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2008 POS Software for Softgoods Retailers
Analysts Jerry Sheldon, Greg Buzek Publication Date: August 8, 2008
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Who We Are IHL Group is a global research and advisory firm specializing in technologies for the retail and hospitality industries. The company, based in Franklin, Tenn., generates timely data reports, offers advisory services and serves as the leading retail technology spokesperson for industry and vendor events. What We Do IHL provides customized business intelligence for retailers and retail technology vendors, with particular expertise in supply chain and store level systems. Our customers are retailers and retail technology providers who want to better understand what is going on in the overall technology market, or wish to identify specific equipment needs for the retail market. When We Started Greg Buzek served as Product Development Manager for two Fortune 500 retail technology suppliers for 6 years. Faced with making recommendations to senior management with spotty reports stuffed with technical jargon and unsubstantiated data, in 1996 he left to form IHL Group as an arms length consulting firm that delivers exacting research to corporate managers. How We Work Reliable market analysis is essential for corporations to accelerate revenue and expand their market share. Most research providers do not disclose data sources or statistically defend the validity of their assumptions. We do. We disclose in precise detail exactly how and why we reached our conclusions so that our customers can be comfortable with the data they are using. What We Know Our associates and advisors have over 100 years combined years of retail technology experience. Our associates have worked as product managers, sales representatives and executives in the retail market. We have the relationships, tools, and experience to meet your research and consulting needs.
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Top POS Software for Softgoods Retailers
Table of Contents
Introduction ..................................................................................................................... 6
Background and Objectives .............................................................................................. 6 Core Functionality Seen in POS Software ...................................................................... 6 Report Methodology.......................................................................................................... 7 Report Limitations ............................................................................................................. 8
Specialty Soft Goods Overview ................................................................................... 9
Generalized Overview of Segment Conditions ............................................................. 9 Key Players........................................................................................................................ 10 Tier 1 Summary ................................................................................................................ 11 Tier 2 Summary ................................................................................................................ 11 Tier 3 Summary ................................................................................................................ 11
Key Economic Trends Affecting Retailers ............................................................... 13
General Economic Conditions........................................................................................ 13 Price Pressure.................................................................................................................... 13 Rising Labor Costs ........................................................................................................... 14 Doing More with Less ..................................................................................................... 14 Union vs. Non‐Union Labor........................................................................................... 15 Lack of Available Workforce .......................................................................................... 15 Lack of Workforce Loyalty ............................................................................................. 16 Customer Loyalty/Wallet Share is King ....................................................................... 16 Terrorism Concerns ......................................................................................................... 17 ROI and POS Software .................................................................................................... 17
Key technology trends affecting retailers ................................................................ 18
Changing Use of POS ...................................................................................................... 18 PCI Compliance................................................................................................................ 18 Software Leads Hardware .............................................................................................. 19 POS Standards .................................................................................................................. 19 ARTS Standards ............................................................................................................... 19 Browser‐Based Design..................................................................................................... 21 Multi‐Channel Shopping ................................................................................................ 21 Out of Stocks..................................................................................................................... 21 HQ Hosted vs. Store‐Based Server Location................................................................ 24 Embedded Operating Systems – Thin Clients ............................................................. 25 Current and Future POS Client Operating Systems ................................................... 26 What about 2008 and Beyond?....................................................................................... 26 Shameless Plug ................................................................................................................. 27
The Top 5 Suppliers ..................................................................................................... 28
Vendor Accounts.............................................................................................................. 28
© Copyright 2008 IHL Group – All Rights Reserved. www.ihlservices.com 4
Top POS Software for Softgoods Retailers Estimated Number of POS Licenses.............................................................................. 29 Retail Revenue Represented By Vendor Accounts ..................................................... 30 Ranking Determination................................................................................................... 31 Historical Rankings.......................................................................................................... 31
© Copyright 2008 IHL Group – All Rights Reserved. www.ihlservices.com
We then take a look at the key economic and technological trends that impact the retail landscape and competitive atmosphere. we include a summary description of the Top 5 POS software vendors and their applications as they pertain to Softgoods retailers. not the least of which is competition. www. there are also some core features that are generally standard within the leading POS software offerings. Finally. others with targeting key demographics and focusing on increased service. In an effort to not just grow but to compete with Wal‐Mart. some with mergers or divestitures. Along with the retail business trends there are key technology trends that continue to impact retailers as we move forward. the use of technology to effectively compete. Security has been boosted at physical locations as well as over the Internet due to terrorism. as well as a look at the rankings developed for the vendors in the top 250 Specialty Softgoods accounts.com 6 . coupled with their data warehousing capabilities and sheer size (economies of scale). we see the continuing consolidation of the retail software market. has afforded them the ability to pressure their suppliers and their competitors with both margins and technology implementation. that is. Customers are increasingly more informed on options and alternatives as their use of the Internet increases.ihlservices. Following this. First. Mass Merchants in general (and Wal‐Mart in particular) are responsible for the margin pressure every retailer feels. retailers are responding in different ways based on their competitive position within the marketplace. Finally. These core features include the following: © Copyright 2008 IHL Group – All Rights Reserved. which includes a discussion about the common core functionality of POS software packages and the report methodology. Core Functionality Seen in POS Software As we surveyed the Top 5 vendors of POS software in the Specialty Softgoods space. we provide an elementary summary of the background subject matter. Retailers in the early 21st century face many challenges. and still others using technology. That said. we observed some unique functionality within the various applications. and hacking fears. Wal‐Mart’s supply chain system efficiency. virus. This report attempts to bring a finer focus to this last point. we provide a discussion of the market share for vendors in the Specialty Softgoods POS space.Top POS Software for Softgoods Retailers INTRODUCTION Background and Objectives This report addresses the specific aspects of POS software as applied to North American Specialty Softgoods retailers.
© Copyright 2008 IHL Group – All Rights Reserved. press releases. “Save the sale” capability. Time & Attendance.Top POS Software for Softgoods Retailers 1. www. our first step was to query this database to determine which vendors of POS software were installed in the leading 250 North American Softgoods Retailers. We are very grateful to those vendors that were willing to assist in the customer verification effort for this report. Report Methodology For the past ten years. tightly integrated with ecommerce channel d. IHL has scoured public sources of information from trade shows. 7. 10. 8. Using this information. A user interface and architecture designed to maximize customer throughput Integration with: a. and customer lists to build our IHL Retail Technology Database. Workforce Management (Labor Scheduling. and Task Management) applications b. Or incorporation of Loss Prevention c.com 7 .ihlservices. supply chain. Corporate enterprise systems including financial. 5. 2. and merchandise planning 3. we contacted the ten leading vendors to verify our data against their customer lists. Multiple Sales Channels. Support for company loyalty program initiatives Full training mode Interactive help menus to assist cashiers at each stage of the transaction process Adherence to ARTS (Association for Retail Technology Standards) requirements Ability to provide home store or other local store inventories by item Perform Gift/Phone card activations Returns management capability Architected to be highly secure 6. Sophia. For this report. 4. 9.
their roots and their current business focus.ihlservices. experience shows that non‐ publicly‐released information tends to have little effect on the rankings in this report. the functionality of which was obtained through vendor discussions. and the final vendor ranking arrived at by giving position number 1 to the vendor with the lowest sum. Using the verified customer lists. we must cite as a limitation those installations about which vendors and/or retailers remain reticent. These criteria are listed below. Within each of these three criteria. The rankings for each vendor for each of the three criteria were then summed. brochures and white papers. this results in the Representative Customers section. online sites. we then used three criteria to provide the final vendor rankings specific to the top 250 Specialty Softgoods retailers.com 8 . and Inventory Management solutions to which each POS solution had been interfaced. Since all rankings contained herein are solely based upon this publicly released information. we include some of the key strengths (or specific insights highlighted by their customers) of both the company and the product that differentiate this solution from competitors. Loss Prevention. Merchandise Allocation. For the top 5 POS software vendors as identified from the ranking details from above. Included is an overview of their specific POS software package(s). as well as a Representative Customer section. position number 2 to the next lowest sum. www. each of the software vendors was rank ordered. Merchandise Planning. Report Limitations Publicly disclosed information is the source of all data contained in our Sophia Retail Technology Database. That said. we wrote a vendor profile which includes a summary of the vendor company. and so on. One last query identified the retailers in which solutions are installed. • • • The total number of vendor accounts among the leading 250 Softgoods retailers The estimated number of POS systems running the vendor’s software based on store count and lanes per store data The retail revenue represented by the vendor accounts. © Copyright 2008 IHL Group – All Rights Reserved.Top POS Software for Softgoods Retailers We then ran subsequent queries to determine the various POS Hardware. Finally.
These retailers must make sure that they are the quickest in terms of anticipating and taking advantage of quickly changing fashion trends.Top POS Software for Softgoods Retailers SPECIALTY SOFT GOODS OVERVIEW Generalized Overview of Segment Conditions Specialty Softgoods retailers are subject to shifting fashion trends and seasonality to a greater extent than all other retailers in North America. but in the number of lanes per store. since store pilots tend to cost less and can be implemented and tested more rapidly. planning. up until about four years ago. Missing a trend is devastating to most Specialty Softgoods retailers.ihlservices. the retailers in this segment need IT systems that can quickly track and adjust to the inventory needs of the retailer to take advantage of these trends. And as many of the largest retailers target the booming teenage market. This enables these retailers to be early adopters of new technology. Kmart and Target. Working in the favor of Specialty Softgoods retailers is their tendency to have stores that are smaller than those of Specialty Hardgoods retailers. these companies have a vested interest in having the latest technology in their stores. while online purchases of commodity items and travel related services were commonplace. not just in overall footprint. they realize that having the right merchandise in the store is what brings their customers back. In fact. fashion trends tend to drive innovation within customer service faster than in any other segment. This also allows for more frequent remodels that are driven more by constantly changing fashion trends rather than purely technological reasons. if not. This segment is experiencing increased competition from more upscale clothing offerings from Mass Merchandisers like Wal‐Mart. and it further indicates the need for innovative uses of technology to help stay ahead of the fashion curves. www.com 9 . and while this segment is interested in customer service. which can in turn be mated to merchandise forecasting. apparel retailers run the risk of becoming the next toy retailer horror story. and price optimization applications for quick ousting of excess inventory at the highest margins feasible. online clothing © Copyright 2008 IHL Group – All Rights Reserved. for which 67% of respondents in this segment indicated a preference in their next POS decision. This is in addition to their traditional competition from Department Stores. Because of this. That said. This segment historically does not have the severe online competition that Hardgoods retailers experience. Another important integration is returns management. Any new POS system for the larger retailers in this segment must be capable of providing transaction data to data warehouses.
The end result is that the bricks‐and‐mortar retailer is at a distinct disadvantage.3 billion).9 billion). he spends overhead dollars so that consumers can walk in the door and see‐taste‐touch the product they want.6 billion). for the first time ever. Island Pacific. as sophisticated shopping sites (that allow one to get just the right style and color and many times “try it on” using representative body styles) enable more consumers to find the article of clothing that they want more easily than entering a store.3 billion in 2006 and is expected to hit $22. computers ($23. Americans spent more online on clothing than they did on computer hardware and software. Manhattan Associates. Escalate. and autos ($19. Key Players This segment is perhaps the most diverse and most accommodating to new vendors entering. The final word we have on the subject of competition has to do with the partnerships that are being established between some mobile phone providers and the likes of Froogle (Google Product Search) and Amazon’s TextBuyIt service. often buying several applications from the same vendor rather than integrating a best‐of‐breed approach. compared with 41% of computers. accessories and footwear category reached $18. There are hundreds of retailers in this space and each is looking for a technical advantage or system that allows them to react quickly. Datavantage. when 10 percent of all clothing sales are expected to occur online. www. In 2006. and then walk out the door to their competitor down the block who has the identical item for less money. NCR. 21% of books and 15% of baby supplies. Simply.com 10 . a study jointly published by Shop.1 billion in 2007.Top POS Software for Softgoods Retailers purchases were rare.ihlservices. RedPrairie and Teradata. © Copyright 2008 IHL Group – All Rights Reserved. JDA. It is this segment that has driven many of the acquisitions among vendors and where Oracle and SAP have focused their attention. The key store systems vendors that are successful in this space have strong multi‐channel and/or multi‐discipline offerings. a consumer with a properly‐equipped mobile phone can capture the image of a barcode and access a shopping‐engine website that will return the best price and location for that particular SKU. however.org and Forrester Research (The State of Retailing Online 2007) indicated that in 2006. The trend is hastening. only 8% of all clothing purchases were made via the web. Other vendors that have significant software share include IBM. in part because of liberal shipping and return policies and new technologies that allow consumers to better “see” what they’re buying. Retailers in this segment look to partner with vendors that can help them grow. Epicor. The report found the apparel. Updated 2008 numbers of this same study put the top three categories as Apparel ($26. Interestingly.
