Big comeback for in-store shopping in South Africa

Despite economic instability, South Africa’s retail sector is proving resilient. In-store shopping is making a strong comeback, and mobile point-of-sale (mPOS) technology is driving modern, efficient, and personalised retail experiences.

Ecentric Payment Systems’ executive for sales and marketing, Rory Bosman, explained that the economic landscape has been marked by volatility recently.

International trade tensions are looming, and the national budget fallout spooked the national market before the VAT increase was withdrawn. Despite these challenges, the South African retail sector has shown remarkable resilience.

Bosman said that many retailers proved at the end of last year that investing in a superior retail experience reinforces a growing belief in the sector staging a powerful comeback.

This includes investment in mPOS technology, which is “a gateway to a modern retail experience, and a modern retail experience is precisely what consumers are looking for”.

Ecentric Payment Systems’ data, including the Black Friday Index, showed a surge in physical store revenue during peak periods.

“Even during times of peak demand where online commerce leads the charge, such as the rush between the beginning of November and Christmas Eve, in-store retail is undergoing a powerful resurgence.”

“In-store revenue as a proportion of total revenue during that period saw a whopping 109.4% surge, doubling from 5.3% to 11.1% of total holiday revenue.”

Bosman said this is especially astounding because the period coincides with Black Friday, Cyber Monday and discounts leading up to Christmas. Yet, consumers were still choosing to purchase goods in-store.

“Of course, this may seem easier said than done, but our data in the Black Friday index shows us that retailers who capitalised on the peak moments saw the biggest gains.”

Figuring out how to capitalise on peak moments when the store is packed to capacity is the crux of what will make retailers successful.

“This is relevant to far more than Black Friday or Christmas – think about Saturday or Sunday mornings or the rush after work. In the fast-moving consumer goods space, it is not unusual to see queues snake through the store.”

mPOS technology powers in-store retail

Bosman explained that mPOS is a gateway to a modern retail experience because it is more than just a mobile point of sale.

“It is far more than that. It is a sophisticated technology architecture that reimagines retail. It redefines actual interaction technologies.”

mPOS integrates cloud-based processing platforms with advanced technologies such as machine learning to enable real-time data interpretation and transactional intelligence.

“This encompasses secure payment gateways, biometric authentication protocols, predictive analytics, and more to transform traditional retail spaces into intelligent engagement environments.”

The outcome is that a well-designed and implemented mPOS transforms retail experiences. “It enables a modern retail experience, which means more efficient, personalised customer interactions while optimising operations for retailers.”

Bosman said a well-designed mPOS needs to enable practical solutions. “For example, in a crowded store, elevating customer experience is non-negotiable.”

If businesses can’t do this, they risk losing customers who decide to leave their trolleys behind and walk out. This is why shortening queue times is paramount.

“In addition, the technology allows retailers to optimise their return per square metre, and we all know that every square metre in a store is like gold.”

This is especially true for big points of sale, which can take up significant floor area. Bosman explained that the benefits go beyond shortening queues and optimising space.

mPOS also enables in-aisle product information and purchasing. “It supports omnichannel experiences, and as the key insights from the Black Friday Index make clear, we know omnichannel shopping is the future.”

Inevitably, every store won’t have exactly what a customer is looking for every time. mPOS technology enables customers to access broader product catalogues.

“With space constraints in mind, the retailer is able to engage the customer with an entire catalogue of products beyond just physical store inventory.”

“These products can be selected, paid for, and delivered to the store or the customer’s house depending on the product type and retail category.”

Personalisation, efficiency, and new revenue

Beyond this, Bosman said that mPOS also enables the selling of digital products, which opens up new revenue streams from value-added services.

One of the key strengths of e-commerce is personalisation. Bringing that level of customer knowledge into the physical store is made possible with mPOS.

Knowing who the customer is and their past online and in-store behaviour, staff are equipped to offer them what they want and upsell and cross-sell based on real-time and predictive intelligence.

“We cannot underestimate the power of this capability. The Black Friday Index showed that personal recommendations and targeted deals will set leaders apart. It is vital, in 2025 and beyond, that retailers use data for targeted promotions.”

Casting an eye towards peak periods, where customer service and experience can be the difference between retaining or losing a customer, is another key aspect of mPOS: improving operations.

“It is an intelligent system that enables real-time stock tracking, which improves inventory management. If we think about high-demand periods, inventory management is critical to capitalise on the increased foot volume.”

This level of modern retail is not the sole preserve of enterprise retailers, although it remains fundamental for the most prominent retailers to stay competitive.

Bosman explained that mPOS technology benefits large enterprise retailers and opens this advanced level of capability to a much wider pool of mid-sized retailers.

Many of these retailers may not yet realise they can also reduce waiting times, improve in-store experiences, bring the full online catalogue in-store, and use hyper-personalisation to upsell and cross-sell at the physical point of sale.