Hungary Retail + Glory Tech = Perfect Fit

29 November 2023

Gilly Farrell

Glory

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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:

  • Rapid e-commerce growth.(Hungary: CAGR 2023-27 11.95% Worldwide: CAGR 2023-27 11.7%1)

  • Hiring and retention problems. (EuroCommerce predicts a 1.8M Retail Sector labour shortage by 2025 across the EU)

  • 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

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Hungary is also 9th in the top 10 countries most reliant on cash globally, according to Merchant Machine4 research Index. This is based on several criteria, for example the % of banked/unbanked population, internet penetration and number of ATMs. What does this mean? Well at store check-outs and in restaurants, you can expect to be taking around 30 – 40% of payments in cash. This is important to understand the technology you need to be factoring into your plans for stores. And, how you can manage this volume of cash efficiently in retail back offices.

Finding Efficiencies in Store – How you Manage Cash
When you think about how you manage cash, it’s not just about the cash itself, and how to manage it accurately and securely. It’s also about the people you need to do this. When you look at automating cash in retail environments, you can do this in several ways - at traditional cashier stations, self-service payment stations, for a ‘click and collect ‘, at the customer service desk and in the back office. Think of the time and staff hours you could save by automating cash payments at all of these touchpoints.

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Point-of-sale Payment Technology
There’s no doubt that providing self-service payment solutions for customers in store is a key strategy for retailers. It has transitioned from a trend to an essential element for effective retail.

Why?

  • It releases staff resources, so they are not tied to multiple cashier stations.

  • You can increase customer through-put at the point of payment.

  • It alleviates queues, particularly at busy times of day.

  • It allows you to manage more services within the store, like click and collect or returns.

  • It provides payment choice for customers.

  • Enables you to stay open longer, with less staff needed to man points of sale outside of normal daytime working hours.

 

From my conversations with retail customers and technology providers in Hungary, self-service has been embraced and welcomed by retailers and shoppers. Cash provision at self-checkouts makes sense in Hungary. Remember, an average of 30 – 40% of point-of-sale payments are currently made in cash. Believe me when I say you don’t want to go down the route of retrofitting cash provision at your self-checkouts. So, thinking about providing at least some of your self-checkouts with the ability to accept cash payments will enable improved customer through-put and queue management at the point of payment.

Cash automation at other payment touchpoints should not be overlooked. Again, this helps to manage staff resources, additional in-store services, and reduces shrinkage. No need for staff to handle cash. Your café, your bakery, your delicatessen, your traditional check outs. Anywhere where your customers pay in store.

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/