All Systems Go

The right retail automation option will boost both store efficiency and profitability

Selling the right products presented in the right way in the right store location at the right price is only half of the battle for convenience and impulse outlets seeking to survive and prosper. At least equally as important is the efficiency with which the store is run, whether it be in terms of organising staff rosters, ordering new product, implementing theft reduction strategies, actioning a loyalty rewards scheme, or improving the speed and manner in which customers are served.

Convenience and impulse outlets are busy places and retail automation solutions which enhance the efficiency of the operation are becoming ever more critical in this ever more dynamic channel.

Business advantages

As technology advances, the retail automation options available to the humble C&I operator is growing, but so too are the business advantages they can deliver. There are many retail automation suppliers in Australia, all offering something slightly different.

Goodson Imports says it is the oldest Point of Sale (POS) technology specialist in the country and it stocks, services and supports a large range of POS hardware across Australia and New Zealand. It provides a wide range of retail automation products, including touch screen terminals, cash registers, receipt printers, pagers, magnetic swipe readers, Radio Frequency Identification (RFID) Readers, hand-held devices, barcode scanners, and cash drawers.

Radiant System also offers a full range of POS solutions that it says can allow convenience and impulse outlet operators to efficiently oversee day-to-day tasks while freeing them from the back office. Its POS software integrates to every store profit centre – from fuel to foodservice – enabling easy and fast management.

Similarly, Beacon Business Systems provides POS systems that it says are a robust real-time business management tool and provide enhanced reporting and management from forecourt to complete general ledger and financial control at either site or head office level.

Companies such as Hewlett-Packard also offer retailers a range of technology solutions aimed at enhancing the customer experience, increasing productivity and growing revenue. Its retail solutions include POS systems and digital signage displays that provide customers with a modern shopping experience.

It is the desire to enhance that shopping experience and increase retailers' profits that encouraged Scanning Systems Australia Pty Ltd (SSA) to develop the Profit Track POS management system designed specifically for grocery supermarkets, convenience stores and service station fuel sites. SSA provides all the hardware devices, being touch screen POS systems, scanners, scales, barcode printing systems, hand-held PDE/PDA mobile computing solutions, as well as fuel forecourt controllers.

"Profit Track is a complete management solution that features electronic price book catalogues and electronic hosting of weekly product files to update new products and pricing on existing items as well as multi-media advertising content," said SSA's Managing Director, David Hagen.

"The completely integrated automation of the various components of the system, including DVR security recording equipment and cameras, enables the modern-day manager to rapidly track events that provide the linkage between people and fraudulent events."

Mr Hagen believes the focus in this day and age needs to be on the integration of technologies, to achieve an outcome that will enhance the shopping experience for customers and, at the same time, boost the bottom line.

"The message I have for retailers who are considering technology, and maybe an upgrading of their existing point-of-sale systems, is that it is no longer just a matter of picking out a good POS system or an attractive DVR security system, or maybe a third party provider for a loyalty solution," he said. "This piecemeal approach to implementing various independent systems will not deliver the desired outcome in terms of cutting the cost of business administration, and achieving an overall efficiency of operation in the store."

Radiant Systems, which offers both POS software and hardware, agrees.

"An integrated solution helps businesses run more efficiently by providing a consolidated view and control of all profit-centres," said Radiant Account Manager, Vincent De Stefano. "Business operators require access to timely and quality data from various elements to help make informed decisions. On a fuel site for example, multiple components including forecourt control and tank gauging, electronic payments, loyalty solutions, electronic services and customer self-serve kiosks can be integrated to streamline and help simplify business operations."

Mr De Stefano also points to the rise and rise of electronic services as reason for the growth in modern retail automation systems.

"Convenience operators are expanding their product offering from the traditional shelf lines to now include transport ticketing, or recharge vouchers for mobile phones or internet," he said. "An integrated electronic services solution allows operators to expand their consumer product offering without having to carry physical stock of these items."

In the end, it all comes down to efficiency and effective management.

"Whether it is for a small or large outlet technology enables site operators manage their business more efficiently. This means retailers can focus on building their business and deliver great customer service," said Mr De Stefano. "C&I operators do not want to worry about POS, but rather the technology should run seamlessly in the background to help them achieve their key business objectives."

He says that operators don't usually replace POS systems simply because their existing solution is old, they generally have a business challenge that will benefit from new technology, perhaps a need to increase speed of service at POS and on the forecourt; difficulty managing complex promotions at POS; or a need to implement a POS solution that will help reduce staff training times.