Oracle and SAP have focused heavily on core ERP offerings. Every vendor wants to grab hold of a rising star. Most all of the major vendors have direct sales reps focused on the chains that have surpassed 100 stores as this seems to be a magical figure for rapid expansion. but also to claim some of the credit. Due solely to the number of malls in North America. Often POS and core merchandising components come from the same vendor as well. While the rise of China as a manufacturing power for clothing has lowered costs. Tier 3 Summary Because of the rapid growth of the retailers and concepts in Tier 3. which means if they make a mistake they can lose an entire fashion season. they are far more likely to accept an ERP type of approach now if the price is right. Key vendors that play in this space include © Copyright 2008 IHL Group – All Rights Reserved. When we say ERP. That’s a lot of hardware and software licenses. yes. A good example today is Steve and Barry’s who went from 50 to 250 stores in a year. Island Pacific. HR. Epicor. Our research has indicated these retailers want a more integrated systems approach because they neither have the time nor the staff to do a best‐of‐breed approach to systems. While they have needs similar to Tier 1. Datavantage. SAP and Oracle have yet to capitalize on this desire.com 11 . and shrewd marketing and markdowns have lowered the lead time turnaround to about 3 weeks. merchandising. by using a mixture of domestic manufacturing. we are not referring to all components. and some supply chain from a single vendor. To assist. Vendors that excel in this tier are JDA.Top POS Software for Softgoods Retailers Tier 1 Summary The retailers in the Tier 1 part of the Specialty Softgoods segment are heavily entrenched with many brands. and Fujitsu. Escalate. Most specialty apparel chains have a lead time of 6 weeks for a new line. These retailers tend to be so hot and catch a wave of the market that their growth is like a rocket ship. the focus is more on synergies at this point as their growth has often gone beyond their systems. however. and are currently in the throws of bankruptcy protection. many struggle with their IT strategy and their ability to quickly react to trends. Tier 2 Summary In Tier 2. Forecasting and trade management are also areas of focus for many of the tier 1 retailers. this is perhaps the most hotly contested market in all of retail. This is quickly becoming a major battle ground as many of these retailers will grow to Tier 1. www. both in terms of products and in terms of POS systems. that fact alone has not helped speed the reaction time of the fickle customer. Yet some retailers.ihlservices. Oracle and SAP are focusing their attention on this segment and tier but their licensing costs have been 2‐3x the cost of others to date. and in recent years markdown technology and POS. This segment clearly is dealing with the effects of internet time and globalization. it is easy for a retailer with a hot concept to grow to more than 500 locations. quick re‐routing of product among stores. That said. but core operations of financials.
the retailers from $100 Million in revenue or higher are a key target for many vendors. Island Pacific.ihlservices.Top POS Software for Softgoods Retailers Datavantage. IBM. That being said. These vendors also realize that these rapidly expanding concepts are also ripe for acquisition by larger. this segment remains sort of the Wild. there will be a need to create a more well‐defined IT environment and likely will need much more hardware. Epicor. software and services to reach maturity without flaming out. For all of these reasons. and SAP. JDA. Oracle. www. © Copyright 2008 IHL Group – All Rights Reserved. A second major reason that many vendors love this group of retailers is that these retailers will grow so fast they will outgrow their systems quickly.com 12 . Wild West of retail as no single vendor dominates a large portion of the market. As they mature. There is an opportunity to be the incumbent vendor in the faster moving subsidiary that can parlay itself into the Tier 1 parent. more established retailers.
Target and Wal‐Mart are both continuing to enhance their apparel options (Target’s recent flyer devoted 4 of 22 pages to footwear and apparel). Price Pressure Softgoods retailers. This has squeezed consumer spending and resulted in hit‐and‐miss numbers posted by the largest retailers in year‐over‐year same store sales. and reports that capital spending on manufacturing items show positive prognosis for the next twelve to eighteen months. food . the competition in this area is not yet to the same extent as that experienced by the toy or grocery industries. This is helping to drive the expected price that shoppers are willing to pay. © Copyright 2008 IHL Group – All Rights Reserved. homegoods and electronics. significant increases in food prices driven at the commodity level (not just increasing due to transportation). www. there will always be a luxury segment that is not sensitive to price. a costly war in the Middle East that continues to linger. Certainly. an economic spending package meant to help perk up the economy. Much of this uncertainty is fueled by high energy costs. Among the more promising news items are a relatively mild hurricane season thus far. the US economy continues to experience a great deal of uncertainty. Interest rates have been on the way up from record lows four years ago. and home foreclosures seem to hit new records almost daily. unemployment stabilization. Softgoods retailers will readily admit that those who once shopped regularly at the mall and specialty stores are now buying apparel and footwear at the same time they are purchasing toys. Granted. face fierce competition from both inside and outside the segment. where anything above 50 signifies expansion. but generally there are downward pricing pressures on all of the retailers in this segment caused in large part to the increasing quality and branding of discounters.com 13 .2. most notably from the likes of Wal‐Mart and Target. coupled with a home loan industry that is reeling from four years of issuing questionable loans. That said.ihlservices. especially apparel retailers. The Factory Activity Index has risen to 50.Top POS Software for Softgoods Retailers KEY ECONOMIC TRENDS AFFECTING RETAILERS General Economic Conditions At the time of this writing in 3Q2008. looming presidential elections. All of these factors conspire to produce a dramatic impact on the way people shop.
we asked about changes with respect to the amount of work required to be done at the stores. “Do I reduce employees and cut service. 74% indicated the workload was expected to increase while only 3% expected it to decrease. © Copyright 2008 IHL Group – All Rights Reserved. “Do I suspend raises?”. but more importantly to create that human relationship and interaction that so many customers desire. labor is needed to keep the operation going. are rising at a much faster rate than revenue and gross margin. this combination tends to drive overall labor salaries and budgets upwards. immediate improvement in workload does not appear to be forthcoming. this fights against wage inflation and the added pressures of pending minimum wage increases. It is necessary to create a positive shopping experience whereby the customer wants to return. of those.ihlservices. To understand this. Doing More with Less In 2007 IHL teamed with readers of Integrated Solutions for Retailers magazine to take a look into the store seen through the eyes of the manager. any negative experience can quickly lead to lost customers. One of the most telling facts from the survey was the large amount of work required in the store. While continuous improvement is a downward driver in labor costs. The survey had 78 respondents of which 90% were Store Managers and the remainder was Assistant/Department Managers (10%). Probably even more telling were those answering that their store labor budget would decrease. Again it is clear from these numbers that managing resources within labor budget constraints will continue to get more difficult. When asked this question. wages must decline). The remaining 22% indicated they expected their labor budget to decrease. or use some other technique?” Obviously. Given the resulting significant wage pressure (for labor costs to remain stable with rising benefits costs.Top POS Software for Softgoods Retailers Rising Labor Costs Labor costs.com 14 . primarily driven by increases in employee benefits. Looking at these numbers with a bit more granularity of those expecting their labor budget to remain flat. or “Do I try to trim out waste from the operation to maintain margin. 82% expected their amount of store work to increase. potentially alienating customers?”. www. 61% reported an increase in the amount of store work required with 37% expecting store work to be flat. Given the growing number of shopping alternatives. The remaining 23% expected it to remain flat. Only 29% indicated that their labor budget would increase and 49% indicated that the labor budget would remain flat. While it would be encouraging to provide a prognosis that improvement was on the way. the retailer is driven to make hard decisions: “Do I cut benefits?”.
As the cost of benefits adds to the total cost of labor. In 2008 union members had median hourly earnings (salary) of $22.pdf © Copyright 2008 IHL Group – All Rights Reserved.bls. and $25. Non-Union Benefit Comparison2 Percent of workers participating in selected benefits.Top POS Software for Softgoods Retailers Change in labor budget over last year (rows). not Take-Up Rate) Retirement Medical Defined Defined Prescription Any Benefit Medical Dental Vision Benefits Contribution Drug All workers 51% 20% 43% 52% 36% 22% 49% Union 81% 67% 41% 78% 62% 47% 75% Nonunion 47% 15% 43% 49% 33% 19% 46% Lack of Available Workforce Tied closely to rising labor costs is the fact that at the retail level in North America we are facing a labor crisis in many regions.28 for union. National Compensation Survey. Non-Union Labor According to June 2008 data from the Bureau of Labor Statistics. insurance.t05. highlighting the obvious conclusion that the playing field is not level if you have a unionized workforce competing against retailers who are non‐unionized.46. This trend can be carried further when reviewing benefits. a difference of 29%. like Wal‐Mart.htm http://www.49 for workers who were not represented by unions1. Although there are opportunities to grow the 1 2 http://www. supplemental pay.bls. retirement.gov/ncs/ebs/sp/ebsm0006. compared with a median of $18. etc. by worker and establishment characteristics. Union vs.gov/news. Comparison of union versus non‐union can be viewed across market segments.) the difference is even more striking at the numbers jump to $36. the obvious preference is to minimize the costs of labor and use non‐unionized employees. there is a significant disparity (18%) between average salaries of union versus non‐union employees. March 2007 (Participation data used.com 15 .release/ecec. it is quite easy to understand why you do not want a unionized workforce.ihlservices. For the retailer. private industry. www. When you are the largest retailer. compared to anticipated work volume at the store? Increased Labor Budget Flat Labor Budget Decreasing Labor Budget Increased 91% 61% 82% Flat 9% 37% 12% Decrease 0% 3% 6% Union vs.64 for non‐union. By those same statistics when looking at total compensation (including paid leave. there is a disparity in the benefits enjoyed by the non‐unionized population.
© Copyright 2008 IHL Group – All Rights Reserved. the career option of starting low and working your way up in an organization is simply not something they consider. www. Even in the highly‐charged immigration atmosphere of the last three years there have been plenty of positions available at the retail stores in nearly every region.Top POS Software for Softgoods Retailers number of stores and outlets due to consumer purchases. Not only is the cost of acquisition for these additional margin dollars far less. . the number of people available to staff these positions from legal US and Canadian citizens is very finite.ihlservices. particularly at the store level. The more retailers can integrate catalogue and web operations to their stores the higher margins they can achieve. Turnover in some segments among front‐end employees now approaches 200‐300% a year. The generation entering the workforce today has never known an environment where employees work for a company for life. training modules. This lack of available workforce limits the speed and effectiveness of a retailer’s growth plans.com 16 . The plentiful options make it very difficult for retailers to retain workers. Although in some European countries it is common to have store level personnel (non‐management) stay with the same retailer for years. General population changes have led to these challenges. The selection of POS software (with easy‐to‐use interfaces. The concept of a pension has never been a part of their nomenclature. Studies are now being released that show that customers that buy through more than one shopping channel will spend on average 40‐100% more per year than customers that only shop through one channel. A key component of the customer loyalty/wallet share is the ability of customers to purchase from the retailer through multiple channels. this has become a rarity in the North American retail market. Customer Loyalty/Wallet Share is King Softgoods retailers realize that profitable growth is more a factor of getting a larger share of their existing customers’ wallets than necessarily getting more customers. etc) then becomes a critical component of the retailer’s success. As such. where now nearly 95% of their revenues come from customers that are part of their loyalty program. It is very common for these employees to simply work until something happens in the workplace that they don’t like and they simply go across the mall or across the street. Retailers really have their work cut out for them in trying to recruit. Lack of Workforce Loyalty Tied to the lack of available workforce is also a lack of loyalty to the retailer. but the rewards in loyalty are much greater. No retailer does this better than Chico’s FAS. motivate and maintain employees as they grow. as couples are generally choosing smaller families.
com 17 . and loss prevention integration. return processing. A general business requirement for capital purchases suggests payback should be achieved in 3 years. We were recently told by one retailer who is currently in the processing of replacing their POS software (with one of the software providers summarized in this report) that they expect to achieve ROI in less than a year due to issues associated with shrink.Top POS Software for Softgoods Retailers Terrorism Concerns Surprisingly tied to the Customer Loyalty issue is fear of a terrorist attack on a shopping mall. The leading vendors will generally be able to achieve ROI in 3 years or less. © Copyright 2008 IHL Group – All Rights Reserved. Much like the POS unit. the purchase of POS software can be viewed through an ROI perspective. employee communication. speed of changes. email. Additional considerations such as the speed of calculation. Due to the high employee turnover that we have outlined. to name a few) impact the payback time for the investment. With advancements in technology. cross channel integration. www. hardware interconnectivity and enterprise software. ROI and POS Software In days of old. training is a significant aspect. do you have a way to reach your customers? Do they have a way of reaching you and buying from you? Many retailers have not thought through this scenario but it is a very real risk to their business. voids. and enhanced functionality (such as the processing of gift cards. Issues such as average training time and the availability of a training mode impact the ROI calculation.ihlservices. We often challenge retailers with the following questions: Do you know your top 10‐20% of your customers by name? If the mall was shut down. architecture. employee scheduling. POS software was a business necessity or a cost of doing business just like the building or the lighting may be viewed. the purchase of POS software was viewed differently than today.
