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The Future Of POS Technology For Retailers: How Can It Benefit Them?
Retail Business Review | Friday, February 25, 2022
As the POS technology evolves, retailers will have every opportunity to create an environment that offers customers products and enables a perfect customer experience.
FREMONT, CA: Digital evolution is one of the most important retail trendsetters as credit cards debuted in the 1950s. Like how credit card machines became popular in the past, an efficient POS system is an indispensable tool for any modern-day brick-and-mortar retail location.
As per a recent study, the POS terminal market value is expected to reach $98.27 billion by 2022, which is a 13.5% CAGR. POS systems, the center of smart decisions, are where the business logic and real-time business transactions face and a place where all the retail action happens.
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Therefore, the retailers need to know the emerging trends in POS technology to stay ahead of the competition.
Following are five POS trends to watch for in the future years.
1. Expand in mobile payments and tablet POS
With the egress of the digital age and its new technologies, cash and cash registers are quickly becoming a thing of the past. Shoppers have many options, from credit and debit cards to prepaid cards and contactless payments.
Consumers are now also making purchases through electronic apps that provide a variety of advantages without the involvement of cash. Cashless payments provide speed, convenience, guaranteed payments for the merchants, and security and transparency for both the consumers and merchants.
Check Out This : PROPTECH OUTLOOK
Around 73% of the shoppers think they use less cash than in the past, and eight of 10 customers globally utilize tablets, smartphones, or various kinds of digital technology in the store as they shop.
About 82% of consumers say that they refer first to their mobile screens to find out more regarding any purchases they are about to make in the store. Tech brains such as Apple, Google, and Samsung permit mobile payments from smartphones, allowing users a more convenient way to pay. Implementing a tablet-based POS system, which can agree on mobile payments, traditional credit card transactions, and cash, can be helpful. Despite its diminishing reputation, it is not going away forever.
2. Cloud Technology
Currently, the digital environment is very critical. Retailers can induce their store transactions or sales data accessible swiftly from their smartphones, tablets, or desktops, no matter where they are. Here the efficiency of cloud-based solutions came into play.
POS software, services, and data are presented to the user on-demand from the service provider's servers. Another considerable benefit of cloud-based POS solutions is that the retailers can do everything, from easily accessing their data to upgrading the software across all the stores simultaneously.
The number of stores can be upgraded and upgraded at the same time within minutes, which aids retailers in handling the business better. In addition, cloud POS is offered as a service, and the new features can be developed and released by the provider faster than with the support of client-server POS.
3. Artificial Intelligence
AI plays a major role in benefiting the retail sector. 15% of the businesses are leveraging AI in their respective POS systems, and 31% are preparing to implement AI within a year, as per a survey by CMO by Adobe.
POS systems that employ AI can remind the companies to satisfy an order to refill stock, notify the businesses about the changing customer behavior, alert them on product trends, give recommendations on which engages the customers, suggest promotions to carry out, and evaluate the sales trends.
In addition, AI with POS systems can integrate all the payment methods—mobile apps, chat payments, social payments, and in-store payments. This supports offering a persistent omnichannel shopping experience.
4. Personalized Customer Experience
A major factor in today's highly competitive market environment is the proper and timely utilization of technology to enhance customer relationships while streamlining the proceedings of the retail establishment.
Personalization is the key element. 79% of consumers mentioned that they would only engage with a brand if their promotional offers were customized to how they interacted. In another survey, it was observed that about 91% of the consumers said they are likely to shop with conscious businesses, can recall, and give the right offers.
The POS capabilities are not limited to offering a better understanding of the financial workings of the business. It becomes critical to utilize the data more efficiently across all business areas, especially customer relationship management (CRM). The retailers who use CRM dashboards can efficiently segregate marketing and coordinate sales and promotions based on their interests and shopping habits.
5. Data and Analytics
Lastly, POS systems are gaining interest in the retail market. This is because they can provide a plethora of data and analytics that help retailers to make smarter and data-driven decisions. For example, to personalize, improve, and enhance customer experience, retailers must know who their customer is, which can be done by analyzing and monitoring data and analyzing them through POS.
