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THESE FIVE CHALLENGES WILL LEAD RETAILERS TO AUTOMATION IN 2023

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As we look toward the new year, we reflect on some of 2022’s greatest
challenges, such as labor and supply chain shortages. However, the retail
industry is one of the most adaptable and resilient industries out there. While
some challenges, like labor, will remain the same, there will be new challenges
and trends retailers will have to overcome to remain successful in 2023. Below
are five trends our experts predict we’ll see in the new year: 

1. REDUCING THE IMPACT OF HIGH-INTEREST RATES

Rates are higher than ever and are predicted not to drop until 2025. This has
caused higher costs associated with the supply chain, including the inventory,
equipment, and funding retailers need to operate. These higher interest rates
have also slowed mergers and acquisitions and made business investments more
costly. Lastly, retailers of any size will want to make cash deposits daily to
access 100 percent of their sales. However, that means having a manager leave
the store premise and losing valuable time and productivity – which is already a
strained resource. This is where a solution like SafePoint, which offers
provisional credit, is more valuable to retailers than ever. They’ll receive
daily provisional credit from their bank without having a manager leave the
store premise.

2. MINIMIZING THE EFFECT OF THE LABOR SHORTAGE

Retailers will be facing more challenges when it comes to labor in 2023. Yes,
wages will rise. Yes, turnover will continue, and yes, replacing employees will
only get more difficult. The hospitality industry’s turnover rate is 73 percent,
and the average cost associated with replacing an employee is $5,864 per person,
not including salary. When looking at the numbers, it is no wonder retailers are
turning to automation for repetitive, low-value tasks to reduce costs and boost
efficiency with the knowledge that not all employees will be replaced. Retailers
can save on labor by automating cash management. Loomis’ line of Titan smart
safes, which automatically counts cash and keeps it secure until an armored
truck picks it up, saves managers 45 minutes to an hour and a half daily.

3. REDUCING BANK TRIPS AMIDST CONSOLIDATIONS

Banks continue to close branches, especially in rural and suburban areas.
Managers are now driving further to make deposits and get change which means
they are out of the store for longer periods when labor is tight and in-store
operations must take precedence. Reducing bank trips leaves more cash in the
store, increasing the risk of loss and decreasing cash liquidity for the
business.  In addition, banks are raising fees to help streamline their
operations, and commercial businesses are being heavily impacted. Many
restaurants have reported the fees associated with over-the-counter deposits
rising as much as 50-200 percent.

4. REDUCING UNWANTED INVENTORY

Evaluating unwanted inventory has always been a priority for retailers looking
to increase their profits. However, retailers are taking this to the next level
in 2023. The pandemic caused many retailers to stock up on inventory due to
supply chain shortages, costing billions of dollars of excess inventory. And
while big box retailers like Target have always been known for their variety of
inventory, they have begun evaluating their inventory needs based on customer
demand instead of supply chain shortages. In 2023 they are making more space for
high-demand products like beauty and grocery while removing fewer in-demand
products from their shelves. This not only reduces the cost of inventory and
raises revenue for retailers, but it also creates an overall better customer
experience.

5. LEVERAGING TECHNOLOGY TO BUILD A BETTER IN-STORE CUSTOMER EXPERIENCE

There is a common misconception that the pandemic decreased in-store shopping in
favor of online shopping. However, according to Publicis Sapient research,
almost 88 percent of consumers prefer to shop in-store for certain items, but
only if the in-store shopping experience is as efficient and engaging as the
online experience. What does this mean for retailers? It means investing in
things like drive-up pick-up options or experimenting with new technology at the
point of sale for a faster and easier checkout. For example, some grocers are
trying new technology that allows customers to have a checkout-free system that
scans their whole cart at once instead of having a team member ring up each
item. Looking to 2023, the best retail in-store experiences will connect the
digital and physical shopping experience.

There is an underlying common goal for all these trends, improving the customer
experience while reducing costs to retailers. Want to learn more about how cash
automation can help you save time and labor? Visit booth #1144 at the NRF Big
Show in New York, NY, from Jan. 15-17, 2023, to see our industry-leading smart
safes and cash recyclers in action, or contact us here.

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Salesforce Campaign - None -EventsDigitalCampaignsDane CSGEBQ Robert Diamond
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