The POS Software Blog

The POS Software Blog

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

Tagbusiness intelligence

Younger retailers are done with 20 page reports. Good.

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For years, we measured reporting in our POS software by volume. More reports, more columns, more export options. The unspoken deal was that we would produce the data and you would somehow find the time to read it.

We suspect plenty of those reports were never read. Some of ours included.

The AI analysis now built into our POS software takes a different approach. Run any report, click analyse, and in seconds you get a short plain English summary of what the numbers say and what might be worth doing about it. The stock report that would have taken an hour with a highlighter instead tells you, in a few sentences, that one supplier’s lines have stopped moving and are quietly tying up cash.

Who loves it surprised us

When we started demonstrating this we expected the warmest response from older owners who never liked reports in the first place. Half right. They do like it. The people who love it are gen Y and gen Z retailers and managers.

Makes sense once you think about it. This generation grew up with information arriving insight first. News comes as a three paragraph summary before it comes as an article. A product review is a 60 second video. The detail sits underneath for anyone who wants it, and mostly they only go looking when something has earned their attention.

So an AI summary of a sales report feels normal to them. It behaves the way information is supposed to behave. What feels odd to them is what the rest of us grew up with: 20 pages of tables and the answer buried on page 14.

There is a lazy version of this argument, that young people cannot concentrate any more. We don’t buy it, and the research does not support it either. These same retailers will happily spend two hours deep in the numbers once something has hooked them. What they refuse to do is spend two hours hunting for the thing that deserves the two hours. Fair enough. That hunting was always a job software should have been doing.

The detail has not gone anywhere

The full report still sits under every summary. Drill in whenever you like, and please do. An AI summary you never verify is just a different way of not reading your reports.

What the short format changes is the odds that the data gets used at all. A comprehensive report nobody opens is worth nothing. A three sentence insight read at the counter between customers, and acted on that afternoon, is worth quite a lot.

One retailer told us they now glance at supplier performance weekly, a report they had never once run before, because understanding it takes seconds. That is the pattern we keep hearing. People check their numbers more often, not less, once the effort of understanding them drops.

Want to see it on data like yours? Book an obligation free demo, and bring your most ignored report. In our experience that is where the money is hiding.

How the end of day process has changed in retail this year

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The end of day process in retail used to be entirely physical. Count the cash, enter the details in your POS software, run the report, lock up, go home.

The counting and the keying are still there. What has changed this year is what happens next.

Smart POS software today can give you text commentary on how the day has transpired, rather than leaving you to read a report and work out the story for yourself. The report is still there for those who want it. But the AI analysis provided by the Tower software is ready the moment the day is done, written in plain language, easy to understand.

That matters at 5.30pm when you are tired and the last thing you feel like doing is decoding rows of numbers.

Here an example of what it looks like

This is a real example from a newsagency business for which we had permission to run their data. Staff and product details have been anonymised.

Business Analysis — The following analysis is AI-generated

Key Performance Highlights

  • Total sales for the day amounted to $2,398.35, with a significant variance of -23.97% from the average Thursday sales.
  • The top-selling department was Magazines, with 86 items sold, generating $676.62 in sales.
  • Staff F led in sales volume, contributing to 85 sales transactions and a total sales value of $1,179.71.

Notable Trends in Sales, Staff, and Time of Day

Sales Trends

  • Magazines and Cards & Wrap were the most popular categories, though both experienced a decline compared to average sales.
  • Collectibles showed a significant drop in sales, with a -31.12% variance.

Staff Performance

  • Staff B achieved higher total sales ($1,218.54) compared to Staff F, despite fewer transactions.
  • Both staff members did not attract any new customers during the day.

Time of Day

  • The peak sales hour was 11:00 AM, with $550.99 in sales.
  • Sales significantly dropped after 3:00 PM, with the lowest sales recorded at 5:00 PM ($29.27).

Operational Issues

  • Discounting was applied to 3 sales, totaling $25.91 in discounts.
  • Cash variance was noted, with an actual cash shortfall of $112.90.

Online vs In-Store Sales Commentary

  • All sales were conducted in-store, with no online sales recorded for the day.
  • 63 vouchers were issued, but none were redeemed, indicating a potential area for improvement in voucher utilization.

Recommendations for Management Action

  • Investigate the reasons behind the significant sales variance in Collectibles and Magazines to address potential issues.
  • Enhance staff training to improve customer engagement and attract new customers.
  • Review cash handling procedures to minimize cash variances.
  • Develop strategies to increase voucher redemption rates.

