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The Impact of ICT on the Retail Industry

ICT project

Becky Price

on 10 July 2013

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Transcript of The Impact of ICT on the Retail Industry

The Impact of ICT on the Retail Industry
By Becky Price

design by Dóri Sirály for Prezi
Benefits of using EPOS
The Benefits of using EFTPOS
Other retail ICT systems
What is EPOS?
What is a Loyalty card?
What are the benefits to the store?
What are the benefits to the customer?
Opinions on Loyalty cards
What is online shopping?
Advantages and Disadvantages
Future and Upcoming Developments
Impact of Online Shopping for small businesses
Why do people shop online?
Impact on the Environment
What will a supermarkets be
like in 30/40 years time??
EPOS stands for Electronic Point of Sale. It is a computerised stock control system used by shops and supermarkets and this system works by a laser at the checkout scanning the items barcode. The computer database then matches the barcode to the item in stock. Next it decreases the record of stock by one. Once the level of stock of a product gets to low, a message is sent to the supplier asking for more stock. EPOS tills also allow customers to pay for their shopping with a credit or debit card instead of paying with cash.
The message that is automatically sent to the supplier requesting more stock saves the shopkeeper LOTS of time as the shopkeeper does not have to manually count stock and it also reduces the risk of a shop having too much stock.
This stands for Electronic Funds Transfer Point of Sale. These checkouts can use debit or credit card transactions or payments. The money is taken electronically from the customer's back account and paid to the supermarket's bank account. This process of moving money is called
Electronic Funds Transfer at the Point Of Sale (EFTPOS).
Customers are dealt with
quickly at the checkout as
it is a quick and easy method
for paying for your shopping!
Accurate and up-to-date sales analysis's
are available for managers.

Customers buying patterns can be used to promote certain products. This highlights which are popular and unpopular.
Using EFTPOS is very safe as the supermarket needs to be sure that the card DOES belong to that customer and that no-one else is using their card, the customer has to enter a four digit pin before the money is transferred from their bank account to the shop's.
t is an easier way of paying for something that costs a large amount as you don't have to carry lots of money around with you, only the card.
When a customer shops at a store like Boots, they are awarded a number of points depending on how much they spend in that shopping trip. The loyalty card is there to store their points. Points can then be converted into vouchers that provide discounts on certain items. Each customers loyalty card has a unique number linked to a database which stores information about them and their purchases.
Which popular stores have them?
A loyalty card program is not only a good way to get new customers, it’s also a tried-and-trusted method of keeping them.

Loyalty cards encourage customers to come back more often to take advantage of the shop's special offers/discounts/rewards. The more they shop, the more they get in return.
Through the loyalty card scheme they can track and analyze their customers shopping habits and adjust their loyalty offers to match the customers needs.
You can save money by using your points instead of paying with money.
You can receive rewards by collecting the loyalty points.
Sometimes the store will have days where you can earn bonus points which is a quicker way of earning points.
Why do shops have loyalty points?
"I like loyalty cards as you get rewards for continuously shopping there and sometimes you get FANTASTIC rewards!" - Mum
"I like loyalty cards because sometimes there are special bonus days where when you shop the points you would usually get are doubled or even TRIPLED! This helps me get points quicker!"- Nana
"I don't like loyalty cards because you don't often shop around the same. You try and buy something from that shop to get more points but the product could be alot cheaper somewhere else but you want the points! You pay higher prices for things for the points!- Gemma, 26 (sister)
There are many reasons why shops use loyalty cards; it is an excellent way to increase the product awareness, it might encourage them to buy something different. Also, loyal customers who enjoy the awards will tell their family and friends to join, they encourage customers to come back more often. They are also used to make customers feel relevant and important. Customer happiness is really important as it keeps them coming back and telling everyone they know about how good it is.
ICT has changed the way we shop dramatically over the past few years. 30 years ago, tills were not automated so you could not scan the bar code, they didn't exist! There were no security gates at the entrance to the shop and there were no card machines for debit or credit cards so you could not pay electronically and there were no loyalty cards as we know them today. ICT has had a HUGE impact on shopping!

