MISSISSAUGA, Ontario--(BUSINESS WIRE)--As seen in recent headlines, the price of food – from fresh produce to meat products – is on the rise in Canada, leading to higher grocery bills for many consumers in 2016.¹ In order to compensate for both rising prices and historically thin profit margins, Canadian grocers will be looking to find new efficiencies, reduce costs and mitigate security risks – and the right technology can help.
In part two of this news brief series, Cummins Allison, the leading innovator and provider of coin, currency and cheque handling solutions, discusses how Canadian grocers can leverage currency processing solutions to meet the ongoing challenges of 2016.
Replace Inefficient Processes: Consider the Cash Office
The razor-thin margins grocers operate on will continue to be a challenge this year, making it critical to improve efficiency and increase productivity in all parts of the grocery store. Advanced technology such as automated cash drawer processing systems that count down and balance cash drawers, rebuild float amounts and set up tills create new opportunities for grocers to make better use of time spent in the cash office.
Incorporating such technologies eliminates many of the inefficiencies associated with running a grocery business. Any opportunity to save time comes as a major advantage for grocers and employees; streamlining the deposit process can free up a significant amount of time in the daily schedule to focus on other important initiatives.
Combat Rising Costs: Technology is Critical
Labour – including employee wages and benefits – accounts for a large portion of grocery operating expenses.² Because of this, it’s important for grocers to focus on evaluating technology solutions that increase productivity and minimize the variable of rising employment costs.
Grocers realize that investing in currency processing systems with the ability to perform multiple functions can result in reduced overhead spending. These devices streamline the deposit process, eliminating back-office inefficiencies and errors and enabling customer service personnel to complete tasks faster – which can also eliminate costly overtime.
Mitigate Potential Security Risks: Protect Against Counterfeits
Bank notes are a vital method of payment in Canada, used in about 40 percent of all retail transactions.³ Unfortunately, even with polymer bills replacing traditional paper-cotton material, the risk of taking in counterfeit bills remains high. In 2014, over 62,000 counterfeit notes were passed – a value of $2.4 million.⁴
Grocers can safeguard against costly losses and fines associated with counterfeit bills by investing in currency handling systems that incorporate advanced counterfeit detection technologies. And even more important to grocers is the ability to pull out counterfeit notes before they are returned to customers by way of giving change. Fines are one issue, but no grocer wants the distress or bad press of being the store that gives out counterfeits after a transaction.
To learn more about how Canadian grocery stores can meet the challenges of 2016 with cash processing solutions, visit http://www.cumminsallison.ca/ca/en/application-solution-centre/grocery.
Sources:
¹ “Canada Grocery Prices Are Giving Shoppers Serious Sticker Shock.” Huffington Post. January 2016. http://www.huffingtonpost.ca/2016/01/13/canada-grocery-prices_n_8972976.html.
² “Grocery Stores: Retail Revenues and Expenses.” Government of Canada. https://www.ic.gc.ca/app/scr/sbms/sbb/cis/revenues.html?code=4451&lang=eng.
³ “The Economic Impact of Counterfeiting in Canada.” Royal Bank of Canada. February 2015.
⁴ “Currency Counterfeiting Statistics.” Royal Canadian Mounted Police. http://www.rcmp-grc.gc.ca/count-contre/cur-mon-eng.htm.
About Cummins Allison
Cummins Allison is the leading innovator and provider of cheque, currency and coin handling solutions. Our world-class sales and service network includes hundreds of local representatives in more than 50 offices in North America, 6 wholly-owned subsidiaries and is represented in more than 70 countries around the world. For more information about our award-winning solutions, visit www.cumminsallison.ca.
