Cash continues to keep retail industry afloat
Seven out of ten consumers (70 per cent) prefer to pay in cash when out shopping.
The figure, which comes from research carried out by Alliance & Leicester Commercial Bank, highlights the important role cash continues to play in the UK retail sector. Cash is the favourite method of payment amongst retailers, with more than four out of every ten retailers (41 per cent) citing it as their preferred payment method. In contrast, cheques are preferred by one in four retailers (26 per cent) and debit cards by less than one in five (19 per cent). Alliance & Leicester Commercial Bank’s comprehensive cash survey also reveals that 59 per cent of small and medium retail businesses find dealing with credit cards and cheques too expensive and half (50 per cent) think cash is both cheaper and easier to manage. Only one quarter (26 per cent) of retailers say they prefer to be paid by cheque and only 9 per cent preferred customers who used a credit card. Cash is still very much the lifeblood of the retail industry with almost one third (29 per cent) of customer transactions in shops being made with notes and coins and 43 per cent of businesses handling more than �100 in cash every day. Furthermore, one in four (24 per cent) of retail companies surveyed say they would have to make significant changes to their business if customers stopped making cash payments. Russell Carter, Head of Cash Marketing at Alliance & Leicester Commercial Bank, said: “The results of our survey highlight that cash continues to be crucial to retail businesses. Many retailers in the UK rely on cash to support their business. The use of notes and coins means that cash handling represents a major cost for retailers and I would urge them to review their finances regularly to ensure they are getting the best deal for their business.”
