advertisement
advertisement

This is page 2 of:

What Wal-Mart Didn’t Say About Its POS Move

November 16th, 2011

And all the new transaction magic would be going on in parallel with the existing (and untouched) POS software. Mobile coupons, expanded loyalty card offers and even promotions flashed on digital signage at checkout time could conceivably be added to a checkout lane in minutes and removed as quickly.

That’s a lot more nimble than anyone expects Wal-Mart to be. It has been easy to discount things like the iPhone shopping app that Wal-Mart released last week. It’s nice that the app can use barcodes or voice recognition to add items to a shopping list. A year ago that would have been impressive. But a month after the arrival of the latest iPhone—complete with its voice-activated know-it-all, Siri—the Wal-Mart app just seems me-too.

But the ability to do plug-and-play POS experiments falls into a completely different category. By tapping into the POS transaction stream for individual POS units, Wal-Mart should be able to test new checkout concepts very quickly and without touching critical systems. That could mean a lot more low-risk attempts at throwing something new at Wal-Mart customers at the checkout—quick to set up, quick to throw away if things don’t work out.

The Grabble hardware might also enable some store-management experimenting. Which end of the line of checkout lanes are customers most likely to hit, and with which types of products? Do those front-and-back express lanes attract customers with different types of items? Never mind filtering huge quantities of transactions from the existing systems—just slap in a few Grabble boxes to sample what’s moving through key lanes. A day or two later the boxes could be shifted to different lanes—or a different store.

That ability to sample POS data in real time, and experiment with checkout on the spot, is about as far from me-too as Wal-Mart could get.

Will Wal-Mart actually leverage what the Grabble garage-experimenters were working on? Wal-Mart isn’t saying—but that in itself says a lot. There’s a reason the Walmart Labs E-Commerce R&D group is half a continent away from Bentonville. Bringing startups in-house and turning their products into things the chain can get into place quickly, cheaply and with maximum impact isn’t how a behemoth operates. And when it comes to what Grabble can do, someone at Walmart Labs understands very clearly that this isn’t something the chain wants to broadcast at this point, especially to its competition.

Oops.


advertisement

One Comment | Read What Wal-Mart Didn’t Say About Its POS Move

  1. Rich Downing Says:

    Great find, Frank. This is indeed a move with potentially huge implications for Wal-Mart.

Newsletters

StorefrontBacktalk delivers the latest retail technology news & analysis. Join more than 60,000 retail IT leaders who subscribe to our free weekly email. Sign up today!
advertisement

Most Recent Comments

Why Did Gonzales Hackers Like European Cards So Much Better?

I am still unclear about the core point here-- why higher value of European cards. Supply and demand, yes, makes sense. But the fact that the cards were chip and pin (EMV) should make them less valuable because that demonstrably reduces the ability to use them fraudulently. Did the author mean that the chip and pin cards could be used in a country where EMV is not implemented--the US--and this mis-match make it easier to us them since the issuing banks may not have as robust anti-fraud controls as non-EMV banks because they assumed EMV would do the fraud prevention for them Read more...
Two possible reasons that I can think of and have seen in the past - 1) Cards issued by European banks when used online cross border don't usually support AVS checks. So, when a European card is used with a billing address that's in the US, an ecom merchant wouldn't necessarily know that the shipping zip code doesn't match the billing code. 2) Also, in offline chip countries the card determines whether or not a transaction is approved, not the issuer. In my experience, European issuers haven't developed the same checks on authorization requests as US issuers. So, these cards might be more valuable because they are more likely to get approved. Read more...
A smart card slot in terminals doesn't mean there is a reader or that the reader is activated. Then, activated reader or not, the U.S. processors don't have apps certified or ready to load into those terminals to accept and process smart card transactions just yet. Don't get your card(t) before the terminal (horse). Read more...
The marketplace does speak. More fraud capacity translates to higher value for the stolen data. Because nearly 100% of all US transactions are authorized online in real time, we have less fraud regardless of whether the card is Magstripe only or chip and PIn. Hence, $10 prices for US cards vs $25 for the European counterparts. Read more...
@David True. The European cards have both an EMV chip AND a mag stripe. Europeans may generally use the chip for their transactions, but the insecure stripe remains vulnerable to skimming, whether it be from a false front on an ATM or a dishonest waiter with a handheld skimmer. If their stripe is skimmed, the track data can still be cloned and used fraudulently in the United States. If European banks only detect fraud from 9-5 GMT, that might explain why American criminals prefer them over American bank issued cards, who have fraud detection in place 24x7. Read more...

StorefrontBacktalk
Our apologies. Due to legal and security copyright issues, we can't facilitate the printing of Premium Content. If you absolutely need a hard copy, please contact customer service.