Most retailers say that running a single store is challenging but manageable. With more experience and earnings, retailers often decide to open new stores. However, as they expand, they often complain that their business is now out of control. Yet they were applying the same formula for success. What went wrong? They did not change to a multi-store POS.
Let’s look at an example. A successful retailer opens a new store and sets up exactly the same store processes. He now has a chain of 5 stores, right? Wrong! He has 5 single stores, operating separately.
He contacts his POS vendor and orders the same POS, makes a copy of the data, and adjusts his inventory for products he has in the new store. He repeats the same process until he has, say, 5 stores.
He was multiplying his initial workload by as many stores as he was opening. The source of the retailer’s problems is that he does not have an interconnected organization, where all the stores share the same operating system and database. So the retailer can aggregate or analyze data coming from the different stores for quick and rational decision making.