Not willing to be outdone by the giants in the supermarket arena, the Dutch-based Spar group has celebrated its 40th birthday in the UK by becoming the first operator in the convenience store retail market to launch a completely new IT retailing solution for its 2 500 UK outlets.
The decision is part of the group`s long-term strategy to maintain its position as the world`s largest food retailer in terms of turnover (lb21 billion in 1996).
Roy Ford, Retail Systems Manager for Spar, says: "We were the first to offer extended hour trading and we had nearly 10 years of that before the supermarkets caught up and started trading equal hours. We now need to move on."
The lb6.5 million investment comprises a new custom-built point-of-sale network system and to implement this, Spar is working closely with Vista, a DigiPoS Systems Group Company and Microsoft Solution Provider.
The new system, SparPoS, is a Windows-based client/server application running on DigiPoS retail hardware supplied by Vista. It aims to shorten queues and allow store owners to capture valuable data about their customers buying patterns. This, together with the system`s ability to maintain records for stock control, sales reporting, automatic ordering and high-speed credit checking, will enable the group to monitor each outlet`s performance and optimise the group`s sales and marketing strategy.
Phil Pepper, MD of Vista, is committed to an approach, which combines state of the art technology with high levels of staff accessibility and responsiveness. He adds that he is confident that the solution developed in conjunction with Spar will prove a very attractive proposition for retailers who are considering joining the group.
The system will be installed at over 500 SPAR stores UK-wide over a two-year period, and all in-store systems will be linked to the group`s head office in Harrow. It took the decision to install the system nationwide following a successful pilot project at a flagship store managed by wholesalers, Alfred Jones, in Waterloo, Warrington.
Warren Ward, IT manager at Alfred Jones, says: "The Waterloo store is open 365 days a year, 24 hours a day, so the project had to run smoothly in demanding conditions. We`re very pleased with the compact design and reliability of the DigiPoS hardware but what really made the installation a success was the outstanding dedication and commitment of the Vista team.
"It has built-in facilities for loyalty card schemes, discounts and multi-buys for every kind of consumers. The replacement of end of day procedures by real-time updating makes this a truly open system that can be mixed and matched with most non-proprietary peripherals. This suits our future plans perfectly," says Ward.
The loyalty card scheme is more complex for Spar than those of the larger retail supermarkets, as its customers make more visits but on average spend less on each trip. In order to get over this problem, the group will sign a deal with a non-competitor to run a joint scheme which will run along similar lines as Shell`s loyalty trial with John Menzies and Dixons in Scotland, where customers can claim points at each of the three retailers.
Roy Ford hopes the new system will give the group an edge by allowing it to collate detailed information on customers that can be used for joint projects with its various suppliers. Future initiatives include the introduction of American-style fast-food outlets such as Subway or Blimp into its stores.
Says Ford: "Spar is leading the field in implementing flexible IT tools which address the specific needs of small to medium-sized retailers. The new system is a Rolls-Royce piece of equipment and will provide an easy upgrade path for existing users, taking scanning traders into the 21st Century in one single step."
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