Dell is branching out beyond its
traditional market making a move into the electronic cash register market,
targeting retail stores nationwide.
The new PC-based cash registers are equipped with special software, services
and peripherals, which will enable merchants to connect customer buying
patterns with wider company networked information systems. Dell says it will
focus on "medium to large retailers."
The two new types of PC-based registers can be customized for a variety of
automated processes for different types of department and convenience store
operations. Dell is marketing the new registers, as low cost PC-based
systems, and an alternative to more expensive, traditional point-of-sale
systems.
Dell's foray into the cash register market pits against entrenched
point-of-sale leaders, including IBM , NCR Corp. , not to mention HP and Sun
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, which have recently entered the market.
The main reason Dell and others are moving into the electronic cash register
market is because it is not only lucrative, but also because IBM has
dominated the business for years. IHL Consulting Group estimates the North
American market for cash register systems to be $4 billion a year.
IBM has the bulk of the contracts with the leading retail and grocery
chains, and now its computer manufacturing competitors are looking to cut
into its market share. The various computer vendors will be bidding on
contract proposals for everyone from national retailers to gas station and
convenience store chains.
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Dell plans on pitching its new products to storeowners as a low-cost
alternative to what it sees as aging, and more expensive point-of-sale
systems.
Dell says it will connect retailer desktops, servers, storage and networked
products and services with a variety of peripherals customized to each
retailer's needs. Dell said its point-of-sale configurations will start at
$1,794 and for that price would include, a Dell Optiplex desktop, a flat
panel or CRT display with standard or touch screen features, keyboard with
programmable keys, barcode scanner, thermal receipt printer and cash drawer.
Dell says its systems, along with its software partners, will enable stores
to automate operations, including customer sales transactions, inventory
management, payments, accounting, customer data and corporate
communications. Dell's software partners include four independent software
vendors (ISVs): Retek , AutoGas, GERS Retail Systems and
MSS Global.
Dell is showing its new PC-based electronic cash registers at the National
Retail Federation's 92nd Convention and Expo in New York this week.
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