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Target, Tesco Buy Metrologic Scanners
Article courtesy of Frontline RFID
August 12, 2005 -- Both Target Corp. and Tesco have placed orders for bar code scanning equipment from Metrologic Instruments Inc.
Target is buying MS1690 Focus hand-held imaging bar code scanners for its retail stores. Shipments are expected to begin immediately. This would be one of the first wide-scale uses of imaging-based scanners at the retail point of sale.
According to a report from Raymond James, Target ordered 20,000 units, which puts the contract value at approximately $4 million to $5 million.
Metrologic confirmed today that a recently announced 20k unit order for the company's Focus handheld scanners is going to Target Corporation. The order has an estimated value of about $4-5 million, but also has important strategic ramifications for the company. No change to our numbers, as the contract was announced concurrent with the Metrologic's Q2 conference call.
"Target's decision to purchase an imaging solution suggests that the company is deploying the scanners for purposes other than simple bar code scanning," wrote Raymond James analyst Chris Quilty. "Likely applications include drivers' license age verification, reading 2D bar codes, and optical [character] recognition (OCR)."
Quilty said the deal put Metrologic in a better competitive position with Hand Held Products and Symbol Technologies, which are strong in both imaging and retail applications.
UK retailer Tesco will deploy Metrologic's Stratos bioptic in-counter scanner/scale systems in approximately 400 lanes, with a commitment for 2,000 units during Tesco's current fiscal years through February 2006.
"In addition to Metrologic demonstrating their understanding of the issues Tesco is addressing at the checkout, the Stratos performed well against the established competitors," said Neil Finch, IT project leader for Tesco. "Stratos' unique advantages of built-in resilience and ease of maintenance, combined with the productivity benefits for the operator, deliver the benefits that the simpler checkout was designed to produce."