The POS system in most retailers nowadays. Discover and JCB brought their individual and disparate card security programs together and formed the Payment Card Industry Security Standards Council. Data from between 44 and 94 million individual credit card accounts was compromised. American Express. banks and retailers. The effect PCI compliance has on the POS market will be manifold. Their first task was to create the Payment Card Industry Data Security Standard. The intent was to create an additional level of protection for customers by ensuring that merchants meet minimum levels of security when they store. though this will tend to be on the software side. Before this due date could be reached. Concern was so great among retailers that PCI compliance became their top store systems priority. however. especially in software. VISA. to the point that 45% of respondents (including 67% of every retailer responding to the survey with within the $1‐$5 Billion range) in the 2007 RIS News/IHL Consumer‐Driven Store study indicated that their POS was THE central system in the store. just as with Y2K. softgoods retailer TJX announced in early 2007 that they had been the victims of the largest data breach in US history.Top POS Software for Softgoods Retailers KEY TECHNOLOGY TRENDS AFFECTING RETAILERS Changing Use of POS Historically. At the same time. the cash register served one function. These require greater capabilities in the hardware and software. retailers will be looking to vendors to incorporate features in their POS to ease the compliance issues.1 (September 2006) called for a September 30. which was widely seen as impacting the Tier 2‐3 retailers in North America. The pain they experience will be no less great. PCI Compliance Back in 2004.com 18 . Training and Check/Credit Imaging. has evolved in functionality and purpose. however. Some of the advanced features retailers are looking to incorporate at the POS include Inventory Visibility. 2004 for VISA).ihlservices. it is now the smaller retailers’ turn to ante up for compliance due to their later due dates. according to another study IHL recently released. www. The measure called for specific compliance due dates. retail IT departments © Copyright 2008 IHL Group – All Rights Reserved. which they issued in December 2004. MasterCard. The largest retailers have already spent enormous sums to come into compliance (their due date was September 30. namely. 2007 due date for a Level 2 merchant using VISA. so vendors must continue to innovate as retailers rely more and more on their POS. to quickly and accurately record sales. Customer Service. On one hand. process and transmit cardholder data. and revision 1. and this caused widespread unrest among consumers. This will lead to innovation at the POS.
but both have been deemed required by regulatory bodies). It is the marriage of two different competing standards: OPOS for Microsoft technology. 4. OPOS is a standard for DOS and Windows‐based POS devices. 60 business areas supporting all major retail functions.ihlservices. and as such has the mission to enable the low cost. Most vendors will be writing to UPOS for the future. ARTS Standards ARTS (Association of Retail Technology Standards) is the standards division of NRF. Software Leads Hardware A few years ago we could argue that the POS hardware decision typically determined the software that was going to be deployed in a retailer. This is no longer true.Top POS Software for Softgoods Retailers will be overtaxed in terms of time and budget to reach the mandatory compliance levels and dates. providing the lowest cost development and the most flexibility on choice of systems.com 19 . The thought process is that an interface written to the UPOS standard will operate on both a JPOS device and an OPOS device. vendor neutral standards. rapid deployment of technology in retail by reducing integration efforts through platform‐independent. These standards come in the form of: • Data Model – A relational model with more than 600 tables. and JPOS for Java technologies. this trend to a software first choice has further accelerated. POS Standards OPOS and UPOS are the primary standards for POS interfaces. neither is truly “retail” in operational terms. As vendors have moved to open standards. © Copyright 2008 IHL Group – All Rights Reserved. many of which were delayed as a result of Y2K and SOX (it should be noted that many in the retail community are lumping PCI compliance in with Sarbanes‐Oxley. it is the software decision that is made first which then determines the hardware choice. • Unified POS – Operating system independent POS device standard for more than 20 different peripherals. This is now the key standard for which many peripheral providers are writing their drivers. We believe this will be the major driving POS standard for several years to come and will be the technology that enables Linux to gain momentum in POS. and UPOS incorporates OPOS as well as the recently‐introduced JPOS drivers for web‐based POS devices. The standard is ideal for both retailers as well as vendors in the long term. Today our research indicates that in over 80% of the cases for new POS installations (where hardware and software are purchased at the same time). This will result in the delay of certain IT projects.000 elements. www. These standards are becoming increasingly important as retailers begin to look at cross channel retailing.
0 – Provides for a way to manipulate customer data information. Inventory – Not yet released. REMC provides retailers with a standardized set of messages that allow equipment from different suppliers to be monitored. and is a development process that uses XML (Extensive Markup Language) to help identify standard data types in the retail transaction so that this data can be utilized more effectively throughout the enterprise. managing. ItemMaintenance – This provides a framework for dealing with item attributes across the enterprise and across retail segments. © Copyright 2008 IHL Group – All Rights Reserved. POSlog V2. REMC – Short for Remote Equipment Monitoring and Control.ihlservices. comparative shopping engines and third party service providers to communicate and confirm product information and advertising performance metrics. Price V2. POSLog for Food Services – Provides a set of consistent data messaging standards that enables POS data to easily flow to back‐end financial systems for better sales reporting and inventory management. this defines the set of all possible transactions and events that can be sent by a POS system to another system within the retail enterprise. as follows: CSE (Shopping Data Feeds) – This enables online retailers.1 – Once designated TLOG. Digital Receipt – Provides for a standard way of archiving and managing a customer’s receipt in digital format rather than through a paper copy. acquiring. for a customer to recall a receipt they need for return. locating. ARTS has released fourteen different schemata. www. or for credit card companies to investigate in chargeback situations. This allows the opportunity for a customer to receive their receipt digitally at the POS. search engines. managed and integrated into existing information and control systems. Notification Event Architecture for Retail (NEAR) – This schema defines a framework for sending and receiving XML formatted asynchronous notification event messages.com 20 . The benefit of XML is that it allows for data points to be given tags or identifiers that allow other systems to recognize what type of data this is so it can add it to executive information systems. The digital format will greatly reduce the cost and enhance the usability of receipt data.Top POS Software for Softgoods Retailers • ARTS XML – This is the new name for IXRetail. and data warehouses. Customer V2. Product Content Management (PCM) – Provides standards to enable authoring.0 – Allows for pricing data to be uniform across platforms within the retailer’s systems or even retailers in a wide area network. sharing and publishing product content.
Browser-Based Design One of the most significant trends to develop in recent years has been the emergence of browser‐based design for POS applications. and redeemed by the customer for goods or services. Price Optimization. we believe the technology and people who can use it will greatly increase moving forward. It is has also provided retailers with some fundamental options as to where the applications should be hosted. Additionally. task management and labor demand forecasting. TimePunch – Not yet released. Standard RFP – Currently. Multi-Channel Shopping Specialty Softgoods retailers face competition from all sides. WorkerManagement – This describes the schema for store‐based workforce related data. www. retained as a liability by the retailer.com 21 . • We believe these standards represent great enhancements to retail technology and will greatly lower operating and development costs for vendors and retailers alike. POS Exception Reporting. Also. since Microsoft’s release of Office 2003 with XML authoring ability. they understand completely that those consumers they can get to shop online or through a catalogue in addition to the stores will spend on average 40‐100% more than a customer who only shops at the store. ARTS has standard RFP’s for POS. Out of Stocks When consumers are routinely asked about things that bug them most about shopping. the number one item on the list is standing in line. software providers have developed solutions that have much greater cross‐platform functionality than in years past. time and attendance. they are demanding functionality to allow cashiers to tap into the online store to have items shipped to a customer that are out of stock at the store level. From discounters and department stores adding inventory that encroaches on their stores to online merchants that directly compete with cut‐rate prices. Using Java and designing the application to operate through a web‐page design. Merchandising Optimization. The second highest item is frustration © Copyright 2008 IHL Group – All Rights Reserved. labor scheduling.Top POS Software for Softgoods Retailers StoredValue – This describes a closed financial system where value is collected by a retailer from a customer. This knowledge is driving retailers to demand integration of their POS applications with their websites for returns and order lookup. All of these desires are driving changes in the architecture and design of POS software. POS Signature Capture.ihlservices. Workforce Management and Warehouse Management.
For promotional items. we asked retail executives about their own shopping experiences and to quantify the average item price and total transaction sizes at their own chains. Therefore. research suggests the rate is 15%. Finally. we weighted the data against overall retail sales in the United States and Canada to quantify the entire effect. It is commonly believed the typical retailer will be out of stock on about 8% of items. the perceived out‐of‐stock rate by shoppers was closer to 24%! What the study discovered is that customers count something as being out of stock for a variety of reasons. the cost retailers pay for out‐of‐stock inefficiency so they can understand and attack it with hard data. The discrepancy arises because customers include such factors as not being able to find someone in the store to help them locate an item. only look at low counts in the inventory system or at an empty shelf. in tangible metrics. www. Based on research released in the 2008 IHL/RIS News Store Systems Study. © Copyright 2008 IHL Group – All Rights Reserved. We used this data to get industry averages for each retail segment. It is important to note that lost sales for out of stocks are not lost to the industry as a whole (although it’s possible a portion may be lost if the consumer never buys the item). Typically.Top POS Software for Softgoods Retailers caused by not being able to purchase a product the store is expected to have or has promoted in an advertisement. retailers judge out of stocks through the eyes of paid personnel and reports from inventory systems. or failing to get assistance in getting the item from a locked compartment or high shelf. data suggests that many retailers are in denial about the extent of this problem and the impact it has on the consumer’s experience. the intent is to show. That’s the accepted view in retailing.com 22 . A recent study by the Wharton School of Business found that among consumers researched for a single chain.ihlservices. lost sales move from one retailer to another that has the product in‐stock. For the most part. Retailers. on the other hand. To dig deeper into this problem.
© Copyright 2008 IHL Group – All Rights Reserved. Most retail executives shop less at stores outside their own chain than the typical consumer because they spend so much time at their jobs. We can say this for two reasons. www.ihlservices. this was a survey of retail executives.com 23 . we asked about how many shopping trips were made in September and early October. And second. This was not a survey done during the busy Christmas season when the percentage of shopping trips with perceived out of stocks is typically double or triple the non‐holiday season level. First.Top POS Software for Softgoods Retailers While the following numbers may pop off the page. the real numbers are likely to be 1.5 to 2 times higher than the figures mentioned here.
