SLUG: 5-51337 Retail/Technology DATE: NOTE NUMBER:

DATE=03/28/02

TYPE=BACKGROUND REPORT

TITLE= RETAIL TECHOLOGY

NUMBER=5-51337

BYLINE=LINDA CASHDAN

DATELINE=WASHINGTON

CONTENT=

VOICED AT:

INTRO: The economic slowdown of the last few months has prompted U-S retailers to try out new technologies in hopes of cutting costs and strengthening their relationships with consumers. Linda Cashdan takes a look at some of the new gadgets finding their way into stores today.

TEXT: Portable cash registers enable clerks to step in when they see a long line forming at check-out counters, and speed things up.

In addition, Forrester Research retail analyst Kate Delhagen says, some stores are installing self-service check out systems.

/// DELHAGEN ACT ///

It's a cashier-less checkout system, where the customers scan their own products, and get through the line more quickly. And, although the initial cost of putting in one of those registers is relatively high, the retailer no longer needs to staff that register with a human being, so they are eliminating labor costs.

/// END ACT ///

Another gadget in stores: Harold Raveche (pron: RAV-uh-shay), the president of Stevens Institute of Technology, says some stores offer consumers hand-held computers that help them keep track of how much they are spending, before they get to the check-out counter.

/// RAVECHE ACT ///

In supermarkets, you have hand-held devices, or wireless technology, that you can scan and see what is in your wagon as you go around. In fact, in some places, you can do it remotely (over the Internet), and then they will deliver it to your house.

/// END ACT ///

Hand-held computers enable workers to tag merchandise on store shelves, and keep track of inventory. Kate Delhagen, the retail analyst, says store inventory databases these days are able to keep track of precisely where products are -- on the shelves, in the supply chains or already sold.

/// DELHAGEN ACT // OPT ACT ///

Many retailers are now using real-time sales data that they will capture through the point-of-sale terminals to keep track of the inventory as it moves out of their stores, and they will send that data directly to the manufacturers to do an automatic replenishment or re-order.

/// END ACT // END OPT ///

Then, Kate Delhagen says, there is the emergence of digital screens that explain to customers what products can do and how they work, as well as showing advertisements for the products.

/// DELHAGEN ACT ///

For example, you might be in an electronics store, and some of the display technology around those products is beaming out marketing messages from some of those suppliers. You may see a commercial (for the product) while you are looking at a product. These are some marketing developments that are starting to show up.

/// END ACT ///

Today's marketing tool may well become tomorrow's information source. Can't find a salesperson? Increasingly, in the store of the future, Kate Delhagen predicts, you won't need one. You will be able to have most of your questions answered by a digital screen. (signed)

NEB/LRC/TW