The POS Software Blog

The POS Software Blog

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

Tagretail insights

The Sunday reset: four questions every retailer should ask

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Most small retailers spend the week reacting. A delivery arrives, a staff member calls in sick, a customer needs something now. There’s rarely time to step back and look at the business as a whole.

That’s why we like the idea of a Sunday reset. Set aside 30 minutes, ideally away from the counter, with a coffee and your numbers. Look back at the week just gone and decide what you’ll do differently in the week ahead.

It doesn’t have to be Sunday. What matters is the habit. A short, regular review beats a long one you never get around to.

What’s working?

Start with the good news. Which products, categories and suppliers did well this week? Was a particular day or time of day stronger than usual? If a display or a promotion lifted sales, note it so you can repeat it.

It’s easy to skip this question. Don’t. Knowing what works tells you where to put more stock, more space and more of your team’s attention.

What’s not working?

Now the harder one. Look for stock that hasn’t moved in weeks, categories losing ground and margins that have slipped. Dead stock ties up cash and shelf space you could use for something that sells.

The answer might be a markdown, a better position in the shop or a decision to stop reordering. The point is to make the call rather than let slow stock sit.

What am I missing out on?

This is the question most retailers never ask. Are there products customers keep asking for that you don’t carry? Lines that sell well in similar shops but not yours? Times of the week when you could do more with the foot traffic you already have?

Missed opportunities don’t show up as a loss on a report. That’s why they’re easy to overlook, and often worth more than fixing what’s broken.

Is theft an issue?

Behind the scenes, in a quiet and secure way, we track keystrokes and let you know if we think theft may be an issue. We show you where to look. This has saved local indie retailers tens of thousands of dollars.

Most weeks you’ll find nothing. Checking regularly is what lets you spot the week when something is wrong.

Where the answers come from

The trouble with a Sunday reset is the preparation. If you have to pull reports, export spreadsheets and work through the figures yourself, 30 minutes quickly becomes three hours. Most owners give up after a few weeks.

For Tower Systems customers, that work is already done. The Insights Dashboard is an AI-facilitated tool that gives you answers to all four questions, ready when you sit down. There’s nothing to prepare and no report to build. It works around the clock, so the insights are there on Sunday morning or any other time that suits you.

Every Tower Systems customer gets the Insights Dashboard free. It isn’t an add-on or a premium tier. We include it because we think every independent retailer should be able to see clearly how their business is going.

If you already use Tower Systems, open the dashboard this Sunday and try the four questions. If you don’t, we’d be happy to show you what it would reveal about your shop. Call 1300 662 957 (0800 444 367 in New Zealand) or email sales@towersystems.com.au.

Contacting a human is easy.

Too Much in “General”? How a Cleaner Department Structure Makes Small Business POS Data Work Harder

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Open your Tower Systems Retailer POS and look at your departments and categories. If you see duplicates, vague names, or a “General” or “Miscellaneous” category holding hundreds of products, you’re not alone.

It happens in almost every business over time. A new supplier arrives and someone creates a category in a hurry. A staff member adds a department that already exists under another name. Products that don’t obviously fit anywhere end up in a catch-all.

None of it seems like a big problem on the day. But after a few years, your data becomes hard to trust and harder to use.

Why it matters

Your department and category structure is the backbone of your reporting. When it’s messy, the reports are messy too.

You can’t see which categories are growing if half the products sit in “General”. You can’t compare gross profit across departments if the same products are split between two of them. And staff waste time hunting for the right place to put a new item.

Clean data makes your business easier to manage. It helps you make better decisions about stock, space and buying, because the numbers reflect how your shop actually trades.

How our service works

Our Department and Category Restructure service is a careful, practical clean-up, tailored to each business. This is a small business focussed service that’s helping retailers achieve a clean dataset.

We start with an AI assisted review of your full product database. From that, we create a proposed department and category structure that suits the way you sell.

We then send you a spreadsheet showing the proposed structure. You review it and either approve it as supplied or tell us what you’d like changed. Nothing is updated in your POS until you’re happy.

Once approved, we rebuild the structure in your Tower Systems Retailer POS. Duplicates are merged. Vague categories are replaced with meaningful ones. Every product ends up in the right place.

What to know before you start

Two things sit outside the service.

If you use an accounting link, you may need to update its setup after the restructure. We’ll guide you through this, but the accounting changes themselves need to be made by you or your accountant.

If you have a website, menu links that point to departments or categories may need updating. We’ll help you identify what needs to change. If you’d like us to make the website menu changes for you, we can quote on that separately.

The result

You end up with clean departments, clear categories and a logical product hierarchy. Your staff find things faster. Your reports make sense. And you have a dataset you can actually use to manage your business.

The Department and Category Restructure is currently $499, down from $999.

Find out more and book at store.towersystems.com.au/products/department-and-category-restructure, or reach out to support.

Meet Retailer AI: AI tools made for local independent retail

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We have added a collection of AI tools to our POS software. We call it Retailer AI, and it is made for local independent retail businesses, from the front counter to the back office.

Retailer AI uses Gemini, Claude and ChatGPT. The work happens inside the POS software you already run, so there is no new system to learn and nothing to copy between apps.

This all started in 2022 and has evolved since. What’s changes is that we now call the collection of AI tools in our POS software Retailer AI.

