Traditional POS Meets Its Final Days

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Traditional POS Meets Its Final Days

06/03/2014
One-third of retailers are deploying or planning to deploy the last traditional POS system, which lends the question: What is the future of POS in an omnichannel world? RIS News' latest custom research, "Your Last Traditional POS", quantifies how much can be gained or lost by becoming fully omnichannel, as well as how much IT budget is devoted to omnichannel projects and how long the journey will take. common in-store execution flubs are explored and possible solutions revealed.
 
Today's POS conducts billions of dollars in transactions every day, serves shoppers and retailers reliably, and sends data to dozens of enterprise applications in near-real time or, at the very least, every night. So why would retailers want to change an IT system so rock-solid and central to the financial health of their businesses? The quick answer is that a majority of retailers don't want to make a change – 53.8% tell us "it is too early to tell" if they plan to shift away from their current POS model. Another group (12.8%) is more definitive about their opinion and say they have no plans to even consider such a shift.


Another item we were interested in gauging is the impact of the looming EMV/chip-and-pin mandate set for October 2015 by the credit card issuers. Will it have an effect on POS plans and budgets? Forty-one percent say there will be no impact in 2014. Most retailers say they have already begun some form of preparation: 25.6% say planning has already begun, 15.4% say deployment has already begun and 10.3% say planning will begin by end of year. The remaining portion – nearly 50% – plan to begin and complete their EMV rollout in less than a year.
 
Today, the answer for mainstream retailing is not yet, but it is clear that the forces of change are blowing. Mobility and omnichannel retailing are having a major effect on the future of POS. Upgrade activity has never been higher and some of it is occurring in the area of merging traditional POS systems with e-commerce to create a closely coupled hybrid solution. Some retailers are even contemplating a unified transaction platform. Omnichannel readiness, which this study examines in a unique level of granular detail, is a multi-year journey that is having a major impact on sales, IT budgets and, in no small part, the future of POS.

To download the complete report and see what the future may hold for POS, click here.