Effects of IT on Supermarkets The Kingsway School

Supermarkets Supermarkets have benefitted in many ways from IT. Your shopping trip is very different from the one your parents made 20 years ago. IT is used at the till, throughout the store, in your home, stock taking etc.

EPOS Electronic Point of Sale This is the scanning of goods at the till. The bar code is used to look up the product in a database. This allows: The production of an itemised receipt Automatic reduction of stock in the shop EFTPOS Electronic Fund Transfer at Point of Sale This where EPOS is combined with cashless transactions. The credit/debit card is swiped and the cash is transferred from the shoppers account to the shop’s bank account. This encourages spending and may allow cashback, saving the shopper a trip to the bank.

Advantages to the Shopper Scanning goods is quicker than tilling in each price, shoppers have to queue for a shorter time. Bills are more accurate, the teller cannot type in incorrect prices for goods. The itemised receipt clearly outlines what the shopper has bought and what they have paid. Goods are fresher because of the improved stock control 3 for 2 offers are quickly worked out by the till. Price check machines are available around the store for customers to quickly check the price of goods. Loyalty cards mean targeted money off and other inducements. The shop can use the cards to see what you buy!

Advantages to the Shop Tellers make fewer mistakes about what has been bought and what price to charge. Productivity is increased by about 15% which means greater profit for the shop by encouraging more shoppers. Staffing is easier to work out and fewer staff are required to make the shop run smoothly. Less wastage, only the goods that have been bought are replaced. It means the store knows how much fresh goods to order. Loyalty cards allow the shop to gather information on its customers and their shopping habits. The points schemes encourage shoppers to come back to collect more points.

What does it mean for staff? Salaries can be paid directly into bank accounts. Advantages to the Employee The money is safe and protected to an extent from theft. Record of payment is shown on the bank statement. Advantages to the Employer It is much safer than handling large sums of cash. Automating the payroll is far cheaper than employing many wages staff.

The Cashless Society More transactions than ever are now carried out without the use of cash. Money is transferred from one account directly into another. Credit cards allow the holder to borrow money they do not have Debit cards transfer money that the holder has in their account. Some people believe that some day cash transactions will become very rare. In some countries already you can use ‘smart cards’ which you ‘charge’ with cash to use on buses etc. This requires machines everywhere that can read these cards. Can you think of any reasons why the cashless society might never happen?

Cashless Society - Might Never Happen! Some people prefer to use cash. Some people may not be able to get bank accounts e.g. homeless, unemployed, bad debtors etc. Small transactions are only possible with cash. Would a market stall holder want a card reading terminal? Many people distrust computers and cards.

Further Information Test Many aspects of our lives are affected by information technology. This Revision Bite will look at some of these, but you will also find more information on this topic in the following Revision Bites: Changing work patterns and The impact of the Internet. 1.EntertainmentEntertainment 2.In the homeIn the home 3.Paying for goodsPaying for goods 4.Other concernsOther concerns 5.Exam TipsExam Tips 6.GlossaryGlossary Changing lifestyles