New and non-traditional competitors, razorthin profit margins and disruptive events are challenging the grocery marketplace. To satisfy customers and grow revenue streams, grocers are seeking new ways to compete effectively in this changing environment and taking a long, hard look at their operations to find new opportunities to increase efficiencies and reduce costs.
Andrew Crowson, Managing Director at Cummins Allison UK, points to cash management – especially coin handling – as one such area that contributes to a retailer’s cost of doing business, claiming valuable staff resources that are already in short supply:
“Retailers often struggle with the high cost and time commitment of managing coin within their stores, including timeconsuming tasks such as ordering new coin for the day or week, managing cash drawers, filling coin hoppers in selfcheckout lanes, providing coin for use at the service desk and processing coin from store-owned vending machines.
“There is no doubt that retailers could benefit from a more efficient and costeffective system for managing the cashiers’ cash drawers and other in-store coin related activities to minimise costs and increase productivity.”
Self-service coin counters are not only used by retailers as a revenue generator, but also as an effective way of recycling coin in their own operations – saving thousands annually. For example, when retailers lease or own a machine, they have access to the redeemed coins inside, and can use these coins to restock cash drawers and coin hoppers in self-checkout lanes.
The cost benefit is twofold, says Andrew Crowson: reduce pick-up and processing fees and eliminate the need to buy coin from banks or armoured carriers, further increasing ROI. By having access to their own coin, retailers can save up to £110.74 per week for one store, which leads to a huge £5,758.24 per store each year. With the right procurement strategy, retailers can further expand the profitability potential of self-service coin redemption. When evaluating procurement models, retailers should keep in mind that purchased and leased coin machines deliver higher ROI. The cost of the equipment and fees is typically recovered in as little as twelve months – and retailers retain a greater percentage of the profits, turning coin operations into profitability.
To determine the right coin management strategy for your store, you can download Cummins Allison UK’s eBook at www.cumminsallison.co.uk/profitable