Challenges & solutions

"We identify the key challenges faced by each business during what we call the discovery phase," said Mr De Stefano. "We then implement a solution that addresses those challenges."

Beacon Business Systems says that an outlet which chooses the right POS system for its needs will notice improvements in its operations very quickly.

"A reduction in keying errors with integrated Eftpos, the ability to import promotional files and not have to manually enter them, the ability to generate purchase orders automatically ... all of these greatly reduce the time needed to complete tasks," said Beacon Business Systems' General Manager, Branko Maric.

"This leaves more time to actively promote and work on in store set up and presentation."

Of course, a store that has efficient retail systems in place will be able to commit more time on store presentation, so there is a flow-on effect.

"Less time in the back office and more time in the shop allows the site operators to get a first-hand knowledge of what their customers' needs are," said Mr Maric. "This allows analysis of sales, success of promotional activity and enables the operator to have the right product at the right time in store for customers."

Improving store efficiency is also the stated aim of HP's Retail Solutions. These solutions are designed to offer retailers the platform to take advantage of a PC-based POS environment, to access the benefits of retail automation software and thus allow retailers more time to focus on the customer experience.

"Our Retail Solutions are designed to provide retailers with the technology to offer points of transaction, interaction and information in-store as a better way to do business, communicate and engage their customers," said Tyerell Allen, HP Australia's Market Development Manager, Retail Point of Sale Systems.

"Some of the benefits consumers will notice with HP's Retail Solutions are an improved customer experience, with more dynamic information being communicated on our HP digital signage displays, an engaging interactive experience through the use of our HP Touch Solutions, and more time dedicated to customer service through the use of retail automation."

Customise for flexibility

Importantly, HP Retail Solutions are designed to be customisable to meet the needs of individual outlets. Its POS systems are modular in design to give every retailer the flexibility to configure the system to meet individual technical requirements.

Goodson Import's Sales Director, Susan Pace, is also keen to emphasise the speed with which the benefits of her company's retail automation systems would be noticed by any customer.

"They would soon notice the fast-moving queue – or lack thereof – and the amount of time the shop assistants have to attend to them which are two important changes," she said. "These specific differences may be quite small but in the larger sense they will benefit the consumer and allow them to leave that store feeling satisfied and with the knowledge that they have been serviced to the best of that store's ability."

Of course, it is hoped that consumers will then remember the exceptional service and the fact that they were taken care of and not left to line up like a non-valued customer … and, importantly, that means they'll probably be back in-store again at some stage.

"Having a reliable POS System in your store can cut down queues, limit the number of errors or mistakes that are made and can allow for a better quality of service to your customers," said Ms Pace. "The extensive range of systems that are available through Goodson Imports can make an enormous difference to any retail outlet."

She says that many of the technologies available improve efficiency, for example by using bar coding for stock inventory.

"Our systems can also include customer facing screens to promote in store products or a coupon printed on their docket which will increase sales," she said. "Each and every outlet could benefit from our systems … there is no business too big or too small."

David Hagen from Scanning Systems Australia says that, in these tough economic times, most customers are showing less interest in frequent flyer style promotions that offer a 'pot of gold at the end of the rainbow', and prefer instead to look for product deals that offer immediate or short-term value ... and the right integrated retail automation system can help.

Profit Track has introduced the concept of 'scaleable' offers where the reward increases in accordance with the shopping pattern of each customer. This new concept applies equally to fuel promotions with a 'cents per litre' discount, as it can do to a product promotion with savings on selected items such as a bread and milk deal.

Another of the new concepts in Profit Track is the interactive advertising on the customer-facing display monitors which provide better information on items being rung up, as well as helpful information on products and services available in store.

"Customers are attracted to stores that provide better information on product pricing and promotions," said Mr Hagen. "They just love the interactive customer displays providing better information, and even consider it to be entertainment watching the in-store messages and product advertising on the customer displays at checkout."

Branko Maric from Beacon Business Systems agrees that consumers' attention is quickly drawn to LCD screen displays that show their transaction as well as advertising various in-store promotions ... but that's not all.

"Other than the customer display and the efficiency and speed of completing a transaction, consumers may also notice an increase in upselling from the console operators," Mr Maric said. "The Beacon Point of Sale System alerts the console operator to promotions and can be programmed for upselling."

Beacon believes that ongoing support and staff training is vital in ensuring that a site gets maximum benefit from its new system.

