A number of retailers are investing in new software and other technology as a means of improving store operations. This is particularly the case with point-of-sale (POS) systems that can be leveraged to expedite the checkout process.

For example, many merchants are now experimenting with tablets such as Apple's iPad. Some arm their sales associates with the devices to help customers find specific items and learn more about merchandise. Others incorporate them into the frontend for use as POS terminals. There are a number of potential ways to use these devices, depending on the needs of the brand.

"When it comes to retail software, one of the key questions many merchants are asking has to do with hardware – namely, what role tablet computers will play at the point of sale and how these devices can be integrated with existing POS systems," adds Business Solutions magazine.

Some retail merchants are using tablets to run Retail Pro's own software. For example, Chinese Apple Premium Reseller iSpace leverages the iPad as a touchpoint for operating Retail Pro's management solution.

Retailers are increasingly using new technology to protect profits and improve store operations. Over the past few years, new innovations in shrink reduction, point-of-sale (POS) payments and customer engagement have changed how many merchants run their stores, Retailing Today reports.

How technology is impacting retail

Loss prevention technology has traditionally been the primary solution merchants have used in the past. Security cameras, alarms, anti-theft tags – these solutions help ensure companies don't lose stock to criminals, which would force them to raise prices for their honest customers. As the news source notes, loss prevention and shrinkage is a $100 billion dollar issue that retailers have tried to address with a variety of technologies.

However, many merchants are using other technologies now as well. For example, American consumers have become obsessed with the prospect of the personalized shopping experience. They want specific items that are tailored to their needs. This extends beyond products as well – Americans are taking to social media as a way to get answers to their problems.

"Customer relationships are shifting towards a one-to-one model instead of a one-to-many approach that was used in the past," the news source explains. "The emergence of trends such as omnichannel retailing gives retailers the opportunity to address the shift and offer their merchandise to shoppers at the moment of interest, and sell at the moment of decision, but it also raises shoppers' expectations with a promise of availability."

Finally, new technology is being applied to the point of sale as well. Contactless credit and debit cards are one such solution that expedite the payment process, meaning consumers are spending less time waiting in line and more time enjoying the shopping experience. Additionally, mobile technologies – both in terms of accepting mobile devices as a payment source and using smartphones and tablets as a point-of-sale terminal – have also created new opportunities for businesses.

Retailers need to consider these new technologies as a way to not only keep pace with but also gain a leg up on their competitors.

"Retailers of all sizes need to capture, interpret, report and intelligently respond to real-time operational data from stores, employees, inventory and shoppers," Retailing Today added. "That data can be collected from existing store systems as well as a number of sensor devices – from traditional EAS tools and newer RFID-enabled solutions, to traffic counting and video analytics."

For many traditional brick-and-mortar retailers, there is a stark divide between online and in-store. However, this creates a challenge for retail merchandising strategies in an increasingly digital world.

As a result, many high street shops in the U.K. are taking the plunge into the online world. One way retailers are reinvigorating their brick-and-mortar outlets is by incorporating visitors through social networks.

For example, technologies such as interactive dressing rooms partnered with social media allow customers to comment on products, influence retailer decisions and even get feedback from friends, The Guardian reports.

"Involving customers in product design and inventory decisions can optimize stock-to-sales ratio and control operating costs," the paper explains. "In time this could even change how fashion trends unfold as customer demand influences seasonal ranges and retailers' buying decisions."

Social retailing doesn’t need to be locked up in the virtual dressing room, though. Shops can use social networks to promote in-store events or share discounts only redeemable at a brick-and-mortar shop.

Retailers in the United Kingdom may see some radical changes in the ways consumers shop over the next few years, with eBay's U.K. branch proclaiming the sector is "on the cusp of a third wave of technological revolution."

According to a new report from the popular online auction site, interactive television will have the biggest influence on buying habits, with one in four shoppers expected to use this technology to shop by 2014. As Auction Bytes notes, that translates to approximately £750 million ($1.18 billion) worth of retail sales.

The research also suggests augmented reality will play a bigger role in shopping, overlaying digital information on products, spaces and places that consumers will be able to interact with.

"This will range from allowing shoppers to view 3D projections of products that aren't physically present or allowing them to virtually try on clothes," according to eBay UK.

Other currently used technologies, such as NFC payment systems and mobile devices, are expected to have an even bigger presence at retail as well, further driving change to the sector.

Smartphones have opened up new channels for retail and consumer engagement. However, many stores have seen the devices as a complication to retail operations rather than as a benefit.

