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tekREVIEW: Updates and Analysis for Retail IT Teams

June 25, 2009

Click on the link below or scroll down for this month’s top headlines and tekservePOS analysis and tips.

Retailers look to technology to reach customers
NRF welcomes Credit Card Fair Fee Act of 2009
Economic rebound?

Retailers look to technology to reach customers
Whetherstore or web-based, retailers are not being shy when it comes torolling out technology that will benefit their customers:

Report: Jack in the Box adds kiosk technology
APhoenix-based Jack in the Box restaurant is using kiosk technology tostreamline the ordering process, according to an article in QSR magazine.

Theunit, from San Diego-based EMN8, has a colorful, graphics-filled menuand touchscreen that help shoppers place orders. The kiosk, which sitsnext to the checkout counter, is integrated into the restaurant’sorder-processing system, the article said.

Until shoppers get used to the technology, the store is offering afree menu item or free item upgrade with each kiosk order. Theseincentives seem to be working as the kiosks are generating more than100 orders per day. Read more here.

Dairy Queen adds RFID-based mobile loyalty program
DairyQueen is delivering mobile coupons, rewards and other targetedcommunications through an RFID-enabled chip that connects to visitors’cellphones and PDAs.

Once shoppers enroll in Dairy Queen’smobile loyalty program, they are issued a chip, called the TetherballTag, which enables them to receive offers via robust text messages.These promotions can be redeemed at the store’s point-of-sale systemduring checkout, or at an RFID-enabled kiosk located inside the store.
Theprogram, which is from Indianapolis-based mobile marketing providerTetherball, is currently only available in a few locations. The companyplans to add it to more locations this year.

“The technologyallows us to create more loyalty, and learn what kind of offers driveand increase activity within a specific store,” said Jamie Guse,Web-site manager for Dairy Queen. “We can also do more redemptiontracking than we can with flat text messages.” The first mobile-basedpromotional campaign dropped in March, and produced an averageclick-through rate of 22%, according to a company statement.

Winn-Dixie uses 2D scanners to analyze shoppers’ driver’s licenses
Winn-DixieStores’ new point-of-sale scanner is helping the chain speed up thecheckout process as well as support age-verification compliances whenscanning shoppers’ driver’s licenses.

The chain is addingGryphon 2D Plus Imager scanners, from Datalogic, Eugene, Ore., whichhave high-speed optics that allow retailers to accurately capture datafrom fast-moving items as well as those underneath shopping carts. Inaddition, the 2D scanner can process new GS1 data barcodes for produceand other variable-weight merchandise.

It will also help thechain improve verification of age-restricted merchandise. Retailers arerequired to adhere to federal standards to verify customers’ driver’slicense data, including age, date of birth and license-expiration datewhen shoppers purchase items such as tobacco and alcohol. The scannereliminates manual data entry, increases efficiency at the retail pointof sale and prevents errors in the sale of controlled items.

Report: Burger King adds iPhone app
Realizingthat consumers on-the-go are tied to their smart phones, Burger KingHoldings introduced a branded iPhone application that supports mobileorders, according to an article on MediaPost.com.

Theapplication, which is supported by New York City-based restaurantindustry technology provider GoMobo, enables iPhone users to instantlylog in and connect with Burgerkingnow.com. They can choose theirclosest restaurant, input their order through the touch screen, and paythrough their phone. The order is fulfilled at the selecteddestination. Rather than wait on line, mobile diners can go to adedicated line to pick up their order. The solution also helps thechain create targeted promotions based on visitors’ order histories,the article said.

Non-iPhone users can also place orders electronically via computer or text message by directly visiting BurgerKingNow.com.

As seen on tekBLOG:

Reviewing some recent video clips for potential tekSESSIONS speakers, I ran across a presentation by James Dion called “The Twelve Most Common Mistakes in Retail Technology and How To Avoid Them.” Within the first two minutes of the presentation he states “Do notplace any technology in your store that will not benefit the customer.”(He also talks about how never to trust a sales person, but that’sanother blog!)

Benefit the customer … hmmmm. In the marketingworld, I often struggle with what’s just new and cool and what willactually drive sales. So for retail IT professionals, who live andbreath technology, I can imagine its equally challenging to sortthrough what’s ‘new and cool’ versus what actually brings value to yourcustomer during their shopping experience. Read more here.

 

NRF welcomes Credit Card Fair Fee Act of 2009

The National Retail Federation welcomed today’s introduction oflegislation that would require Visa and MasterCard to negotiate overhidden credit card processing fees that cost the average household morethan $400 a year.

“Between the momentum built up since this bill passed the JudiciaryCommittee last year, the intense scrutiny of the financial servicesindustry seen during the current economic crisis, and the credit cardreform law signed last month, we think the perfect storm exists forCongress to do something about these unjustified hidden fees,” NRFsenior VP and general counsel Mallory Duncan said. “In the middle ofone of the worst recessions seen in decades, consumers can’t continueto pay artificially inflated prices just so the credit card industrycan skim profits off the top. It’s time for these fees to be broughtunder control.”

