Retail apps drive efficiency with seamless, interactive shopping

Global and local tech companies are increasingly shopping for opportunities to digitise Kenya’s retail market by offering software for aspects such as inventory, customer loyalty programmes, instore analytics, and mobile money payments.

Microsoft has bagged Naivas and Tuskys. The Redmond software giant has deployed Microsoft Dynamics AX Retail 2012 at family-owned Naivas Supermarkets.

Tuskys is using Microsoft Dynamics Nav, a retail software that integrated the point of sale and other business functions.

Nairobi-based IT firm Compulynx has Nakumatt, Ukwala, Eastmatt and Karrymatt using its point of sale software dubbed “core.”

Troubled retailer Uchumi is using an old version of Retalix, a retail software owned by Georgia-based software firm NCR Corporation.

The retail apps are also helping drive efficiency, by tracking goods from warehouse to storefront.

“Through an aggregate understanding of shopping and market insights combined with external data, retailers can improve forecasting and optimise their merchandising and supply chains,” says Microsoft.

Naivas chief commercial officer Willy Kimani said retail software provides data which helps monitors customers’ spending habits, in-store behaviours, trends, preferences, and expectations.

“Importantly, it has also provided granular insight into issues such as pilferage and customer behaviour. This has enabled the company to take actions that have, to date, reduced pilferage by 35 per cent while also providing a platform for customer promotions,” said Mr Kimani.

He added that Naivas was recording an annual organic growth of about 12 per cent, and credits  Microsoft software for contributing four per cent of this growth. 

Karrymatt Supermarket chief executive George Kariithi said settling on Compulynx was informed by the size of the business, saying enterprise solutions from players such as Microsoft are ideal for large retail chains.

“For now “core” is perfect,” said Mr Kariithi. Karrymatt has one store located on Moi Avenue in Nairobi. Mobile money payments and customer loyalty programmes are the latest additional options integrated in the retail chains’ Point of Sales (POS) systems.

Aside from inventory management, CORE covers customer loyalty management, gift voucher management, promotions management as well as accounts management, Compulynx said.

“You need not bother about daily sales, stock available, goods to be ordered, those to be transferred, a gift voucher serial number and so on because the system auto generates the same,” said Geofrey Oenga, business development manager at Compulynx.

In July, Tuskys Supermarket partnered with Data Orbis, a data management company to automate and centrally link its POS systems across its over 60 branches in the region.

Under the deal, Data Orbis is required to assist Tuskys updated on retail operations including the amount of inventory in the stores. It is estimated that Tuskys loses up to Sh2 million on average every month in theft at cashier points and robberies.

Last year, Naivas ran the Lipa na M-Pesa Shinda Nyumba promotion that sought to award customers who paid for goods and services using Safaricom’s Lipa na M-Pesa service.

Uchumi is using Retalix software which includes point of sale, retail operations, customer loyalty, supply chain management, warehouse management and transportation management.

Tier two retail chains have also joined the band wagon of hiring tech firms to help them handle inventory better and seal revenue leaks.

Mulleys Supermarkets, which has about 15 branches, has hired Aspire Software as its provider for POS services.
“The system integration in the retail chain means the directors can access detailed reports and full overview of the business in real time,” said Boniface Mutie, marketing manager at Mulleys.

He said the benefits of installing the POS system are tenfold compared to the retail management system which was effective on average controls.

Mulleys Supermarkets said it has a data base of 50,000 loyal customers who qualify to enjoy customized offers at specified branches and get birthday messages.

The software also allows for running of a system based campaign effectively which shoppers get information for winning discounts or giveaways printed on their receipts.

“Up to 10 per cent of our customers pay using mobile money, an option that continues to grow our business because it is cashless and safe. Aspire has been effective in holding network factors constant,” said Mr Mutie.

The POS system software generally counter check and tell the user what products are out and which ones have remained at the store.

Benard Migwi of Bright Technologies said the need for software to manage huge stock is no longer a luxury.

“It is mandatory in today’s fast world to employ superior software to manage inventory when handling some huge amount of stock,” he said. Aside from managing inventory, POS software enable the user work in multiple branches and handle accounting for multiple price levels, multiple scan code handling and multiple currency.

Others include customer buying patterns, taking phone orders, run sales promotions as well as repackaging products in different denominations and generate scan codes, labels for repackaged products.

For accurate tax returns, the POS systems include Value Added Tax values together with sales and inventory reports.

Reports churned out can include end of day report, daily sales report, fast moving goods report, refunds, VAT reports as well as credit/cheque sales report.

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