THE RETAIL POINT OF SALEREVOLUTION Traditional POS vs Mobile POS

TABLE OF CONTENTS

Introduction 1

Traditional and Mobile POS 3

A Hybrid of Both 4

Portable Power 5

Seasonal Demand 7

Benefits of Mobile Carts 8

Use Cases 10

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A point of sales (POS) system is at the hubof every retail business and typically thelargest single technical investment. Mobilepoint-of-sale (mPOS) technologies aretransforming the brick-and-mortar retail,hospitality and events industries. Whilemobile POS (mPOS) has gained popularitywith tech and fashion retailers, othersconsider a hybrid mobile POS solution offeras many benefits.

Transactions and processes once tethered totraditional, fixed cash registers at the front ofa store are being shifted to showroom floors,product aisles, and outdoor venues. mPOSsystems are proving to be an important toolfor improving customer satisfaction andpreventing defections. Mobile point-of-salesolutions are helping businesses completesales more quickly, more securely and moreintelligently than ever before.

INTRODUCTION

Mobile point-of-sale technology isn’tnew. Rental car companies adoptedmPOS technologies in the 1990s,deploying handheld computers,scanners and printers to enableonsite agents to check in returnedcars in a fraction of the time requiredby desk-bound staff. Thedeployments removed a major hasslefor travelers anxious to get to theirflights and yielded big gains incustomer satisfaction andstreamlined operations.

The well-known retailer Nordstrom hasbeen a leader with integrating mPOS intotheir stores. Originating in Seattle,Nordstrom is well known for maintainingan unprecedented level of customerservice and selling fashionable luxuryapparel. mPOS improved customerservice, and sales staff can now offer tocheck out a customer almost anywherein the store.

Consider how this is an ideal scenario foran mPOS system since most customersdo not purchase products in largequantities, and they weigh considerablyless than products purchased in agrocery or houseware retailer.

WHERE IT WORKS WELL

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YOU'VE SEEN IT BEFORE

TRADITIONAL STATIONARY POS HAS VALUEOVER MOBILE POS

While mobile POS can bring value toretailers like Nordstrom, there aremany aspects of traditional POS amobile system is unable to match. One example is how logistical issuesof mobile transactions can beawkward.

There is the question of where acustomer places their bag or basket,how do employees bag items or worstof all: how is it possible to juggleeverything when a customer needs toprovide a signature.

As a result of these issues, manystores will see a need for a traditionalPOS area. Another issue encounteredwhen using mobile POS is batterylife. Since most mobile devices onlyhave a battery life of 4-8 hours –many devices are unable to last anentire shift.

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Durability may be a factor in a morerugged retail environment wheredamage to the mPOS equipmentwill be costly and potentially causedisruptions in service.

“The traditional cash-wrap doesmuch more than just scanningitems. All the other steps in thecheckout process, such asbagging, removing security tags,accepting coupons, etc., must bemanaged, even when using mobiledevices. Mobile POS can't replacetraditional checkout lanes in allcircumstances, so it's crucial to findwhere mobile devices can enhancethe customer experience andoperational efficiencies of staff.” - -David Dorf, Sr. Director ofTechnology Strategy, Oracle Retail

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HYBRID - A LITTLE OF THIS, A LITTLE OF THAT

Innovative retailers couldpotentially harness the benefitsof the stationary POS systemsand mobile POS systems bycombining the best elements ofboth.

The flexible location is animportant factor of mobile POS,and so a mobile cart withportable battery power would bean ideal solution for manyretailers.

All essential POS supplies andhardware can be stored on amobile cart, giving salesemployees the ability to harnessthe power of mobile POS toincrease customer experienceand efficiencies.

PORTABLE POWER FOR 8 TO 12 HOURS A DAY

Newcastle Systems’ mobilecarts with portable power aremade to be durable and canpower devices for 8 to 24 hours.(Depending on the equipmentused)

The mobile powered carts alsosolve the problem mobile POSsystems have by providing anarea for bagging, printing, andsigning while still offering thespecial advantage of beingcompletely mobile.

Sales staff will be free to moveto where the customer needsservice, instead of requiringcustomers to understand how tosearch the store.

The convenience of portablepowered carts for POS can bemoved where it is mostconvenient for customers. Asbusiness fluctuates, POSsystems can be moved toaccommodate the peaks andvalleys. Such flexibilityimproves efficiency, customerservice and, security that leadsto increased profits.

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LET CUSTOMERS BUY WHERE THEY WANT

Optimizing store operations has led to an unintended consequence. Thereare many areas left without quick access to checkout terminals. In a typicalbig-box store, customers may walk as much as two to five minutes to reachthe nearest checkout terminal. The lack of checkout terminals in areas of thestore called POS deserts has a negative impact on the customerexperience. (Note: POS deserts are areas at least 50 feet away from thenearest checkout terminal.)

