Target is renowned for its efficient shopping experience, whether customers are browsing the aisles in-store or checking out online. This seamless integration across channels, from real-time inventory management to swift self-checkout, is largely due to Target’s custom-built Point of Sale (POS) system. Unlike many retailers, Target has invested in a unique, in-house POS solution developed by its IT division, Target Technology Services. But what exactly does this system entail, and how does it power the high-efficiency shopping experience Target customers enjoy?

Why Target Uses a Custom POS Solution

Retailers of Target’s scale face POS challenges that differ significantly from those of smaller businesses. Target’s custom POS system meets the demands of high transaction volumes, intricate inventory management, and the ability to support omnichannel shopping. Each Target store can operate up to 30 registers and manage checkout operations through a dedicated network supported by dual servers within each location. This custom POS solution ensures smooth operations across all nearly 2,000 stores, even if network connectivity with centralized data centers is temporarily unavailable.

Key Features of the Target POS Software

Target’s POS technology is built to ensure reliability, speed, and integration across all customer touchpoints. Here are the primary features that make Target’s POS system stand out:

1. Real-Time Inventory Tracking and Management

One of the most crucial aspects of the Target POS software is its real-time inventory tracking. By using the Oracle Exadata database, the POS system syncs live inventory data across all Target stores and the online marketplace. This means a customer shopping online can see current in-stock information, make a purchase, and pick up the item in-store with confidence that it’s waiting for them. Additionally, the system alerts Target employees to low stock, automatically generating orders to replenish inventory when levels reach a certain threshold. This smooth data flow ensures customers find what they’re looking for, either on the shelves or online for convenient pick-up.

Example Scenario: Imagine a customer is browsing Target’s website looking for a specific item. The POS system lets them check store availability in real-time, place a hold, and pick up their item in-store without the risk of it being out of stock by the time they arrive.

2. Self-Checkout and Mobile POS Options

Target’s self-checkout stations are designed to make the checkout process as swift and intuitive as possible. With touchscreens and thermal printers, these kiosks allow customers to process their purchases independently. For added flexibility, Target equips store employees with “MyCheckout” mobile POS devices, allowing staff to assist customers directly on the sales floor. These devices can scan items, check stock availability, and complete transactions, giving customers a high-touch experience.

Example Scenario: Picture a busy shopper in a hurry. They use a self-checkout station to scan and bag their items quickly. Alternatively, if they can’t find the item they want, a Target employee equipped with a MyCheckout device can check stock and even place an order for home delivery—all without the shopper waiting in line.

3. Seamless Omnichannel Capabilities

Target’s POS system bridges the gap between online and in-store shopping. With a single account, customers can switch seamlessly between browsing online, checking inventory, making a purchase, and picking up items in-store. The system’s integration enables Target to offer services like online ordering with in-store pickup, which has become increasingly popular among customers who value convenience.

Example Scenario: A customer might spot a deal on Target’s website and reserve the item at their nearest location. The omnichannel functionality of the POS system means the customer can complete the entire journey—from discovery to pickup—without encountering delays or miscommunication between systems.

4. Distributed Computing with Unimatrix and Kubernetes

To support its POS system’s complexity, Target uses a Kubernetes-based deployment platform known as “Unimatrix.” This allows each store’s POS to operate as a mini-cloud, making it resilient to network disruptions. With Unimatrix, Target’s IT team can perform software updates, roll out new features, and ensure system stability across nearly 2,000 locations with minimal downtime. In other words, Unimatrix centralizes control while allowing each store to run independently as a “mini-cloud” environment, which is crucial for a company operating on Target’s scale.

Example Scenario: Suppose there’s a software update to improve checkout efficiency. With Unimatrix, Target can deploy this update across all stores simultaneously without interrupting in-store operations or requiring a direct connection to a central data center.

How Smaller Retailers Can Benefit from Similar POS Features

While Target’s POS system is custom-built, many POS solutions for small and medium-sized retailers now offer similar benefits without the infrastructure complexity. Here’s how small businesses can leverage these capabilities:

  • Real-Time Inventory Tracking: Many retail POS systems today include inventory tracking, allowing small businesses to monitor stock levels, get low-stock alerts, and keep accurate counts across multiple locations.
  • Self-Checkout and Mobile POS: Some modern POS solutions support self-checkout kiosks or mobile POS devices, giving smaller stores the chance to improve customer flow and provide flexible options.
  • Omnichannel Support: Cloud-based POS systems designed for small businesses now often offer multi-channel functionality, allowing retailers to link online and in-store purchases. This setup gives smaller retailers the ability to meet customers’ preferences for convenience and consistency across channels.
  • Distributed Systems for Reliability: Cloud-based POS software offers many benefits of distributed systems, such as remote software updates and the ability to run offline during internet outages.

Final Thoughts: What We Can Learn from Target POS Software

Target’s investment in a custom-built POS system underscores the impact that a well-designed, integrated POS setup can have on the customer experience. Target’s POS technology enables seamless inventory management, efficient self-checkout, mobile-assisted sales, and omnichannel service—all of which contribute to the retailer’s strong reputation and customer loyalty.

For small retailers looking to capture similar efficiencies, modern POS software can provide real-time inventory, mobile checkout, and flexible integrations without needing the infrastructure and support that Target requires. A tailored POS solution can help any business, regardless of size, deliver an elevated customer experience, drive operational efficiency, and support growth.

If you’re interested in bringing these types of POS solutions to your business, consider exploring our POS software offerings designed to help businesses in retail, hospitality, and service industries achieve the same high-quality results that make Target a retail leader.