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The POS Software Blog

News from Tower Systems about locally made POS software for specialty local retailers.

Tagbusiness insights

Retailers: What Don’t You Know About Your Shop?

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Most retailers know their business well. They know the busy days, the reliable suppliers, the lines that never let them down. That familiarity is earned and it is useful.

It can also become a trap.

Over time a routine settles in. The same reports are read each week. The same advisers are consulted. The same handful of numbers is checked, and the same conclusions follow. Nothing in that is wrong. The problem is what sits outside the routine, unexamined, because nobody thought to ask.

So here is a better question. Not what should you know about your business, but what don’t you know?

It is a harder question. It is also considerably more profitable.

Consider a recent example. A retailer’s data was reviewed using a different tool and cut in a way it had not been cut before. Nothing new was added. Same transactions, same period, same shop. What emerged were opportunities the owner had not seen, sitting quietly in figures they had looked at many times. Some were easy wins. Others changed how buying decisions were made.

The most important competitor any retailer faces is themselves. Habits of thought are as fixed as habits of trade, and comfortable data is usually the least revealing data.

This is where AI Insights in the Tower Systems POS software earns its place. Rather than exporting reports to a spreadsheet and hunting for patterns late at night, a retailer runs any standard report and clicks AI Insights. The software reads the data and answers in plain English: which margins moved, what stock is dead, what deserves attention this week.

One Victorian newsagency found more than $10,000 in dead stock within minutes of first running it. The stock was cleared and the floor space went back to work.

That figure had been sitting in the data the whole time. Nobody had asked the right question of it.

Most retailers hold years of POS data they never have time to read. Standard reports tell an owner what happened. The value in AI Insights is that it suggests what to do next, in sentences rather than spreadsheets.

Treat surprise as a signal rather than an irritation. Surprise almost always points at something the business did not already understand, and that is where the money is.

Tower Systems builds and supports POS software for specialty retailers across Australia and New Zealand. Locally made. Locally supported.

Retail advice: The business is telling a story: use the software to hear it

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Every sale processed through retail software leaves a record. Over a year, a small shop builds up a detailed account of what its customers actually did, as opposed to what the owner remembers them doing.

In our experience, there is often a disconnect between how people talk about the performance of a business, suppliers to the business or products and the actual performance as reflected in the data collected by the POS software. This disconnect can cost the business plenty of money through ill-informed decisions, slow decisions and more.

Memory versus the data

Retailers form impressions on the shop floor, and impressions are shaped by whatever stood out. A difficult customer. A busy Saturday. A supplier rep who visited last week.

The data is not swayed by any of that. It will show a department that has quietly declined for eight months, or a range everyone assumed was working and was not, or stock bought in March still sitting there in August.

The floor view and the data view work best together. A retailer with both is well ahead of one relying on either alone.

Where to look first

Dead and slow-moving stock. Usually the fastest return in the whole exercise. Cash tied up in stock that has not moved for six months is cash unavailable for stock that would move. Most retailers running this report for the first time are surprised by the total.

Department and category performance over time. Not this week against last week, which is mostly noise, but this year against last year, by department. Trends take months to show themselves.

Basket composition. What sells alongside what. Products that sell together should usually sit together, so this answers merchandising questions directly.

Trading by day and hour. Rostering and opening hours often rest on habit. The data settles the argument one way or the other.

Supplier performance. Which suppliers deliver stock that sells, and at what margin. That is a different question from which rep is easiest to deal with.

Customer behaviour. Who returns, how often, and what they buy on the second visit.

Making it a habit

Reporting only works when it is regular. A protected monthly hour in the diary does more than an occasional deep dive.

Start with one report and understand it properly before adding another. A retailer who acts on a dead stock report every month is ahead of one who runs twelve reports and acts on none.

Write down what the numbers prompted, then check next month whether it worked.

The Retailer AI tools in the Tower Systems software help here. An end of shift summary in plain text compares the day with recent trading, in place of five or six pages of reports. Other tools flag what is selling, what is not, and what the business appears to be missing.

The shift that matters

Retailers who work from evidence buy differently. They quit dead stock earlier and back winners harder. They also stop defending decisions the numbers stopped supporting months ago.

No new technology is needed for any of this. The software is already in the shop; what changes is the habit.

Tower Systems software includes extensive reporting, and training on how to use it is free for the life of the subscription.

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