A recent survey from ABI Research debunks myths that smartphones are encroaching on brick-and-mortar stores by revealing that retailers that develop their own apps actually see greater customer engagement in-store.

According to the study, 45.8 percent of respondents said that retailer-branded apps spurred them to visit the store more, 40.4 percent noted that the app made them more likely to purchase products or services from the store or brand and 40.4 percent said they were more likely to tell a friend about their shopping experience at the company.

"These are overwhelmingly positive numbers," said senior analyst Mark Beccue. "They are so compelling that if retailers do not have a smartphone app strategy in place right now they are in danger of being left behind by their competitors."

However, these numbers reflected only users of retailers' mobile apps – a number which remains low at only 25 percent. Additionally, 37.9 percent who said they had downloaded a retailer's app explained that they had also downloaded other retailers' applications.

For retailers, this means that not only do they need to improve outreach and engagement among consumers to boost use of their app, but they will also need to make sure their apps are compelling, useful and able to compete with other retailers.

"Once a retailer can capture a consumer with one, there is a real opportunity to leverage smartphone apps to enhance customer service, deliver richer, more relevant product information in real time, shorten checkout lines, and more," added Beccue. "We are at the dawn of a very dynamic and creative time for retail."

Other studies are attesting to the primacy of tablet computers in retail operations, however. According to Bloomberg, Barclays Equity Research analyst Darrin Peller explained in a note that retailers are preparing to equip sales associates with the devices.

In fact, Peller predicts that by 2015, more than 2.7 million tablets will be shipped across North America to be used by the retail and hospitality sector. Additionally, in 2012, 65 percent of retailers plan to use the mobile devices in store – a 6 percent year-over-year increase, Bloomberg reports.

Technology is creating new challenges for retail operations, including the need for new marketing, outreach and engagement strategies.

According to the recent Multichannel Shopping Survey, one trend spurred from technologies such as smartphones, apps and tablet computers is a desire on behalf of consumers for more integrated brick-and-mortar and online operations.

For example, 45 percent of respondents said they would like the option to pick up online purchases in-store, and 28 percent cited the ability to return online purchases in-store as their top desire. Offering these services can actually boost customer loyalty as well. Eighty-two percent of respondents said they would return to patronize a retailer who accepted online returns in-store.

"Consumers are shopping on a variety of channels and devices, often simultaneously, with new technology introduced virtually every day," said Steven Kramer, president of North America at hybris. "What we have found is that consumers have expectations that their favorite retailers will be accessible to them anytime and anywhere.

Retailers can also investigate how apps may spur in-store engagement and purchases.

A new study from Custora – a web and mobile analytics firm that serves a number of retail clients – suggests that while traditional online shoppers may spend more money, mobile shoppers are making more frequent purchases.

Data from the company's research notes that mobile shoppers make 59 percent more purchases than those browsing from desktop PCs. On average, however, the mobile customer tends to spend 12 percent less than their online counterparts, indicating that while smartphone shoppers are important, ecommerce consumers should still be the primary targets.

Moreover, online shoppers tend to be more consistent. Monday through Friday, mobile sales accounted for 15 percent of total ecommerce expenditures. This figure jumps by 60 percent on weekends to 24 percent, suggesting consumers are more active on their phones on Saturday and Sunday.

There were further discrepancies based on the niche a retailer occupied, Internet Retailer observed from Custora's data.

"A Custora housewares merchant client can expect 97 percent more profit from mobile customers than from desktop customers over the course of a two-year cycle, or lifetime value, the study finds," Internet Retailer added. "Mobile customers of housewares order 105 percent more often than desktop shoppers and their average order size is 13 percent greater."

More than 8.2 million customers were examined as a part of the study, with data collected from companies that generate between $50 million and $150 million annually.

Qualifying mobile customers

While Custora's data shows that mobile shoppers are frequent buyers, it also highlights the fact that different retailers may get different results. When planning new ecommerce programs, merchants should always consider their audience before making any meaningful changes to store operations.

"We all know mobile commerce is growing, but there’s no easy way to categorize mobile customers – they behave differently for every retailer," Corey Pierson, cofounder and CEO of Custora, told the news source. "To develop a mobile strategy, it’s critical to understand what mobile means for your specific customers."

Regardless of whether a business ends up incorporating mobile, it's still important to consider the new technology because of its growing user base. According to data from comScore, upward of 106 million American consumers currently own these devices.

Tablet devices are no longer just luxury toys for affluent consumers – they have real value for businesses, particularly retailers. When used in conjunction with specific hardware, they can be converted into mobile point-of-sale (POS) terminals for a fraction of the cost of traditional systems. Moreover, they are tremendously more flexible – a tablet can be carried anywhere, whether it's the front of a store or a sporting event, enabling merchants to conduct transactions regardless of location.

