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NCR-SPAR to Develop Innovative Store Concepts in Austria

NCR Corporation NCR and SPAR have joined hands to develop innovative store concepts in Austria. In this project, SPAR is testing cashless payment systems with the help of NCR’s software to reduce waiting time for customers.

Netherland-based SPAR is one of the world’s largest food retail chain operators with operations across 40 countries. The company was founded in 1932 and is the largest private employer in Austria.

SPAR has installed NCR’s SelfServ 90 and FastLane software at three different locations in Vienna and Graz to assess the cashless payment system. In its findings, at the Vienna University of Economics, 50% of SPAR’s customers are using this technology.

Taking the high customer acceptance into consideration, SPAR is now planning to roll out the technology at other high frequency locations in Austria. This will help the company better serve its customers.

Therefore, NCR is likely to land a major deal from SPAR which will boost its top-line performance. We are highly positive on the growing penetration of NCR’s SelfServ kiosks. Right from increasing operational efficiency, the company has been instrumental in offering value-added solutions.

NCR’s position in the self-service kiosk space is encouraging, in our view, given the tremendous growth prospects. Regular product launches, growing popularity of its self-service offerings and synergies from acquisitions are the other catalysts.

However, similar offerings from the likes of Diebold Corp. DBD and International Business Machines Corp. IBM keep the company’s profitability under pressure. Furthermore, the company’s tepid guidance for first quarter and full-year 2016, in view of lower revenue growth across its business segments due to unfavorable exchange rates, keep us concerned regarding its near-term performance.

Currently, NCR carries a Zacks Rank #3 (Hold). A better-ranked stock in the broader technology sector is Mentor Graphics Corp. MENT, sporting a Zacks Rank #1 (Strong Buy).

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