Total Cost of Ownership Decisions: Making Intelligent Choices: an NCR White Paper

Recession impacts wide range of industries

According to a 2009 study by Deloitte and Stores Media, the recent recession – starting with the credit crunch and declining housing market – has impacted a wide range of industries. The subsequent slowdown in consumer spending has resulted in the closings of some retail stores and restaurants – with store closings up 25 percent year over year.

As some stores close their doors and sell their assets, other retailers in better-performing market segments may consider purchasing these used assets (such as point-of-sale equipment) at heavily discounted prices. Although used assets may sound attractive, the hidden costs may outweigh the benefits. This white paper provides a brief background of the recession’s impact on retailing and information to help make intelligent Total Cost of Ownership decisions regarding used POS equipment.

Store closings lead to increased availability of used equipment
Until consumer spending shows signs of sustained growth, retailers will look to cut costs, consolidate support functions and reduce payroll. Retailers will also closely scrutinize their real estate holdings and operating environment, exiting some markets and closing unprofitable locations.

As retailers discontinue operations or close locations, they typically sell assets, including used point-of-sale equipment. Used equipment can be available for resale at heavily discounted prices, sometimes at or below distributor cost.