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    Retailers' to Spend Almost $6 Billion on POS Systems in '07

    FRANKLIN, Tenn. -- The computer-based point-of-sale (POS) market in North America experienced an 8 percent shipment increase in 2006, and is expected to reach $5.8 billion for 2007, according to a new study released today by retail technology consulting firm IHL Consulting Group.

    FRANKLIN, Tenn. -- The computer-based point-of-sale (POS) market in North America experienced an 8 percent shipment increase in 2006, and is expected to reach $5.8 billion for 2007, according to a new study released today by retail technology consulting firm IHL Consulting Group.

    According to the 2007 North American Retail POS Terminal Study, released by IHL, grocery shipments typically included touch-screen, liquid-crystal-display (LCD) interfaces that replaced aging hardware. The largest boost, however, came from shipments for new stores run by specialty retailers (in the apparel, home improvement and auto aftermarket segments), and restaurants (casual dining and coffee/donuts). These trends are expected to continue this year.

    "Retailers continue to see the POS as more than just a method for accurately recording sales," said Greg Buzek, president of IHL. "Added functionality at the POS, whether in the form of capabilities like customer returns, inventory look-up, or workforce management, helps retailers see POS as the central system in the store, and they are willing to invest in it accordingly."

    According to the study, retailers in all vertical segments are seeing a larger impact due to governmental action, and recent security breaches are weighing heavily on their POS purchase decision-making process. Retailers want POS systems that are PCI compliant so as to avoid situations like those experienced recently by TJ Maxx and other retailers.

    The study also found:
    - Replacements by large chains like Kroger and Wal-Mart generated the majority of shipments for the grocery, supercenter, and mass merchant segments.
    - Windows XP embedded shipments grew by 242 percent, and shipments of WEPOS (Windows Embedded for Point of Service) grew by 80 percent.
    - Pep Boys, Burlington Coat Factory, and Circuit City helped to grow the Linux installed base by 44 percent in 2006.

    IHL's 2007 North American Retail POS Terminal Study reviews the shipments and installed base of POS terminals sold into retailers in North America. It includes market shipment and installed base figures, market value, situation analysis for 10 retail market segments, overall trends affecting the POS market, and forecasts through 2011.

    The study is available at www.ihlservices.com.

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