Why Modern POS Systems are Key for Mid-Sized Retailers: Navigating the Future of Unified Commerce

In today’s fast-evolving retail landscape, staying ahead of customer expectations is paramount, especially for mid-sized Tier 2 retailers who often face the challenge of keeping up with larger competitors. One of the crucial tools to help mid-sized retailers deliver seamless and satisfying customer experiences is a modern Point of Sale (POS) system. However, today’s POS solutions go far beyond just processing payments; they’re the central hub for unified commerce, tying together online and offline interactions, customer data, store operations, and omni-channel retailing.

Here at Lean Tree, we have undertaken a market review for modern Unified Commerce POS systems, and in this post, we’ll dive into key findings on how modern POS systems are transforming the retail sector, particularly for mid-sized retailers. We will provide recommendations on how your business can choose the best solution to drive future success. If you are in the market for a new POS reach out via our Contact Us page and our expert team will be happy to share our detailed market analysis with you.

Key Findings: The Evolution of POS Systems for Mid-Sized Retailers

The role of the POS is evolving, and modern POS systems no longer serve to just process in-store transactions. Here are some of the critical trends we’re seeing in modern POS solutions for Tier 2 retailers:

1. Cloud-Native and Modular Architecture: Compared to vendors serving larger retailers, vendors targeting mid-sized retailers have been quicker to adopt cutting-edge technologies such as native cloud, composable, and headless architectures¹. These modern POS systems are designed to be flexible and scalable, allowing retailers to adapt quickly to new trends or customer demands without needing a complete system overhaul.
2. Mobile-First Solutions for Store Associates: The modern POS solutions that we have considered are built natively for mobile devices, empowering store associates with the tools they need to serve customers across various roles – be it at the checkout, on the shop floor, in the stock room, or assisting with product information. With the rise of omnichannel retailing, it’s more important than ever that store employees can access customer data and product insights easily to enhance the in-store shopping experience. This new technology can transform the choreography of the customer journey within the store and free up space by slimming down or removing cash desks.
3. Focus on Unified Commerce: Unified commerce is more than just integrating your e-commerce and physical stores. It’s about ensuring every customer interaction, whether online or in-store, is part of a consistent and personalised experience. Modern POS systems facilitate this by connecting different touchpoints, like click-and-collect services, store order fulfilment, clienteling (personalised customer service), seamless returns, and smart checkout processes. This will in turn drive revenue and increase the ROI of your new POS.
4. Cloud Adoption Leading the Way: Most vendors providing modern POS solutions to mid-sized retailers are focused on cloud-based solutions, with some even offering only cloud-native solutions. Cloud-based POS systems allow retailers to continuously update their software, easily unlocking new features as they become available and a much lower costs than legacy systems.  Additionally, cloud based POS systems allow access real-time data, and ensure higher levels of resilience and security, features that are essential for retailers looking to stay competitive.

The role of the POS is evolving, and modern POS systems no longer serve to just process in-store transactions. Here are some of the critical trends we’re seeing in modern POS solutions for Tier 2 retailers:

What CIOs and Retail Executives Should Consider in Their POS Selection

The next-generation POS systems offer tremendous opportunities for retail businesses to enhance their operations and customer experience. But how do you make sure your business is choosing the right system? Here are some recommendations to consider when selecting a POS solution as part of a unified commerce platform.

1. Evaluate Your Requirements Against Unified Commerce System Capabilities: Start by analysing your requirements, do the Unified Commerce POS systems support essential features such as click and collect, store fulfilment, seamless returns and smart checkout? These capabilities are crucial for providing customers with the frictionless experience they expect in today’s retail environment. What are the mission critical features that you can’t live without in your business?
2. Choose a Modular and Flexible Solution: In a fast-changing retail landscape, flexibility is key. Look for POS solutions that are modular and can be implemented with agility and at pace. This way, your business can quickly adjust to market changes, such as new customer demands or operational challenges, without the need for time-consuming and costly system changes.
3. Ensure Seamless Real-Time Access to Data for Store Associates: Your store associates are on the front line of customer interactions. It’s important to equip them with the right tools to provide excellent service. The best POS solutions allow associates to in real time to access customer information, inventory data, and insights from various integrated systems through a simple, intuitive interface. This not only improves the customer experience but also makes your workforce more efficient, effective, and able to achieve their KPIs.
4. Consider the Vendor as a Partner: The Vendor you select should be one that you can work with as a partner. Collaborating with them to achieve a successful implementation and being able to evolve your customer proposition via continuous updates will ensure that you are able to maximise the relationship.
5. Resilience and Security are Paramount: It is crucial to assess your vendor’s ability to provide robust cloud solutions that ensure data security, privacy, and disaster recovery. Having a cloud-native system can make a significant difference in how well your business can handle unforeseen challenges, such as a system failure or security breaches.
6. Is Your Business Ready to Embrace the Change: Maximising the benefits of a new system through adoption and new ways of working are key to its success. While selecting the right system will go some way to making that happen, leadership and change management are fundamental to the new system landing smoothly and easily across your business. Consider at the outset how this is going to be achieved, a new POS is not simply an IT install project. Do you have the right skill set to deliver this in-house, or should you bring in a specialist business change team to help deliver this?

Why Invest in Modern POS Solutions?

Retail is increasingly complex, and customers have higher expectations than ever. They want fast, efficient service, personalised recommendations, and the ability to shop when and how they choose – whether that’s online, in-store, or through a combination of both. Recent research by Retail Economics has shown that 49.7% of non-food online shopping sales rely on a physical touch point¹.

By investing in a modern POS system, mid-sized retailers can:

• Improve customer experience by unifying sales channels and giving customers the seamless, connected experience they crave
• Enhance operational efficiency by providing store associates with easy access to customer and product data in real-time
• Increase agility by using modular, cloud-based POS solutions that allow for quick updates and adjustments
• Boost sales by enabling smart checkout processes, omni-channel selling, click-and-collect, and personalised clienteling services

Final Thoughts

For mid-sized retailers, the adoption of a modern POS system is no longer optional, it’s essential. The right POS system can help your business provide a consistent and satisfying customer experience across all channels while ensuring you remain agile and resilient in the face of future challenges. By embracing cloud-native, mobile-first, and modular solutions, you’ll be well-positioned to meet the evolving needs of your customers and stay ahead in the competitive retail landscape.

Looking to upgrade your POS system? At Lean Tree we specialise in helping retailers implement cutting-edge POS solutions tailored to their specific needs, click here to learn about our recent success at the MACH Alliance awards. Our expertise in Strategy & Consulting, Sourcing, Digital Delivery, and Change Management can help you navigate the process to select a new POS, prepare your business, and roll out your new POS.

Contact us today for our detailed insights into the latest products on the market and to learn how we can support your digital transformation journey.

References:
¹ Retail Economics, Ecommerce Delivery Benchmark Report 2024, https://www.retaileconomics.co.uk/retail-insights/thought-leadership-reports/ecommerce-delivery-benchmark-report-2024