What the tools do

Invoice processing turns a PDF or paper supplier invoice into an electronic invoice ready to import. Anyone who has keyed a 200-line invoice by hand on a Friday afternoon will understand the appeal.

Reordering watches your inventory and sales, then drafts replenishment orders for you. You buy what sells and skip what sits.

The AI insights dashboard gives shop floor staff a view of what matters today, so they can plan their time and look after customers between serves.

Reports now come with a click-through to plain advice on what to do next. If you have ever closed a report none the wiser, this one is for you.

There is more. Product names and SEO-ready descriptions are written for you so shoppers can find your products online. A local price comparison shows where you sit in your market. Blog posts are written and published for products you manage, which keeps your website fresh without you typing at the kitchen table at 10pm.

What it is worth

A typical business using these tools saves between 5 and 8 labour hours a week. At $35 an hour, that is $175 to $280 a week. One pet shop owner in regional NSW says he saves 10 hours a week. A Victorian newsagency used the tools to find more than $10,000 in dead stock, money it can now put into stock that moves.

Those numbers are why we built this. Hours back and better buying decisions are what a small retail business notices week to week.

Our approach

There is a lot of noise about AI right now, and plenty of it is hype. We are not selling hype. These tools exist to make everyday retail tasks quicker and everyday decisions better. You stay in control of how much or how little you use, and we do not profit from what you spend on AI.

See it working

The best way to judge Retailer AI is to watch it handle your own work. Book a free demo, email our sales team on sales@towersystems.com.au with your questions, or take a look at our YouTube channel to see the tools in action.

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.

The most important advice we give small business retailers

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At a retail forum the other day we were asked what is the most important advice we give small business retailers. Our answer surprised a few people because it was not about marketing or ranging or margin.

The answer is often considered boring. It turns retailers off.

If only they understood the thousands of dollars to be made by listening to our answer.

The most important advice we think local small business retailers need is to focus on data accuracy. Dry, we know. But it is the factor local retailers most often overlook, and when it slips the damage spreads further than almost anything else in the business.

Here is the pattern we see. A retailer puts real hours into ordering stock and getting the shop looking right, and meanwhile half the sales go through the counter keyed into a department instead of scanned. Or the web store is full of products described as “candle lge” that no customer searching for a soy candle in a glass jar will ever find. Nobody set out to be sloppy. It builds up one shortcut at a time.

The costs rarely look like data problems, which is why they go unnoticed. Your reports can only tell you about what was entered, so vague or wrong entries produce reports that mislead with complete confidence. Decisions made on those reports feel informed. They are not.

Theft is the cost people least expect. Loose inventory records mean you cannot see shrinkage. Stock walks out the door and the numbers are too muddy to show where or how much or since when. Retailers who tighten up their data are often shocked at what it reveals within a few months.

There is a newer cost too. The AI tools in good retail software are only as smart as the data underneath them. With clean data they will flag margin shifts and buying opportunities you would have missed. With rubbish data they will confidently summarise rubbish.

The fix is unglamorous, which is probably why it gets skipped. Decide that every item gets properly described, every sale gets scanned, and stock records get maintained rather than guessed. Train everyone who touches the counter. Then check, because habits drift.

Retailers who do this tell us the same thing: they wish they had done it years earlier. The reports finally mean something, and for the first time they can see their own business clearly.

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.

The Lincraft story and what small business retailers can learn

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The Lincraft closure made news last week. Eighty years, every store, gone. It’s the kind of story that sits with you if you’ve been in retail long enough to remember when chains like that felt permanent.

We know it hit small business retailers because of conversations we have had since the news broke.

It’s not the whole retail story, though.

The independent retailer who had their best April in three years won’t make the news. Neither will the gift shop owner who spotted a new category gaining ground and moved on it before the season. These things are happening. We see them in the data.

The difference between retailers finding growth and those feeling stuck usually isn’t location or foot traffic or product range. It’s whether they’re looking at their data. Good data, understood and acted on, is the foundation underneath every independent retail success story we see.

Your POS data knows things you don’t. It knows which supplier is quietly underperforming while a newer one gains ground. Which category is lifting your average sale value. Which days your margin is strongest. What your best customers are buying that your average customers aren’t.

The Tower AI tools are built to surface exactly that — the things not sitting in front of you. Not the obvious wins you already know about. The patterns buried in twelve months of transaction data that you won’t catch on a busy Tuesday. A product that’s been growing 15% month on month and still hasn’t made your reorder list. A margin opportunity in a category you’ve been pricing conservatively out of habit rather than intention.

A chain waits for a report from head office. You can act on your data this week, before the next order goes in. That gap is real and it matters.

The pressures Lincraft cited are real too. Changing consumer behaviour, rising costs, overseas competition — none of that is going away. But the response isn’t to carry the weight of the industry headlines. It’s to look inside your own business and find what’s working.

Green shoots don’t announce themselves. They show up as a slow climb in basket size, a category quietly outperforming its shelf space, a customer type coming back more often than they used to. Your data has already found them.

If you haven’t spent time in the Tower reporting and AI insights tools recently, start there. Not with a big strategic review. Just one question: what’s growing in my business right now that I haven’t noticed yet?

The answer is probably already there.

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