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THE RETAIL REVOLUTION - NOW IN PROGRESS

Apple logoI have seen the future of retail and it is the Apple store. And maybe the evolution towards that model explains the fact that since January 1, three M&A deals have come the way of this newsletter. And all three of them have something to do with retail technology. Last week, it was the buyout of Retail Pro International by CEO Kerry Lemos. This week, it's NetSuite's acquisition of Retail Anywhere and Avalara’s pickup of the UPC Matrix Master database from TaxMatrix, which handles taxation regarding UPC bar-coded items.
The fact that the annual National Retail Federation conference is being held in New York next week probably influences this. But modern retail technology – a la Apple - requires a lot of money and the ability to serve a broad geography. It's well known major retailers are moving to use handheld devices to replace cash registers. Small companies, both vendors and retailers, are going to be hard pressed to provide all this, particularly the back end. Think about the Apple model. Make an appointment online. The Apple genius checks his handheld when you get there and calls out the tech rep. Buy something, like the external drive I purchased, and the handheld scans the barcode and is also used for swiping the credit card and to send the emailed receipt. The only thing left here is to replace the credit card on my end with a smartphone. (I'm sure it already does that. Many of us older types just don't have smartphones). That stuff ain’t gonna come cheap. And shouldn't it turn all those turnkey POS systems into dinosaurs pretty quickly?
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