There are a number of modes, or styles of operation, of the MYPOS Connect Touch Screen Till Software. Store Concession Mode is one of these that sits alongside the standard EPOS mode and kiosk mode. Store Concession Mode essentially has options such as removing the payment options and allows the order to be simply tracked and posted back to various data platforms including Salesforce and SAP.
Hang on, what is a Store Concession?
A store concession typically refers to an arrangement where a particular section or space within a retail store is allocated to an external vendor or brand to operate. In other words, it's a business agreement that allows a third-party vendor to set up and manage its own mini-store or space within a larger retail establishment.
Key points about store concessions include:
Space Allocation: The retail store allocates a specific area, often within its premises, for the concession. This space may be dedicated to a particular brand, product category, or service.
Operational Independence: The entity operating the concession (concessionaire) generally has a degree of operational independence within its allocated space. It may set up its own displays, manage inventory, and conduct sales within the designated area.
Shared Revenue Model: Concession agreements often involve a revenue-sharing model where the concessionaire pays a percentage of its sales to the host store or a fixed rental fee for the space. The terms of the agreement can vary based on negotiations between the parties.
Brand Presence: Concessions provide an opportunity for brands or vendors to establish a physical presence within a popular retail environment, increasing their visibility and access to the store's customer base.
Diversity of Offerings: For the host store, concessions allow for a diverse range of products or services without the need to manage each individually. It can enhance the overall shopping experience for customers by offering a variety of brands and products within the same location.
Concessions are commonly found in department stores, malls, and other large retail spaces. They are a way for both the host store and the concessionaire to benefit from each other's strengths and customer bases. The specific terms and conditions of a store concession agreement are typically outlined in a formal contract between the parties involved.
POS System Store Concession Example
A well-known brand wants to continue to offer their product for sale in a popular department store. However, the brand wants to continue to own the stock themselves right up until the point of it being sold to the end customer. The department store wants the sales to go through their till system.
In this scenario the department store would continue to ring up the sale and take the payment from the customer. The department store would provide the sales receipt, collect, and bank the money and pay the local sales taxes. The sale would also be recorded in the MYPOS Connect EPOS system using concession mode with no payments. So no payment would be taken in MYPOS Connect, but the product being sold would be recorded along with perhaps customer data, pricing, identifiers such as serial numbers or batch numbers. The product sales information would be passed back using the MYPOS connectors to the Brands own ERP or warehousing system which would then allow the Brand to bill the department store for the product sold.
Benefits are that the Brand is getting real time information on the goods sold and owns the inventory right up until the point of sale. There is some duplicate entry required but this is often because some of the larger department stores have older or more closed Electric Point of Sale systems.