In the late 1990s, a large number of retailers in Europe had upgraded their POS equipment to address the Y2K technology "bug," as well as the introduction of the Euro, according to IHL president Greg Buzek. "This left retail technology purchases flat from 2000 through 2002. In 2003, POS shipments to the large format food, hypermarket, specialty, and hospitality segments began to increase, and in 2004 they were even stronger," Buzek added.
Other findings from the IHL study:
- In Europe, as in North America, Microsoft is increasing its dominance of the retail technology marketplace. In 2004, Microsoft Windows NT/2000/XP was the clear shipment leader, making up 56 percent of POS shipments in the EMEA region. (Interestingly, an earlier IHL report found virtually the same market share percentage for Microsoft POS shipments in North America in 2004.)
- Linux POS has gained only moderate acceptance in the region with just five percent of shipments in 2004 and an installed base of two percent.
- The United Kingdom is seeing significant growth in retail sales overall, as well as retail technology purchases. In contrast, Germany remains sluggish thanks to high taxes, a stagnant economy and restrictive shopping hours.
"Going forward, Western Europe should see solid growth but emerging markets in Eastern Europe, the Middle East and Africa should far outpace these gains with annual growth ranging from 15 percent to 20 percent over the next several years," said Buzek.
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