Having said this. the technology is available to allow store‐ and headquarters‐based managers to access near real‐time data throughout the enterprise from anywhere they can launch a browser. so too have retailer’s options concerning how applications are architected. but responses indicate an overwhelming anticipation of increases in the stores. This is significant for the retailer because many of the decisions related to application placement rely on the amount of information that can reliably be transmitted to and from the store.5% and amounting to a $16. with 17. however. © Copyright 2008 IHL Group – All Rights Reserved.Top POS Software for Softgoods Retailers That being said. This desire to increase is driven by both the number of applications running at the store as well as improvements and stability in high speed connectivity.6% getting the blame.ihlservices.8% of the problem or $12. Suppliers are next and responsible for 13.1%. Store-Based Server Location As networking technology has advanced. HQ Hosted vs. and how communications occur between headquarters and the store.2 billion annually. Specifically relating to Specialty Softgoods retailers. Today. or on the beach. Poor forecasting came next at 13. Hosting the application at headquarters enables less complexity but more functionality at the store. costing retailers $12. We then matched this data against the retail sales for that segment to quantify actual cost figures.2 billion loss. as too much time would elapse from the time it was collected. we looked at the trend in store servers.com 24 . www. We found there is plenty of blame to go around. In the recent RIS News/IHL Group Store Systems Study published in January 2007. processed (usually on a catch‐as‐catch‐can basis) and delivered back to the store in an actionable format. the out of stock problem is very real and very large in retailing. This amounts to an annual cost of $16. actual survey responses from 2006 to 2007 show a slight decrease. and browser technology advancements enable managers to access data from anywhere they are: in their store. batched to headquarters. the actual loss of sales to competitors during the year measures approximately $93 billion when extrapolated from annual retail sales! We also asked respondents to apportion the blame for out of stocks in their own chains. at headquarters. Store Execution problems shared nearly equal blame at 17.4 billion.9 billion in lost sales. In fact. current applications may be hosted on an in‐store server or on one at headquarters. There was a time that the real‐time use of store‐level data was usually overcome by events. communications between the store and headquarters becomes the long pole in the tent. Inadequate Planning by Buyers was listed as the largest cause for inefficiency. For those retailers not wanting to relinquish any aspect of control for their own data.
appears to be gaining traction. We believe WEPOS acceptance would have been greater. WEPOS.0 1.Top POS Software for Softgoods Retailers Segment vs. Embedded NT (1999).4 2. with the introduction of Windows CE (1997). Rather than using a disk drive to boot.3 2.0 1.com 25 . with rollouts at Hollywood Video (15. Windows XPe (2001) and then WEPOS (2005). Brown Shoe (2. but others that have moved in this direction include Radio Shack (with 21. A key feature of the more recent embedded operating systems is the ability to separate out components so a retailer can pick and choose which parts to use for their situation. As long as the operating systems can be upgraded remotely we see this as a trend that will continue to grow in acceptance among vendors and retailers.4 1. Microsoft’s first ever vertical‐specific OS.3 2.000 XPe terminals) and Speedway SuperAmerica (3.ihlservices.2 0. the otherwise fully‐complete PC system boots from a ROM‐based operating system. particularly as retailers further accept thin‐client computing. it also eliminates one of the most significant maintenance issues. causing many retailers to embrace XPe instead. but XPe is priced at $10 less per POS. which not only drives down the initial cost of the POS.500 XPe). Embedded Linux (1998).2 1.9 1.600) and Best Buy (2.8 n/a 1.8 2. Regardless of the flavor. embedded operating systems eliminate the need for persistent storage such as a hard drive.000).000 POS).1 1. © Copyright 2008 IHL Group – All Rights Reserved. www.3 2.5 Servers2006 1. Target is still the single largest retailer using embedded systems with XPe. Store Server Change Planned Convenience/Gas Department Stores Drug Stores Food/Grocery Mass Merchants/WH Clubs Specialty Hard Specialty Soft Overall Increase Decrease 50% 0% 50% 10% 100% 21% 21% 22% 0% 0% 0% 10% 0% 2% 3% 4% Stay the Same 50% 100% 50% 79% 0% 77% 76% 74% Servers2007 1.4 Embedded Operating Systems – Thin Clients We have watched the embedded operating systems trend over the past handful of years.
when they work (shift choice. Labor will continue to be a major part of the cost structure. what is your current POS Client OS and what are you planning for future consideration (current and future does not sum to 100%)? DOS Windows XP Embedded WEPOS Solaris Linux . The general results of the survey suggested that 2008 would be an average year for technology spending in general. and 76% of them say they will consider a Microsoft OS going forward. Windows and Linux both continue to gain market share. www. the overall number are not considerably different from the Softgoods responses. When actual © Copyright 2008 IHL Group – All Rights Reserved. those retailers that succeed are those that are most adaptable to change. In retail today. but below average in terms of POS due to many Tier I replacements over the last few years.” which has mainly been fought in the press. education and expectations. When comparing the normal yearly rate of 25% to the expected value of 14%. Replacement of once every 4 years is a good metric to use equating to a yearly rate of 25%. but they too show a 41% preference for Linux as a replacement option. Linux. etc). What about 2008 and Beyond? What does the future hold? Retailers will continue to adapt to a more widely diverse workforce. we also looked at purchase decisions as they relate to the POS client and software. on the other hand. Specialty Softgoods retailers tend to refresh their POS systems at a rate comparable to other retail verticals. etc) and why they work (benefits.com 26 Any Microsoft O/S Windows 9x/ME Windows CE IBM 4690 For Specialty Softgoods retailers. Immigration will ensure more and more of the world’s culture is represented in retail as well. Linux Battle. Technology is a big part of that equation. From the RIS News/IHL Group Store Systems Study published in January 2008. mall location.ihlservices. but it is not the only part. etc). Fully 84% of all retailers participating in the survey are currently using a Microsoft operating system. and users of each exhibit extreme loyalty. The results of the RIS News/IHL studies of the past five years continue to paint a pretty clear picture. flexible hours. is used by 12% of retailers. continues to be resolved as retailers have had a chance to really look at their present and future needs. As we note in the chart above. more diverse in culture.Top POS Software for Softgoods Retailers Current and Future POS Client Operating Systems Windows NT/2000/XP Pro Today 14% 7% 3% 14% 48% 14% 7% 10% 0% 86% Future Purchase 0% 0% 0% 0% 14% 57% 19% 43% 0% 76% The “Windows vs. 2008 looks to be a very slow year. potential for advancement. And retail workers will continue to have differing expectations about where they work (type of retailer.
www. selecting the respondents.ihlservices. Several retailers report successful implementation of RAPID POS for 2008. they have been promoted. To solve this problem. development of an RFP. transferred or have moved on. issuing the RFP and grading the responses simply is not around anymore. 41% With regards to anticipated purchases of POS client hardware and software. IHL and C‐Core Consulting offer the RAPID POS Project Toolkit. As you compare the responses for software and hardware they are actually not as close as we would anticipate. vendor selection and project execution. The lack of personnel and documentation combines to force retailers to re‐invent the wheel when they seek to replace their POS. Shameless Plug Making the decision for a wholesale replacement of a retailer’s POS can actually be pretty simple. resulting in a typical 12 week reduction in the RFP process while ensuring all functional requirements and vendor selection occurs via a comprehensive and thorough process. bringing that decision to fruition is another matter entirely. What is your timeframe for making a POS < 12 18-Months – 3 12-18 Months Over 3 Years. enough time has elapsed since the last POS replacement that the team responsible for crafting the requirements. Of course one must also consider the actual percentage of these that are funded and the actual chance of any appropriated funding being spent. RAPID POS is a methodology to facilitate POS hardware and/or software replacement for retailers.com 27 . Typically. © Copyright 2008 IHL Group – All Rights Reserved. the predominant trend is that hardware and software be replaced at the same time. which is what differentiates survey responses to actual purchases.Top POS Software for Softgoods Retailers replacement rates are factored in. software purchase decision? Months Years Specialty Softgoods 14% 24% 21% 41% What is your timeframe for making a POS client purchase decision? Specialty Softgoods < 12 Months 21% 12-18 Months 10% 18-Months – 3 Years 28% Over 3 Years. the reality is that the market may not see 14%. so too are any records of the undocumented features that have crept into the current system that need to be included in any new system. Not only is the original team missing. It consists of templates and tools for RAPID scope definition of a project.
2. Vendor Accounts The first of the three criteria that we want to address is the number of accounts that each vendor has in the top 250.3% SalePoint.3% Others. 22. and the total retail revenue represented by the vendor accounts. the total number of POS licenses. Vendor Account Share from the Top 250 Softgoods Retailers JDA Software. Querying our database. but the “Other” category contains no less than 31 vendors. we obtained this information.9% The initial take from this figure is the heavy fragmentation found in this market.3% Epicor.8% SAP.Top POS Software for Softgoods Retailers THE TOP 5 SUPPLIERS As we discussed in the section on Report Methodology. We then ranked each of the vendors according to three criteria.4% Oracle. Again. which is summarized in the figure below. Epicor is the clear leaders at 26%.3% Retail Pro. 2. 8.7% IBM. 4. 2. we looked at the top 250 Softgoods retailers in terms of the POS software vendors they were using in their stores. most of whom have but 1 or 2 accounts in this space.com 28 . 21. and combined these rankings to arrive at a final rank order for the POS Vendors. This chart becomes more © Copyright 2008 IHL Group – All Rights Reserved. 7. those three criteria were the total number of vendor accounts. Each of these is addressed individually in the following sections.2% MICROS. www.ihlservices. 2. 25.8% NCR.
By some estimates there are well over 1.2% MICROS. the Other’s category is now at 10%.ihlservices. 11. 10. This should be duly noted when comparing this market share plot to our overall rankings to help understand differences in rankings. 2. down from 20% last year. 2.8% Oracle.com 29 .Top POS Software for Softgoods Retailers interesting when we look at it in conjunction with the portion of the Top 250 Softgoods retailer’s sales represented by these particular vendors. 15. As noted in the section describing the Report Methodology. 10. The individual vendors cited in this report have clearly distinguished themselves among a very crowded group.6% NCR.7% IBM. this is but one of the three criteria combined to complete our overall rankings. 2.0% Fujitsu. 22. For our analysis we defined “Other” vendors as any vendor with 5. for those familiar with last year’s report.2% JDA Software.9% Epicor. 4. 13. © Copyright 2008 IHL Group – All Rights Reserved. Vendor POS S/W License Share from the Top 250 Softgoods Retailers SAP.1% One of the most interesting observations from this chart is that the top 5 vendors comprise 75% of the top 250 license market share. 4. Estimated Number of POS Licenses For this section. we once again queried our database to determine the number of software licenses ascribed to each vendor among the leading 250 Specialty Softgoods retailers.800 or fewer lanes among the top 250 retailers.4% Cornell-Mayo. Our analysis showed there to be approximately 30 vendors in this grouping. Furthermore. www.1% Others.9% Alpha Retail.000 vendors that produce POS software designed for various retail segments.
This section addresses this issue. 13.4% Radiant. 5.3% IBM. 2. 2. Vendor Managed Revenue Share from the Top 250 Softgoods Retailers MICROS.4% Oracle.Top POS Software for Softgoods Retailers The marriage of a retailer with a POS software vendor can easily last 10 years. momentum breeds growth. 3. 29. they specifically noted the importance of making a decision based on a vendor they could be confident would be around to support them over the life of the product. and that tends to lead to even further success.0% Others.7% Epicor. 7. while the focus of other vendors may be well down the list.7% Fujitsu.4% © Copyright 2008 IHL Group – All Rights Reserved.5% JDA Software. 15. 2. While it is impossible to predict who will be able to develop a business strategy that is able to maintain or even grow their software business. they have been with their current supplier for over 14 years with the software requiring numerous upgrades over that period.8% SAP. 15. 2. since we want to provide the highest degree of visibility to where a vendor truly stands.com 30 . To highlight this point even further.ihlservices. In a recent discussion with a specialty apparel retailer who is in the process of replacing both their POS software and hardware.7% NCR.1% Cornell-Mayo. beyond functionality and platform considerations. It is not uncommon for this to last much longer. www. some vendors focus only upon the top few dozen accounts in a space. Having dozens of accounts is not necessarily better or worse than having just a handful. Retail Revenue Represented By Vendor Accounts As we have seen in previous studies.