On the following slides you will learnt about the different electronic devices that we use in everyday shopping...
You can shop anytime, night or day every day of the year.
You can buy from shops that you wouldn't have access to normally e.g. in another country.
You can easily compare prices between different shops.
There is no need to travel which saves time and money on fuel.
There are no crowds to deal with.
If the item doesn't arrive, you might
still be charged for it.
You can't check the quality of some items e.g. the freshness of fruit.
The item could get damaged and you would have to arrange a replacement.
Have to pay for delivery.
You have to be at home to receive the parcel and you will have to be there to sign for it.

RFID tags (Radio Frequency ID tags) are now used on expensive or highly desirable products in a supermarket. They are small tracking devices which are used to tell the supermarket exactly where that product is at any time whilst in the shop.
They are used so that they can see if an item is in the wrong place but it is mainly used to see whether an item is being stolen. Once the item has been payed for the RFID tag is deactivated or removed from the product so if they walk out of the shop with the tag still on, it will set off an alarm.
Self-scanning tills!!
A self scanning till allows customers to scan the bar code of their items by themselves and let them load them into their trolley once the till has recorded each item. Another main part of the self-scanning till is to make sure that the correct item has been placed into the trolley. There is a weighing system where you put your bags that looks up the weight of each item in the stock database. If the items weight doesn't match with the weight being put into the bag "unexpected item in bagging area" will appear on the screen and will also be sounded.


Online shopping is basically the same as shopping at a supermarket, choosing the things you want and putting it in your basket,but it is on your computer. You do not have to travel to a shop, walk round a shop or go to the till and pack your things. You can sit at your computer, browse through the products available, click on "add to basket" for the products you want to buy. Also, on the website, you can see a picture of the product and even add special notes to your order. For example, "the chicken must be large enough to feed 5 people".
The website will tell you if there are any special offers on and will suggest complimentary items for the products you just bought. Once you have finished your shopping, the virtual trolley of products will go into the "Pay for goods" area which is equivalent to the till. You then choose a time slot for when you would like the products to be delivered eg. 5pm-6pm and you are finished!
Your order is then transmitted electronically to the local store or order warehouse when they gather the products you ordered together.
People shop online because they may not be able to make it to the shop, they may not have a car or get access to a bus if the shop is far away, you can shop in the comfort of your own home and you can also get special offers online which you wouldn't get in the shop.
In store pick up
Designated pick up locations
Mobile apps for shopping
Daily deals
E-mails being sent out letting you know what offers are online
Retail based social networks- a social networking page for customers of the store so you can tell others about different offers or products
In 30 years time, shopping will not be as we know it today. Researchers have said that they predict that in store there will be electronic tablet assistants that will help you around the store, there will be smart scales which will be able to identify the product through a camera and tell you how much it weighs and how much it will cost. They also think that they will be information stations around the shop to tell you how particular drinks/food taste and what food they recommend you have with it. Another change could be that the bar codes on a product will be electronic and so the price of the item can be changed at the click of a button.
The impact will be negative on small businesses as if the business does not have a website they will lose out on a lot of customers as most people prefer to shop online to save time and money on traveling to and from the shop. Also, if a small shop sells the same as a large, popular shop that has a website to shop online, the small shop will lose out as they will shop online so they save time on traveling and they can stay in their own home.
There will not be as many people driving to the shops so not as much pollution will be caused as there is not as much gas coming out from cars because they are less of them.
Having products delivered to your home from say a local store would have a smaller carbon footprint since there is a single truck bringing the goods to lots of people opposed to individuals going in their cars, creating more pollution.
There is an increase in non-recyclable or hard-to-recycle products that are delivered when shopping online. Many retailers and shippers wrap their products in extra bubblewrap and cardboard to make sure that the item isn't damaged in the process of delivery.
Some people buy only one product from a retailer online and it takes a lot of transportation eg ships and vans to transport items and if they only bought one it would mean that a lot of pollution from the cars and vans would be created for ONE thing.
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