If there’s any doubt about the impact of cash management solutions on the cost structure of retailers, consider this recent finding by IHL Group: Replacing manual processes with automation technology can save retailers an average of 200 to 500 labor hours monthly per store.
In a study commissioned by APG Cash Drawer, “Cash Multipliers: How Reducing Cash Handling Can Enable Retail Sales and Profit Growth,” IHL Group discovered that a lot of time and money is spent on cash transactions at POS stations. The good news here is that cash remains a significant share of overall purchases. Cash accounted for 41.2 billion transactions in 2017 – close to one third (30%) of all transactions.
The bad news, of course, is these transactions incur high costs for an industry that operates on razor-thin margins. Depending on the retail segment, cash transactions generate costs of 4% to 15%. Up to 71% of those expenses are related to front-of-the-store activities such as replenishing change at tills and closing out drawers at the end of a shift.