June 28, 2005

Supermarkets spending and new kiosk implementations

Supermarkets plan to increase spending on self-checkout systems and workforce management software in the next 12 months, according to a new report from IHL Consulting Group, a leading retail analyst and consultancy firm. Over 40 percent are planning new kiosk implementations at the store level by June 2006.

FRANKLIN, Tenn.--(BUSINESS WIRE)--June 28, 2005--Supermarkets plan to increase spending on self-checkout systems and workforce management software in the next 12 months, according to a new report from IHL Consulting Group, a leading retail analyst and consultancy firm.

"Self-checkout is the prominent focus of hardware capital spend this year for grocers," said Greg Buzek, president of IHL Consulting Group, based in Franklin, Tenn. "These systems are quite expensive in comparison to most other capital projects and the purchases are dominating IT budgets this year. In terms of software spend, grocers say their largest store-level software spend is focused on workforce management solutions as they re-align labor needs with self-checkout installations."

Released today, the 103-page report, "IT and the North American Supermarket," reveals how technology can be used to meet the challenges currently facing grocers. The report costs $1,495. A free summary may be viewed online at www.ihlservices.com.

Some of the report''s findings include:

* Thirty-one percent of the sample planned to install self-checkout systems in 2005 and a total of 50 percent plan to do so by June 2006.

* Grocers are planning to upgrade to self-checkout before replacing aging point-of-sale hardware. Once self-checkout is installed, POS hardware and software are their next big purchase in most cases.

* There is a shift in the purchase intentions of POS systems. Forty-three percent (43%) now say they will buy POS hardware and software from different vendors in their next purchase.

* Forty-four percent (44%) are planning new workforce management solutions in the next year and over 40 percent are planning new kiosk implementations at the store level by June 2006.

* Wal-Mart, Kroger, Safeway, Albertson''s and Costco are North America''s top five sellers of groceries accounting for over $222 billion in grocery sales in 2004.

The report also includes detailed technical summaries of the top 20 retailers. Summaries include key personnel, retailer competitive comparisons and specific hardware, software and services technologies for commerce, data warehouse, distribution and supply chain, financial, head office, knowledge management, sales/service and store automation.

IHL Consulting Group is a global research and advisory firm headquartered in Franklin, Tenn., that provides market analysis and business consulting services for retailers and information technology companies that focus on the retail industry. For more information, see www.ihlservices.com, call (615) 591-2955 or send e-mail to [email protected] For press contacts and interviews, contact Roy Miller at (972) 716-4070 ext. 235, or via e-mail at [email protected]



Source: KioskCom.com Website

Posted by keefner at June 28, 2005 07:15 PM