Training & support

"Our process sees us spending 4–5 days on site doing the installation and training ... generally 16-24 hours of training are provided during this time, based on the modules subscribed to," said Mr Maric.

"During the first month after installation our support team will stay in contact with the site and work to clarify any areas they are uncertain about or address gaps in the training that the site may not have understood."

Goodson Imports also likes to offer strong support.

"The resellers who promote our systems are trained by our staff and have the backing of our support staff should any issues arise," said Goodson's Susan Pace. "Generally most of the training is in relation to the POS systems and the cash registers as they are our more complex items and they need to be programmed to certain specifications."

She says the resellers are able to demonstrate to the clients how efficient and simple the products are to use, and can also train staff how to use them.

Ms Pace says that customers tend to feel at ease if they can see the transactions being scanned and priced correctly on the customer display. She says that as soon as their system is installed the benefits will begin to present themselves to C&I operators.

"Being able to print detailed daily reports and allowing staff to spend more time with customers, retailers will see the system paying for itself in only a short period of time," she said. "There will be shorter queues linked to how efficient the system runs, better customer satisfaction as a result of the rapid customer turnover due to the machine, and it will also bring ease to the staff knowing they are using a reliable, efficient and easy-to-maintain system that they can use with minimal effort."

Ms Pace says it is difficult to estimate the exact costs to an individual store as POS hardware prices can vary depending on which brand is chosen and which peripherals are needed. As Goodson Imports only imports and supports hardware, outlets will also need to purchase the software to best suit their requirements.

HP's Retail Solutions are similarly designed to be affordable to all levels of retailers, providing them with the reliability of a trusted brand like HP. Once again then retailers who take advantage of effective retail automation systems can experience improved efficiencies of retail tasks, allowing them more time to focus on developing a more positive customer experience.

"This means more time can be spent serving, educating and interacting with customers to create a positive shopping experience," said HP's Tyerell Allen. "By doing this customers are more likely to return or recommend the store to other shoppers."

As new technologies evolve …

One thing that is certain about new technology is that it never stands still and retail automation systems must continue to evolve as new technologies become available, and also to meet the changing needs of the shopper. As new technology innovations are released, retailers and vendors will need to work together for integration into the retail solution.

"We are seeing the emergence of the educated shopper, who conducts their research online, uses social media to capture the opinions of friends or other shoppers, and is comfortable with self-service transactions," said Mr Allen. "Based on this, retailers need to be conscious of the effect technology is having on shoppers, and how they can adapt with the change."

Goodson Imports' Susan Pace is equally certain that retail automation systems will continue to develop and improve in the future.

"If you look at how far these devices have come, it is inevitable that they will introduce more technical and more efficient products in the future," she said. "Convenience and Impulse stores will constantly see new technologies introduced into Australia including self-service checkouts, RFID and electronic shelf labels … the technology will aim to increase productivity."

Beacon's Branko Maric certainly sees more change coming.

"With the advances in wireless and contactless technology coming at a rapid rate I can see people not even needing to go to a counter to pay for their goods," he said.

Often looking overseas gives a clue as to the sort of developments we may soon see in Australia and it is clear that data security is going to be a huge focus for the industry... particularly with electronic transactions rising exponentially.

Radiant Systems' Vincent De Stefano also notes "that as a global supplier of POS solutions, Radiant often see features and trends developed and implemented for our international markets soon follow on as emerging trends within Australia."

He says that many of Radiant's overseas clients have seen great success implementing customer kiosks and self-serve offerings.

"Kiosks are great for complicated transactions, particularly in convenience stores where speed of service is paramount," he said. "For example, customers can order food or coffee from a kiosk which will offer various opportunities to up sell along the way. The order can be fulfilled and ready to be collected at the POS whilst the customer continues to shop in store or fills up with fuel on the forecourt."

This is one example of how technology helps businesses create a new consumer offering without detracting from the important 'convenience' aspect of the C-Store.

Another likely trend out of North America and Europe is the use of pay at pump technology at fuel outlets.

"It certainly makes things easier and faster, but there is one school of thought that businesses want people coming into the store to pay and potentially purchase other products whilst there," said Mr De Stefano. "However, many operators are finding that the convenience of pay at pump far outweighs this perspective as most pay at pump solutions can be configured to operate only on certain pumps, or at certain times of the day, to help reduce drive offs. Today's pay at pump solutions also offer innovative ways to market products on the forecourt with graphically rich media."

Retail automation is then an exciting, changing and potentially profit-enhancing field, and all convenience and impulse operators would do well to stay abreast of the many advances and innovations.