Research shows that most top retailers in the United States have at least25% of store floor space in POS deserts. Providing POS capability to thesePOS deserts could enhance the customer experience significantly withoutraising costs significantly. Rather than adding more POS terminals, it ismuch less expensive to add mobile carts with portable power to a POSstrategy that will reduce the need for POS deserts. Sales associates can bewhere the customers are, serving them with excellence thanks to theversatility of these mobile POS carts.

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EVOLVE TO MATCH SEASONAL DEMAND

Seasonal demand for merchandise challenges efficiency in storeoperations, particularly in big-box environments. Stores must redeploypersonnel and handle additional transaction volume based on seasonaldemand. Transaction volume can also vary significantly based onseasonal factors for departments.

Example: a section for swimwear will not be particularly busy in the fall.Measuring variation in transaction counts through a Seasonality Indexhelps retailers determine which department should get additional helpvia a mobile POS station.

Based on the Seasonality Index, several departments, especiallyNursery & Gardening, are particularly seasonal. Providing checkoutusing mobile carts with portable power for POS to these departmentsduring seasonal months will enhance the customer experience bymaking purchases possible at the point of service and eliminating timeconsumers spend standing in line during expected busy periods.

Powered mobile carts deliver these improvements in a cost-effectivemanner: moving an already mobile POS is much less expensive thanmoving fixed POS every season or missing out on sales because ofstatic POS systems that don’t meet the customers where they are.

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BENEFITS OF USING MOBILE CARTS FOR POS

1. Special sales anywhere in the store - Reduces restrictions of astationary POS system. If you present a demo, customers can make apurchase at the same place.

2. Price and inventory lookup - Improves customer happiness with animmediate, on the spot, answer to price and inventory questions.

3. Sell anywhere - Removes the limitations of a stationary POS. Amobile cart POS with portable power offers an opportunity to sellanywhere. 4. Durability - Newcastle Systems’ mobile carts manufactured for thetoughest conditions. 5. Choices in sending receipts - A mobile cart with portable powergives the choice of having a printer for receipts or use a tablet to emailreceipts. With a portable powered cart, warranties or additionalinformation customers want can be printed on the spot.

6. Free up floor space - Using mobile carts with portable power frees upmuch-needed floor space being used by cash registers or customerservice counters. 7. Flexibility for your sales staff - Your sales team will have moreflexibility to think of creative, mobile ways to meet customers’ needs.

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WHO CAN BENEFIT?

Here are examples of ideal retail businessscenarios for mobile carts:

• Those with a large retail floor such as agarden center or home improvementwarehouse. Since there is a great amountof walking involved in these stores (alongwith the sale of heavy items), it would bevery beneficial for the sales staff to haveflexible POS locations.

• For example, if a garden center isholding an outdoor event to showcase aparticularly appealing product then thesales staff can be ready to help customerswith purchases right at the promotionlocation. This will also increase last minutepurchases by customers who may beleaving the store since they will not have tore-enter the garden center to purchase theextra item.

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PRODUCTS AND ACCESSORIES THAT CAN BEUSED WITH MOBILE POWERED CARTS

Newcastle’s mobile carts include a portable power pack which can last 8-12+ hours. (Depending on the equipment use) This extended life batteryallows any POS hardware to become mobile. Simply add computers,printers, scanners, or other accessories on a mobile powered cart, plugthem in, and you are ready to go. There are many products which mightbe included in a POS system. Here are a few you can utilize with mobilecarts to make your POS more dynamic.

Display

Cash drawer

Receipt printer

Barcode scanner

Label/report printer

Mag strip reader

Scale

Signature pad

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• Any business in which checkout speed is essential, or has largefluctuations in the number of transactions handled on a daily basis.Each retail location is set up to cater comfortably to a certain numbercustomers. There are occasions when the retail floor is too small tohandle the surges of customers, or major changes in popularity canchange throughout the year. Such a business needs flexibility tohandle the needs of their customers.

WHO CAN BENEFIT?

Did you know? - 47% of customers claim they have failed tomake a purchase because checkout would take too long.

Integrating mobile carts and portable power into a POS processreduce wasted steps, improve efficiency and keep employees happier. If you see the opportunity and want to learn more, you can read thecase studies here and please, feel free to contact us. We will walkthrough the options and benefits of creating a more flexible workplace.

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THE POWER TO MOVE YOUR WORKPLACE

ABOUT NEWCASTLE SYSTEMS

Newcastle Systems is committed to providing innovativesolutions that help make Auto-ID technology and otherhardware truly mobile and information more readilyavailable across an enterprise.

Loss of productivity and inefficiencies such as wasted stepsto the printer on a fixed desk, inaccurate inventory counts,improper labeling, time delays, manual processing andincorrect shipments are just some of the challenges thatare alleviated with a mobile powered workstation.

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