Best POS System for Retail: Choosing the Right System

If you own a retail business, ask yourself this question: Is my POS system built for retail?

Most new businesses rush into purchasing POS software. They know it’s important, but they lock into software without exploring all options.

Commonly, we see businesses that aren’t using a strong retail POS system, or they’re using a POS system that isn’t designed for the type of retail they’re doing. For example, a convenience store using Square or Clover would create problems (for some reasons we’ll cover below).

Typically, the best retail POS systems tend to be modular (e.g., support a variety of peripheral POS equipment) and have powerful, customizable inventory management settings. Inventory management is very important in a retail POS, especially for businesses that carry lots of products with variants or that sell 1000s of different products and in volume.

Did You Know?

According to B2B Reviews, the global retail POS market is on track for impressive growth, jumping from $15.8 billion in 2020 to an expected $34.4 billion by 2026.

These numbers showcase the growing importance of the retail POS system, and if you’re a retailer, you’d know better.

Have a look at this smart retail POS system to smooth things up for your business.

Interested in learning more about options for the best POS system for retail? This guide covers must-have features, key benefits, and different types of retail POS systems you might consider.

Plus, we touch on why FTx POS is the best POS system for retail and why your business should consider it.

What Is a Retail POS System?

A retail POS system that facilitates transactions at checkout. You can think of it like a digital cash register, ledger log, and inventory all rolled into one.

In other words, POS systems are essential for modern retail. However, not all POS systems work for retail.

In fact, many are restaurant-style systems. These systems prioritize features like open checks, table management, and ingredient or kit inventory. Other systems might be more retail-based, but for small, independent brands that maybe carry 10-20 different stock keeping units (SKUs).

As your retail brand expands, you need a POS system that grows with you – one that connects seamlessly to additional registers, provides powerful inventory management tools, and includes other essential features to support your success.

Must-Have Retail POS Features

Leading retail point-of-sale systems don’t just facilitate transactions. They also have these important features that drive retail efficiency.

The first two (inventory and barcode scanning) are must-have features. Retailers need these features to perform essential day-to-day tasks. However, there are also some other key features that top retail POS systems have:

1. Inventory Management

Retail tends to involve a greater variety of products and more frequent stock updates (compared to restaurants). Retail POS systems therefore need robust inventory tracking features.

For one, the system should include SKU management or a pricebook manager to edit prices, products, vendors, and more. Effective retail inventory software will also include automatic reordering, vendor/purchase order management, real-time inventory levels, and more.

2. Barcode Scanning

Retailers rely heavily on barcodes at the register. Scanning items in ensures better price accuracy, faster transaction speeds, and improved inventory accuracy. In addition, the best POS systems for retail also allow you to print and customize barcodes and perform price lookups from a barcode scan.

3. CRM Tools

Collecting customer data is useful in retail (and restaurants). So, this is a must-have feature for any type of POS system. However, great retail CRM-POS tools are designed to build customer loyalty and drive repeat visits.

Look for marketing automations, email integration, and loyalty program app integration.

4. Returns & Exchanges

Depending on the type of retail business, exchanges and returns tend to be more common. Therefore, the best retail POS systems allow you to manage and monitor this type of transaction.

Retail POS systems should have features to manage these processes efficiently, including refund options and store credit.

5. Product Variants

This is a feature of inventory management, particularly the ability to customize inventory to match your product mix.

Retailers often have product variations for color, size, or material. They might also sell items by case or individual unit. A robust retail POS includes inventory tools to customize and facilitate these unique functions.

In general, the first two features are must-haves in retail operations. The other three tend to be nice-to-have but will certainly make retail operations smoother and more efficient.

Request a demo. Explore the robust retail POS features in FTx POS. Schedule your platform walk-through today with a retail POS expert.

What Retail POS Systems Help You Do

Choosing the right POS system creates tons of value for your business. A POS can help you cut costs, sell more, be more efficient, and reduce theft, for instance.

