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NGA, Balance Innovations Release Independent Grocer Payments Research
Craig Levitt
January 1, 2018
2 Min Read
The National Grocers Association (NGA) and Balance Innovations released the results of their joint 2015 Grocery Retailing Payments Study - designed to understand industry payment practices relative to cash; check; debit and credit management; mobile payment; loss prevention; e-commerce; and payments automation.
"Shifting shopper preferences, payment security concerns and new payment technology drive an ever-changing payments landscape. Understanding the latest trends helps retailers optimize internal payment processes while providing shoppers with the best checkout experience possible," says Peter Larkin, NGA president and CEO.
The study established retailer and shopper benchmarks to help quantify areas for more streamlined operations, reduced shrink and improved inefficiencies. The research identified more than a dozen action areas where independents may find ways to save. "Given their high level of employee handling, cash and checks processing policies in particular are important to review periodically," says Shelley Bosler, SVP of strategic initiatives for Balance Innovations. "For instance, a starting till amount optimized to the store based on denomination, traffic and sales patterns will help minimize cash pickups and loans."
A few of the action steps identified by the study include:
Establishing procedures for recycling cash within the store -63 percent of independents already have procedures in place to recycle cash and minimize the number of armored car visits, which average $25 per visit.
Weighing cashier accountability versus lane accountability - 60 percent of independent grocers use cashier accountability, 20 percent use lane accountability and the remaining 20 percent have a mixed system. While lane accountability helps retailers reduce their cash on hand and labor associated to balancing the extra tills, it complicates identifying sources of loss, which increases the risk of shrink.
Reviewing cash back policies -85 percent of independent grocers offer cash back availability, with maximum amounts ranging from $20 to $200. While a great convenience to the shopper, cash back can unbalance the demand and supply of cash within the store, leading to numerous additional expenses.
Optimizing safe management - Setting a maximum amount customized to each store's unique sales patterns will help cover store and customer needs, but avoid unnecessarily tying up cash.
Consider implementation of mobile payments based on shopper demographics - 24 percent of independent grocers currently accept mobile payments, with ApplePay being the most commonly implemented system. An additional 40 percent plan implementation in the next one to three years.
Free copies of the study can be obtained at the Balance Innovations booth 1206 at the NGA Show, or contact NGA or Balance Innovations to obtain a copy of the report.
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