationPilot is running

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RFID – Apparel Retailers are setting the pace

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RFID as a future technology for source tagging

Additional benefits are substantial:

Identification of stolen or fake merchandise

Faster POS procedures

Faster inventorying

Improved management of shortages

Improved customer service

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Causes of inventory discrepancies- Assessment of retail experts in all segments -

Quelle: EHI-Erhebung Inventurdifferenzen 2009

Theft by customers accounts for half of all discrepancies

Volume of customer theft estimated to have risen in recent years ...

3.9 billion euros Inventory losses per annum, 2 billion through customer theft, 0.9 billion through employee theft.

1.1 billion euros per annum for prevention

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Vision 4: The transparent store....

Centralized digital video monitoring is becoming more important Networked cameras can be controlled as desired from a variety of locations

Lower operating costs through integration in existing network structures

Additional cameras are easy to integrate

Integration of people-counting systems is possible

Synchronization of video images of the POS area with receipt data to uncover employee theft is possible (but legal aspects are problematic!)

Photo source:Axis

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Questionable monitoring of employees makes headlines

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Vision 5: The dream of “invisible” cash in the store

Security is improving at the cashier workstation and in the back office

Employee theft at the POS system is minimized

Reconciliation errors are minimized

Store staff has more time for customers

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18%

20%

24%

24%

26%

0% 5% 10% 15% 20% 25% 30% 35% 40% 45%

Wireless Infrastructure instores

New POS Hardware

New Mobile Devices forStaff

Online Access to ERPSystem

New POS Software

What strategic IT projects are important in your stores over the medium term? (top 5)

Source: EHI Retail Institute

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Ulrich Spaan, EHI Retail Institutespaan@ehi.org

Thank you very much for your attention!

See you next year....