FRANKLIN, Tenn. April 14, 2004--Technology suppliers at last are seeing a slight pick-up in overseas purchases by retailers in Western Europe . But the real growth in electronic point-of-sales (EPOS) equipment investments in the coming years will be realized in Eastern Europe, the Middle East and Africa, according to a new study about IT and international retail.

"After two years of no growth, IT suppliers finally saw their sales jump by 5 percent last year in Europe, the Middle East and Africa.," said Greg Buzek, president of IHL Consulting Group, an analyst firm and consultancy that serves retailers and retail technology vendors. "Going forward, Western Europe should see solid growth but emerging markets in Eastern Europe, the Middle East and Africa should far outpace these gains with annual growth ranging from 14 percent to 20 percent over the next several years."

In the late 1990s, a large number of retailers in Europe had upgraded their POS equipment to address the year 2000 technology glitch, as well as the introduction of the Euro, Buzek said. This left retail technology purchases flat from 2000 through 2002. But in 2003, POS sales were significantly boosted by companies in the large format food, hypermarket, specialty and hospitality segments.

This is just one finding from the IHL market study, 2004 Europe , Middle East & Africa Retail Point-of-Sale Terminals, which is available immediately.

Additional findings include:

• The United Kingdom is seeing significant growth in retail sales overall, as well as retail technology purchases. In contrast, Germany remains sluggish thanks to high taxes, a stagnant economy and restrictive shopping hours.
  
  
• Europe is the second-largest retail market in the world. Yet the large number of small countries and inconsistent operating environments in the region prevent cost-effective sales and distribution from becoming a reality.
  
  
• In Europe, Microsoft is increasing its dominance of the retail technology marketplace. In 2003, Microsoft Windows NT/2000/XP emerged as the clear leader, making up 47 percent of POS shipments.
  
  
• Although it was created in Europe, Linux POS has gained only moderate acceptance in the region. However, a significant number of current DOS users will likely consider Linux in the future.

The report covers point of sale findings in Europe, the Middle East and Africa, with key insights into nine specific geographic regions.


About IHL Consulting Group
IHL Consulting Group is an independent research and analysis firm headquartered in Franklin, Tenn., that provides market analysis and business consulting services for retailers and information technology companies that focus on the retail industry. For more information, see http://www.ihlservices.com, call 615-591-2785 or send e-mail to ihl@ihlservices.com.

For press contacts and interviews, contact Roy Miller at (972) 716-4070 x235, or via e-mail at rmiller@transsynergy.com.