Top POS Software for Softgoods Retailers Note that SAP currently represents the POS presence of 15% of the sales of the Top 250 Softgoods retailers. With their acquisition by Epicor. ranking first in every category. JDA Software and SAP were tied for fourth place.ihlservices. each of the software vendors was rank ordered. MICROS claims 23% of the Top 250 as customers. The rankings for each vendor for each of the three criteria were then summed. Ranking Determination From the results of the previous three sections. There was a clear division in the groupings beyond fifth place with IBM. In doing so. and SalePoint filling in positions six through ten respectively. and in many cases the nature of acquisitions as a whole. www. MICROS was second. Epicor was the clear leader. this has done nothing but © Copyright 2008 IHL Group – All Rights Reserved. Note that seven of these vendors show up in the Top 10 of each of the three selected criteria Vendor Epicor Software Corporation MICROS Oracle JDA Software SAP IBM NCR Fujitsu Transaction Solutions Cornell-Mayo SalePoint Overall Rank 1 2 3 4-Tie 4-Tie 6 7 8 9 10 Total Installs in Top Total POS Retailers Rank Installations Rank 1 1 2 2 5 3 3 4 4 5 6 8 7 9 10 6 13 10 7 11 Managed Revenue Rank 1 4 2 5 3 8 7 9 6 11 Within each of these three criteria. this chart speaks to momentum and change. As can be seen in the table above. Cornell‐Mayo. we obtain the following table. Historical Rankings Given this being the fourth year of the report. position number 2 to the next lowest sum. A bit further back. NCR. and so on. it provides a feel for respective momentum relative to the POS software market. yet represent only 13% of the sales by this group. Without a doubt. yet they only claim 7% of the Top 250 as customers. NSB Group was the clear leader. In previous reports. and the final vendor ranking arrived at by giving position number 1 to the vendor with the lowest sum. By contrast. followed closely by Oracle which is on the rise. we thought it would be interesting to reflect back on the changes seen in the POS software market over the last several years. Fujitsu Transaction Solutions.com 31 .
Generally speaking. likewise through their Triversity acquisition in September 2005. up from seventh last year. It is worth noting that this is down two spots from the 2007 report. NCR and Fujitsu has managed to hold serve in our rankings. the remainder of the key players such as Datavantage. Prior to that acquisition.Top POS Software for Softgoods Retailers further solidified their already strong ranking. One to watch for in the coming years would be Cornell‐Mayo. While not chronicled in this report due to the subject matter of Specialty Softgoods. IBM. Any discussion of acquisitions in the retail space cannot take place absent of discussing Oracle and SAP. Oracle wasn’t on the POS radar. This seems to signal their plans to continue to expand their footprint beyond the borders of Department Stores and Specialty Softgoods and be an even greater presence in the larger account space. Since 2005 Oracle has risen from twelfth to now third. has risen from fifteenth in 2005 to fourth in the latest ranking.ihlservices. within the past year. Cornell‐Mayo has added Barnes & Noble to go along with the previously held Border account.com 32 . along with many others over the past three years. JDA. Epicor. SAP. Historical POS Specialty Software Vendor Rankings 1 2 3 4 5 NSB Group Epicor Datavantage (MICROS) 7 8 9 10 11 12 13 14 15 2005 2006 2007 2008 Oracle JDA Software SAP Triversity IBM NCR Fujitsu Cornell‐Mayo Yearly Overall Ranking 6 Report Year © Copyright 2008 IHL Group – All Rights Reserved. has generally seen a steady rise in the rankings. Oracle purchased 360Commerce in January 2006. That acquisition. for its part. has fueled an overall steady rise. fueled mainly by acquisition. www.
and through Software as a Service. providing solutions in over 30 languages. www. store operations. and hospitality with the goal of driving increased efficiency. The combined acquisition added significant market share to Epicor’s growing mid‐market customer list. 2008. Epicor acquired CRS in December. cross‐channel order management.000 customers in more than 140 countries. while ensuring transaction integrity. It is customizable to meet user requirements. Epicor delivers targeted solutions for manufacturing. Epicor Retail Store includes applications for point‐of‐sale. Merchandising. business intelligence and financials. ease of use. improved performance and building a sustainable competitive advantage. payment authorization/settlement/polling. In addition to retail. These solutions are available best of breed. loss prevention.NET extensibility in all modules allowing unique changes to be made without changing the code base. learning management. the system includes . time and attendance. Epicor Retail Store POS includes a highly flexible system configurator that allows functions to be configured to meet unique store and business requirements. It integrates a flexible n‐tier architecture that enables a high degree of extensibility and interoperability with several deployment options.ihlservices. Where modification is required. mobile store. although the acquisition brought some overlap in the areas of POS. sourcing and PLM. inventory management.Top POS Software for Softgoods Retailers Epicor Software Corporation 18200 Von Karman Avenue Irvine. © Copyright 2008 IHL Group – All Rights Reserved. CRM. promotional events management. Epicor Retail Store POS provides a comprehensive transaction set for use on a variety of hardware platforms. Applications Overview Epicor Retail Store is a scalable suite of highly integrated store applications developed in the Microsoft .com 33 . CA 92612 Phone: (800) 992‐9160 FAX: (949) 585‐4091 www. along with additional leading retail applications and resources. audit and operations management. distribution. merchandising. returns management. 2005.com/retail Company Overview Epicor serves retailers in all tiers with end‐to‐end solutions for planning and assortment planning. Founded in 1984. and performance. becoming an instant leader in the specialty retail software market. store / POS. Epicor serves over 20. and CRM. and NSB Group in February.epicor. in fast‐track Xpress packages. and configuration.NET Framework.
a powerful tool that gives managers and associates on‐ demand information and reporting at the store level. stock locate. “best deal” for customer. which allows associates to look up original sales receipts from any store or channel and identify the correct price of a return. which is fully integrated to the Epicor Enterprise Selling application and allows associates to perform real‐time stock locator queries against a central database of all locations at any point in a transaction. function keys relevant to the state of the current transaction. and online help Advanced Deal Pricing that creates and manages promotions. and enables orders from other stores and other sales channels to be processed using simple order fulfillment procedures while tracking the order status centrally Customer recognition in any store or sales channel. which operates on a wireless device to extend key store system functionality beyond the cash‐wrap and manager’s workstation. including Employee Maintenance. item pre‐scanning to shorten lines and waits Online/Offline functionality that lets sales associates keep working if the network connection is lost and registers to be automatically resynchronized with the server when connection is restored Fully functional training mode that allows sales associates to ring mock transactions without affecting actual store business Manager’s Dashboard. including Key Performance Indicators (KPIs) and links to Web portals or applications Comprehensive back office store modules. as well as any return activity that has taken place since the original sale “Save‐the‐Sale” order management between stores or sales channels. various inventory management functions. Time and Attendance.Top POS Software for Softgoods Retailers Key capabilities of Epicor Retail Store POS modules include: • • • Intuitive navigation for associates with obvious next steps. with integration to Epicor Retail CRM. and return value pricing Return/Exchange validation against central Epicor Returns Management. including item lookup. www. Reporting. frequency and monetary value of preferred customers Epicor Retail Mobile Store. including multi‐ deal processing. and to complete the sale within the POS transaction Remote Order Fulfillment which notifies store personnel of incoming orders onscreen and/or via a printed pick ticket.com 34 . Inventory Management and a Learning • • • • • • • • © Copyright 2008 IHL Group – All Rights Reserved.ihlservices. which allows customers to receive personalized service and offers and provides Retail CRM with customer purchase information for tracking and analyzing recency.
www.ihlservices. Epicor displays thought leadership by bringing top‐tier solutions to the mid‐ market.Top POS Software for Softgoods Retailers Management system to track eLearning courses and lessons from within the store system • Epicor Retail Data Exchange. with retail as a lesser focus. While Epicor has historically been a manufacturing heavyweight.com 35 . a market which has historically been underserved by the largest vendors. Strong company reputation for Epicor. file transfer. which allows you to take control of critical processes like trickle polling. wired or wireless support. the acquisitions of CRS and NSB Group solidify their presence in the retail space. This will only strengthen the close ties between MFG and retail applications. and XML. 2. • Other features in this comprehensive application include: ‐ Electronic Gift Cards ‐ Gift receipting ‐ Layaway management ‐ Special Orders ‐ Multi‐currency support ‐ Suspend/resume ‐ Web browser key setup ‐ Customized receipt per transaction type ‐ Item marking or various function ‐ Additional input fields ‐ Coupon redemption/issuance ‐ Negative check file ‐ Various Start/End of Day functions ‐ Cash Management ‐ Various reports Epicor Software Corporation’s Strengths 1. message switching and payment authorization Applicable industry standards for software and hardware interfaces such as OPOS/UPOS. 4. Extensive partner network and a close Microsoft partnership. 3. © Copyright 2008 IHL Group – All Rights Reserved. 5. CRS and NSB Group Thick or thin client.
i2. LP Software.. Manhattan Associates. Net Perceptions. MICROS. Retail Pro. Convergys. AbsoluteSKY.. Retail Pro. Cognos. International RFID Business Association (RFIDba). Retail Pro. Dell. Logility. Inovis. Checkpoint Systems.. Agilysys. UGS‐ PLM. SAP. Oracle. i2. Oracle. Mercado Software.. ToolsGroup. Torex Retail Merchandise Planning – 7thOnline.. SAS. ANT USA. DataSym. NCR. TEC (Toshiba). Aspect Loss Prevention. ‐ Acacia Technologies. Retail Pro. RedPrairie. Island Pacific. Cambar Software. JDA Software.S.S. Inovis.ihlservices. Wincor Nixdorf Loss Prevention – Acacia Research Corp. Epicor Software Corporation. SAS. Epicor Software Corporation. PentaSafe.com 36 . OrderMotion. Inc. Oracle. Rapid7. Maple Lake. Omron Systems. Torex Retail Inventory Management ‐ 4R Systems. Impressive customer list 7. MI9. Gilbarco. IMC. TechPoint (SalePoint). Complementary Applications Installed with Vendor’s Applications POS Hardware – Cherry Electrical Products. Escalate Retail.S. Jesta I. Red Five Interactive (Red 5). Jesta I. enVista. Teradata. VigilEnt Merchandise Allocation – 7thOnline. USS Corporation (Universal Surveillance Systems). Log‐Net. WDC Systems © Copyright 2008 IHL Group – All Rights Reserved. Retelligence. UTC Retail. Sharp. IBM. ADT Security Services (Tyco).. Myriad Technologies. Torex Retail. Epicor Software Corporation. ANT USA. Fujitsu Transaction Solutions. MICROS. IBM. Radiant Systems. i2. Epicor Software Corporation. BT Expedite. Siemens. Tomax. Galleria Retail Technology Solutions Ltd. Manhattan Associates. Affinnova. SAS. HP. LogicTools. JDA Software. Over thirty years of retail experience spanning both North America and Europe. DigiPos. Epicor Software Corporation. Raymark. Jesta I. SAP. Inc. SAP. Oracle. MICROS. JDA Software.Top POS Software for Softgoods Retailers 6. www.
