OCTOBER 29, 2013, Mt. Prospect, IL— Retailers across the country are anticipating an optimistic holiday season, and this predicted boost in spending means extra early preparation. Cummins Allison, the leading innovator and provider of coin, currency, check handling solutions, and automated teller machines (ATMs), advises retailers on ways to be prepared for this influx, including the importance of having up-to-date cash and check scanners and self-service coin machines on hand before the holiday season hits.
A Boost in Spending
According to a new report from Retail TouchPoints, spending should grow by about 3 percent, keeping in mind population growth and consumer sentiment.
"Tax breaks last year took money out of consumers' pockets, but there has been little talk of the impact that will have on holiday spending this year," said Larry Freed, CEO of ForeSee Results. "However, I think spending will hold steady or will increase slightly this holiday season. The dip in paychecks due to the January 1 tax implications didn't seem to have a negative impact on spending so far this year. Additionally, the economy has somewhat stabilized and consumers' concern about the next financial pothole don't seem to be top of mind."
Retailers Prepare Early
According to a survey by online working capital providerKabbage, 41 percent of business owners expect to do more business this year than they did at the end of 2012, and many plan to increase their borrowing and increase their inventory in order to make their goals a reality and ensure success in the coming month.
As retailers begin to determine what in-demand products they'll stock this holiday season and prepare sales forecasts, it will be essential for them to also take the steps necessary to streamline processes and ensure they provide shoppers with an enjoyable experience in the coming months. By hiring more employees to assist consumers on the sales floor, as well as investing in a new dual purpose cash and check scanning machine, business owners can be certain everything will operate smoothly during the holiday shopping season.
Capitalizing on Cash-in-Hand
Retailers can still appeal to their “forever frugal” customers while making a profit. Eighty percent of U.S. households report someone in the home saves loose change, and the value of this found money is even greater in November and December as customers turn their saved coin into cash for holiday-related purchases. On average, customers redeem $305 in collected coins per year for holiday gifts, and retailers see coin counter volumes typically increase by 16 percent in November and eight percent in December².
Cash-in-hand is the top motivator for customers to convert loose change into spendable dollars³. By understanding this seasonal coin redemption pattern, retailers can adjust their marketing strategies to help ensure redeemed cash is spent in their store.
With the most up-to-date equipment and customer service solutions in place, retailers will be well positioned to handle the predicted boost in holiday sales. For more information on the latest check, currency and coin handling solutions, visit www.cumminsallison.com.
1 Assessing the Opportunities for SSC Machines in the Financial Segment, BranMark Strategy Group (2011)
²,³Top Six Drivers of Consumer Use of Self-Service Coin Machines by BranMark Strategy Group (2010)
About Cummins Allison
Cummins Allison is a global leader in developing solutions that quickly and efficiently count, sort and authenticate currency, checks and coin. We also offer a completeline of full-function automated teller machines (ATMs). Our leadership in technology and product innovation spans more than 125 years. CumminsAllison serves the majority of financial institutions worldwide, as well as leading organizations in retail, gaming, law enforcement and government. Ninety-seven percentof our customers would recommend our products and services.The company holds more than 350 patents and invests double the industry average in R&D. Our world-class sales and service network includes hundreds of local representativesin more than 50 offices in North America, wholly-owned subsidiaries in Canada, the United Kingdom, Germany, France, Ireland and Australia and is represented in more than 70 countries around the world.
Carol Moore – Vice President Marketing
Cummins Allison Corp.
Outlook Marketing Services, Inc.