Some retailers love technology, some hate it and others tolerate it. But it is an essential part of running a c-store. Get to grips with it, or your shop could struggle.
The right technology for the job is indisputably a boon, but recognising the right technology and the best way to use it can be a tall order, with everyone claiming their app or hardware is best, future-proof and simple to use. Those who have been stung know that hardly anything technological is simple. Even mastering an iPhone can be a learning curve akin to climbing Everest if you have not used its iOS operating system before.
For independent store owners, however, there is one piece of tech that is essential to master: EPoS. Steve O’Neill, marketing director at payment services company PayPoint, says most experts agree that harnessing the power of EPoS is critical to understanding how a store is working and what owners can do to improve and thrive. “The natural retail instincts of independent retailers are something to be cherished, but we often hear stories about retailers who say they keep track of what’s happening in their store in their heads and that they know what’s selling from what gets put through the till.
“However, how do you know what isn’t selling and what’s not working and losing you money? Technology like EPoS systems can help retailers stay fully in control of what’s happening in their store, giving them time to use those well-developed retail instincts to spot new opportunities and new ways to serve their customers,” he says. Today’s consumers want convenience, variety and choice, whether shopping online or close to home, he explains. Their expectations continue to grow and the experience in-store now needs to be as quick and seamless as it is online. “Technology plays a major part in helping retailers deliver on these expectations, whether it be EPoS to understand data and customer behaviour better, payment technologies like contactless and Apple Pay to speed up transactions, or parcel services to help customers pick up their online purchases,” O’Neill says.
Cashless payment
Kristine Moore, retail technology channel manager at Henderson Technology, points out that retail tech is ever-evolving. The company is currently meeting food-to-go demands with a new launch, Appetite, enabling customers to pre-order and pre-pay for hot food, made-to-order sandwiches and salads and other food and drink items for click and collect or home delivery. Dave Morris, director of IT for Costcutter Supermarkets Group, says consumersnow accept smartphone technologies and the cashless society as the norm. “Some great moves have also been made around personalisation and app-based loyalty over the past 12 months, all of which come with valuable insight into customer data. The most exciting thing is how this has all come together in a self-perpetuating way. The more the apps grow, the bigger the data collated and the better the insights. These technologies are helping retailers turn these vital insights into actions that drive better offers, personalisation and footfall.”
Morris says the “sheer simplicity” in adopting electronic payment methods has been a major positive over the past 12 months. “In the future, we will see instant payments and payment transfers replacing the wallet and debit cards. We are already seeing this with the introduction of technological advances such as fingerprint payment. Self-service is everywhere and we’re seeing a growing number of our high-footfall, small-basket retailers trying out the new technology.”
Self-checkout
When it comes to diehard independents who prefer to trust themselves rather than technology, what can be done to persuade them of the benefits? Peter Walker, head of IT at Nisa, says an honest and clear demonstration of the cost- and time-saving benefits is the best approach. “For example, the self-checkout has previously not been a viable proposition for independent convenience stores due to concerns around entry costs and the loss of the engagement with the consumer. However, it can now be clearly demonstrated that for a store open 16 hours a day, seven days a week, paying minimum wage, the removal of a single cashier by the introduction of one or two self-checkouts complementing the traditional point-of-sale, savings of up to £40,000 a year can be gained.”
With cost of entry now between £4,000 and £5,000, Walker says the potential savings are too big not to acknowledge. “Consumer engagement can also be maintained by having the functionality for a single cashier to manage all self-checkout units from his traditional POS – which is incredibly important to the independent retailer.” However, even self-checkouts could one day become defunct. Morris says: “The next generation of ‘payment rings’, where smartphone devices will generate payments when walking through exit gates at stores, using near-field communication technology, is already happening. The customer will not even have to get their smartphone out of their pocket.”
Quick and easy
Meanwhile, says Moore at Henderson Technology, independents should definitely be offering contactless payment, because it meets today’s customer demands, speeds up transaction times and helps keep down queues. In fact, some 80% of c-stores already offer contactless payments, the latest ACS Local Shop Report shows, with 62% offering mobile payments such as Apple Pay.
“As customer football increases in forecourts and convenience stores, with the increase in food-to-go also, the retailer needs to be able to keep up with the demands of the younger generation. With the average card spend at just £7.03, contactless payment offers a quick, easy way to pay,” says Moore, whose company supplies the EDGEPoS system. She too notes the importance of mobile payments, with usage rising. Earlier this year, Henderson integrated Zapper technology into EDGEPoS, offering a way of accepting mobile payments using a QR code while allowing customers to collect loyalty points at the same time.
In future, however, shoppers may well be using their fingers to pay for purchases. One of those who has sampled this technology is Arnaud Leudjou, retail manager at Brunel University’s Costcutter outlet. The store trialled Fingopay, a vein ID system, for a year and Leudjou says he had 1,500 customers sign up to use the scheme during that time. Simon Binns, chief marketing officer at Fingopay, says: “Our patented Hitachi technology allows customers to associate their vein signature with their bank card and then use their finger to make payments in seconds. At tills, harmless infrared light maps the unique pattern of your veins, verifying payment in two seconds through its cloud-based matching system. As no card or mobile is needed, the payment process is quicker than any other way to pay.” Binns says the technology is much more secure than fingerprint ID, adding that the company is now in talks with a number of retail and hospitality sites in Manchester ahead of a launch in the city later this year.
