POS gains favor in second-tier - point of sale systems at discount stores

Discount Store News, Oct 1, 1990

POS Gains Favor in Second-Tier

Nationwide DSN Report

Though it may seem like they're a day late and a dollar short, many of the nation's leading second-tier discount chains are finally making a commitment to point-of-sale scanning technology.

As could be expected, industry sales leaders like K mart, Wal-Mart and Target, are also leaders in implementing POS technology. All Wal-Mart and Target stores are utilizing POS scanning.

And, K mart is devoting about $450 million from its 1990 capital spending plan to complete installation of POS terminals, other retail automation systems and a satellite network chainwide. All 2,300 K mart stores should be thus equipped by year-end with video hook-up via satellite slated for the end of 1991.

Not surprisingly, the Big Three discounters are also the most advanced in term of utilizing electronic data interchange with its vendors and forming QuickResponse partnerships.

At Bradlees, the $1.7 billion, Braintree, Mass.-based discounter, chainwide program to install scanning at all stores will be complete by the end of October. Bradlees promotes its new scanning capabilities with checkout aisle signs that read: "Easy-Out Checkout with Scanning. We're Here to Help You."

Caldor, the Norwalk, Conn.-based chain, just completed chainwide installation. The $1.7 billion discounter said the new scanning capabilities have tremendously improved checkout times.

Among other full-line discount store chains:

* Rose's, Henderson, N.C., is testing scanning and expects a roll out soon to all its 260 stores. * Fred Meyer, Portland, Ore., currently has more than half of its 125 general merchandise/grocery store combination units up and running with POS scanning. * All 131 Jamesway stores were scheduled to go online with computerized scanning by the end of August. * Schottenstein, Columbus, Ohio, is installing new IBM registers and scanning wands at all its 52 Value City and four Schottenstein discount department stores. Completion is expected by year-end.

Ames, currently in Chapter 11, has only 10 of its stores with scanning.

Dress Barn, the women's off-price apparel chain in Stamford, Conn., is implementing POS scanning in all of its 466 stores this fall. In-store testing was complete this summer.

Membership warehouse club chains vary widely in their commitments to scanning. All 125-plus Sam's Wholesale Clubs have scanning, as do all 50-odd Pace Membership Warehouse units. Costco, Kirkland, Wash., has scanning in all its 62 stores, and so do all Salt Lake City-based Price Savers. However, Price Club, the industry's pioneer, does not utilize POS scanning at any of its 50 or so clubs.

PHOTO : In Keeping with its "Easy-Out Checkout with Scanning. We're Here to Help You," promotion,

PHOTO : Bradless will complete the installation of chainwide scanning at its stores the end of

PHOTO : the month.