It's likely Windows XP embedded, which doesn't enforce code signing.
I've worked around some Retalix (NCR) POS software (mentioned in the article, though in Canadian stores) and I can safely say that the security posture of the software of theirs that I've seen is simply horrible.
Perhaps Target has newer stuff than what I've worked with, but I'm talking about VB 6 code running in XP embedded using a "database" back-end that amounts to some Btrieve database files on an SMB share marked "Everyone / Full Control". Getting remote code execution on the POS machines would be trivial.