RIS News for the week of August 3, 2004


Booming Self-Service Shopping to Top $1 Trillion in 2007
Consumers racked up nearly $128 billion in sales using self-checkout lanes, ticketing kiosks and other self-service machines in 2003, according to a recent study by IHL Consulting Group. The study also found that by 2007 demand for self-checkout systems will increase the value of transactions to nearly $1.3 trillion.

"The revenue generated by self-service transactions should continue this pace of growth in the coming years, says Greg Buzek, president of IHL Consulting Group. "We expect to see expenditures made at self-service kiosks to rise by about 73 percent this year and 88 percent in 2005."

In the market study, IHL determines that of the nearly $128 billion in 2003 spent at self-checkout systems, ticketing kiosks, check-in kiosks and food ordering kiosks, about $61 billion was attributable to credit, debit and smart cards. The study reflects on previous IHL reports stating that self-checkout installations at Kroger and Albertson's suggest that anywhere from 15 percent to 40 percent of the daily transaction volume and 12 percent to 30 percent of the daily dollar volume of these stores are being handled by self-checkout machines.

IHL suggests that by becoming more Internet savvy, consumers have become more comfortable with e-commerce and purchasing products online, making for an easy transition for customers as e-commerce technology moves into brick and mortar stores. "Their time has also become more valuable and limited, and self-checkout is one way they can speed along their buying experience," Buzek said. "Retailers and other businesses are finding that self-service kiosks can significantly increase customer loyalty, as well as customer satisfaction."


Rouse's Supermarkets Goes Skinny with ACR Linux POS
Rouse's Supermarkets selects Linux POS systems provided by ACR Retail Systems for its 15 stores. The installation converts 200 checkout lanes to ACR 5000 Linux-developed POS software combined with Java technology. With the thin-client approach, POS software and all related data reside on a server at each store. The machines at the check lanes are essentially dumb terminals, which rely on the server. All updates and ongoing maintenance may be performed at the server, with no software maintenance required on the checkout lane terminals.

Lunds Completes Fast Track Implementation of TCI Retail
Lund Food Holdings (LFH) completes implementation of TCI's pricing and category management solutions in less than four months. LFH replaced their legacy BASS CIX headquarters pricing system with TCI HQ, which is providing centralized price management and hosting to its 20 Lunds and Byerly's stores. The Edina, MN-based chain is also using TCI's Category Analyzer for item movement reporting and profitability analysis, which interfaces with their new pricing foundation.

Brookshire Brothers Licenses KSS Pricing Solution
Brookshire Brothers of Lufkin, TX concludes a licensing agreement with KSS for its PriceStrat pricing and promotions solution. Brookshire Brothers will work together with KSS to implement PriceStrat across all of their grocery formats and their Tobacco Barn outlets. PriceStrat manages data including profit, sales and price image and automatically proposes prices based on each items' unique price sensitivity and the interplay between items and categories.


RedPrairie's 2004.2 Release Supports Drive for Globalization
RedPrairie announces a set of enhancements to its integrated supply chain execution and optimization suite that will help customers optimize their global supply networks and comply with increasing trade, security and retail regulations. The 2004.2 release includes enhancements for all major applications through RedPrairie's single, synchronized release program that keeps all integration points in sync, making upgrades simpler and more cost effective. RedPrairie began its semi-annual synchronized release program with its Fall 2003 release.

Zebra Introduces XML-Enabled RFID Printer/Encoder
Zebra Technologies announces its R110Xi RFID printer/encoder is now XML-enabled and ready to ship. The printing solution is designed for companies using ERP, warehousing and supply chain/logistics software, such as those offered by Oracle and SAP. These software solution providers are developing XML-based platforms to support customers who must meet RFID compliance mandates or other business improvement initiatives.

Evolution Robotics Announces LaneHawk
Evolution Robotics announces LaneHawk, which automatically rings up under-cart items. Using Evolution Robotics' object recognition technology, LaneHawk is trained to recognize and identify each product likely to be placed under the shopping cart. A smart camera is flush-mounted in the check-out lane to match items under the cart to each store's list. The system only looks for items it has been trained to recognize and is compatible with any POS system.

IDAutomation.com Integrates RSS and Composite Symbology
IDAutomation.com announces the integration of RSS (Reduced Space Symbology) and Composite symbology into its Image Generator and Barcode Control. The RSS & Composite barcodes include barcode types recommended by the UCC and EAN to encode the GTIN product ID and are Sunrise 2005 compliant. This symbology is designed to encode additional product information, such as expiration dates and other item attribute data.


Frito Lay Relies on Intermec for Precision Execution
Frito Lay and the PepsiCo Business Solutions Group rely on Intermec's handheld computers, mobile printers and related equipment for its new Precision Execution direct store delivery selling system in North America. Scheduled for deployment in the first quarter of 2005, this system includes advanced mobile computing capabilities with communications options, battery and display technology, and speed and memory capabilities that will allow Frito-Lay route personnel to provide execution tailored to each customer.

Accenture Acquires Milton Merl & Associates
Accenture expands its Marketing Sciences practice by acquiring Milton Merl & Associates (MMA), a consumer packaged goods marketing agency. Offering consulting services and data modeling analysis software, MMA helps consumer packaged goods companies and retailers benchmark and forecast the impact that changes in their price, promotion and assortment strategies will have on sales volume and profitability. Its client portfolio includes General Mills and Colgate-Palmolive.

Franklin Electronic Makes the Most of Demand Data with Prescient
Franklin Electronic Publishers, a developer and distributor of portable knowledge products, improves its relationships with major retailers with Prescient's demand planning software. Since implementing the retailer-centric software and services for consumer products companies, Franklin has seen improved forecast accuracy and reduced error rate. The company is also able to more confidently anticipate seasonal spikes in demand. In addition to scoring high on Circuit City's list of preferred suppliers, Franklin has fostered a more collaborative relationship with Wal-Mart, another major retail customer.

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