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Important discoveries

We are surrounded by great inventions. There are those that change our world in amazing and exciting ways, such as the aeroplane, microwave oven and nylon. But then there are also those that just make life that little bit sweeter.
I found one of these in the most unlikely of places. On my way home from Retail Solutions this year I stopped for respite at the M4 Reading services, and found the pick ’n’ mix had been transformed. No longer was there a lid that stayed open to allow all manner of unpleasantries from dust and flies falling in, to small children picking sweets up, chewing and spitting them out when caught by mum. Yes, they have invented the self-closing lid! Whilst this may only be a minor step forward for mankind, I bet it saves the retailer a small fortune in wastage and increases sales through better presentation and hygiene.
These small inventions are not life changing on their own, but added up they are (arguably) constantly improving the world around us. Technology changes are often like that. At this year’s Retail Solutions, the retail technology show, I heard the same old comment that I hear every year; “There’s nothing new here this year, nothing exciting.” And the thing is they are right. We have witnessed some groundbreaking technological developments in recent years, namely the Internet and the mobile phone, both changing the way many of us live our lives. I wonder if people expect this level of invention at Retail Solutions each year? Whilst there have been no ground breaking inventions at the show, if one looks at the change over the past few years then retail technology has come through a radical transformation. In fact, there has been a quiet revolution.

Within reach
For the price of a couple of cappuccinos a day, an independent retailer can now purchase a system that only a few years ago would be in the sole domain of the top 250 retailers. Such a system can do the following rather amazing tasks:
• Give instant records of how much profit an individual supplier has delivered compared to other suppliers, over any time period the retailer chooses. How useful is that information when negotiating with a supplier?
• Vastly improve the re-ordering process making it far more efficient and accurate. Because it is less time consuming, retailers can negotiate to order more frequently so hold less stock and have less exposure to risk, just like the multiples.
• Print barcodes on receipts to discourage theft and make handling returns less prone to error. Then have that stock back on the shelves immediately, not hanging about in the back room for a month gathering dust.
• Eliminate the need for writing special customer orders in books, or on bits of paper, it is all held centrally using the customer database. In a click these systems can print an order for the item which can be faxed or emailed straight away.
• Send direct marketing to selected customers by mail or email because their address details and information on which product ranges they prefer is being held on the till.
• Keep a complete and accurate record of exactly how much stock is in place and its value.
• Customers can receive loyalty points on every purchase without needing a loyalty card, because the till will recognise them when their finger is placed on a pad! This lets the retailer reward their loyal customers and encourage more visits. Loyalty programmes also give a great reason to communicate with customers by post or email to present ideas of how to spend their loyalty points.
• Take mail orders and track the whole process from beginning to end with full stock control.
• Send products from the till to Internet site, and when customers buy online, the order is seen at the till screen.
• Keep stock fully in sync with the website and shop. When a customer buys online the retailer knows that product is on the shelves ready for fulfilment.
• Produce instant reports on which are the top selling and bottom selling lines, no matter which channel they were sold though.
• Significantly expand floor space by having touch screens with the shop’s website on. This allows customers to buy products that are not on the shelves; the order goes to the till for payment. When the product arrives it can be mailed to the customer. Woolworths are trialling this now, independents can implement the technology today!
• Show which products have the most successful discounts and sales promotions since records began.
• Whilst at home, a retailer can log on and in a few clicks set up tomorrow’s special offer; ‘15% off Fine China’ day, or ‘Members Club April Madness’ on glassware. Not only are items discounted but they are also recorded as discounted and therefore retailers can accurately calculate how much profit has been generated when the annual reporting is done. In fact almost all business management activities can be done remotely these days, eliminating the need for those long evenings in the shop.
• And the next step? Computers built into mobile phones. Consumers will use these more extensively for price comparisons and research when shopping. They will buy the item on their way to the shop so it is ready for collection when they arrive.

Technological Milestones
Yes, where would we be without inventions? Some 60 years before the ball point pen was invented, James Ritty, an American tavern keeper in Dayton, Ohio came up with a natty idea of a cash register. It was 1879 and he nicknamed his cash register the “Incorruptible Cashier”. When a transaction was completed, a bell rang on the cash register and the amount was noted on a large dial on the front of the machine. During each sale, a paper tape was punched with holes so that the merchant could keep track of sales. At the end of the day, the merchant could add up the holes. In comparing this to the cash registers of today one could argue that over the last century there has hardly been a revolution in shop technology for the independent retailer.
However, take a look at the new multi-channel retail systems that have appeared over the last couple of years. These are a world away from anything James Ritty ever could have dreamt about. Yes, in the 20th century there was little innovation around in-store technology for the independent, yet over the last couple of years there really has been a revolution in technology for independents. But how many people have noticed?

Further Information
David Mackley MBA BSc is part of the Giftware Connect team, offering fresh perspectives on running your business with the help of simple technology. He can be contacted on 01635 262 718. Giftware Connect: Beyond EPoS.
www.intelligentretail.co.uk

September/October 2010
issue 61
available now