Letter From the VP, Mark Baskfield

It’s hard to believe that it is already “Back to School” time. Up here in Minnesota, that means that summer is coming to an end. With the cold and rainy spring that we had, it just seems too short. It won’t be long before the notebooks, pens and backpacks will be replaced in the stores by snow shovels, sleds and ice melt (be thankful that you don’t live in Minnesota).

I know that August is only beginning, but our customers are looking ahead to Black Friday, and the holiday shopping season. The National Retail Federation has said that retailers have started earlier this year with sales and promotions. They have been sending in their POS systems from closed or underperforming stores for refurbishment, so that they can be redeployed into New stores or used as additional registers in busy stores.

Some are taking this time to make enhancements to their exiting lanes by adding additional memory or changing out their old CRT displays and converting to flat panel touch displays.

Now is the time to be thinking about those projects and preparing for what hopefully will be a busy "back to school" and holiday season. Ask us how we can help-- the sooner the better. Make this retail season a great one, and remember, it starts at the point of sale.

For more statistics on back to school trends, check out: "A quick look: Back to school by the numbers," a blog post by NRF: http://bit.ly/nY5DHI

Employee Highlight: Dave Mayer, Account Manager

Dave received a BA Degree from Mankato State University followed by an MBA degree from Cardinal Stritch University in Milwaukee. Dave has spent his entire career in the high-tech industry developing his technical, marketing and customer service skills. His focus has been on POS equipment and related computer products. Before joining Retail Tech, Dave served as Vice President of Sales for Northern Computer Products, Sales Manager for ExpressPoint Technology Services and Marketing Representative for DataServ. He also held key marketing positions for other technology-related companies. Dave enjoys spending free time with his wife and two children. He also likes all sports, especially hockey.

Are you prepared for the "back to school" crowd? Featured

InventoryNew to our website, we have added a "Featured Inventory" section on the homepage. Retail Tech has a vast inventory and are ready to move some of it! While much of this hardware will have prices listed, some will not. Please contact your sales rep with any questions. Make sure to frequently check back to see new specials!

Inside this issue:Pg. 2: RTI Solution for K-MACPg. 4: Self-Checkouts-Are they Out?

1

Retail Tech TimesJuly Edition

2

Technology Challenge

In the early 2000’s, in need of a POS refresh

project, K-MAC management committed their

business model to technology. Roger Morris,

Manager of Information Systems, said “K-MAC

does not view the POS system as just another

piece of equipment in our stores. It is a vital tool

to help the manager and the team in running an

efficient store while providing the best customer

service possible. Therefore, it is important in

providing the best equipment with the latest

updates.”

Unable to find a software solution to suit their

needs, K-MAC instead developed software to

Providing Solutions for Every Need.K-MAC Corporation

K-MAC Enterprises is a leading operator of Taco Bell and KFC quick-service restaurants, with more than 180 locations. The company's restaurants, franchised from YUM! Brands, are located mostly in Arkansas, as well as in Missouri, Oklahoma, Texas, Tennessee and Indiana. K-MAC also owns and operates a small number of buffet-style family steak houses franchised from Golden Corral.

Some of the many Taco Bell, KFC, and Golden Corral locations owned by K-MAC.

-Pictures courtesy of Roger Morris

When looking for a vendor, K-MAC considers...

1. Can this vendor provide product to the size of our company?

2. Is this vendor price competitive?

3. When mistakes are made, is the vendor willing to take responsibility, and make it right?

4. Is this vendor someone we can build a long lasting and mutually beneficial relationship with?

3

“Retail Tech provides a low price, product availability, and a strong

customer relationship.”

–Roger Morris, Director of Information Systems

parallel their vision. After a successful install

into the restaurants, K-MAC began to sell their

software along with the capability to purchase

hardware as a dealer. In 2005, K-MAC decided to

get out of the software business and looked to

upgrade existing hardware. K-MAC considered

Retail Tech after the company provided K-MAC

with parts for their existing systems which were

seven years old.