Weather-Related Impact on Trade

  • The overcast and rainy weather may have contributed to lower foot traffic and sales, particularly in the afternoon.

Summary and Highlights

  • Sales were below average, with a -23.97% variance from typical Thursday sales.
  • Magazines and Cards & Wrap were the top-selling categories, despite a decline in sales.
  • Staff performance was strong, but no new customers were acquired.
  • Cash handling discrepancies need to be addressed to prevent future variances.
  • Weather conditions likely impacted customer turnout, especially later in the day.

Audit Analysis — The following analysis is AI-generated

Excessive Cancellations

  • At 08:51, a sale was cancelled on terminal POS1 by a staff member. The amount involved was $12.80.

Stock Quantity Adjustments

  • Five stock items had their quantity on hand changed to zero on terminal POS2 within a ten minute window, including one item adjusted from 446 to 0.

Discounts Below Cost Price

  • Two sales on terminal POS1 contained items discounted below cost price, totalling $57.49.

Why this matters

Look at what the commentary surfaced without anyone asking. A cash shortfall of $112.90. Sixty-three vouchers issued and none redeemed. Stock quantities zeroed out in a tight window on one terminal. Items sold below cost.

Any one of those could sit unnoticed in a traditional report for weeks. Here, they are called out in plain language on the day they happen, with recommendations attached.

The commentary reaches beyond traditional reporting. It does not just tell you what you sold. It tells you where the day was won, where it leaked, and what deserves your attention tomorrow morning. These are insights retailers can leverage for profit, and they arrive without you having to go looking for them.

Reports tell you what happened. Commentary tells you what to notice. That is the shift this year, and we think it changes the end of day from a chore into a moment of genuine business insight.

If your end of day still finishes with a report you rarely read, it might be time to look at what smarter software can do.

Advice for retailers: The numbers that warn you before the bank balance does

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By the time the bank balance looks wrong, the trouble started weeks back. Money in the account is a lagging number. It tells you what already happened, not what’s about to. Run a shop on the bank balance alone and you’re forever finding out too late to do much.

The early warnings live in the trade, not the account. They turn up small, and they turn up first, if you know where to look.

We have been asked for help by many small business retailers where this is the case. We’;re not accountants or business consultants but day to day we do get into discussions with retailers and we help where we can, drawing on our experience in retail from years back and the support we offer today with our POS software.

One is basket size easing off. People still coming in, still buying, just spending a bit less each time. The day’s total holds for a while because the traffic covers it, right up until it doesn’t. Spot the slip while it’s small and you’ve got room to move.

Another creeps in through how often people come back. A regular who was in twice a week is now in once. Weekly becomes fortnightly. No single customer tells you anything, and that’s the trap, because the ones drifting off are the ones you stop noticing. Put them all together and it’s a trend you needed to see a month ago.

Then a category goes quiet while the busy parts of the shop cover for it. The overall figure looks fine. Underneath, something you lean on is fading, and you won’t feel it in the takings until it’s well down the track.

The catch is that finding any of this means running reports, lining up one period against another, and knowing what you’re hunting for in the first place. Most retailers haven’t got the time. Plenty were never shown how. So the warnings just sit in the data until they finally show up as a number too big to miss.

That’s the gap the Insights Dashboard closes.

It’s a business intelligence dashboard, free to every Tower Systems customer. It uses smart AI tools and a good deal of built-in retail know-how to watch your trade as it happens and tell you what’s worth knowing, the good and the bad. You don’t run a report. You don’t go digging. The insights are curated as the day goes on, kept fresh, and sitting there when you look.

So the slipping basket, the lengthening gaps between visits, the category drifting off the boil, it all surfaces on its own, while there’s still time to act. You get to spend your attention on the decision instead of the digging.

For a small shop that’s what business intelligence ought to be. Not one more report to find an hour for. Something keeping watch on the trade and tapping you on the shoulder while the warning is still early enough to use.

The retailers who get ahead aren’t drowning in data. They just catch the right thing at the right time. The Insights Dashboard puts that in reach of any retailer, free, and built into the software you’re already running.

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The right POS system or website for any retail business depends on the specific needs of the business. Tower offers POS software and websites made specifically for local small business retailers in a selection of retail channels. To see if we might help you…, request a free, no-obligation demo today.  

Call 1300 662 957 in Australia or 0800 444 367 in New Zealand. Or, email sales@towersystems.com.au. 

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