While geopolitical and economic tensions are currently driving dramatic market reactions, it has been anything but plain sailing over the past few years.
Yet, despite the economic uncertainty and rand volatility, consumers in South Africa staged a remarkable recovery, with the retail sector ending 2024 on the rise, driven in no small part by a strong resurgence in the Black Friday rush.
To capitalise, local retailers know they simply must keep improving their retail experience because in-store retail has proven resilient and is staging a powerful comeback.
Our country’s first formal Black Friday index, for example, which was built on the data and insights made possible by Ecentric being the payments partner for 65% of JSE-listed retailers, made one thing clear: even during times of peak demand where online leads the charge, such as the rush between the beginning of November to Christmas Eve, in-store retail is undergoing a powerful resurgence.
In-store revenue as a proportion of total revenue during that period saw a whopping 109.4% surge, doubling from 5.3% to 11.1% of total holiday revenue.
Take a moment to reflect on that. During a time where the online retail sector is awash with Black Friday, Cyber Monday and Christmas discounts and specials, consumers are still choosing to purchase in-store.
If we zoom into that period specifically, the data from the Black Friday Index makes it abundantly clear that retailers that capitalised on the peak moments saw the biggest gains.
mPOS represents a sophisticated technology architecture that reimagines retail.
How do retailers capitalise on peak moments when the store is packed? And this is not just a concern for the end of the year. One only needs to spend time in retail stores on a Saturday morning, for example, or before and after work. The fast-moving consumer goods sector, already in a battle to optimise in-store space, is a prime example of queues that can snake through the store.
In this context, mobile point-of-sale (mPOS) technology is a gateway to a modern retail experience, and a modern retail experience is precisely what consumers are looking for. But what does “modern retail experience” in this context mean?
mPOS represents a sophisticated technology architecture that reimagines retail. It redefines actual interaction technologies. At its core, mPOS integrates cloud-based processing platforms with advanced technologies, such as machine learning, to enable real-time data interpretation and transactional intelligence.
This encompasses secure payment gateways, biometric authentication protocols, predictive analytics, and more, to transform traditional retail spaces into intelligent engagement environments.
In other words, mPOS transforms retail experiences by enabling more efficient, personalised customer interactions, while optimising operations for retailers.
Let’s look at some of the key functional capabilities of a well-designed mPOS solution.
In the context of retailers needing to capitalise on in-store crowds, elevated customer experience becomes a non-negotiable. The first, and most obvious benefit, is reduced queue times. One thing a retailer does not want is an abandoned trolley.
However, beyond a reduction in the amount of time spent in queues, mPOS enables in-aisle product information and purchasing. It supports omnichannel experiences, and as the key insights from the Black Friday Index make clear, omnichannel shopping is the future.
What if the customer does not see what he or she needs? mPOS technology enables access to broader product catalogues. In other words, with space constraints in mind, the retailer is able to engage the customer with an entire catalogue of products beyond just physical store inventory.
These products can be selected, paid for, and delivered to the store or the customer’s house depending on the product type and retail category. Beyond this, mPOS enables the selling of digital products, which opens up new revenues from value-added services.
mPOS is able to provide personalised in-store shopping interactions in much the same way as e-commerce. And so, knowing who the customer is, and their past behaviour both online and in-store, staff are equipped not only to offer them what they want, but to also upsell and cross-sell based on real-time and predictive intelligence.
The Black Friday Index showed that personal recommendations and targeted deals will set leaders apart. It is vital, in 2025 and beyond, that retailers use data for targeted promotions.
To state the obvious, online retail is limited only by what can be warehoused or sourced. Physical retail is different. The store is the showroom, and so in-store design plays a fundamental role in brick-and-mortar retail.
Retailers will be aware of return per square metre, where sales and management effectiveness are measured on the economic performance of different store sizes. There is a physical limitation – the floor area.
However, large point-of-sale infrastructure can often take up to 10% of the floor space, sometimes even more. mPOS can substantially reduce this, freeing up valuable space.
Another key aspect of mPOS is that it is not just a point-of-sale in the classic sense. It is an intelligent system that enables real-time stock tracking which improves inventory management. If we think about high-demand periods, such as Black Friday or the festive season, inventory management is absolutely critical to capitalise on the increased foot volume.
How often have we seen great technology, such as self-service tools, not used by South African consumers? mPOS addresses this concern in that it is staff-operated. In other words, there is no extra “burden” on consumers to curate their own seamless and frictionless experience. The retail staff do this for them, which is important for trust building and customer comfort.
The way technology has evolved means this level of modern retail is not the sole preserve of enterprise retailers – though it remains a fundamental capability if the largest retailers wish to remain competitive.
mPOS technology also opens up this level of capabilities to a much wider pool of mid-sized retailers that may not yet know that they, too, can reduce waiting times, improve in-store experiences, bring the full online catalogue in-store, and use hyper-personalisation to upsell and cross-sell at the physical point-of-sale.
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