What are Retail Information Systems?

The advent of information technology has significantly impacted the way retailers do their business. In this part, we shall briefly look at these aspects of IT with respect to retailing:

Retail information systems:

For any retail strategy, gathering and reviewing information is valuable. For this, retailers use the RIS (Retail information systems) which anticipates the information needs of retail managers; collects, organizes, and stores relevant data on a continuous basis; and directs flow of information to the proper decision makers.

As computer technology has become more sophisticated and less expensive, more retailers are developing comprehensive information systems. 2 very popular systems are:

1. UPC- Universal product code, and
2. EDI-Electronic Data Interchange.

Also, to improve inventory planning and forecasting, a new program is now in place. It is called CPFR- collaborative planning, forecasting and replenishment. Also gaining importance is the concept of Database Management, which is used to gather, integrate and apply information related to specific areas.

Database Management consists of:

Data warehousing: Here, the copies of all databases in the company are stored in 1 location and are accessible to any employee anywhere.

Data Mining & Micromarketing: Data Mining involves the in-depth analysis of information to gain specific insights about customers, products, vendors etc. Micromarketing is an emerging application of data mining whereby the retailer uses differentiated marketing and develops focused retail strategy mixes for specific customer segments.

Non-traditional retailing: The various new forms of non-traditional retailing are as follows:

The World Wide Web:

The Web is a useful tool for retailers as it projects a retail presence, helps to generate sales, and most importantly, provides information to customers.

Following are examples of e-tailing:

• Shopping robots, called ‘bots’ are computerized comparison programs that enable online shoppers to search 100s of sites and obtain the best price. They have resulted in a shift of power to the consumer.
• Electronic banking is the hottest thing in service retailing. It helps customers to transact 24 hours a day, 7 days a week at a variety of locations. It includes modern facilities like ATMs, electronic debit payments and smart cards.
• Besides, things like electronic gift certificates and interactive electronic kiosks are modernizing the shopping experience of customers.
• Retailers like Amazon.com, Wal-mart & Fabmart.com are leaders in web-based retailing.

other emerging, fast-growing nontraditional retail institutions are:

Video Kiosks:

The video kiosk is a freestanding, interactive, electronic terminal that displays product related information on a video screen. Although some video kiosks are located in stores to enhance customer service, others enable customers to place orders, complete transactions and arrange for products to be shipped.

Airport Retailing:

Is one of the fastest growing sectors in retailing. Today, at virtually every airport, there are full blown shopping areas. Some of its features are as follows:

• The group of prospective shoppers is rather large.
• Air travelers are a temporarily captive audience, looking for a way to fill their time.
• Sales per square foot of retail space at airports are usually 3-4 times higher than at regional malls.