One of the biggest problems right now is Inflation. Hungary, sitting at 12.2% as I write, has had the fastest growing inflation rate in the EU. Consumers and businesses are still experiencing a period of uncertainty and disruption. Naturally, businesses are focused on finding efficiencies this year to mitigate the challenges of inflation. And address the trends that are relentlessly driving change within the Retail Sector.
Industry Trends
From my research, and conversations in country, Hungary broadly aligns with the major retail trends we are seeing in EMEA, and globally:
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Rapid e-commerce growth.(Hungary: CAGR 2023-27 11.95% Worldwide: CAGR 2023-27 11.7%1)
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Hiring and retention problems. (EuroCommerce predicts a 1.8M Retail Sector labour shortage by 2025 across the EU)
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Growing investment in self-service technology systems.(Hungary: CAGR 2021-28 13.2% Worldwide CAGR 2021-28 12.93%2)
Retail in Hungary
The Retail Market in Hungary is dominated by mass market players. For example, LIDL, SPAR, COOP and Tesco. Hypermarkets, Supermarkets and Hard Discounters are the leading channel. Retailers selling Electrical goods is the fastest growing channel, with a 12.6% CAGR forecast 2021-263. On a short stroll through Budapest city centre, you will see a mix of international and domestic brands and a lively café culture. International brands, like LIDL, are restricted by legislation, on the number of stores they can open. This means they have to find alternate ways to improve customer through-put and the customer journey within existing stores, rather than alleviate this through opening more locations. In this article, I will focus on front of store technology, and leave the back office for ‘part 2’.
Hungary and Cash
Delivering a Real Omni-channel Experience & Additional In-store Services
Retailers are looking for technology that can combine their online and physical sales channels into a joined up, smooth experience for customers. If you enable cash payments at your click and collect stations, or at an ordering and returns desk, this helps customers start or end their omnichannel customer journey with your brand more seamlessly. Including if they want to pay with cash, without having to create a separate process for cash paying customers.
Equally, Retailers are diversifying, and looking for new revenue opportunities they can offer customers in store. Self service payment stations help to manage the point of payment for these services, avoiding additional pressure or queues at your main payment points.
To Sum Up
Well, what do you think? Have I put forward a good case for Glory being a perfect fit for Retailers in Hungary? Let me know what you think!
Despite the current economic landscape, I believe that Retailers in Hungary can progress and grow with the right technology to support them.
As the Global leader in cash automation, Glory has spent over 100 years perfecting the technology we deliver to our customers to automate cash management. We have recently released new versions of our CashInfinity solutions range and introduced Ubiqular software for Retailers. We continue to invest in delivering the latest and most robust and reliable technology to help our customers with the heavy lifting of store cash automation and in-store cash tracking at every stage of its journey.
We work with the best – and our technology partner and supplier in Hungary is Mile Banktechnika. You can explore their website here: https://milebt.hu/They can advise you of the solutions that can work for your retail business – whatever the size or footprint. They manage the installation and service of our solutions to give you excellent support for your technology investment.
References:
1. Statista.com
2. Absolutereports.com
3. Ascential Data 2023
4. https://merchantmachine.co.uk/most-reliant-on-cash/
5. https://www.rbrlondon.com/