Retailers leave millions on the table by delaying PoS modernization

The report, which surveyed 150 global retail decision-makers, highlights a significant disconnect between the perceived and realized value of modernizing checkout technology. While many companies view these upgrades as simple hardware refreshes, those that successfully transitioned to cloud-native architectures experienced a 1.2-percentage-point increase in in-store conversion rates and a 4.3% boost in average transaction value. For a hypothetical retailer generating $1 billion in annual revenue, these shifts translate into approximately $4.4 million in cost savings and $39.6 million in annual revenue gains.

Despite these clear performance indicators, progress across the sector remains fragmented. Currently, 22% of retailers still operate hybrid or fully on-premises environments, while another 36% utilize cloud-hosted systems that lack the agility of modern, microservices-based platforms. The data indicates that integration complexity acts as the primary barrier to adoption, rather than a lack of financial justification. According to Deborah Weinswig, CEO of Coresight Research, the industry has moved beyond the debate of whether modernization pays off, shifting the focus toward how to execute the transition effectively.