Story Continued on Page 5 --->>>

4

Self-Checkouts: Out before they are in?

TechTOPICKS Blog

In a hurried panic, you rush out of work at 5, just in time to stop at the grocery store before your din-ner party at 6. You forgot chocolate chips for the desert you have committed to baking. Kroger is on your route home, so you run in, grab the missing ingredient, and dash for a self-checkout machine. As you approach the registers, long lines stream from the cash wrap. You scan the area for a self-checkout machine, but they seem to have disappeared.

If you share my feelings for self-checkouts, this scene may appear dreadful to you. I find myself using the SCO’s for almost all my shopping. Maybe it’s because I am always in a hurry, or tend to shop for only a few items at a time? Either way, I appreciate having the option to checkout at my own pace with little human interaction. On the other hand, the frustration of “not bagging my items” properly can be nerving and a bit of an annoyance at times. Also, while attempting to avoid the awkward cashier conversation, using the SCO can instead become elongated due to the num-ber of times a cashier code needs to be entered to continue scanning my items. Sound familiar?

Obviously, SCO’s have both pros and cons. Some of the more apparent benefits include saving in labor costs with little cashier intervention, and a smaller POS footprint. The space of one or two normal lanes can be replaced with four-six self-checkout machines. However, the cons of SCO’s include slowdowns at the cash wrap, lack of replacement parts available, small secondary market, and the increased prices as an SCO is generally more expensive due to custom building and automation.

At the beginning of this post, I cited Kroger for a reason. In a recent article, “Kroger Testing A Self-Checkout-Less Grocery Store,”, the largest grocery chain in the U.S., is experimenting with a change in their POS landscape. By removing SCO’s, Kroger is

exploring the option of rewarding customers who make high volume visits. SCO’s tend to benefit single or double households looking for a few items at a time, rather than incentivizing the shopper who may have less time for multiple shopping visits and mini-mal disposable income.

While I would selfishly miss the self-checkout machines, I think Kroger’s initiative is spot on with the development in Customer Loyalty programs. These self-checkouts have been around since 1987, yet their popularity did not peak until 2000. Interestingly, a trend that was supposed to revolutionize point of sale is instead maturing in the industry as fast as it entered. So, what will happen?

Read More posts like these: http://www.retailtechinc.com/pointofsaleblog/ Subscribe to receive these posts via email.

5

K-MAC Point of Sale Solution----->

pos@retailtechinc.comwww.retailtechinc.com

877.580.9687952.380.0493

As an industry leading point of sale reseller,

Retail Tech, prides itself on the ability to provide any solution, for any budget. In fact, when it comes to point of sale hardware, Retail Tech does it all. By offering retailers, grocers, restaurants, and third party maintenance companies a low-cost alternative to new POS equipment, Retail Tech also buys and repairs parts and hardware. Retail Tech not only sells some of the top manufacturers such as IBM, Panasonic, Epson, Logitech, and Symbol/Motorola, Retail Tech's IBM POS Consignment Vendor Contract provides the company with unlimited access to off-lease, excess, and discounted IBM inventory. No matter what your hardware solution, Retail Tech has the resources!

Solution

First, K-MAC invested in enough new

registers, from Retail Tech, for half their stores.

Consequently, the old, de-installed systems

were used for replacement parts to the already

existing equipment in the field. After extending

the life of the old equipment, K-MAC found that

it was in their best interest to update the last

75+ stores with new IBM systems. K-MAC was

very satisfied with the first wave of registers

Retail Tech supplied. There was no question

K-MAC would again partner with Retail Tech for

the remaining systems.

Long after the initial installs, Retail Tech and

K-MAC continue to have a successful working

relationship. Leveraging Retail Tech’s vast

inventory, K-MAC is able to retrieve parts,

upgrades and continued service through the

company.