Driving Grocery POS Sales

Genesis expects 50% sales revenue growth this year in the grocery POS (point of sale) vertical. What does this integrator know that you don't?

If you think margins are slim with POS hardware, try selling rib eyes. In the grocery/food retail market, success is measured by the penny, and a 1.5% end-ofyear profit margin is about as good as it gets. Therefore, you've got a tough job ahead if you plan on pitching POS equipment and services to this cost-conscious group. But despite tight purse strings, there is still a huge opportunity in this market, particularly if you know what Terry Selkirk knows.

Selkirk, VP of sales and co-owner of integrator Genesis, avoids pursuing medium to large grocery chains (more than 20 stores), since most have existing contracts with equipment manufacturers and commonly have an IT department. Instead, Selkirk sees the greatest food retail opportunity in single grocery and specialty food stores such as bakeries, meat markets, and corner store delis. "We believe there are 50,000 potential customers in the United States that could use our services," says Selkirk, who has come to this conclusion by collecting industry data, including membership numbers from local and regional associations such as the Associated Food Dealers. His research also indicates there is a lack of advanced technology in stores which have been in business for more than five years.