story by Ryan Saylor
rsaylor@thecitywire.com
Mobile technology is changing the face of retail and it is not just companies that cater to a younger clientele joining the trend.
Companies, such as Wal-Mart and JCPenney, have quietly introduced mobile technology in varying ways for the last year or more. JCPenney introduced mobile checkout to its customers in November of last year, according to spokesperson Kate Coultas.
She said going mobile and removing many of the company's cash registers was part of JCPenney's ongoing business strategy.
"We are really going toward self-checkout or mobile checkout," Coultas said.
In moving to mobile technology, JCPenney has freed up space on its sales floor and has made associates more accessible, she said.
"What we really love is the great customer service we're able to provide," Coultas said. "It doesn't help when the first associate they see is stuck behind a register."
Due to the mobile push, the well-known department store has seen as much as 25% of its sales come from mobile checkout, Coultas said, which has saved the company money on printing receipts and maintaining expensive and bulky point-of-sale systems.
Not only are large retailers using mobile checkout, but the technology behind mobile credit card processing and shopping has now reached small business in the Northwest Arkansas and the Fort Smith areas.
Eric and Christy Lonetree, owners of Kunu's Smokeshack in Fort Smith's Central Mall, have used the Square reader at their restaurant and catering business for the last several months.
"We had several people come out and talk to us about what was available," Christy said.
What makes Square unique is that the card reader simply plugs into the headphone jack on any Android or iOS (Apple) Smartphone and works with a free application.
With any transaction processed with the reader, Square only charges merchants a 2.75% fee and there are no equipment purchases or leases. Eric said that was important when he and Christy were shopping for a credit card processing solution.
"(With other merchant solutions), each transaction charges a fee of like 25 cents and a percentage of the sale," he said. "With this, you do away with leasing fees and transaction fees."
Christy said keeping such fees minimal was important for their business, saving the Lonetrees as much as $85 or $100 per month in equipment fees before adding in processing fees.
Not only are small businesses taking mobile technology and making it work for them, but organizations are using the same technology to drive fundraising.
Tyler Clark, chairman of the Washington County Democratic Central Committee, said Square has been essential in the organization's fundraising strategy for the last two years. Using Square, he says the local Democrats have been able to increase their donor base.
"Previously, we only raised more or less through generous donors – 10 or 15 (donors)," he said, adding that the party was also funded through candidate filing fees during each election.
Not only does the local Democratic group use Square to accept donations, but they can also sell merchandise and manage inventory using the Square app, which can essentially turn an iPad into a cash register.
"On the register, you can add a whole inventory list of things," Clark said.
The register also allows merchants to bundle items and calculate discounts automatically.
"A shirt, plus a koozie, plus a cap and a donation – with the app, you can subtract the discount and it was automatic," he said.
The Lonetrees said receiving money was quicker using Square versus traditional credit card processing machines.
"Instead of waiting 48 to 72 hours, we get (our money) in 24 hours," Christy said. "It goes bank-to-bank with no middle man."
While businesses of all sizes have adopted mobile retail, Coultas said JCPenney was aware that not all customers are going to accept the new way of doing business. To make the transition easier, she said the company would still offer a few customer service centers in stores to process cash transactions, returns and online order pickups.
But she said it's not going to stop the company from moving forward with an aggressive use of mobile technology in its stores.
"We're going to roll this out to all associates by the end of this quarter," she said, adding that customers will be able to have their credit card swiped, sign with their finger and go on with their day. "It is very intuitive and we've gotten a great response from our customers."