Microsoft has unveiled its latest retail system, Microsoft Point of Sale, which it claims will allow small retailers to pull the plug on standalone electronic cash registers and manual business management methods.

According to the software giant, Point of Sale is an affordable application designed to enable small independent retailers to track and manage sales, inventory and customer information.

The offering allows firms to replace tills, either with existing PCs and peripherals or with tailored hardware and software bundles.

Mike Dickstein, director of point of sale solutions at Microsoft, claimed that the application offers levels of businesses insight and control previously available only to large retailers with expensive bespoke point of sale systems.

Paula Rosenblum, director of retail research at analyst firm Aberdeen Group, said: "Small businesses need point of sale technology not only to survive against retail giants, but to keep up with other small and medium-sized businesses that are already benefiting from the insights and efficiencies of store automation.

"The benefits are too great and the investment too reasonable for small businesses to keep getting by with that old electronic cash register and relying on their gut instincts when making business decisions."

Microsoft Point of Sale has begun shipping in the US at $799 for a single licence.