That said, Software Advice recently offered some suggestions for brands looking to use tablets as POS devices. The blog spoke with several small-time merchants who recently began using the devices to determine the best way of incorporating them into store operations.

1. Don't go all out

Tablets are inexpensive, but that doesn't mean retailers should go and purchase a dozen for use in the store. Traditional point-of-sale systems still have a number of notable benefits, and tablets do have some drawbacks as well. Not to mention the fact that this could add up and that tablets tend to have a short lifespan compared to other POS solutions.

2. Outsource setup

Using tablets as retail POS terminals may be a foreign concept to many merchants. When deploying these devices, then, it may be a better idea to hire someone more familiar or experienced with integration.

"My time is limited. It was helpful to have an expert set everything up," Stacey Barnes, cofounder of toffee shop GoodyTwos, told Software Advice.

"A reseller can focus on migrating data, setting-up merchant services accounts, and ensuring the deployment goes smoothly. Resellers can also help with integration of previous systems," the news source added.

3. Get people involved

Among retailers, using tablets for checkout purposes is a new concept, but among consumers, it's practically unheard of. As a result, merchants may be able to impress shoppers with their cutting-edge mobile POS systems. The news source suggests getting people involved with the checkout process using the tablets – have them sign receipts using the touch screen or let them finish the transaction by hitting the final confirmation button. It's all about crafting a new consumer experience.

Recent data from RIS News highlights the growing prominence of tablets at retail – approximately 28 percent of merchants are currently using these devices.

MasterCard has announced a new PayPass Wallet Service to compete with other technology and payment processors with mobile offerings. The initiative consists of a digital wallet, payment acceptance network and interface system with banks, merchants, technology providers and consumers. So far, two major partners have been announced Barnes & Noble and American Airlines.

PayPass Wallet Service program

The PayPass Acceptance Network includes PayPass Online and PayPass Contactless, depending on where the retailer conducts point-of-sale (POS) transactions. PayPass Online, as the name conveys, is intended for ecommerce platforms, enabling customers to enter their payment information once and then use that data for all subsequent purchases.

PayPass Contactless, on the other hand, is for brick-and-mortar retailers. This is the contactless POS payment system that enables merchants to accept payments from near field communication devices, such as smartphones. These stations are integrated into traditional POS terminals and enable consumers who own these devices to use them to complete payments.

The PayPass Wallet is essentially a digital wallet service that any organization, ranging from banks to merchants, can offer consumers under their own brand. This enables companies to bolster shopper awareness by offering trendy payment options with their own name and can be used in conjunction with other credit cards offered by American Express, Discover and Visa.

Cross-platform interaction is pivotal to the success of MasterCard's PayPass initiative, and the Application Programming Interface (API) enables that. "The API allows those participating in the program to connect their digital wallets, enabling customers to make purchases wherever PayPass is accepted – on the web, the mobile web and in-store," the credit card provider explained.

Learning new technologies

Speaking with Internet Retailer, Rick Oglesby – senior analyst at consulting firm Aite Group – was quick to point out that mobile wallets, and by extent, MasterCard's PayPass initiative, represents a paradigm shift in terms of how consumers pay for goods. Shoppers will need to acclimate themselves to the new way of spending money before it truly becomes mainstream.

"Consumers will need to register for the service and learn to recognize it and use it," he told the news source. "If MasterCard achieves a level of critical mass on consumer enrollment, then merchants will definitely accept it. That being said, it is a competitive environment with others offering similar services, so driving consumer enrollment and activation will be key."

Retailers looking to employ radio frequency identification technology as a means for improving store operations are driving growth of the RFID industry in general, according to a new report from RNCOS.

RFID tags can be placed on shipping crates and containers, allowing retailers to better track and manage their inventory. Some merchants are expanding on that use, leveraging item-level tagging to reduce stock-outs and improve stock replenishment speed and customer service. In turn, increased use of this technology has been a boon to the RFID industry, which is now producing more of these tags in response.

"It is expected that the overall growth in the RFID industry will outpace other automatic identification technologies, like barcode," the report notes. "The entry of new players, technological advancements, mergers and acquisitions, and increasing government support will keep on benefiting the global RFID market, which is estimated to grow at a CAGR of around 18 percent during 2011-2014."

Walmart, for example, uses RFID technology to track specific pairs of jeans and underwear, helping the company keep track of inventory levels.