14
Future of Retail — In-Store Technology
issue 06
other payment methods. Small businesses even prefer cash transactions, accepting no payments in plastic or they set minimum spend, so they don’t have to pay credit card fees. Handling cash costs money too. Not only
do businesses have to pay for time spent on counting, processing and transporting cash, but they also lose substantial sums in discrepancies. Cash costs up to 1.5% of a country’s GDP. While most of that is due to theft, the figure also includes time spent on processing, counting and transporting notes and coins. Theft is one of the retail world’s biggest
challenges. During 2014–2015, retail stores in the UK reported a shrinkage rate of 0.89% amounting to over £4.2 million as per The Global Retail Theft Barometer 2015 report. This hurts businesses and their customers because merchants often have to pass on these losses by raising prices. Nearly 25% of small businesses in the UK, surveyed by Sage, said they had been a victim of cash theft by a member of their own staff. With cash management solutions, businesses can fight back against theft and achieve an advantage over competitors.
CASH BURNING AN OPERATIONAL HOLE IN YOUR POCKET It is conclusive that cash is not going away soon, and every retail outlet faces the cash handling challenge, an area where the associated costs remain a constant burden. It is often hard to define the scale due to hidden operational costs and poor cash handling data. Cashiers, store managers and back office staff must deal with cash day in and day out, when the labour rate is escalating and the labour pool is tight. The time spent on physically moving the cash
between the front and the back office, counting the cash between shifts, for security checks or for reconciliation and the general management of the float is significant, but hard to quantify. Cashiers spend an average of two minutes per transaction counting and sorting cash. It takes seven minutes on average to count out a drawer before and after shifts. The time spent counting cash at the PoS can create bottlenecks that could affect customer service and your bottom-
“With labour rates escalating, cash management technology can relieve the operational costs eating at your bottom line.”
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