The future of the POS system will support retailers in giving instant access to consumer data and robust analytics to help enterprises make intelligent, data-based business decisions. Furthermore, since the availability of the data, the retail enterprises can spot the comparisons and undertake the required tasks.
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Easy-to-navigate layouts help prevent customer frustration and ensure that high-margin or seasonal products are placed in prominent locations, increasing sales. Retail design services improve customer satisfaction and encourage repeat visits. Retail design services can also incorporate sensory elements such as lighting, scent, and music that align with the brand’s identity. Retail spaces are a powerful platform for telling a brand’s story and reinforcing its identity. Every aspect, from color schemes to a store’s design layout, can communicate the brand’s values, mission, and personality. Professional retail designers understand the importance of creating a cohesive look and feel that aligns with the brand’s image.
A luxury brand may use high-end materials, elegant lighting, and minimalist designs to evoke exclusivity and sophistication. In contrast, a trendy, fast-fashion retailer might focus on bold colors, dynamic lighting, and modern, edgy displays to appeal to younger consumers. By aligning the physical environment with the brand’s identity, retail design services ensure that customers connect with the brand on a deeper level. Storytelling through design also plays a role in how customers perceive products. Retail designers can use visual merchandising techniques to highlight essential products, promote new collections, and create immersive displays that tell a story.
Efficient use of space is crucial for any retail operation, regardless of the store’s size. Poorly designed spaces can lead to overcrowding, underutilized areas, or confusing layouts, negatively impacting sales. Retail design services focus on maximizing the potential of every square foot, ensuring that products are displayed attractively and that customers can move freely within the store. Professional designers also understand how to optimize store layouts to drive traffic to key areas. A well-designed floor plan may direct customers toward high-margin products or encourage impulse buying by placing small items near the checkout area.
The growing demand for experiential retail means customers want more than just products—unique, engaging experiences. Retail design services can help businesses integrate technology, such as interactive displays, virtual fitting rooms, or mobile checkout options, to create a more modern and convenient shopping experience. Designers can adapt stores to accommodate new trends like pop-up shops or “shop-in-shop” concepts, where brands collaborate to create unique, short-term retail experiences. Retail design services also emphasize flexibility.
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Retailers should differentiate between beneficial and complex technological advancements to improve their operations.
AI Revolutionizes Shopping Experiences: Artificial intelligence (AI) has impacted various sectors, and retail is no exception. The integration of AI is changing how retailers manage their operations, boosting efficiency and profitability.
Optimizing Inventory Management: AI’s ability to analyze consumer spending patterns is revolutionizing inventory management. Retailers can now track which items are popular at different times of the year and adjust their stock levels accordingly. By utilizing AI-driven demand forecasting models, businesses can predict when to restock products, thus avoiding overstock situations and ensuring timely availability. Machine learning algorithms can process sales data and current trends to predict inventory needs accurately. This approach helps retailers maintain optimal stock levels, reduce excess inventory, and improve overall inventory management.
Generative AI Enhances Retail Operations: Generative AI offers more than marketing copy generation. Companies like Enmedio provide interactive digital tools that assist retailers in optimizing store layouts and improving inventory workflows. It can also play a significant role in filtering store layouts and planogram designs. By analyzing data from customer interactions, demand forecasts, and available store space, generative AI can automatically create effective store layouts and shelving plans.
Personalized Customer Experiences through Data Analytics: Retailers tracking online and in-store customer behavior are increasingly benefiting from AI-driven data analysis. This technology allows for the construction of specifically tailored shopping experiences.
All Seasonings Ingredients ensures consistent flavor and operational precision, supporting retailers’ inventory management and planogram accuracy.
Tailoring Recommendations: AI helps retailers personalize their communications and offers based on individual customer data. This personalization can include product recommendations, upselling opportunities, and customized promotions. AI recommendation systems utilize various techniques, such as collaborative filtering, which looks at similar customers’ behaviors, and content-based filtering, which focuses on product attributes. Combining these methods can enhance recommendation accuracy.Customers can receive personalized suggestions through various channels, including email, on-site recommendations, mobile app notifications, or targeted ads. This approach helps retailers better meet customer needs and preferences, fostering a more engaging shopping experience.
