OPEN MINDED

PAT NATSCHKE LENIUS

The front end continues to "open up" for retailers of all sizes and information systems budgets. Even those companies whose capital outlay plan allows only for limited upgrades and interfaces in 1996 say personal computer point-of-sale systems are the ultimate goal.

"We are not replacing what we have, but in new stores and remodels we are putting in PC-based POS equipment," said Tony Rinella, director of information systems at Bashas' Markets, Chandler, Ariz.

He said key reasons for moving to an "open systems" architecture of industry-standard computer equipment are flexibility, maintenance savings and greater availability of replacement parts.

Ray Hamilton, vice president of information systems at Sutton Place Gourmet, Rockville, Md., said a PC-based point-of-sale system can be upgraded incrementally, a clear advantage over proprietary systems. That benefit is a key reason the 14-store chain will begin installing computers at the checkouts of new stores, he said.

Electronic marketing programs continue to be a top priority and retailers say PC-based systems are up to the task.

"While our current [POS] system is absolutely wonderful to count dollars, it doesn't support our marketing in any way," said Jim Rau, director of information services at Prevo's Family Markets, Traverse City, Mich. "We want to get a system that will support all of our plans for card-based marketing and the frequent shopper initiatives we are trying to put into place."

A sampling of retailers discussed their 1996 point-of-sale upgrade strategies with SN and here's what they had to say:

Nelson Bodenhamer

VP, MIS

Brookshire Grocery Co.

Tyler, Texas

We plan to implement [a Unix-based operating system] chainwide beginning in early spring and expect it to be a two-and-a-half-year rollout.

We have been testing it for about a year, so we know what it can do for us in our operation. We expect to increase productivity and enjoy greater functionality and greater flexibility on the front end. This will also involve integration of all other type systems we run out of our point-of-sale, such as credit, electronic benefits transfer, debit and checks. A lot of evaluation of POS systems went into making this decision.

Ray Hamilton

VP, information systems

Sutton Place Gourmet

Rockville, Md.

As we open stores or do remodels, we will be installing open PC-based point-of-sale systems. We plan to open three new stores in 1996 using this technology.

The reasons for moving to open systems include flexibility and the ability to protect your investment. An open PC-based system makes it possible for software and hardware to be upgraded incrementally.

With a proprietary system, we might have to move up to a new model because a desired new feature is found only on the new model and won't be released on the older platform due to hardware constraints or because the vendor has made a strategic decision to move customers to these newer platforms.

The balance of our older-generation systems that are not ready to be replaced will have value added through software and communications upgrades wherever possible. This will be done by replacing or upgrading the in-store controllers and/or the host software, by replacing scanners and by adding stand-beside electronic payment systems that add new payment possibilities, including smart card options.

John Lasater

director, information systems

Save Mart Supermarkets

Modesto, Calif.

We are looking at an overall plan to upgrade our point-of-sale right now but it may not happen in 1996.

We have three types of POS and we are looking at consolidation and using open technology. We want uniformity and better hosting capability.

In the future, there are some important things we are looking at. As a California retailer, we are concerned about our ability to handle electronic benefits transfer for all customers. We need to be ready for that when California is ready. We need to be able to handle smart cards.

Herb Butler

manager, information services

Gregerson's Foods

Gadsden, Ala.

We are going to upgrade the processing boards for our front-end system. We are going to change some of the software and some of the components and some internal hardware.

We are able to upgrade economically by changing internally. We expect this will make them run faster. Speed and efficiency will be benefits of the upgrade.

We have a fairly sophisticated frequent shopper program. By upgrading the internal hardware and software, we will able to record more data more efficiently and turn that data around to reward the customers in the frequent shopper program.

Jim Rau

director, information services

Prevo's Family Markets

Traverse City, Mich.

We plan on upgrading our POS systems, and that may happen in 1997. The chances are we may get one system in 1996 to work out the details and then put it on the budget for 1997 for all seven of our stores.

We are thinking in terms of a PC-based POS because we want to get into electronic marketing. While our current system is absolutely wonderful to count dollars, it doesn't support

our marketing in any way. We want to get a cash register system that will support all of our plans for card-based marketing and the frequent shopper initiatives we are trying to put into place.

Dale Vondielingen

manager, front-end specialist

John C. Groub Co.

Seymour, Ind.

We are in the process of developing a three-year strategy plan that will address the issue of upgrading our front-end systems as well as technology across the whole corporate structure. I don't know if any of this will be implemented in 1996, but we are looking at it. We will be doing something with electronic payment systems. That and the POS upgrade are two areas at the top of the list. We hope MarkeTechnics will answer a lot of questions for us. We are creating a plan and will go to the conference and look for pieces to put in place. We hope that will be a turning point.

Brad Wahl

director, computer operations

Leevers Supermarkets

Devils Lake, N.D.

We are always trying to upgrade our software to the most current levels.

Our wholesaler, SuperValu, has a program involving a POS scanning system it is trying to implement. As an independent, we are not sure whether we should go their route or our own regarding technology. We may not touch any of our POS this year for that reason. This year may be a transition year for us.

Tony Rinella

director, information systems

Bashas' Markets

Chandler, Ariz.

We are not really replacing what we have, but in new stores and remodels we are putting in PC-based POS equipment to get an open system.

The advantages to this include: Maintenance costs are a lot less, the availability of parts is better, the software seems to be more flexible, and it seems that more applications are available and it is easier to develop new applications.

Marvin Imus

owner

Paw Paw Shopping Center

Paw Paw, Mich.

We are in the process of making the decision on exactly what system will be put into the front end.

We have a tentative agreement with our wholesaler, Spartan Stores, working with [a new point-of-sale] system, but some functionality issues are cropping up as we break down the process. I am looking for a true PC front end and just recently learned about another system that I am interested in exploring.

The current front-end system doesn't handle the amount of transactions we are trying to capture. We have a fully developed frequent shopper program; the total volume on the card is over 80% of our business.

We are capturing transactions by customer, but this is taxing our current system, which dates back to the mid-1980s. Our current system has some great capabilities, but its communication network is very slow. At peak times the system slows down.

I am more interested in a PC-based system, so I have more flexibility to upgrade. I believe that proprietary systems will eventually [become more flexible], but they haven't gone far enough yet.