Here are some key tasks that POS systems for retail can help you do:

1. Manage Inventory Effectively

Inventory management is a key functionality of a retail POS. Therefore, your POS system’s inventory platform should come with basic-to-advanced features like:

• Easy product database transfers or setup
• Ability to track multichannel or multi-store inventory, providing real-time data for the entire operation
• Cycle counting automation (determine the groups of products to count and the cadence)
• Replenishment automation and vendor management
• Advanced inventory reporting

With the right POS inventory software, you can improve inventory efficiency – which has a bunch of downstream effects like reduced holding costs and shrinkage, better inventory turnover ratios, and efficient product data management.

2. Pricing Accuracy

Price inconsistency is a real problem for multi-location or omnichannel retailers. You need consistency across your ecommerce site and brick-and-mortar locations for the best customer experience.

With a customizable POS system, you can build your pricebook to best suit your business. This will allow you to set up:

• Discount rules
• Tax settings
• Creating zones or regions for prices (e.g., if you charge different tax rates across state lines)
• Margin-based pricing automation

Basically, this feature gives you peace of mind that what’s being charged at the register is accurate. Pricebook management tools are key for maximizing profit margin.

3. Monitor Staff Performance

For large retail operations, managers can’t be in the store every day. That’s why cloud-based POS reconciliation tools are so important.

A retail POS will include tools to automate and manage:

• Drawer counts at the end of a shift
• Drawer counts at the end of the day
• Lottery reconciliation and sales reporting

Basically, just like a cash drawer count sheet, the tender amounts would be entered on the computer. Then, totals for card payments, gift cards, and other tenders could be entered, and a balance report is run.

This will provide your accounting team or corporate office with fast data about cash variances and issues with stores/cashiers in terms of balancing a drawer and help you monitor for potential issues like excessive refunds, price overrides, or other potential indicators of theft.

4. Streamline Checkout

Your retail POS system helps you speed up checkout. For high-volume retailers that serve multiple customers per day, a fast POS is very important. Some features that can speed up checkout include:

• Integrated payments for faster processing
• Barcode scanning for accurate item lookup
• Easy customer lookup via phone, email, QR code scan (with loyalty), or ID
• Simplified gift card sales and redemption processes
• Easy refund/return processes
• Customizable POS screens (for checkout flow)

5. Data-Driven Reporting

Your POS collects a lot of data. About customers, inventory, sales, reconciliation issues, etc.

As a reporting hub, there’s a lot of data you can start to monitor, like:

Your sales reports. Use your POS to monitor day-to-day sales (noticing trends or anomalies); you can also measure sales on a weekly or year-over-year basis to watch for ongoing growth.

See Our Guide to POS Reporting.

Types of POS Systems: Which One Is Right for Retail?

When it comes to selecting a POS system, there are a lot of different types. But here are two big distinctions you should know.

First, POS systems can be cloud-based or on-premises (which requires an on-site server). And second, you have modular systems, all-in-one, or proprietary POS platforms for retail. Let’s take a closer look:

Cloud vs On-Premise

Most modern POS systems are cloud-based primarily because cloud-based software tends to be easier to maintain, support, and deliver updates to customers.

Cloud

With a cloud system, your POS hardware connects to the cloud to access your software and data. Think of it like Netflix. You can access your favorite TV shows from anywhere, and updates and new features get added to the platform automatically. This type of system tends to have lower startup costs, and they can be launched much faster than legacy systems. However, they do require more.

On-Premise

This type of system is used if a business wants greater control over its data and more customization. The system runs independent of an internet connection and is stored on a local server. This type of system is slower and more costly to build.

Looking to understand the differences between cloud and on-premise solutions so you can make the right choice?

Read this: Cloud-based Vs. On-Premise: Choosing the Right POS System

Retail POS Hardware

You can also choose a POS by the type of hardware it uses. The three most common include:

1. Proprietary POS – This system uses specific hardware. For example, Clover POS only runs on Clover devices. The advantage is that this type of system is fast to launch. However, it also greatly limits you.

2. Modular POS – A modular system means you can mix and match hardware devices if compatible with the operating system. For example, FTx POS is a Windows-based system, and it’s compatible with a wide range of Windows POS devices. This type of system allows you to customize and may help to lower costs.

