NRF: Time for Supermarkets to Let Go?

One of the big themes at NRF this year was "mobile", specifically consumer mobile. Smart phone apps were everywhere, those offering consumers all sorts of real-time information. But behind all the glamorous devices and sexy apps sits the infrastructure of wireless technology that is currently rolling out its fourth generation of hardware. This 4G infrastructure will give wireless network users a broadband experience without requiring a physical attachment to the network (even though "broadband experience" is left to interpretation because the speed is still less than one tenth of cable).

Network access has been the last hurdle preventing many retailers from moving critical in-store processes to network based applications. Supermarket retailers have moved applications such as backdoor receiving from an in-store processor to the network, but they have not moved critical front-end applications. Maybe it's finally time for supermarkets to consider moving their front-end apps out of the store.

Every supermarket CIO has been through the experience of a "down store." The vision of customers in line, abandoned shopping carts of frozen food and totally demoralized store personnel is what keeps their store systems managers up at night, and they are certainly not comforted by the thought that the integrity of their front-end operations depends on a thin wire running underground.

But maybe 4G will be the answer. There are many devices available today that monitor the wired connection and "seamlessly" transfer over to a wireless alternative. We already rely on the network for electronic payment and benefit transactions. Centralized POS discounts are also becoming common. With the high speed wireless backup provided by 4G, maybe it is time to get all the front-end apps out of the store.

Before anyone throws away their in-store POS hardware, there are issues that still need to be considered. Even though 4G will be fast, it is still significantly slower than a wired connection. Don't forget the impact of 9/11 when cell phone service in lower Manhattan became inaccessible because of everyone trying to replace their wired connections at once during an emergency. Special POS systems that support a local cache of "master data" -- such as item descriptors, plan-o-grams, image files, etc. -- may be necessary to minimize network traffic. POS terminals, where you attach peripherals, such as cash drawers or printers, still need the driver software updates and other maintenance associated with the peripherals. While centralizing an application reduces the technical issues associated with upgrades, they require greater quality assurance and training considerations. Each upgrade will have the potential of impacting all stores in a chain and the people in the store have to be prepared ahead of time for the application changes.

• More info on 4G - CNET Reviews