V. Inc. Joyce Leslie. Skechers U. We have attempted to be as broad as possible in the choices that we found.) St. Inc. K & G Men's Co. Inc. White House | Black Market (Chicos FAS. Inc. Nike. LTD Friedmans. Inc. (LVMN) Mexx (Liz Claiborne. (Forever 21) Reitmans (Canada). John Knits Int'l. Inc.) David's Bridal (Leonard Green) Maidenform Brands Zumiez. Inc. Inc. Inc. Chicos FAS. Inc. Foot Locker. Inc.) Marty Shoes. Simply Fashions Stores. Liz Claiborne. Ben Bridge Jeweler. Inc. Cache. Ross Stores. Coach. www.) VF Corporation Cornell Trading. Inc. LTD Carter's. Inc. Donna Karan Co. Harold's Stores. Inc. Ben Moss Jewelers Fortunoff Nine West Group. Fossil. Claire's Stores. Inc. Inc. Inc. Inc.) Ann Taylor Dots.com 37 . Inc. Movado Group.ihlservices. Inc. Bebe Stores. Inc. (Jones Apparel Group) Brown Shoe Company. American Eagle Outfitters. Inc. Inc. Inc. Kasper (Jones Apparel Group) The Timberland Company Clarks Companies Koret Stores (Kellwood Company) Vanity Shop of Grand Forks. Inc. Inc. Crew Group.Top POS Software for Softgoods Retailers Representative Customers Aeropostale.. For specific installations. Inc. Inc. Laura Canada (P. (Carter's) Burberrys. rue21 Cavender's Boot City Jones Apparel Group. please contact the vendors involved. Inc. dd's Discounts (Ross Stores. Inc. Inc. (Men's Wearhouse. Inc. Inc.S. Inc. Note: Customer information and complementary systems installed are based on public statements or secondary web research. Inc. Gadzook's. PacSun. OshKosh B'Gosh. Inc. Inc. © Copyright 2008 IHL Group – All Rights Reserved. Casual Male XL J. Etienne Aigner Retail Outlet Store Nautica Enterprises. Inc.. LTD Charming Shoppes.A.
Datavantage developed a product that made the move to higher‐level languages. software support and maintenance. enterprise systems integration.com Company Overview MICROS Systems. Datavantageʹs primary mission was the sale and support of host‐ based applications for distributors and retailers. The company acquired the Retail Services Group of Cleveland‐based LDI Incorporated. OH 44139‐3942 Phone: (888) 328‐2826 FAX: (440) 542‐3043 www. This group. They realized the benefits of client/server architecture and the positive economics of replacing proprietary systems with an open system. Datavantage refocused its business approach to become primarily a provider of point‐of‐sale products and services. Marvin Lader. hardware.000 employees. Datavantage continued to grow its service offering while marketing its DOS‐based POS package.datavantagecorp. and a store‐level support help desk center. began servicing the point‐of‐sale needs of retailers via a DOS‐based POS package and related support services. the leisure and entertainment industry. founded Datavantage in 1988. In the corporate office. MICROSʹs global network consists of over 3. data communications consulting and services. specialty retail stores.Top POS Software for Softgoods Retailers Datavantage (MICROS) 30500 Bruce Industrial Parkway Cleveland. Two years before their competitors. hotels. including: project management. with information management solutions including software.com 38 . who today serves Datavantage as CEO. Datavantage has two application suites that consist of the following functionality: © Copyright 2008 IHL Group – All Rights Reserved. Inc. Applications Overview Datavantage Store 21 ‐ Store21 focuses on providing extensive functionality and exceptional ease of use. and the healthcare industry. to SQL relational databases. (MCRS) is a leading developer of enterprise applications serving the hospitality and retail industries exclusively. which was merged into Datavantage. www. MICROS owns Datavantage. MICROS serves table service and quick service restaurants. hardware procurement and staging. 43 subsidiaries in major markets and 93 distributors in 40 countries.ihlservices. In late 1993. From 1988 until 1993. and to the multitasking environment of Windows NT. consulting and support.
ihlservices. Provide total store management functionality with POS and back office communication integrated. Balance Sales Audit scrubs the data before storing it in the main database or making it available to other applications. Perform multiple functions through the register. Brightcard Stored Value offers true multi‐channel capabilities for gift card and loyalty applications. It offers multiple deployment scenarios to minimize transaction fees. Its data mart acts as a single point of integration for store information as it is passed to and from corporate. and tie them back to an associate. Clock‐in/clock‐out at the register improves payroll accuracy. www. © Copyright 2008 IHL Group – All Rights Reserved. identify compliance issues. saving time at the checkout and behind the scenes.Top POS Software for Softgoods Retailers • Datavantage Analytics reviews and analyzes data from stores and other corporate systems. gathers information from all points of service to gain accurate knowledge of customers and buying patterns in order to facilitate one‐on‐one marketing in a retail environment. Associates can start ringing sales with less than an hour’s worth of training. avoiding next‐day adjustments. it functions even after register closes. an exception‐based tool to reduce shrink. • • • • • • Enterprise Benefits • Track each phase of a complex transaction. XBR Store Analytics is the flagship of the Analytics Suite. Relate Retail CRM. keeping lines shorter and reducing paperwork.com 39 . • • • • In‐Store Benefits • • Interface guides associates through transactions. and analyze data. Allow managers to perform “back office” tasks without leaving the sales floor. Reduce shrink with built‐in security measures. Conduct irregular transactions (like layaway or alterations) at the register.
can activate many functions. thus it is portable between operating systems.ihlservices. combined with scheduling tools. 4. Tradewinds boasts much of the same functionality (as well as enhanced functionality) offered in Store 21. sending them out as replacements. • • Datavantage XSTORE JAVA POS ‐ Xstore is written in Java. Over 20 years of developing POS software and including offerings by the parent company MICROS. One notable exception noted is the ability to perform scheduling. and sequencing of prompts. It functions with almost any database. Store21’s time and attendance and payroll functions. minimum values. Datavantage’s Strengths 1. The Depot centralizes and streamlines a process that many stores find difficult to manage on their own. 2. removing keystrokes and enabling advanced back office functions. Their Depot option stores backup registers and peripherals. www. including fields to be displayed. but with enhancements related to connectivity between stores. © Copyright 2008 IHL Group – All Rights Reserved. home office.com 40 . Many aspects of Xstore Java POS emulate the functionality of the Windows based Store21 offering. allow store managers to control their payroll budget and optimize floor coverage. Full‐featured applications supporting both Windows (Tradewind and Store21) and Java (Xstore Java) platform. This added functionality is currently in the works according to product literature. 3. allowing the application to instantly conform to your business processes. A system parameter table. Day‐to‐day processes at the POS have been streamlined. Parent MICROS is a heavy player in POS in their own right. XBR Loss Prevention) are world class. a very complete POS software offering across essentially all retail verticals. 5. They also receive damaged equipment from stores and handle repair or disposal according to customer instructions. Datavantage Tradewinds – This is a scalable POS solution designed for higher‐volume stores.Top POS Software for Softgoods Retailers • Use the reporting tools and formats to create reports either on demand or according to a schedule you have predetermined. and vendors. Ancillary applications (E‐Learning. Many system settings are flexible.
Compris Technologies (NCR).S. Internal.com 41 . MICROS. SAP Merchandise Planning – 7thOnline. Gateway. Execuchef. JDA Software. ANT USA. Microstrategy Inc. NEC. DigiPos. IBM. Squirrel Systems. Retail Pro. Logic Controls. LogicTools. Jesta I. MI9. CEG Systems. Retelligence. Silvon Software Inc. Quest. CSI Services. Epicor Software Corporation. SynXis Corporation. MeetingMatrix. Maple Lake. Fusion System Solutions. ParTech. Panasonic. JDA Software. Jesta I. LP Innovations. POSIFLEX. i2. ToolsGroup. NCR. Oracle. LLC. IMC. Cognos. Wincor Nixdorf Loss Prevention – ADT Security Services (Tyco). JDA Software. Aldelo Systems. Javelin. Epicor Software Corporation. RDS. UTC Retail © Copyright 2008 IHL Group – All Rights Reserved. Fujitsu Transaction Solutions. Escalate Retail. CamBorand. MicroMax.Top POS Software for Softgoods Retailers Complementary Applications Installed with Vendor’s Applications POS Hardware – Casio. Dell. SAP. Epicor Software Corporation. Cherry Electrical Products. Squirrel Systems. Island Pacific. Radiant Systems.S. GEAC. Register 5. Instill Corporation. Westec Interactive (The Vento Group) Merchandise Allocation – ANT USA. Epicor Software Corporation. Raymark. Retalix. Compris Technologies (NCR). RMS‐TOUCH. Logility.. Skulogix.. Raymark. Agilysys. Quantum Retail Technology. Palladium Group. Micro Systems. SAS. Altametrics. Panasonic.. ART Technology Group (ATG). i2. Computer Associates (CA). Inc. MI9. www. Tomax. Samsung. Maple Lake. Sweda. MICROS. Posera. Oracle. NPD Group. Professional Datasolutions Inc. RedPrairie. Teradata Inventory Management – Adaco Services.ihlservices. MI9. Sharp.... Oracle. Inc. VISA. MICROS. Sable Technologies. System Concepts. UTC Retail. HP. LP Software. Retail Pro. Proprietary. Radiant Systems. SAP. Profit Pro. Quantum Retail Technology. eRestaurant Services. Geac. Escalate Retail. (PDI). Red Five Interactive (Red 5). Quantum Retail Technology. i2. ParTech. TEC (Toshiba). Ram. CyberSource. Retail Pro.
Finlay Fine Jewelry Corp. Inc. Genesco. Lindor. Boutique Jacob. Samsonite Corporation Shoe Pavilion. please contact the vendors involved. (The Talbot's.) The Walking Co. Coldwater Creek. (Carter's) Piercing Pagoda. Bank Clothiers. The J. Inc. Inc. Vans. Zale Corp Note: Customer information and complementary systems installed are based on public statements or secondary web research. www. Steven Madden Ltd. For specific installations. Fabco Shoes Finish Line. Whitehall Jewellers.ihlservices. We have attempted to be as broad as possible in the choices that we found. Gucci Group Guess. (Zale Corp) Polo Ralph Lauren Reebok International Roots Canada. Inc. Converse. Jill Group. Inc. The Buckle. dELiA*s Corp Dexter Shoe Co. Inc.) Frederick's of Hollywood.com 42 . Helzberg Diamond (Berkshire Hathaway) Jos. Inc.Top POS Software for Softgoods Retailers Representative Customers Abercrombie & Fitch Aldo Group. La Senza Corp. Tip Top Tailors (Grafton-Fraser) Tradehome Shoe Stores. Inc. LTD S & K Famous Brands. Inc. Inc. Tween Brands. Inc. Baker's Footwear Group Bata Industries. Inc. Inc. Inc. Inc. Inc. B. Christopher & Banks Corporation Citi Trends. Inc. Cooper & Co. Moss Clothing Co. LTD Birks & Mayors Inc. (VF Corporation) Vera Bradley. Inc. Inc. Mayors Jewelers (Birks & Mayors) OshKosh B'Gosh. Inc. (Limited Brands) Le Château. Life Uniform Shops. Inc. A. © Copyright 2008 IHL Group – All Rights Reserved. The Athlete's Foot Group. Inc. Inc. Inc. Fred Meyer Jewelers (The Kroger Co. Inc. Inc. Inc.