3. All-in-One Systems – In an all-in-one (AIO) system, all of the hardware is available in a single unit. The HP Engage systems, for example, are technically AIO systems – the monitor, barcode scanner, and receipt printer are all housed in a single column. However, the HP Engage also supports modular devices as well.

Interesting Read: Retail & Ecommerce Payments Made Simple: 2025 Guide to POS Transactions

Factors to Consider When Choosing Retail POS Software

There are so many points to consider when choosing retail POS software; we’ve covered them here:

• Effortless Team Management: Juggling staff schedules can be a headache. Look for a system that integrates employee scheduling and time tracking, making shift management and payroll preparation smoother than ever.
• Know Your Customer: In today’s retail world, personalization is key. A robust system tracks customer profiles and purchase history, allowing you to understand buying patterns and tailor your approach.
• The Power of Plastic (and Digital): Gift card issuance and redemption capabilities are essential for boosting sales and brand loyalty. Ensure your chosen system handles this seamlessly.
• Beyond the Counter: Don’t be tethered to a fixed point. Mobile POS capability for on-the-floor service allows your team to assist customers anywhere in the store, improving engagement and potentially reducing checkout lines.
• Staying Compliant: For certain products, age verification and compliance tools are not just features; they’re necessities. Your POS should handle these regulations with ease.
• Smooth Transactions, Even When They Aren’t Sales: Handling returns, refunds, and exchanges gracefully is crucial for customer satisfaction. Your POS should make this process efficient and hassle-free.



• Keeping Your Shelves Stocked: Effective purchase order and vendor management helps you maintain optimal inventory levels, preventing stockouts and overstocking.
• Control in Your Hands: Customizable user permissions and access levels ensure that your team members have access to the tools they need without compromising security or operational flow.
• Say Goodbye to Long Lines: In today’s fast-paced world, no one likes to wait. Queue management and waitlist features can significantly enhance the customer experience.
• Meeting Customers Where They Are: The lines between online and offline retail are blurring. Support for in-store pickup and curbside order fulfillment is becoming increasingly important.
• Global Reach: If you cater to a diverse clientele, multi-language and multi-currency support can open up new possibilities and streamline international transactions.
• Smart Selling: Automated promotions and discount rules help you drive sales and manage offers efficiently, without manual calculations.
• Modern Communication: Ditch the paper trail. Digital receipts and customer messaging not only save paper but also provide opportunities for post-purchase engagement.
• Future-Proof Your System: API access for custom development or integrations ensures that your POS can grow and adapt with your business needs and integrate with other essential tools.
• Empowering Your Team: Built-in staff performance tracking tools can provide valuable insights into individual and team performance, helping you identify areas for improvement and reward success.

Why FTx POS Is the Best Retail POS System

FTx POS is a POS system designed for and by retailers. Our software has been battle-tested in our network of convenience stores, with many of the features built and tested to solve numerous remote management and performance tasks in retail.

Here are some reasons our software stands out:

1. Robust Inventory Management

You get not just a POS, but also one of the best POS inventory platforms, with features like:

• Automated Ordering: FTx POS streamlines your inventory management process with automated ordering features that help you maintain optimal stock levels and avoid stockouts.
• Advanced Reporting: Gain valuable insights into your inventory performance with comprehensive reporting tools that provide detailed information on sales trends, stock levels, and inventory turnover.

2. Unmatched Customization

Don’t go for a proprietary system that stifles your creativity. Lightspeed, for example, requires you to use their credit card processing service, as well as many of their hardware solutions. Clover and Square both require you to use their hardware.

With FTx POS, you can customize these features:

• Tailored POS Screens: Customize your POS screens to match your specific business needs and workflow preferences, ensuring a seamless and efficient user experience.
• Hardware Compatibility: FTx POS is compatible with a wide range of Windows devices, giving you flexibility in choosing the hardware that best suits your operations.
• Comprehensive Customization Options: From reporting customization to tax settings, margin pricing, and more, FTx POS offers a high degree of customization to meet your unique requirements.

3. Industry Experience

FasTrax has decades of combined experience serving retail businesses. Our software was built for growing multi-store retail locations.

