Dell to sell Retail-store Systems

I found this item about Dell in WSJ interesting:

Dell Computer Corp. plans to begin selling retail-store systems including electronic cash registers as the world’s largest personal-computer maker continues to expand its ambitions beyond its traditional turf. The company aims to provide the customized equipment required to automate department-store and convenience-store operations.

Mr. Farello, Dell’s vice president of retail-business development, said Dell has been encouraged to enter the market by large retailers looking to lower their point-of-sale systems’ cost.

Dell’s new marketing will pit it against traditional point-of-sale suppliers including International Business Machines Corp., NCR Corp. and Wincor Nixdorf GmbH, as well as newer entries from Hewlett-Packard Co. and Sun Microsystems Inc.

IHL estimates the North American market for checkout systems at $4 billion a year. IBM, the largest supplier of point-of-sale systems, holds an as much as 75% share of the systems installed at the top grocery-store and retail chains.

I think there’s also an opportunity to look at Linux-based Point-of-sale systems in emerging markets like India. I haven’t researched the segment but this could be an area ripe for disruption. For the most part, the competition is nonconsumption – most retailers don’t use any system at all.

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Rajesh Jain

An Entrepreneur based in Mumbai, India.