Oracle’s Store solutions provide core foundational solutions for point of service. use it. This portfolio is built on powerful Fusion design principles. returns management and store inventory management.Top POS Software for Softgoods Retailers Oracle 500 Oracle Parkway Redwood City. flexible.com 43 . and Inventory management deliver a dynamic and transformational store platform solution focused on delivering exceptional customer service. Oracle offers solutions for every tier of your business‐database. These applications integrated to Oracle’s enterprise solutions such as Sales Audit. © Copyright 2008 IHL Group – All Rights Reserved. back office reporting and tools. special orders. buy in another store/channel and return to any store. business intelligence. Point‐of‐Service includes a robust set of features and functionality. Demantra and 360Commerce in 2006. business applications. including cross‐ channel services such as buy on the web/pick up in the store. with significant acquisitions including Peoplesoft. protect it. standardizing the priorities and practices of your enterprise computing strategy‐saving you significant time and money. Siebel. share it. save‐the‐sale functionality such as cross‐store inventory look‐up. Oracleʹs next‐generation enterprise computing platform—Fusion—is being designed to enable incremental adoption of a powerful. www. service‐oriented IT infrastructure without the disruption associated with a wholesale platform upgrade. and collaboration. Application Overview Oracle Retail Point‐of‐Service ‐ Based on the best practices of leading retail customers.oracle. central transaction management. and AppForge and Hyperion in 2007. Retek and Profitlogic in 2005.ihlservices. The worldʹs largest enterprise software company. This single view of the customer allows the management of in‐store returns of items purchased online and ensures the items are not returned more than once as well as insuring the correct price is credited for a return and helps a retailer convert un‐ receipted returns to receipted returns and optionally collect return customer information. Oracle has grown rapidly within the retail technology arena over the past few years.. send sales and better management of returns.com Company Overview Oracleʹs business is information—how to manage it. Price Management. CA 94065 Phone: (650) 506‐7000 FAX: (650) 506‐7200 www. middleware. Merchandising.
ihlservices. JDBC. Extensive Transaction Set ‐ Features such as layaway. 2. They have an especially strong list of Linux installations. the broadest in the industry. and IXRetail. and dynamically‐priced kits. Size – Oracle is the proverbial 800 pound gorilla in retail technology. providing the retailer with freedom‐of‐choice to run on the platforms currently owned. and line‐busting functionality Easy to‐use graphical user interface Includes customer purchase. Retailers can give customers maximum flexibility in payment options with multiple currencies. gives a rapid time‐to‐market. Software flexibility allows for campaigns with multiple types of item and/or transaction discounts and promotional pricing capabilities. profile and loyalty information to help increase customer intimacy Cross‐sell and up‐sell capability Ensures accurate pricing at the POS with promotional pricing capabilities including “best‐deal” and preferred customer • • With Point‐of‐Sale. The ease of customization. enhancements and upgrades.com 44 . save‐the‐sale. JMX. © Copyright 2008 IHL Group – All Rights Reserved. next‐generation platform. generally offering a best of breed solution in most retail technology categories. there are a significant number of deployment options.Top POS Software for Softgoods Retailers Key features of the Oracle Retail Point‐of‐Service application include: • • • Cross‐channel. J2SE. if not arguably. Platforms –Oracle boasts more platform combinations than any other POS solution provider. implement the latest. or deploy a combination of these with a migration strategy that fits both timeframe and business needs. JMS. Oracle Retail Mobile POS ‐ Mobile Point‐of‐Service software brings standard POS functionality to wireless RF devices. This optional. Oracle’s Strengths 1. and a full range of traditional and new tender types. Their solution offerings are among. non‐merchandise sales. wireless version of the Point‐of‐ Service application provides line‐busting service during peak traffic periods and cost effectively service seasonal areas and support outside sales events like sidewalk sales. ARTS. JavaPOS. provide both hardline and softline retailers with assortment‐ specific functionality. All Oracle POS applications incorporate existing technical and industry standards such as J2EE. www.
Standards – Their solution is designed based upon retail. SAS. TCP/IP. Teradata Merchandise Planning – 3M. Manhattan Associates. 5. Teradata. JDA Software. LP Software. HNC Software.S. Checkpoint Systems. JavaPOS. process modeling. Flexibility – The fact that so many platforms are supported leaves one with the impression that a retailer’s growth would be easily supported by this solution. Lawson Software. Web and enterprise standards such as ARTS. Escalate Retail. SAS. SAS. UTC Retail. Planalytics. Oracle. Epicor Software Corporation. www. POS Hardware – Apple. Lawson Software. JDA Software. 7. TouchTrak Systems. HTTP. SeeCommerce. Vericept Corporation Merchandise Allocation – Epicor Software Corporation. Epicor Software Corporation. NCR. (MID). SAP. HP. ADT Security Services (Tyco). Rapid7. Escalate Retail. Inc. i2. Retail Pro. 4. Momentum – The company has been awarded several recent contracts that has helped create momentum in the industry. Jesta I. Retail Pro.S. Rapid Response –Oracle boasts rapid prototyping. Nordic Information Systems. ThinkFast Inventory Management ‐ B2 Integration. MICROS. Metastorm Inc. GetPort. Island Pacific. Oracle. Concept 5 Tech. Wincor Nixdorf Loss Prevention – Acatech Solutions.. IXRetail.. Reflexis Systems Inc. Fujitsu Transaction Solutions. Oracle.. EdgeNet Inc. i2. Pep Boys. workflow design. Customers – They have an impressive customer list that includes Burlington Coat Factory. Sharp. and code generation tools. UTC Retail © Copyright 2008 IHL Group – All Rights Reserved. Home Depot and Big Lots. Oracle.. Circuit City. Responsive Data Systems. DigiPos. Escalate Retail. i2. and XML. 6. INA Solutions.ihlservices. DataSym. SAP. IBM. Epicor Software Corporation. Checkpoint Systems. John Galt Solutions. Lawson Software. Jesta I. Management Information Disciplines Inc. Manhattan Associates. J2EE.com 45 . Dell. E‐Business. SAP. Manhattan Associates. JDA Software.Top POS Software for Softgoods Retailers 3..
LTD Perry Ellis International The Men's Wearhouse. © Copyright 2008 IHL Group – All Rights Reserved. For specific installations.Top POS Software for Softgoods Retailers Representative Customers Abercrombie & Fitch Burlington Coat Factory Gap. Inc. We have attempted to be as broad as possible in the choices that we found. Inc. please contact the vendors involved. Urban Outfitters. Inc.com 46 . Inc. www. The Wet Seal. Gymboree Mark's Work Wearhouse.ihlservices. Note: Customer information and complementary systems installed are based on public statements or secondary web research.
Net Platform began in 2003 and continues. AZ 85260‐3649 Phone: (480) 308‐3000 FAX: (480) 380‐3001 www.S. After signing a substantial contract with a Phoenix‐based automotive retailer in 1987.com 47 . JDA became a public corporation on March 15. the company and its eight employees relocated to Arizona. which grew to be one of Canada’s largest IBM Midrange software providers. Inc. and warehouse management and logistics at the distribution level.Net Platform as the platform standard for most of the applications in the JDA Portfolio.com Company Overview JDA Software provides enterprise software products and related services to help retailers track inventories and purchase orders. point‐of‐ sale. financial. Alberta. South America. After ten years of operations as a private firm. During 2002 JDA introduced a significant change to their product and technology strategy with the adoption of the Microsoft . Ohio. Its JDA Portfolio software suite includes merchandising. Europe.jda. and distributed processing applications at the store level. Software applications have expanded from core merchandising and point of sale systems to today featuring an expansive collection of solutions for retailers. JDA’s commitment to the industry’s evolving requirements has secured a market leading position. 87th Street Scottsdale.‐based JDA Software. manufacturers.NET‐enabled software was released in early 2005. back office.Top POS Software for Softgoods Retailers JDA Software 14400 N. as the first series of . www. 1996 and began trading on the NASDAQ as JDAS. The gradual transition to the . This company was sold in 1985. © Copyright 2008 IHL Group – All Rights Reserved. Another highlight of 1996: JDA re‐purchased the original Canadian “JDA” company and re‐established a presence in Canada. James D. Armstrong formed JDA Software Services in Calgary. and decision support systems at the corporate level. distributors and wholesalers manage and optimize demand chain processes from finished goods on through merchandise checkout at the point of sale. Over the years. Asia and Australia. and Armstrong and a partner formed the U. packaged software and consulting services to address the retail industry’s information management and transaction processing needs. in Cleveland.ihlservices. The global sales and delivery infrastructure includes more than 27 offices in major cities throughout North America. In 1978. Their vision was to deliver quality.
A dedicated store server is not mandatory. Transaction Suspend/Resume. Because each POS workstation can act as a standalone device. Voids/Post Voids. Item/Transaction Discounts. Gift Certificate Issue/Redemption. exchanges. Non‐Merchandise Fees. Sales information is saved © Copyright 2008 IHL Group – All Rights Reserved. with or without the use of a mouse. retailers have the flexibility to move a POS terminal outside for outdoor sales or to another store for extra lanes. Win/DSS is highly internationalized to support operations in foreign markets. The interface is designed to improve accuracy. Coupon Redemption. layaways. Pay in/Cash in. all within a single transaction. POS terminals and PC cash drawer configurations can be mixed and matched. Tenders. Pay outs/Pick‐ups. House Account Payments. Clock In/Out and Flash Sales. The majority of Win/DSS’ comprehensive functions can be executed at any POS workstation or using a portable. Commission Tracking.ihlservices. Layaways. Merchandise Credit Issue/Redeem. Employee Transactions/Discounts. and improve customer relationships.Top POS Software for Softgoods Retailers Application Overview Win/DSS ‐ This Microsoft Windows‐based solution streamlines management of store operations by enabling associates to easily handle several processes ‐‐ sales. Item/Price Look Up. Gift Receipts. Associated Store Lookup. a POS workstation can also act as the server. Fractional Quantities. returns. Alternate Tax Authorities. Returns/Exchanges. Win/DSS operates in an open architecture and runs on multiple platforms. Item/Transaction Tax Exemption. send sales and special orders ‐‐ then print regular or gift receipts. Price/Tax Overrides. Barcoded Receipts. Special Orders. Key Win/DSS features include: • • • • • • • Point‐of‐Sale and Checkout POS Computer‐based Training Back Office Store Inventory Real time Sales/Data Analysis Customer Data Tracking and Analyzer Loss Prevention Point‐of‐Sale supports all register activities such as Sales. In multi‐lane stores. back office functions can run via a “hot‐key” at the POS workstation and no server is required. As a result. hand‐held RF or PDA device. Advanced Pricing. Price Changes. In single lane stores. www.com 48 .
both nationally and internationally. 5. Featuring a component‐based architecture. Impressive customer list – No questions here. Brand name ‐ JDA is clearly a well‐known brand name in the retail industry. Over 50. www. International presence – JDA has a good balance between their domestic and international revenue splits. Multiple Platform Support – JDA’s solutions are full‐featured applications supporting both Windows (Win/DSS) and the Java (Portfolio POS) platform.com 49 .Top POS Software for Softgoods Retailers indefinitely.ihlservices. Portfolio POS utilizes an application server to deliver scalability. 3. Microsoft and Wincor are some of the partnerships JDA claims. The architecture of Portfolio POS allows for rapid software adjustments or upgrades on every register throughout the chain as frequently as needed. and then copied to a designated server upon reconnection to the store network. Portfolio POS is a slim‐client store solution designed to help retailers save on maintenance costs plus reduce labor and hardware resources.000 stores worldwide are licensed to run the Portfolio Store Systems. distribution and maintenance of their store system without compromising functionality or usability. Retailers can simplify the customization. Portfolio POS features POS and back office functions. Their partner’s international capabilities don’t hurt either. flexibility and reliability. Retail centric solutions – JDA has historically focused on retail and retail only. HP. Portfolio POS ‐ Leveraging Java computing. Partners – IBM. 7. Technical innovation – JDA’s portfolio approach ties together a myriad of applications in the retail enterprise.000 cash registers in over 15. © Copyright 2008 IHL Group – All Rights Reserved. 6. as well as real‐time access at the POS to a retailer’s corporate system. JDA’s Strengths 1. 2. JDA has an impressive customer list. 4.