Proven Track Record: Our company’s experience in managing a network of 60+ retail stores gives us a deep understanding of the specific challenges and opportunities faced by retailers.

Industry-Specific Knowledge: This expertise allows us to develop FTx POS with features that address the unique needs of the retail industry, ensuring that it is a powerful and effective tool for your business.

4. Remote Management Tools

Take control of your operation, no matter where you are, with these tools:

• Efficient Reconciliation: Simplify reconciliation tasks with automated tools that streamline the process and minimize errors.
• Comprehensive Cash Reports: Generate detailed cash reports to monitor cash flow and identify any discrepancies.
• Automated Reporting: Automate report generation to save time and gain real-time insights into your business performance.
• Cycle Count Automation: Streamline cycle count processes with automated tools that help you maintain accurate inventory records.



• Effective Communication: Stay connected with your store staff and remote operations through integrated communication tools that facilitate efficient collaboration.

With FTx POS, you can confidently manage your retail operations, optimize inventory, enhance customer satisfaction, and drive business growth.

How to Choose the Best POS System for Retail Businesses

Now that we’ve explored the essential features, how do you navigate the sea of options to find the best POS system for retail stores?

Here’s a strategic approach, drawing upon the very elements that make a POS truly impactful:

1. Define Business-Specific Needs: What are the unique demands of your retail operation? Consider your inventory size, whether you manage multiple locations, and any specific workflows that are critical to your success. For instance, a boutique clothing store will have different needs than a bustling grocery store.

2. Prioritize Ease of Use: A powerful system is only as good as its usability. Can your staff navigate it intuitively? A clunky interface leads to errors and frustration. Opt for a top-rated retail POS system known for its user-friendliness for both your team and you.

3. Check Hardware Compatibility: Will the new system work with your existing scanners, printers, and payment terminals? If not, factor in the cost of new hardware. Sometimes, an integrated solution offers better long-term value.

4. Seek Industry-Specific Tools: Does the system cater to the nuances of your industry? For apparel, look for matrix inventory (size/color). For groceries, robust barcode scanning is crucial. The best retail POS often comes with tailored features.

5. Ensure Strong Inventory Features: This is the backbone of retail. Your chosen system must offer robust inventory management capabilities, including tracking, alerts for low stock, and, ideally, features like cycle counting.

Manage Inventory Like You’ve Never Before – Easy & Automated

6. Review Support Availability: What happens when you encounter an issue? Evaluate the vendor’s customer support – is it 24/7? Is on-site or remote assistance available? Reliable support is invaluable.

7. Confirm Third-Party Integrations: Your POS shouldn’t be an island. Check if it seamlessly integrates with your accounting software, e-commerce platform (if you have one), and CRM tools.

8. Analyze Reporting/Analytics: Data is power. Look for a system that provides insightful reports on sales trends, inventory performance, and customer behavior. This data will drive smarter business decisions.

9. Support for All Payment Types: In today’s diverse payment landscape, your POS needs to accept various methods, including EMV chip cards, contactless payments, and mobile wallets.

10. Choose Cloud vs. On-Premises Wisely: Cloud-based systems offer scalability and accessibility, while on-premises solutions provide more control over data. Consider your business needs and technical infrastructure.

11. Verify Transparent Pricing: Understand the full cost, including any monthly fees, transaction fees, or costs for add-ons. Beware of hidden charges or overly long-term contracts.

12. Look for Loyalty Program Support: Building customer loyalty is crucial. See if the POS has built-in loyalty program features or integrates with loyalty apps.

13. Test via Demo or Free Trial: Before committing, always request a live demo or take advantage of a free trial to experience the system firsthand.

14. Check Update/Security Frequency: How often does the vendor release software updates and security patches? Regular updates are vital for performance and protecting your data.

Start Selling Smarter with FTX POS

Choosing the right point-of-sale systems for retail is not just about processing transactions; it’s about equipping your business with the tools it needs to thrive in a competitive market. By focusing on the features that truly matter and carefully evaluating your options, you can select a system that streamlines operations, enhances customer experiences, and ultimately drives growth.