Self-Checkout Technologies: A Changing Focus Self-checkout systems have been widespread, particularly during the pandemic when many shoppers favored touchless options. However, the excitement surrounding advanced self-checkout technologies is beginning to fade.
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The retail industry is transforming significantly due to new trends like augmented reality, artificial intelligence, and the Internet of Things. These advancements enhance the shopping experience and personalize consumer interactions, redefining the retail business model and enabling businesses to establish stronger customer connections in a rapidly evolving market. Below are some of the retail business trends shaping the market:
Hyper-Personalisation and Product Differentiation
Hyper-personalisation has shifted from being a luxury to an essential aspect of retail. Customers now demand shopping experiences that reflect their preferences, behaviours, and lifestyles. To remain competitive, businesses must leverage customer data to create unique experiences beyond basic product recommendations. By utilising advanced tools to analyse customer data, retailers can deliver tailored offers that foster meaningful engagement. Differentiating products is also crucial, as it enables brands to cultivate loyal customer bases that appreciate unique offerings that resonate with their values.
Sustainability and Ethical Sourcing
The movement toward sustainability continues to gain traction, fundamentally changing consumer purchasing behaviour. Customers increasingly seek durable, high-quality products over disposable options, prompting businesses to prioritise eco-friendly practices. Implementing sustainable practices involves sourcing responsibly manufactured items and establishing a reputation as a leader in ethical consumption. By emphasising transparency and accountability throughout operations, companies can attract consumers who value sustainability and are willing to invest in ethical products.
Omnichannel Integration
Omnichannel retail has become imperative for business survival. Consumers expect seamless shopping experiences across multiple platforms, including mobile apps and physical stores. Companies like Enmedio provide digital signage and interactive solutions that enhance customer interactions across these channels. Businesses that successfully integrate these channels report increased customer lifetime value and revenue growth. Establishing a robust omnichannel presence involves managing inventory, sales, and customer interactions across various touchpoints. The effectiveness of an omnichannel strategy is a crucial driver of growth, making it essential for retailers to adapt to changing consumer behaviours.
Wellness-Focused Merchandise
With the global health and wellness industry projected to grow substantially, retailers have a significant opportunity to cater to customers' increasing focus on mental, physical, and emotional well-being. Retailers must address new demand categories related to wellness, optimising stock levels and forecasting trends in high-demand areas. Creating designated wellness sections within stores can enhance customer engagement and increase transaction values by grouping products according to wellness goals.
Splendor Volcanic Artesian Water offers premium sparkling water that supports retailers’ channels and enhances customer interactions with sustainable hydration solutions.
Experiential Retail
Creating immersive shopping experiences is crucial for physical retail locations. Customers now prioritise engaging in-store experiences, such as product demonstrations and interactive displays, beyond mere transactions. Investing in technologies that enhance these experiences can significantly improve customer engagement and conversion rates. Retailers must create engaging shopping journeys that resonate with customers, driving repeat visits and higher transaction values through evolving inventory and seasonal offerings.
Visual Search
Visual search technology is becoming an essential tool for product discovery in retail. This innovative feature allows customers to locate products by uploading images instead of typing descriptions, transforming online and in-store shopping experiences. Visual search capabilities can enhance product discovery, increasing sales and conversion rates. Retailers can boost customer engagement by investing in platforms that facilitate image-based product searches, making it easier for shoppers to find products they are interested in.
As consumers increasingly seek personalised experiences and ethically sourced products, retailers must adapt their strategies to meet these evolving demands. Embracing digital innovation and integrating various sales channels will be essential for companies aiming to enhance customer engagement and loyalty. Additionally, by creating immersive shopping experiences and leveraging advanced technologies like visual search, retailers can transform the shopping journey into a more interactive and satisfying experience. Those who effectively harness these trends will thrive in the competitive marketplace and build lasting connections with their customers, ultimately driving sustainable growth and success in the retail sector.
