FRANKLIN, Tenn. – From
the C-level on down, the buzz about mobile in retail has steadily increased
ever since Apple began using mobile devices in their stores. The use of tablets
(such as the iPad) is growing rapidly, with shipments increasing at a rate of
38% in 2013, according to Mobile
POS: Hype to Reality, a new study from research firm IHL Group.
According to the research findings, the Mobile POS market
will surpass $2 billion in hardware/software sales in North America in 2013,
and 28% of North American retailers plan to adopt Mobile POS in some form by
the end of 2013. An even greater number (33%), however, do not plan to
adopt Mobile POS at all within the next 3 years. The adoption rate is very
dependent on the type of retailer and volume of transactions.
"Mobile POS continues to receive a lot of hype, and
some specific announcements have received a lot of press,” said Greg Buzek,
president of IHL Group. "But the vast majority of retailers are taking a
slow and methodical approach to the use of mobile for POS.
There are key operational issues in device and merchandise
security, cash handling, payments, bags, customer service levels and traffic
flow that must be worked through, or the use of the devices will be disruptive in
a negative way for retailers.”??
Mobile POS: Hype to Reality looks at the current state of
Mobile POS, the adoption rates of various retail verticals, and the shipment
and installed based details by type of device (rugged handheld, non-rugged
handheld, and consumer-level tablets).
The study also provides forecasts for shipments and
installed base of these devices, as well as an estimate of the impact that
these devices will have on the use of traditional POS hardware. Finally,
it includes operational best practices (for instance, avoiding the “Mama Duck
Syndrome.”??
Other key findings of the research include the following:
- Specialty retailers are deploying about 45% of
all tablets shipped to retail for POS. They are most popular in small
independent retailers of all types and large mall-based specialty chains.
- Across North America, retail Mobile POS devices
will cannibalize 12.4% of traditional POS shipments by 2016. The highest
areas of replacement will be department stores and specialty soft goods retailers.
- Over 85% of larger retailers suggest that for
the next three years, Mobile POS will serve as additional transaction points in
their stores, rather than as replacements for traditional fixed POS stations.