U.S. markets closed
  • S&P 500

    -38.67 (-0.84%)
  • Dow 30

    -59.71 (-0.17%)
  • Nasdaq

    -295.85 (-1.92%)
  • Russell 2000

    -47.02 (-2.13%)
  • Crude Oil

    -0.28 (-0.42%)
  • Gold

    +21.40 (+1.22%)
  • Silver

    +0.17 (+0.76%)

    +0.0012 (+0.10%)
  • 10-Yr Bond

    -0.1050 (-7.25%)

    -0.0067 (-0.50%)

    -0.4090 (-0.36%)

    +1,705.55 (+3.59%)
  • CMC Crypto 200

    -74.62 (-5.18%)
  • FTSE 100

    -6.89 (-0.10%)
  • Nikkei 225

    +276.20 (+1.00%)

NCR Expands E-Commerce Capabilities With Freshop Acquisition

  • Oops!
    Something went wrong.
    Please try again later.
·4 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.

NCR Corporation NCR recently announced the acquisition of Freshop, a grocery e-commerce solution provider. Per the deal, Freshop’s e-commerce solution will be integrated with NCR’s retail core point-of-sale (POS) software platform. The financial details of the transaction remained undisclosed.

Rationale Behind the Acquisition

The addition of Freshop’s e-commerce solutions to NCR’s platform will enable faster deployment of buy-online, pickup-in-store capabilities for retailers, including regional and small grocery chains. The integration will help retailers enhance customers’ shopping experience and strengthen their brands. It will also facilitate margin expansion for these retailers compared to third-party e-commerce providers.

Moreover, Freshop’s e-commerce solution will become a key element of NCR’s Next-Generation Retail Store Architecture, including NCR Emerald. Notably, NCR Emerald simplifies store operations for retailers. The acquisition is further expected to boost its performance owing to the addition of new capabilities.

The company believes that the addition of Freshop will further enrich NCR’s product capabilities and service-led offerings, thereby aiding customer acquisition.

Solid Traction Among Retailers Bolsters Growth

NCR’s shares have gained 9.8% over the past year against the Zacks Computer - Integrated Systems industry’s decline of 9.4%.

This outperformance can be attributed to the strong adoption of NCR’s retail solutions, especially its cloud-based bundled POS software offerings and self-service technologies, among retailers.

Earlier, in December 2020, the company’s retail cloud-based POS platform, including the NCR Emerald solution, was selected by Big Y, a leading supermarket chain. The solution enables Big Y to integrate its grocery and convenience stores with a unified platform.

Further, NCR’s Advanced Store POS and Loyalty software was picked by Best Buy BBY Canada to enhance its in-store customer experience by providing flexible purchase options. Best Buy deploys NCR’s solution across all its 175 Canadian locations, which has boosted NCR’s market presence.

Moreover, the company benefits from increasing demand for self-checkout units by retailers in the wake of the coronavirus outbreak. Notably, the company has more than 1.5 million checkout lanes worldwide. Also, innovation like touchless self-checkout, which ensures health safety amid the pandemic, is a major positive.

Jumbo Supermarkten chose NCR to deliver self-checkout solutions for more than 680 retail stores in Holland and Belgium. This adds to the capabilities implemented by Jumbo that include NCR’s enterprise software platform, R10, and its mobile scanning solution, NCR FastLane Mobile Shopper.

Notably, NCR’s retail revenues grew 3% on a reported basis and 2% on a cc basis to $556 million in third-quarter 2020. Retail revenues were primarily driven by an increase in self-checkout revenues, which partially offset the lower POS revenues. Moreover, the company expects revenues of $2.1 billion from its retail business in 2020.

Zacks Rank & Stocks to Consider

NCR currently has a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader technology sector are Teradata Corporation TDC and PerkinElmer PKI. Both stocks carry a Zacks Rank #1 (Strong Buy), at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Long-term earnings growth rate for PerkinElmer and Teradata is currently pegged at 19.5% and 16.1%, respectively.

Biggest Tech Breakthrough in a Generation

Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.

A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.

See 8 breakthrough stocks now>>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Best Buy Co., Inc. (BBY) : Free Stock Analysis Report
Teradata Corporation (TDC) : Free Stock Analysis Report
PerkinElmer, Inc. (PKI) : Free Stock Analysis Report
NCR Corporation (NCR) : Free Stock Analysis Report
To read this article on Zacks.com click here.