Store Sense vs. Central POS: A Comprehensive Comparison of Retail Solutions

The document discusses the of Value Proposition for Airport operated PoS systems vs Real Time Data collection from concessionaire operated PoS systems.

1. Value Proposition for
Airport Operated PoSSystems
vs
Real Time data collection from concessionaire operated PoSsystem

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Why Airports needs real time PoS Data
1.Prevention of Revenue Leakage
§Accurate, automated revenue reporting and income computation to prevent revenue leakage
§Very contextual in recent times with emergence of revenue sharing model as preferred over fixed
rental and minimum guarantee models
§Computation of income at product category level
2.Productivity benefits
§No time and effort is expended for manual data collection & reconciliation
3.Streamlined Cash Flows
§Removal of latency in income computation and billing the retailer, hence faster inflows

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Why Airports needs real time PoS Data – Contd..
1. Increase in Retail Revenues
§Reliable insights derived from analytics of sales data and passenger demographics & purchase
preferences
§Insights drive increase in ATV, Penetration, Transaction Volume, Sales per PAX, Sales per Sqm
§Integration of data across departments leading to richer insights like impact of gate allocation on
flight-wise retail sales
2. Enhanced Inventory Planning and Merchandizing
§Top / best selling products – avoid lost sales due to out of stock situations
§Inventory optimization and carrying cost – out of stock and over Stock situations
§Inventory aging
3. Effective Campaigns and Promotions
§Plan promotions and campaigns at the airport across retailers
§Engage more popular brands
§Drive cross sell and up sell through personalized campaigns

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System Options
1.3rd Party POS system provisioned by Airport
•Airport mandate all retailers to use this POS system
•There may be resistance from big & large retailers
•Either Airport allows them to use their own POS system. In such scenario the objective of
having one single & unified POS system is compromised.
•Or, the retailer may opt out and doesn’t operate at the airport
•POS System with basic reporting
•Require new system for BI & Analytics

2.Store Sense from GrayMatter
•Retailers continue to use their own respective POS systems
•IOT based devise for real time sales data collection
•Integrated BI & Analytics solution
•Additional built-in capabilities
•Inventory Planning and Merchandizing
•Campaign Management
•Process Automation
•Staff Productivity
•Task Management

5. Airport System Options
3rd Party POS system provisioned by
Airport
•Airport mandate all retailers to use this POS system
•There may be resistance from big & large retailers
•Either Airport allows them to use their own POS system. In such scenario the objective of having one single & unified POS system is compromised.
•Or, the retailer may opt out and doesn’t operate at the airport
•POS System with basic reporting
•Require new system for BI & Analytics
Store Sense from GrayMatter
•Retailers continue to use their own respective POS systems
•IOT based devise for real time sales data collection
•Integrated BI & Analytics solution
•Additional built-in capabilities
•Inventory Planning and Merchandizing
•Campaign Management
•Process Automation
•Staff Productivity
•Task Management

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Evaluation Criteria
Listed below are factors considered for evaluation done for the 2 options, POS System Provisioned by Airport
and Store Sense
•Financial Impact – cost consideration
•System Setup – time to implement and roll out the system to all retailers
•Operational Support – new vendor onboarding along with regular support & maintenance of the system
•Business Intelligence – need for comprehensive analytics for commercial department
•Data Governance – retailer month-end reconciliation for billing and invoicing
•Technology Stack – additional systems capabilities & integrations

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Centralized POS System – Provisioned by Airport

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Airport Provisioned POS System – High Level Architecture
Real Time
Sales Data
CollectionPOS
BI &
Analytics
•AODB Data
•PAX
•Flight
•Gate
•Contract Management
•Income Computation
•Budget & Plan
Capabilities
•Inventory Planning and
Merchandizing
•Campaign Management
•Staff Productivity
•Task Management
Airport Provisioned POS SystemAdditional Systems to be Provisioned by Airport

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Key Considerations I
Financial Impact
Investment for a minimum of 2 systems – POS System and BI & Analytics System
–POS system provide only basic sales reports without any correlation with operational data like pax, flight, etc.
•Capex costs of software licenses and hardware for 2 systems
•One-time setup, installation, deployment costs for 2 systems
•Opex cost of operational support & maintenance for 2 systems
POS System Setup
•The feature and functionality requirements for each type of retail category is unique. Needs of Electronics Retailer vs
F&B vs Apparel vs Duty Free are varied and different
•Setting up of one POS system to cater to needs of all retail categories will make the system complex and hence prone
to limitations and frequent issues
•Product master, its attributes and prices setup will take good amount of time – high volume and variety of data as
each retailer will have its own product master
•Training to all retailer staff will again be a time-consuming process
•Onboarding and system roll out time to all retailers will be very high due to above complexities – quantify timelines

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Key Considerations II
Continuous POS System Support
•Product master, regular updates are required to keep it business relevant
–Managing and maintaining changes to product attributes, adding new products & bundles, product status like
active/inactive, tracking changes to product updates, etc.
•Regular training to retail staff
–New staff members of retailers
–Updates to POS system
•Product pricing – having to create and manage product prices by SKU by retailer. A similar SKU like Coca
Cola 300 ml bottle can be prized differently by different retailers
•Discounts and promotions – discounts and promotions are again retailer specific. To update, run and
manage various offers by each retailer is a tough job for the team
•System upgrades and new feature/functionality updates require extensive testing for multitude of
scenarios considering system setup for all types of retailers
•Support and maintenance need to cover POS System software, hardware and servers

