1. "POS Trends in Retail: Visions and Reality"
Partner-Tech „Catch the Spirit“ Event, Athens 2010
Ulrich Spaan, EHI Retail Institute
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2. Bildbeispiel
Some basic facts about EHI...
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3. Organisation
EHI Retail Institute e.V.
Research and Working Groups
 Loss Prevention
 Real Estate  Payment
 Logistic
 Store Design  E-Commerce
 Packaging
 Energy Management  IT
 Marketing + PR
EHI Retail Institute GmbH EHI Verwaltungsgesellschaft GmbH
Divisions: Shareholder of:
Commercial Research Publishing
 rt-retail technology
 stores+shops
Conferences
Trade Shows
Shareholer of:  EuroShop
 EuroCIS
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4. More than 550 Member Companies
 Agrarmarkt Austria Marketing  DOEGO Fruchthandel und  HDE Hauptverband des
GesmbH. Import eG Deutschen Einzelhandels
 Aldi Einkauf GmbH & Co. oHG  Douglas Holding AG  Hellweg Die Profi-Baumärkte
 Anton Schlecker
 Dohle Handelsgruppe Service  Hornbach-Baumarkt AG
 anwr Ariston-Nord-West-Ring GmbH & Co. KG Zentralverwaltung
eG
 Arcandor AG
 DWW Woolworth Deutschland  IKEA Deutschland GmbH + Co.
Holding GmbH KG
 BP
 ECE Projektmanagement
 Bundesverband des Deutschen
 Kaiser's Tengelmann AG
Lebensmittelhandels e. V.  Edeka Zentrale AG & Co. KG  Kaufhof Warenhaus AG
 Bundesverband dt.  Ernstings Family GmbH & Co.  Kemper‘s Centermanagement
Tabakwarengroßhändler und KG  Kaufland Stiftung & Co. KG
Automatenaufsteller (BDTA)  extra Verbrauchermärkte  KiK Textilien und Non-Food
 Charles Vögele Trading AG  FOODPLUS GmbH GmbH
 coop eG
 Frey & Kissel  Marktkauf Handelsgesellschaft
 Danske Slagterier
 German Council of Shopping mbH & Co. OHG
 DBA Branded Apparel Italia s.r.l. Centers e. V.  Marktkauf Holding GmbH
 Deutsche Post AG Zentrales
 hagebau Handelsgesellschaft  Lidl Stiftung & Co. KG
Key Account Management
 Dirk Rossmann GmbH
für Baustoffe mbH & Co. KG  Ludwig Goertz
 dm-drogerie markt GmbH + Co.
 Handelshof Management GmbH
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5. More than 550 Member Companies
 MäcGeiz  Orlen  Tengelmann Verwaltungs- und
 Manor AG  Plus Warenhandelsgesellschaft Beteiligungsgesellschaft mbH
 MARKANT AG mbH  Tesco Stores Ltd
 Media-Saturn-Holding GmbH  Porta Möbel  toom Markt Zweigniederlassung
Handelsgesellschaft mbH & Co. der REWE
 Metro Group KG Großflächengesellschaft mbH
 Migros-Genossenschafts-Bund  Quelle GmbH  Verband des Deutschen
 Minipreis-Läden GmbH  real,- SB-Warenhaus GmbH Bahnhofhandels e.V.
 MPREIS WarenvertriebsgmbH Zentrale  Yum! Restaurants International
 MLF Mittelständische  Rewe Zentral AG Ltd. & CoZentralverband
Lebensmittel- Filialbetriebe e. V.
Köln  Russian Council of Shopping  Gewerblicher Verbundgruppen
Centers e.V. (ZGV)
 Möbel Boss
 RZ - Zimmermann Holding
 Narts/ProRetail National retail
 SOK Suomen Osuuskauppojen
and service development
association Keskuskunta
 Netto Marken-Discount GmbH &  SportScheck GmbH
Co. oHG  Strauss Innovation GmbH & Co.
KG
 OBI Bau- und
Heimwerkermärkte GmbH & Co.  Tamoil
Franchise Center KG  Tchibo GmbH
 tegut
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6. Member Services
 Downloads of all research results and studies
 Participation in Committees and Project grups
 Discounts on conferences
 Subscription of EHI magazines
 Monthly Newsletter
 Access to EHI knowledge database
 Networking among EHI members
 Invitation to the Retail Science Award Ceremony
…
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7. Retail Technology is one of the main
business areas of EHI
 Retail CIO Roundtable
 Working Group „POS Systems“
 Survey „IT-Trends in Retail“
 Survey „POS Systems“
 retail technology awards europe (reta)
 EuroShop and EuroCIS Tradeshows
 Retail Technology Days D-A-CH
 European Retail Technology Summit
…
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8. POS Trends in Retail
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9. Visions are allowed....
Once upon a time in 1996
EuroShop
1996
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10. Vision 1: The do-it-yourself customer
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11. Self-checkout is
spreading – into
other sectors, too
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12. 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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13. Are you planning to use self-checkout/self-
scanning in your stores?
70%
60%
50%
40%
30%
20%
10%
0%
Nicht vorgesehen
Not planned Self Checkout bereits im Einsatz
Already in use Self Currently tested
Checkout wird getestet
Source: EHI Retail Institute 2009
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14. She had no idea what was coming...
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15. 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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16. Vision No. 2....
Mobile payment
using NFC
technology –
Is this the way our
children will pay
for purchases?
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17. 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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18. Is the smart phone going to be our future
shopping assistant? According to most of the
retailers: Yes
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19. Mobile commerce – who’s in the driver’s
seat?
Mobil phone Manufacturers of
companies? mobile phones?
Customers??
Credit card
companies?
Banks?
Retailers?
Technology
providers?
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20. When do you think you’ll begin using mobile
payment via mobile phone/NFC in your
stores?
50%
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
In 1-3 Years
Einsatz möglich in 1-3 Jahren Einsatz möglich in 3-5 Jahren
In 3-5 years
Einsatz möglichthan 5 5 Jahren
After more in über years Not at all
In absehbarer Zeit keine Relevanz
Source: EHI Retail Institute 2009
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21. Vision 3....RFID = future
technology at the POS
EuroShop
1996
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22. 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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23. What RFID projects are planned for your
stores in the medium term?
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Keine Projekte geplant
No projects planned Pilot in preparation
Testinstallationen werden vorbereitet
Teilweise alreadyin Echtbetrieb
Partly bereits rolled out Pilot is running
RFID Pilotprojekt läuft
Source: EHI Retail Institute 2009
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24. RFID – Apparel Retailers are setting the pace
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25. 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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26. Causes of inventory discrepancies
- Assessment of retail experts in all segments -
 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
Quelle: EHI-Erhebung Inventurdifferenzen 2009
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27. 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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28. Questionable monitoring of employees makes
headlines
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29. 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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30. What strategic IT projects are important in
your stores over the medium term? (top 5)
New POS Software 26%
Online Access to ERP
System 24%
New Mobile Devices for
Staff 24%
New POS Hardware 20%
Wireless Infrastructure in
stores 18%
0% 5% 10% 15% 20% 25% 30% 35% 40% 45%
Source: EHI Retail Institute
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31. Thank you very much for your attention!
Ulrich Spaan, EHI Retail Institute
spaan@ehi.org
See you next year....
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