POS Systems Become Popular In Retail Petroleum Industry

According to a new research by Frost & Sullivan, the entry of retail outlets such as supermarkets and mass merchandisers into the retail petroleum industry is fast opening new opportunities for Point-of-Sale (POS) terminal manufactures.

Hypermarkets that have ventured into the retail petroleum business, have met with considerable success due to their competitive fuel pricing and discounted prices linked to loyalty programs and cross-merchandising. This is increasingly creating a segment for POS solution vendors to capitalize on the many growth opportunities available in this area.

New analysis from Frost found that the retail petroleum POS terminals market earned revenues of $710.2 million in 2006 and will grow to reach $975.8 million in the next two years.

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The study said that bigger terminal manufacturers with strong global presence are already moving beyond mere payment terminals to provide highly comprehensive solutions for the retail petroleum industry. These solutions address both hardware and software aspects as well as meet customers’ expectations by being a one-stop source for the value-added applications that retailers demand such as loyalty programs, gift cards, in-store management and Internet connectivity.

With access to considerable financial and human resources, these companies are able to provide globally acceptable solutions. Moreover, they have well-established infrastructure and universal presence, which helps them render superior service as well as provide critical insights into local market dynamics.

But the study also revealed that despite the multi-application and value-added functionalities of POS terminals, many retailers in Asia remain largely unaware of these benefits. Although POS systems are instrumental in improving merchandising, inventory control, and bottom-line growth, several fuel station operators believe that they are not crucial enough to warrant upgrades of existing equipment or installation of new terminals.

However, Frost believes that as these merchants become aware of the advantages of POS terminal s over the course of time, the situation will change dramatically and more number of customers will invest in terminal purchases.