People are always looking for a convenient way to turn loose change into cash. Neighborhood grocery stores that have faced diminishing profit margins in recent years due to increased industry competition may want to consider investing in self-service coin counting machines as an additional service that ultimately brings more customers through the door.
According to a recent report from The Toronto Star, a daily newspaper published in Canada, many grocery store chains have experienced reduced earnings over the last few months. For example, same store sales at the Food Basic grocery store chain, which is owned by Metro, fell 1.8 percent in Q4 2013. Adjusted earnings are now 4.2 percent lower than they were last year. The newspaper said Metro attributed these trends to the fact that it has become harder for stores to attract price-conscious shoppers. Greater competition from other businesses also placed a significant strain on the success of existing operations.
Getting shoppers through the door
Supermarkets and grocery stores in the U.S. have also experienced financial trouble. WCAU, an NBC affiliate based in Philadelphia, said in addition to fierce competition, recent cuts to the federal food stamps program have made it harder for small businesses to attract more customers. The station said Congress enacted a 5 percent reduction in funding for the Supplemental Nutrition Assistance Program. The food stamps initiative may experience up to $40 billion in additional cuts over the next decade.
According to WCAU, small businesses often depend heavily on businesses from SNAP. In fact, the program was responsible for 35 percent of sales at grocers in low-income neighborhoods around Philadelphia. As a result, many stores are worried continued cuts may negatively impact overall business revenue.
When grocery chains are struggling to increase profits, they must think of creative ways to generate in-store traffic. This task can prove especially complicated when consumers are reluctant to spend money in difficult economic conditions. However, investing in self-service coin counter machines is one way these businesses directly target fiscally conservative individuals. Customers will likely appreciate the ability to walk into a neighborhood supermarket and utilize a coin counting machine without having to seek help from staff. Establishments that supplement these services with inviting store displays may have a better chance at encouraging people to browse the aisles and make purchases. As a result, grocery chains of all sizes can sustain greater profit margins and maintain a competitive edge in the local market.
November 25, 2013