An Aptos-sponsored survey of 150 global retail decision-makers shows POS modernization delivers measurable gains in conversion, transaction value and store performance
ALPHARETTA, Ga. — Sept. 1 — Aptos, a leader in unified commerce solutions, today announced the findings of a new study conducted by Coresight Research, which found that 85% of retailers that have recently modernized their point of sale systems say the investment either met or exceeded their return-on-investment expectations. The report, Retail POS Modernization: Strategic and Financial Case for Transformation, is based on a survey of 150 global retail decision-makers involved in POS strategy, selection and modernization.
“Modern POS platforms, typically characterized by cloud-native deployments, microservices-based architectures, mobile-first development and API-driven integration, help retailers adapt to the changing role of stores as well as shifts in consumer expectations,” the report states. “Retailers that view POS modernization as simply a checkout upgrade risk undervaluing its strategic and financial impact.”
Beyond the headline ROI finding, the study found that retailers that have modernized their POS systems reported:
Additionally, Coresight Research modeled the impact of POS modernization for a hypothetical retailer with $1 billion in annual revenue and 750 stores, estimating $4.4 million in annual cost savings and $39.6 million in annual revenue uplift.
The savings were based on reductions in costs associated with hardware, software, maintenance and IT support, with the revenue gains achieved through increased ATV, in-store conversions, network uptime and omnichannel orders.
Adoption is accelerating, but full modernization lags
Despite these financial and operational benefits, the report finds that many retailers have yet to complete the shift to modern, cloud-native architecture. Currently, 22% of retailers operate hybrid or fully on-premises POS environments, while 36% use cloud-hosted systems that stop short of the flexibility, modularity and continuous-update capabilities that cloud-native platforms provide.
Core POS systems in use today have been implemented on average for 4.3 years, with 30% of respondents operating systems that are at least five years old — underscoring the urgency of the modernization opportunity.
The study also found that retailers that have already modernized consistently report stronger outcomes than expected by those still planning to invest. The largest gaps between realized benefits and objectives are in improvements in store productivity — 49% of modernizers achieved this outcome versus 24% of planners expecting it; mobile checkout enablement — 44% versus 20%; improvements in store conversion rates — 44% versus 27%; and improved real-time inventory visibility — 50% versus 36%. This suggests that many retailers are underestimating the value modernization can deliver.
A clear path forward
While the business case for POS modernization is well established, the survey data shows that execution — not conviction — is what stands between retailers and realizing that value.
Integration complexity emerged as the most widely cited obstacle, with 45% of retailers that have modernized their POS systems ranking it among their top three implementation challenges. Notably, difficulty justifying ROI to senior leadership emerged the least challenging, cited by just 19% of respondents.
“Retailers have moved past debating whether POS modernization pays off. The data and real-world results settle that question,” said Deborah Weinswig, CEO and Founder at Coresight Research. “As the conversation shifts from ‘why’ to ‘how,’ we see leading retailers investing in cloud-native POS platforms that are built from the ground up to streamline integration and partnering with vendors that can support their POS transformation end to end.”
“This report confirms what we hear directly from our retail customers: the ROI is there and the path to capturing it is clearer than ever,” said David Bruno, Director of Retail Industry Insights at Aptos. “POS modernization can directly and positively impact nearly every aspect of retail operations. The key to capitalizing on the opportunity is to select the right vendor who can guide you through the process and help you capitalize on the financial and operational benefits of modernization while minimizing disruption.”
The full report, sponsored by Aptos and produced by Coresight Research, is available here.
About Aptos
Aptos is the global leader in unified commerce solutions for retailers. Our modern, cloud-native POS and advanced enterprise technologies are trusted by hundreds of retail brands around the world. For over 40 years, Aptos has delivered software solutions that help retailers inspire loyalty, maximize revenue and reduce costs.
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Contact:
Kristen Miller
Aptos, LLC
kmiller@aptos.com