IHL: Automated solutions can reduce retailers’ cash-handling costs
Cash may be king, but it can also boost retailers operating expenses if it’s not handled correctly.
That’s according to a report from IHL Group and APG Cash Drawer, which found that cash transactions incurred costs from 4% to 15%, depending on the retail segment. Cash accounted for 41.2 billion transactions in 2017, or about one-third of all transactions.
According to the study, “Cash Multipliers: How Reducing Cash Handling Can Enable Retail Sales and Profit Growth,” up to 71% of cash-related costs are the result of front-of-the-store activities, such replenishing change at tills and closing out drawers at the end of a shift.
Retailers don’t know their true costs of managing cash because the process involves multiple components and operating units, making it difficult to keep track of all associated tasks, the report stated. Costs include tasks related to drawer starts, rebuilds and closings, transporting cash to banks, and bank fees.
The study recommends that retailers look into cutting their cash-handling costs to keep a lid on expenses and compete with more agile market leaders. The report urges merchants to consider automated solutions, including automated cash management systems, smart safes, cash recycling solutions at checkout lanes. Such options can reduce retailers’ cash-related expenses between 15% and 80%, according to the study.
“Today’s retailers are focused on improving the customer experience, but their efforts are hampered by time-consuming manual tasks, such as topping up cash drawers, delivering change to checkouts and doing back office cash counts,” said Greg Buzek, president, IHL Group. “Staff time that should be dedicated to the customer experience is instead spent on these tasks. That’s why it’s critical to bring down cash-handling costs.”
That’s according to a report from IHL Group and APG Cash Drawer, which found that cash transactions incurred costs from 4% to 15%, depending on the retail segment. Cash accounted for 41.2 billion transactions in 2017, or about one-third of all transactions.
According to the study, “Cash Multipliers: How Reducing Cash Handling Can Enable Retail Sales and Profit Growth,” up to 71% of cash-related costs are the result of front-of-the-store activities, such replenishing change at tills and closing out drawers at the end of a shift.
Retailers don’t know their true costs of managing cash because the process involves multiple components and operating units, making it difficult to keep track of all associated tasks, the report stated. Costs include tasks related to drawer starts, rebuilds and closings, transporting cash to banks, and bank fees.
The study recommends that retailers look into cutting their cash-handling costs to keep a lid on expenses and compete with more agile market leaders. The report urges merchants to consider automated solutions, including automated cash management systems, smart safes, cash recycling solutions at checkout lanes. Such options can reduce retailers’ cash-related expenses between 15% and 80%, according to the study.
“Today’s retailers are focused on improving the customer experience, but their efforts are hampered by time-consuming manual tasks, such as topping up cash drawers, delivering change to checkouts and doing back office cash counts,” said Greg Buzek, president, IHL Group. “Staff time that should be dedicated to the customer experience is instead spent on these tasks. That’s why it’s critical to bring down cash-handling costs.”