It has just been announced that in 2019 retail revenues in the UK fell for the first time since 1995. According to the British Retail Consortium sales have fallen by 0.1 percent, the first decline in almost 25 years.

Anyone who took a basic course in Economics will remember diagrams that described ideal output in theoretical situations described as perfect competition, imperfect competition and monopoly. Though the concepts of marginal cost and revenue are an over-simplification, and nobody actually measures them, the underlying principle remains true that profit will be impacted not only by revenues but also by measures that enable a reduction in costs.

If we take this to its logical conclusion, at a time when revenues are declining and particularly where these are outside your control, the way to maximise profits is to reduce costs.

In economic theory marginal cost refers to the cost of producing the last unit. However, the word marginal can have another meaning in that it could be less obvious or on the outskirts of conventional thinking. At Glory part of our challenge is to put these potential cost savings at the forefront of people's thinking when it comes to maximising profitability.

At a time of declining revenues there is even more pressure to reduce costs. Cash is a physical item and there are costs associated not just with using it but also with moving it from one place to another. Smart retailers are already managing their cash chain, in the same way as their supply chain, and recycling technology has enhanced the possibilities.

Benefits of deploying cash recyclers include reduced time for float preparation and end of day cash reconciliation, reduced cash shrinkage, enhanced counterfeit detection and optimised cash collection / delivery scheduling.

Retailers looking to increase efficiency will also improve cash security and reduce stress and, of course, release time and resources to reverse the fall in revenue through improved focus on the customer.  

At a time when there is pressure on revenues, speak to Glory about how cash automation and recycling can deliver a tangible impact on your bottom line.