House Judiciary Committee chairman John Conyers, D-Mich., todayintroduced H.R. 2695, the Credit Card Fair Fee Act of 2009. The measureis similar to the version of the bill that was approved by thecommittee in July 2008 and would require Visa and MasterCard banks tonegotiate with merchants on “interchange” fees that are currentlyimposed on merchants on a take-it-or-leave-it basis. To read more click here.

 

So this wouldn’t be a debate without an opposing side. The Electronic Payments Coalition, an organization representing payment card networks, financial services companies, and financial services trade associations, has responded quickly to the new legislation. They claim that it is merchants, not consumers, which the bill seeks to protect.

"This legislation is an attempt by giant retailers to make consumers pay for one of their business expenses -- the cost of accepting credit and debit. It's simple: merchants do not want to pay their fair share to accept debit and credit cards, and they want consumers to foot the bill," said the Electronic Payments Coalition in a release.

The Coalition also charged that if this legislation passes, American families will end up footing retailers' bills when it comes to accepting debit and credit cards. In 2008, credit card fees cost U.S. convenience stores $8.4 billion -- compared with only $5.2 billion in store profits, according to NACS, -- the Association for Convenience and Petroleum Retailing, which, like other merchant groups, applauded the re-introduction of the legislation. Almost all of these credit card fees are attributable to credit card swipe fees, said NACS. To read more click here.

Economic rebound? Retailers continue to make steps in the right direction

Survey: U.S. consumer mood highest in eight months
TheU.S. government’s stimulus programs are working to put more money inAmericans’ pockets, and this is helping consumer confidence to slowlyrebound, according to The Reuters/University of Michigan Survey ofConsumers.

As May comes to aclose, consumer confidence readings hit 68.7, almost four points higherthan April’s 65.1 figure. This is slightly above economists’ medianexpectation of a 68 rate, the survey said.

"Compared with thestate of the economy six months ago, consumers have indeed regained agood measure of confidence," said Richard Curtin, director of thesurveys.

Thestatistics reveal that an economic rebound is on the horizon andconsumers are thawing to the idea of recovery. Analysts monitorconsumer confidence as the leading gauge of consumer spending, whichaccounts for about 70% of the economy.

Wal-Mart to add 22,000 jobs in ’09
Wal-MartStores said Wednesday it expects to hire about 22,000 people for newpositions in its U.S. stores in 2009. The chain said the new positionswould be in all levels of retail operation, including cashiers, salesassociates, store management and pharmacists.

LastOctober, Wal-Mart announced plans to open 157 to 177 new or expandedstores and clubs during the current 2010 fiscal year in the UnitedStates.

Kroger plans to open two prototype stores in Texas
TheKroger Co. is preparing to open two new concept prototype stores, thechain’s two largest units to date, in the Houston marketplace, the Houston Business Journal reported.

Thenew concept, The Kroger Marketplace, is a 125,000-sq.-ft. store thatwill feature a Fred Meyer Jewelers’ store, a large home furnishingsection with Ashley Furniture, as well as grocery and deli merchandise,a large floral section, gourmet and chef-prepared foods, a wine shopwith a wine steward, a drive-thru pharmacy and a Kitchenplace area withupscale kitchenware and place settings. The first location, in BrazosTown Center, Rosenberg, Texas, will open in November. The second store,in Waterside Marketplace, Richmond, Texas, will open in December, thereport said.

 

When tekREVIEW first launched, the news was plagued with articles on store closings, bankruptcies and layoffs. And while these stories still exist, they are being replaced with stories similar to those above -- a good sign for all of us! But as things continue to rebound, what’s the future of retail? A recent article in Forbes magazine titled “Why Retailing Will Never Be The Same Again,” gives us a preview.

“A major shakeout of retail chains is under way, as the bankruptcies of Circuit City, Linens 'n Things, Mervyns and others make clear. What is less well understood is that an economic and technological tsunami has begun to force merchants into one of two camps: They must be either discounters that sell national product brands on the basis of price or stores that don't need to discount because they offer uniquely compelling products and shopping experiences. This bifurcation is beginning to transform the retailing landscape, and it is also spurring some major suppliers that don't like either scenario to open their own stores, as Apple and Coach already did in recent decades." Read more here.

Additional stories of interest from ChainStoreAge.com

TJX reaches data theft settlement

Safeway launches new electronic coupon program

Report: July 4 holiday to bring out consumers

NRF asks House not to consider value added tax

Grocers ask judge to protect trade secrets

 

 

 

 

 

 

 

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www.tekservePOS.com • (847) 805-9072

 

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