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Key Considerations III
Large Retailers and Brands Concerns
Large retailers may decide not to operate at airport because of retailer’s departmental considerations
•Legal & Compliance
–To agree on the contract terms to use Airport provided 3rd party POS system
•IT
–Managing process and workflows with 3rd party POS system. Every big retailer and brand demands has centralized function at HQ to manage centrally product master, pricing, promotions, offers, product bundling, etc. using different systems and push it to their own POS system
–Security and integration concerns of 3rd party POS system with their own backend system
–Additional workload of regular support & maintenance of the integration with 3rd party POS system
•Operations
–Retailer staff to be trained on 2 POS systems, own and airport provisioned as retailer staff members can be interchangeably deployed at airport
•Cloud hosted SaaS POS System
–Retailers like Lenskart use these type of POS systems which can’t be integrated with 3rd Party POS system
Centralized POS system – Objective Prejudiced
•If certain retailers are not using centralized POS provisioned by airport than the whole objective and success of this initiative is jeopardized

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Key Considerations IV
Business Intelligence and Analytics
•POS system provide very basic reports, hence need for a comprehensive BI & analytics system for commercial
department
•A comprehensive BI and Analytics system will be required. This will go through the following standard steps and
process to build a ground up BI solution:
–Tools, technologies and vendor selection process
–Integration with additional data systems like POS system AODB, contract management system, budget and plans, etc.
–Capex cost for licenses and hardware
–One-time setup, implementation and deployment costs
–Operation support along with regular system maintenance and upkeep
Data Governance
•Month-end sales data reconciliation with retailer will still be required as the POS system is owned by Airport and Retailer may
contest the sales numbers due to various POS related issues like
–Returns, void, cancel transactions not adjusted properly
–Incomplete transactions considered sales
–Error by staff managing POS system because of lack of training and understanding of POS system

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Key Considerations VI
Technology Stack
•Multiple systems and vendors engagement
–POS System
–BI and Analytics System
–Digital Campaign Management
–Process Automation – tracking inventory, workflow and approval for movement of goods from/to goods by retailers
–Staff Productivity
–Task Management
•Airport industry experience & expertise – a must attribute for vendors of each system

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Store Sense

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Store Sense – High Level Architecture
Real Time
Sales Data
CollectionStore SensePOS
BI &
Analytics
Capabilities
•Inventory Planning and
Merchandizing
•Campaign Management
•Process Automation
•Staff Productivity
•Task Management
•AODB Data
•PAX
•Flight
•Gate
•Contract Management
•Income Computation
•Budget & Plan
Store Sense Integrated System

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Key Considerations I
Financial Impact
•One solution to meet twin objectives of ‘Real time POS sales data’ and ‘BI & analytics for commercial department’
•Rapid Implementation leading to lower Setup cost
•Maintenance cost/ running cost is low as it is a nonintrusive device with respect to any POS system.
•Subscription based investment plan – no Capex investments
Setup
•Plug and Play Technology that can connect with all types of PoS systems across retail categories like FnB, Electronics, Apparel, DFS, etc.
•No Staff training needed for Retailers.
Low on Operations & Maintenance
•Easy onboarding of any new retailer
•No training impact on retailer staff churn

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Key Considerations II
Business Intelligence and Analytics
•A prebuilt and integrated BI solution with Store Sense
•Role and user-based dashboards with security access control for content, data, features and functionalities
•Analytics not only restricting to Sales data but cross linking with other data sources like ERPs, AODB,
Boarding Pass/ Passport Scanner, Budgets, Plans, etc.
•Web based user-friendly interface with feature functionalities like drill down/ across navigation,
collaboration, export to MS office supported format or pdf etc.
•Comprehensive list of KPI like ATV, Penetration, Transaction Volume, Sales per PAX, Sales per Sqm
Inventory Planning and Merchandizing
•Top / best selling products – avoid lost sales due to out of stock situations
•Inventory optimization and carrying cost – avoid out of stock and over Stock situations
•Inventory aging

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Key Considerations III
Campaigns Management, Execution and Analytics
Store Sense pre-integrated Campaign system capabilities:
•Plan promotions and campaigns at the airport across retailers
•Engage more popular brands
•Drive cross sell and up sell through personalized campaigns
Data Governance
•Month-end sales data reconciliation process framework
•Correctness and data accuracy
•Completeness of data
•Timeliness of data availability
•Security for access control

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Key Considerations IV
Store Sense – Integrated Technology Stack Framework
Airports Harness Store Sense Capabilities
•Digital receipts of sales transactions with option to monetize and format as per Airport and retailer preference
•Integration with existing Loyalty program to incentivize Passengers.
•Digital process automation to for inward and outward goods movement from the Airport.
•Employee Productivity, and Communication: Location tracking of the retailer staff at the Airport and communication
in one go.

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Assessment Summary

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Store Sense vs. Airport POS
Comparative GroupFeatures Store SenseAirport POS
Sales Transaction Data Collection
System
Capex CostNoYes
Implementation & Setup CostNoYes
Setup TimeframeLowHigh
Subscription Based PricingYesNo
Support & Maintenance CostLowHigh
Single Unified Platform for all RetailersYesLow Probability
Analytics & BI System
Capex & Opex Cost IncludedSeparate
Support & Maintenance CostIncludedSeparate
Setup TimeframeLowHigh
Support & Maintenance
System ManagementLowHigh
New Vendor OnboardingSimpleComplex
Operational SupportLowHigh
Strategic PartnershipNumber of Partners for POS Data and BI System12
Modules and Extenstions
Digital Receipt Customization by RetailerYesNo
Digital Process Automation - movement of goods by retailersYesNo
Store Staff Location TrackingYesNo
Task Allocation & TrackingYesNo

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