Grocer rings up savings with Linux cash registers

Hannaford says the new POS systems boost productivity

By Thomas Hoffman

January 31, 2005 12:00 PM ET

Computerworld - SCARBOROUGH, Maine
Hannaford Brothers Co. has already received productivity and cost-avoidance windfalls from an ongoing point-of-sale system replacement project that will cost between $10 million and $20 million, executives at the grocer said last week.
The new Linux-based POS systems have been installed in about two-thirds of the company's 140-plus supermarkets in New England and New York. Hannaford Bros., a division of Brussels-based Delhaize Group, expects to complete the implementation of the thin-client systems by October, said CIO Bill Homa. The systems, which are supported by 12 vendors of servers, software, printers and other peripheral devices, replace 15-year-old Fujitsu Ltd. technology based on OS/2 Version 1.3, according to Homa.
The Fujitsu software is "solid as a rock," said Homa. But it has limitations because it can run only as fast as a 166-MHz Pentium processor, he said. That plus Fujitsu's decision to halt support for the OS/2-based POS system prompted the grocery chain to launch a replacement strategy in 2001.
Vendor Support Push
As part of the move to a thin-client architecture, Homa and his team hope to eventually run all 40 store applications, such as its pharmacy and video-rental systems, on a single Linux server. Right now, those applications run on a mix of mainframe, Unix and Windows servers with links to the Linux terminals installed in the stores.


Bill Homa, CIO at Hannaford Brothers Co.

One of the constraints of the server plan, said Homa, is that Hannaford must convince its retail systems vendors, such as PDX Inc., a Fort Worth-based maker of pharmacy software, to port applications to Linux.
When Hannaford first began evaluating POS systems, "we kind of backed into Linux," Homa said. The open-source operating system ended up being the best fit for the company's intelligent POS terminal requirements.
Hannaford executives decided upfront that in checkout lanes they wanted to use so-called intelligent terminals that don't require any moving parts and don't need cooling fans. After evaluating various technologies, the grocer opted for POS terminals from Wincor Nixdorf Inc. that can run either Linux or Windows and POS software from Retalix Ltd. that runs on Windows servers. Homa said the terminals can continue running if servers go down.
Other retailers have deployed Linux-based POS systems, although adoption is still extremely limited, according to analysts. In August, Circuit City Stores Inc. announced plans to migrate to IBM SurePOS 300 cash registers running Linux at its 600 stores .
At least one consultant expects the Hannaford project to be the forerunner of a boom in POS system replacement

Recommend Digg Twitter ShareThis

Email Print Send Feedback Reprints

Additional Resources

Xerox

Win a color printer!

By using solid ink technology only from Xerox, you could save up to 65% by printing color for the cost of black and white. Enter for a chance to WIN a PhaserTM 8860 network color printer!

Microsoft

Upgrade to Internet Explorer 8 today.

Save time and mitigate security risk. Deploy it now.

Sybase

NEXT-GENERATION MOBILITY PLATFORMS

In this white paper, IDC analyzes the role of next-generation mobile enterprise platforms as organizations seek a more strategic deployment of mobile solutions.

Learn the important issues you must consider before starting your next mobility initiative. Get your mobility white paper from IDC now, compliments of Sybase.

White Papers & Webcasts

Accelerate SSL Encrypted Applications
The amount of SSL traffic is growing in the enterprise. Because it is encrypted, it cannot be properly controlled and accelerated. Blue Coat...

Usability Is Everything
Learn what sets Workday's HR and Payroll solutions apart from the competition....

ESG Lab Field Audit
Many companies have successfully implemented Riverbed WAN optimization solutions within their Cisco networks. This ESG Lab Field Audit document explores the success that...

The Value of Real SaaS at Workday
Cost savings, speed to value, and innovation brought to the enterprise by Workday's software-as-a-service solutions for HR and Payroll....

Shape Your Apps Strategy to Reflect New SaaS Licensing and Pricing Trends
Why are smart companies choosing software-as-a-service? Find out in the complimentary Forrester Research report...

SaaS at Flextronics, Inc.
Dave Smoley, CIO of Flextronics, discusses the real value of software-as-a-service and why he chose Workday for his HR solution....

Natural User Interface for Enterprise Applications
Learn how a revolutionary user interface can make a complex enterprise application so intuitive even casual users can jump right in....

Why Compliance Pays
This OnDemand webcast explores the relationship that firms with best compliance records have higher revenue, greater customer retention, lower financial losses from data...

A Truly Global HCM System
Learn about a system built with advanced object-oriented technology that support multi-national requirements and costs less to implement, maintain and upgrade....

Agile Enterprise Content Management (ECM) for Rapid ROI
Find out how combining ECM and BPM will help adress issues about content rich business processes....

All White Papers | All Webcasts