Metia Windows Embedded Retailer of Iconic Hello Kitty Products Saves Millions with New

Retail Anywhere POS Leverages Windows Embedded POSReady Retailers want to improve the customer shopping experience while also keeping tighter control over inventory and ordering for higher profitability. Nakajima USA, a specialty retailer best known for distributing Sanrio “Hello Kitty®” products, recently replaced its aging point-of-sale (POS) solution with Retail Anywhere's POS and retail management system, powered by Microsoft Windows Embedded POSReady. Benefits of the new system have included a 25% decrease in POS operating costs in addition to significant improvements in credit/gift card processing and inventory functions.

Situation Nakajima USA is a leader in the design, sales, and distribution Solution of some of the world's most popular lifestyle products. This Nakajima turned to software developer Retail Anywhere, specialty retailer has handled an extensive range of items for which provides POS and global brands, including Disney, Warner Brothers, and the retail management solutions to mid-size retailers across internationally renowned Sanrio “Hello Kitty®” character. North America. “We have always been a ‘Microsoft shop’ and our solutions Today, Nakajima USA is the primary partner in managing have followed the progression of the Windows Embedded Sanrio’s U.S. retail presence, all independently-run licensed product family from its beginning to today,” explains Brenda Sanrio stores, as well as day-to-day management of Whisenhunt, Director of Marketing, Retail Anywhere. Nakajima-owned retail locations throughout the U.S. The company partners with IBM for POS hardware, and “Our company’s retail footprint has grown tremendously Whisenhunt notes, “Windows Embedded is a versatile since 2004, from 17 to 40 company store locations,” says platform allowing us to be hardware-independent and run on Jennifer Pearce, Director of Company Stores, Nakajima USA. almost any type of POS system the customer wants.” “This put a lot of pressure on our legacy POS system which was seriously outdated by early 2010.” Retail Anywhere recently ported its flagship POS solution to Windows Embedded POSReady 2009, which she also Pearce continues: “The old system had dial-up modems for describes as “a natural progression that makes sense for our credit card processing, which created delays of up to several target market.” minutes for customers at busy times like the The development framework for the solution is .NET 4, the holiday season. An even bigger issue was the fast- language is C#, and the database is SQL Server. An in-house approaching deadline for PCI security compliance.” team of six developers attends Microsoft’s training and annual technical conferences and many are certified on The Payment Card Industry Data Security Standard (PCI DSS) several Windows Embedded platforms. is a security standard for organizations that handle cardholder information for the major debit, credit, prepaid Nakajima began deploying the Retail Anywhere POS solution gift, ATM, and POS cards. with its integrated retail management system in the second half of 2010. The solution was rolled out to all 40 Nakajima- owned store locations. There are one to three registers per Additional business requirements for the new system location. included the ability to get a live view of inventory at store level to improve inventory control and ordering efficiencies. Benefits For the retailer, the benefits of the new POS system start with Nakajima also wanted devices with an optimized operating live in-store inventory control. system (OS) that could be locked down for greater security. Finally, the company wanted to improve its customer “We can now gauge in-stock status of products in the stores relationship management capabilities for targeted in real time, instead of relying on periodic back-office promotions and other marketing activities. reports,” Pearce states. “Because our products come from overseas, there is a long replenishment cycle for our warehouse. The POS gives us faster visibility into which core

This case study is for informational purposes only. MICROSOFT MAKES NO WARRANTIES, EXPRESS OR IMPLIED, IN THIS SUMMARY.

Document published September 2011 products are selling and need to be restocked, therefore She adds: “We just rolled out a store locator function on allowing more efficiency in managing inventory ‘turns’ within Facebook that lets consumers print discount coupons. The our stores.” Windows Embedded-based POS system lets us see how many Facebook coupons were redeemed, the average transaction Nakajima’s customers now enjoy faster service with the new size, and more. All the information we need is right where we POS. “The register system is much easier to use, and touch– need it.” enabled in most locations which has increased overall transaction speed by 30 seconds,” states Pearce. “Speed at Within this year, Nakajima plans to fully utilize Retail the register is also a result of the integrated high-speed Anywhere’s CRM functionality to more accurately target credit card and gift card transaction processing enabled by promotions and product development. Retail Anywhere, Windows Embedded POSReady, and Mercury Payment Systems.” Retail Anywhere’s POS integrates The retailer also looks forward to utilizing features that help with Mercury Payment Systems for credit/gift card reduce overstock, develop new sell-through strategies, and functionality. Such broad integration is a major factor in control operational inventory loss. reducing Nakajima costs. Finally, Nakajima will use the new system’s internal and Better customer relationship management (CRM) is another external reporting functions to reduce workload in its back major benefit for Nakajima. “We are just starting to capture office and provide important and accurate data regarding customer demographics at the register, where we can also tie sales, inventory, and promotions. in notes and comments,” explains Pearce. “This allows us to capture historical purchase data, so we can more effectively “Retail Anywhere provided a fully integrated solution that target our email campaigns. The POS also lets us set up met our business needs with low upfront costs,” recalls promotions such as discounts on specific product lines, then Pearce. “Windows Embedded POSReady 2009 gives us a run a report to see whether the promotion was successful.” secure, locked down OS optimized for retail.”

Keyword: Retail & Hospitality; Retail Point-of-Sale

This case study is for informational purposes only. MICROSOFT MAKES NO WARRANTIES, EXPRESS OR IMPLIED, IN THIS SUMMARY.

Document published September 2011