NCR Corporation (NCR) announced that its point-of-sale (POS) solution – NCR RealPOS 40 – has been chosen by No.1 People’s Department Store of Zhangjiagang City Co., Ltd. — the oldest commercial enterprise of Zhangjiagang City — for its stores. NCR further revealed that Shanghai Anmao Information Technology Company, its channel partner in China, is installing the devices at People’s Department Stores in Hangzhou city.
The NCR RealPOS 40 has been designed to provide outstanding value for retailers of all sizes. The solution offers stable performance and has a long life, which helps retailers maximize their return on investments while enhancing customers’ checkout experience.
The NCR RealPOS 40 — the smallest form factor in its class — is 40% smaller than its predecessor and therefore saves space. Furthermore, NCR claims that this POS solution is 68% more energy efficient than its previous model, and therefore helps both the retailers’ bottom-line figures as well as the environment.
People’s Department Store’s adoption of NCR’s POS solution is in line with the retailer’s strategy of entering the e-Commerce space. The new solution will help the retailer in streamlining the checkout resources for both online and offline customers. Apart from this, it will enhance customers’ shopping experience by helping them to buy online and pick up the items at stores.
The current deal is significantly important for NCR as Retail Banking Research forecasts that China's installed base of Electronic POS technology will double by 2016.
The demand for NCR’s POS system solution is on the rise among retailers and restaurant owners. One of the primary advantages of the system is the automation of bill payments and accounting, thus freeing up managers for customer interaction, leading to increased productivity. NCR strengthened its position in the POS market through the acquisition of Radiant Systems in Aug 2011.
According to TechNavio, the global POS software industry is expected to increase at 8.03% CAGR (2012–2016). Moreover, TechNavio forecasts a 7.7% CAGR for the global wireless POS terminal market over the same period. Thus, NCR with its varied POS terminal offerings and solutions should be able to capitalize on these opportunities.
We believe that NCR’s growing exposure to the retailers and restaurant owners is encouraging, given the tremendous growth prospects. Regular product launches, growing popularity of its self-service offerings and synergies from acquisitions are the growth catalysts for the company. We consider that NCR’s commitment to protect the trust and integrity of the companies has been inspiring retailers and a host of other companies to choose its services.
However, similar offerings from the likes of Diebold Corp. (DBD) and International Business Machines Corp. (IBM) could create some pressure.
Currently, NCR has a Zacks Rank #2 (Buy). Alternatively, investors may consider Fortinet Inc. (FTNT) which carries the same Zacks Rank as NCR.
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