Is PoS Dead?

You may well ask why we would ask such a question.

Surely there is always a need for Point of Sale, but like so many things these days its changing and so fast as to make its very existence a subject for discussion. So perhaps we should ask “Is PoS dead as we know it?”, because almost every other part of the retail experience has changed out of all recognition, so it’s not as we knew it and is actually all the better for it.

The question itself, is all about change.

From Cash Register to Epos

So how much has Point of Sale changed over the years??

Some of us are old enough to remember using the old-fashioned mechanical tills (before Epos) which required several fingers and frequently two hands to be pressed on keys that represented specific monetary values or functions. They registered the cash and there wasn’t much choice involved about how, where, or when. They didn’t work out the change, print anything, decrement stock or help much at all really.

Electronic Point of Sale (EpoS) was a godsend in comparison, but while it made life a lot easier (especially for the arithmetically challenged) the principle of the fixed point of payment designed around cash primarily was still the same.

The advent of electronic means of payment (EFT) was perhaps the next major leap forward in ease for those on both sides of the retail counter but then came the age of the internet and suddenly there was no counter anymore.. suddenly the actual Point of Sale could be in store, mobile or at home, in fact anywhere, anytime.?

Whatever Next?

So, what next?

Well, Amazon already has Amazon Go and 'just walk out' formats with no checkout at all but even before that, Tesco in the UK was trialling its GetGo technology (now live in High Holborn, London) since 2019 at its HQ in Welwyn Garden City. Sainsbury’s have followed suit, Aldi and Morrisons are also trialling their own versions.

According to Juniper Research this technology will account for $400bn(￡290bn) with 5 years.

The prerequisite for checkout-less stores is of course knowing who the customer is and that the goods will be paid for. This technology while only recently arrived in the UK is more established in China and Korea.

This tech is great if you don’t want to queue and that according to many industry analysts is the number one reason for dissatisfaction when we visit a store. We just don’t want to wait.?However not everyone agrees. The social experience of shopping is fundamentally different with this technology. It’s not for everyone perhaps, but if we are happy with how it works, why not?

Bringing back the village store

There are store formats in Scandinavia with no staff at all. Shoppers unlock the store with their phones, 'shop' and leave.?Lifvs, a 2018 Stockholm based start-up has managed to return stores to rural communities where no other store would be viable.

While many younger people are fine with this some older people are not so comfortable with it. They miss the social interaction. It may make sense from a commercial and efficiency point of view but where is the human touch, the customer service??

But if it’s a choice between a staff-less checkout-less store and none at all ? Like all technology perhaps it’s not the tech itself that’s good or bad but how and why its applied.?

In the era of a global Pandemic these Lifvs stores in Sweden can guarantee the 10 square meters per customer mandated by Swedish law and don’t allow more than 2 customers in at a time. One manager can monitor multiple stores remotely, visiting once a week to restock and clean.

The system uses AI to reorder based on shoppers’ data and sends coupons/offers to customers based on previous purchases. These small box-like stores can be put almost anywhere and used 24x7.?

PoS is now more than just PoS

PoS is not just PoS. This isn’t just about payment anymore. At point of sale (physical or online) we expect to be able to place an order, arrange to collect our purchase, have it delivered, return or exchange what we have already purchased, find different products and if we want to be recognised as a customer this is when it happens, our personal tastes and needs can be acted upon and our loyalty as a customer rewarded. It’s a chance not to just take payment, but to enhance and enrich the customer experience.

So, is Point of Sale now more Point of Service?

With the new tech available in-store, mobile, tablets,?Customer devices (ByoD) and on-line channels payment may not even happen at what we traditionally understand as PoS.?The Service Store proposition is so much more now than a visit ending in payment.?

Retail will always have its complexities and especially with bigger or more involved purchases but perhaps this opportunity to engage with our customers shouldn’t be missed whatever we are selling.

The frictionless PoS is all very well, but sometimes a little friction can make life more interesting, especially when the end result is a better service.

Time to Choose

So, Point of Sale is certainly not dead. It’s changed and is different, but the time has come when we can choose the type of Point of sale we want and need as individuals and businesses.

It depends now on where we choose to live, how we choose to shop and what we are buying and how. So now is not the time to ask if PoS is dead but to recognise and even celebrate the fact that through innovation and technology it has changed and evolved to the point where finally we as individuals and as an industry can choose what we want it to be and even what we want it to do.

Perhaps, at last, PoS has become not just something we have to do but a potential differentiator for Retailers and a better experience for us all.