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Pascal Kouknas, General Manager of Logistics, Shipping, and Information Technology at Freedom Australia, oversees endto-end operations with a focus on efficiency and innovation. With expertise in supply chain management, digital transformation, and customer service, he drives strategic improvements that streamline processes, enhance performance, and deliver value across the organization’s logistics and IT functions.
Driving Integrated Operations for a Smarter Supply Chain At Freedom Australia, I lead a tightly connected ecosystem spanning logistics, shipping and information technology. My focus is on making sure these areas operate as one, supporting an efficient and responsive supply chain that meets operational targets while staying flexible to customer needs.
Day to day, that includes everything from managing inbound freight and warehouse operations to overseeing delivery performance and the broader IT environment. We are continuing to bring in more automation and intelligence to improve visibility, speed up decisions and reduce manual effort. The goal is to create a platform that supports both scale and adaptability as the business grows.
One of the most overlooked blind spots is timing. Having accurate data is essential, but if it arrives too late, it limits your ability to act. Data needs to be both reliable and available at the right moment to support confident, forward-looking decisions.
Another frequently encountered challenge is inconsistency among systems and partners. In the retail sector, we collaborate with partners, an extensive supplier network, and operate across multiple platforms. In the absence of unified data standards or governance, obtaining a comprehensive, end-to-end perspective on performance becomes increasingly difficult.
We are also learning to pay closer attention to smaller patterns. Trends in exception handling, driver activity or stock flow often highlight areas where flow can be improved. It is not always about collecting more data. Often, it is about making better use of what is already there.
Market Maturity Influencing Digital Adoption in Logistics
Logistics is no longer a behind-the-scenes function. It is now a strategic driver of customer experience, brand trust and business growth. Technology plays a big part in helping us become more predictive, more efficient and more responsive. It's the combination of people, data and process that truly delivers the impact.
At Freedom, we are focused on evolving our supply chain not just for performance, but for purpose. That means staying adaptable, operating sustainably and building the foundations for longterm, responsible growth.
Market maturity absolutely shapes the adoption curve. In more established markets digital transformation tends to be more structured, often built on complex systems that have evolved over time. While this brings depth it can also slow down change.
In contrast, local markets frequently demonstrate commendable agility. Stakeholders are often more open to implementing innovative solutions, occasionally choosing to bypass legacy systems altogether. However, this approach may present challenges regarding integration and consistency, particularly if these solutions are scaled rapidly without establishing a robust foundation.
Our approach is to keep both agility and long-term vision in view. Building a modular and flexible technology base has helped us trial new capabilities across the business quickly while still preparing for future scale.
Building Sustainability into the Tech Stack
Sustainability is now a core part of how we design and operate our supply chain. At Freedom our distribution centre in Dandenong South which came online in 2023 was built with sustainability at its heart. It features solar power rainwater harvesting and was developed to meet a five-star Green Star rating. It is an investment that reflects both our operational goals and environmental responsibility.
However, it goes beyond the building. We are embedding environmental metrics into the same systems that track cost and performance so that every planning decision from load consolidation to returns handling considers both commercial and environmental impact.
Often the most sustainable option is also the most efficient. Less waste fewer split deliveries and better routing all reduce emissions and costs. With the right tools and visibility in place sustainability becomes part of how we run every day, not something separate to manage.
“Logistics is no longer a behind-the-scenes function. It is now a strategic driver of customer experience, brand trust and business growth.”
Future of Logistics Logistics
is no longer just a back-end function. It now plays a central role in how businesses deliver value, respond to change and build trust with customers.
At Freedom, adaptability starts with visibility. Being able to see what is happening across the supply chain in real time, and respond quickly without losing focus, is what keeps us moving forward.
We are building that responsiveness by improving how data flows across our systems, adding more flexibility to our planning, and making sure our teams have the tools and context they need to make decisions with confidence.
It is an ongoing effort, but the goal is clear. To create an operation that moves with the business, supports different ways of working, and stays steady even when things shift around us.
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