HP. Jewelers Charlotte Russe Columbia Sportswear Company Express Filene's Basement (Retail Ventures) Footstar. Bass & Co. Epicor Software Corporation.ihlservices. We have attempted to be as broad as possible in the choices that we found. xpient Solutions Representative Customers Bob's Stores. Oracle. Lawson Software. Inc. Park City Group. Note: Customer information and complementary systems installed are based on public statements or secondary web research. Peak Technologies. Manhattan Associates. For specific installations. Karabus. Inc. London Fog Industry. Epson. Checkpoint Systems. Sweda. Inc. Epicor Software Corporation. NCR. Retail Pro. SAS.H. JDA Software. MICROS. Inovis. Sports Experts. Trintech Group. Gateway. USS Corporation (Universal Surveillance Systems) Merchandise Allocation – ANT USA. ANT USA. (The TJX Companies) Carlyle & Co. i2. I. UTC Retail. i2. DigiPos. Manhattan Associates. G. Lawson Software. CamBorand. Inc) Pantorama Industries. SAP. Manhattan Associates. Inc. Voxware. Retail Pro. Multimedia Live. MICROS. Shoe Carnival. Osprey. Silvon Software Inc. www. Oracle. please contact the vendors involved. MICROS. i2. Rogers Jewelers (Samuels Jewelers. JDA Software. Inc. Sweda. Wyse Technology Loss Prevention – ADT Security Services (Tyco). Inc. © Copyright 2008 IHL Group – All Rights Reserved. Field Performance Group. Meldisco (Footstar. Oracle.Top POS Software for Softgoods Retailers Complementary Applications Installed with Vendor’s Applications POS Hardware – CompuRegister. SAP. LogicTools. Internal. IBM.) Samuels Jewelers. Planalytics. Island Pacific. Epicor Software Corporation. Softechnics. Bullseye Software.D. Inc. LP Software.com 50 . Agilysys.. Retail Pro. (The Forzani Group) Stride Rite Corporation (Collective Brands) United Retail Group. ClearCommerce. Inc. NPD Group. Intermec Technologies. Inc. Capgemini. SAS. Dell. Radiant Systems. TEC (Toshiba). Teradata Inventory Management ‐ 4R Systems. Fujitsu Transaction Solutions. March Networks. JDA Software. Wincor Nixdorf. Sterling Commerce. Escalate Retail. SAS. UTC Retail. Systems. Inc. Teradata Merchandise Planning – 7thOnline. Radiant Systems. Inovis. Wilsons The Leather Experts Wolverine World Wide. Pacer CATS.
more than 2.com 51 . They enable retailers to deliver a best‐in‐class customer experience across all channels. Triversity had a history of leadership in retail technology. Prior to their 2005 acquisition by SAP. www. 400 of which are using industry‐specific applications from the SAP for Retail portfolio. Its flagship solution. which provides retailers with enhanced scalability and flexibility. thick‐client. SAP Transactionware Enterprise uses Java 2 Enterprise Edition (J2EE) technology to enable transactions.epx Company Overview The SAP for Retail solution portfolio includes customer‐centric solutions from SAP Triversity. component‐based business logic and a suite of retail‐ centric applications ‐ including POS. SAP Triversity also delivers a Java POS solution that further highlights its commitment to software solutions for the retail sector. SAP Transactionware Enterprise features a highly scalable architecture that powers thin‐ client. while helping them to optimize their operating efficiencies and increase profitability. kiosk. and enterprise server solutions. SAP Transactionware Enterprise is the first Java Point‐of‐Sale solution that is fully architected in J2EE (Java 2 Enterprise Edition).sap. allowing virtually unlimited flexibility.ihlservices. an SAP company. © Copyright 2008 IHL Group – All Rights Reserved. SAP Transactionware. SAP for Retail is an industry solution portfolio that combines mySAP Business Suite applications with a broad set of integrated retail applications to help companies profitably serve consumer demand across multiple channels. Applications Overview SAP Transactionware Enterprise – SAP Triversityʹs enterprise transaction processing foundation for retailers who have embraced enterprise computing at all points of interaction. Today.com/usa/industries/retail/index. Retailers can tailor SAP Transactionware to their precise requirements by simply following the productʹs business rules. PA 19007 Phone: 215‐785‐4321 FAX: 215‐785‐5329 www. and reduce total cost of ownership through configurable.Top POS Software for Softgoods Retailers SAP Triversity 111 Sinclair Road Bristol. The applications from SAP Triversity focus on the ʺsellʺ side of retailing. enhance interaction. is a versatile and highly configurable POS solution. mobile POS and e‐commerce.700 retailers worldwide are SAP customers.
Benefits of SAP Transactionware Enterprise • Centrally administered Java‐based technology. within any enterprise infrastructure ‐ from total in‐store solutions for self‐ contained mission critical operation ‐ to distributed n‐tier solutions. and transactions Pending transactions for e‐commerce and POS integration Features of SAP Transactionware Enterprise • SAP Transactionware Enterprise can be deployed to virtually any computer. • • • © Copyright 2008 IHL Group – All Rights Reserved. messages. Connector architecture provides a standard way to connect Transactionware Enterprise applications to any legacy application or 3rd party component. units. and information display. www. Changes in business rules go out to the field automatically.ihlservices. Uses enterprise web technologies to manage remote locations and system configuration. • • • Functionality of SAP Transactionware Enterprise • • • • Full POS capabilities Remote configuration and management Support for unlimited tenders. times. while improving the consumer buying process. Designed to scale from the smallest environment to massive data centers in huge retail operations. Transactional architecture using J2EE technology allows for a single set of business logic components across all customer points‐of‐interaction. Local configuration ‐ use international standards for dates.Top POS Software for Softgoods Retailers SAP Transactionware Enterprise features common business functionality to drive new kinds of POS applications and business analysis. Multi‐Byte Character Set capability ‐ change text strings to match the companyʹs terminology. or translate it to another language to support international standards and business practices.com 52 . currencies.
application server. act on events triggered by the POS such as certain items being added. The PC‐based development tool lets non‐technical staff adapt SAP Transactionware GM to changing needs. Item Inquiry. or translate it to another language to support international currencies and business practices. www. Transfers and Receiving functions.ihlservices. cash management. Purchase Orders. time and attendance. Customize the look and feel for all devices. Allows other applications to view transaction data real‐time. Handles multi‐channel integration. This highly configurable POS solution suite enables retailers to change their transaction processing functions without the need for custom development. middleware. The information entered can then be accessed for confirmation or modification. Physical Inventory. Customer. • • • SAP Transactionware GM – SAP Transactionware GM is a transaction management and point‐of‐sale solution for general merchandise and multi‐format retailers.com 53 . file maintenance. and store‐level perpetual inventory control. intuitive graphical user interface allowing anyone familiar with standard Windows applications to tailor the point‐of‐sale transaction processing application quickly and easily. and web server. Fully customized transaction sets that may be written once and used across all channels. giving your customers and staff a consistent retail experience. It boasts a simple. and Employee information. Stores can use RF Hand‐Held devices within the store to perform Price Checking. Other applications requiring information from SAP Transactionware GM can use several COM APIʹs to read and update database information. There is a store‐level management application that provides in‐store and back‐office functions such as reporting. and even affect transaction detail such as adding print information or discounts. • • • © Copyright 2008 IHL Group – All Rights Reserved. These APIʹs allow access to Item. Features of SAP Transactionware GM • Modify default text using the POS language table ‐ change it to match the companyʹs terminology.Top POS Software for Softgoods Retailers • Fully open infrastructure support ‐ choose the database. label and sign printing.
Track and enter purchase orders. establish a ʺpointsʺ program. tenders.com . issue customer rewards based on loyalty status. financial. 4. 2. www. 3. Create multiple loyalty programs to recognize customers for their purchases: track items sold which are loyalty eligible. • • • • • • • • • • SAP Triversity’s Strengths 1. and data capture routines. and configuration files. The NT‐based platform provides access to open networking capability through LAN/WAN configurations. or configure the storeʹs central checkout separately from the customer service desk. Special Orders & Holds. Marketing and advertising information can be presented to customers during the transaction process ‐ either on the main cashier screen or on a secondary customer display monitor. Send Sales. create discounts. receiving information and store transfers. Rain checks. Easily modified user interface Solutions installed at over 500 retailers in 32 countries Java architecture provides greater flexibility 54 © Copyright 2008 IHL Group – All Rights Reserved. customer.ihlservices. COD’s. Set regional pricing or business rules. wired or wireless support. modify business rules. Set up and track multiple types of ʺopenʺ customer transactions such as Layaways. employee. Relational database supports item. Thick or thin client. providing optimal access and local control. Perform transaction analysis for loss prevention control. Store level staff can determine on‐hand item quantities. Menus show relevant functions at each stage of transaction. Web Orders. Non‐technical store operations staff can modify the POS system: create new transactions. Software leverages OPOS and ODBC standards. pricing schemes.Top POS Software for Softgoods Retailers • Monitor the activity at one or more terminals to observe employee performance or potential fraudulent activity. Help messages provide step‐by‐step guidance to cashiers.
T. i2. SAP. Aspect Loss Prevention. Lawson Software. Field Performance Group. Planalytics. SAP. Epicor Software Corporation. JDA Software. Inc. SAS. SAP. NCR. Retail Pro. UTC Retail. Epicor Software Corporation. Dresser‐Wayne.. Grafton-Fraser. Palladium Group. Wright (The TJX Companies) Big M. Systems. Jesta I. Intermec Technologies. Retail Pro. Epicor Software Corporation. Gilbarco. DFS Group Ltd. Jesta I. Oracle. SAP.. Radiant Systems. Island Pacific. Manhattan Associates. www. MICROS. i2.D. Symix.J. Oracle. Radiant Systems. JDA Software. Maxx (The TJX Companies) The Children's Place Tommy Hilfiger Corp. Limited Brands Marshall's (The TJX Companies) Phillips-Van Heusen Corp.S. Escalate Retail. Owned by SAP with a broad solution base. 7thOnline. please contact the vendors involved. HP. Aegis Interworld. Oracle. Goody's Family Clothing. LP Software. Fujitsu Transaction Solutions. JDA Software. Victoria's Secret Stores (Limited Brands) Winners Apparel LTD (TJX Companies) Note: Customer information and complementary systems installed are based on public statements or secondary web research. RMS‐TOUCH. IBM.Top POS Software for Softgoods Retailers 5. DemandTec. Wincor Nixdorf Loss Prevention – ADT Security Services (Tyco).S. Teradata. SFR. I. SAS. Teradata Inventory Management – ADI Corporation. ANT USA. Epicor Software Corporation. Inc.ihlservices. Microsoft. Retail Pro. Business First. Infoglide Software. Trintech Group. Tokheim. USS Corporation (Universal Surveillance Systems) Merchandise Allocation – ANT USA. Inc. i2. Torex Retail Representative Customers A. LogicTools. We have attempted to be as broad as possible in the choices that we found. Oracle.. Hot Topic Kenneth Cole Productions. TEC (Toshiba). (Apax Partners) Torrid Plus Sizes (Hot Topic) Town Shoes Ltd. Escalate Retail.com 55 . Teradata Merchandise Planning – 4R Systems. MagStar. DigiPos.J. Logic Controls. Inc. Inc. Jesta I. © Copyright 2008 IHL Group – All Rights Reserved. Torex Retail. Smyth Systems. allows it to be part of one of the preeminent retail technology suppliers Complementary Applications Installed with Vendor’s Applications POS Hardware – Dell. SAP. For specific installations. Sweda.. Softechnics.S. SAS. Capgemini. Checkpoint Systems.
and Product Literature Vendor Discussions Bureau of Labor Statistics CIO Magazine © Copyright 2008 IHL Group – All Rights Reserved. 10K’s Company Web Sites.ihlservices.com 56 . www. White Papers.Top POS Software for Softgoods Retailers REFERENCES IHL Retailer Reports and Databases Company Press Releases.
please see our website or see below for more contact information. For details and free market summaries. and contact information on 2.com ihl@ihlservices. technology.ihlservices.com 57 . TN 37067 Phone: 615.com Prepared by: For Questions or Information: 1064 Cedarview Lane Franklin.2955 http://www.ihlservices.800 North American Retailers and 2. providing the key performance.com © Copyright 2008 IHL Group – All Rights Reserved.0 Million records. It is the only Subscription database that takes an enterprise view of the technology that retailers are deploying AND the performance that they are achieving with the use of these technologies.Top POS Software for Softgoods Retailers Other IHL Reports Available Include: POS Software for Hardgoods Retailers – A Retailer’s Guide ‐ $795 North American Retail POS Terminal Market Study ‐ $2. visit our website at www.995 North American POS Printer Report ‐ $2. www.995 Latin/South American POS Terminal Market Study ‐ $2.ihlservices.995 Retail Self‐Checkout Systems in North America ‐ $1.591.695 IT and the North American Supermarket ‐ $1. For Details and a Free Database Report. Retail Technology Data Services Include: Sophia – Wisdom for Retail – By Subscription The North American Retailer Technology Database is the most comprehensive review of retail technology in our industry.995 Asia/Pacific POS Terminal Market Study ‐ $2.495 All pricing contained herein is valid as of the publication date and supersedes any pricing from previous price lists.995 Europe/Middle East/Africa POS Terminal Market Study ‐ $2.
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