Holding centre court

Ray O’Sullivan, Great Gas MD, with Tokheim Quantium Dispenser and integrated ‘Crypto VGA’ payment terminal

With security and convenience both paramount concerns within the forecourt retailing sector, solutions providers are focused on delivering systems that can increase throughput, save time and reduce shrinkage.

Advisor

23 November 2010

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Petrol stations are losing an average of €4,000 a year as a result of drive-offs. That was the thought-provoking statistic unearthed last year by a CSNA study, involving the trade body’s 175 members with forecourts. Furthermore this figure worryingly illustrated that the number of people driving off from petrol stations without paying was up a massive 300% on the previous year.

Startling statistics

Furthermore, according to Chambers Ireland, retail crime in this country can lead to losses of up to 5% of sales, which is 2.5 times greater than in the UK. Central Statistics Office figures also show that since 2005, theft from retail stores in Ireland has increased by over 25%. The threat doesn’t just arise from external sources either. According to the National Retail Security Survey, the number one source of shrinkage for a retail business is internal theft.

Specifically within the forecourt sector, many retailers believe the penalties for those involved in drive-offs aren’t appropriately stringent, and that gardaí do not take the offence seriously enough. While the CSNA was involved in a consultation process with the Department of Justice last year to try and improve the situation; there are nevertheless technological solutions retailers can leverage to ensure they have maximum protection in place on an individual level.

On your guard

CashGuard is one such solution that has just been launched in Ireland. “CashGuard is the latest technological advance in the area of cash management and security to help tackle these problems,” says Cashguard director David O’Brien. “Furthermore CashGuard allows for closer monitoring of cash and transactions in the retail environment. Whilst CashGuard has been widely in use throughout Scandinavia since 1994, it has just been launched in Ireland.”

So what exactly is CashGuard and how can it help retailers secure their hard-earned business against would-be predators? In a nutshell, CashGuard is a closed cash management and security system that integrates into the store’s existing point of sales system. The store’s staff have no access to the cash held in the register and only handle the customers’ money, not the store’s.

Paying for itself

What is more, all transactions including emptying of cash are administered by CashGuard; eradicating theft and mistakes. Operations, floats and balances are monitored and reported by the CashGuard back office system, allowing owners and managers to monitor the store’s cash levels and transactions from the back office system in store or remotely. The system monitors, recycles and manages cash levels and denominations thus reducing the need for cash in transit and replenishment of notes and coins. Director David O’Brien subsequently believes “CashGuard pays for itself in the savings it creates.”

O’Brien believes stores of all sizes can capitalise on the system’s features. “Whilst the system offers numerous advantages to large stores, smaller stores can benefit, as it frees up a lot of the manager’s time that used to be taken up with organising till floats, counting cash after each shift and at the end of the day. There is no further need to carry out time consuming reconciliations between the sales and cash receipts as all of these functions are carried out by CashGuard,” he says. “Furthermore, the cash in the register can be monitored remotely as well as in-store.”

Examining the bottom line

As with all investments, a prime concern for retailers will be how soon the system can deliver a return on investment (ROI), and in this respect, CashGuard can provide a tailor-made answer. “We analyse the existing procedures to see how much time is spent on organising floats, counting cash, collecting money and performing reconciliations. We can then compile a bespoke report detailing the costs incurred using the store’s existing procedures. We compile a comparison detailing where CashGuard will make savings for the store. On average the system will pay for itself in nine to 15 months. After this the savings created by CashGuard go directly to the bottom line.”

O’Brien adds that in calculating the return on investment, CashGuard does not take account of theft or mistakes as these are difficult to quantify, meaning that if these factors were included, the return on investment would be even shorter.
For customers interested in seeing how CashGuard works, they can visit the company’s showroom at Davitt Road, Dublin 12. Alternatively, there is a demonstration video available on the website, www.cashguard.ie.

Ray O’Sullivan, Great Gas MD, with Tokheim Quantium Dispenser and integrated ‘Crypto VGA’ payment terminal

Tokheim revolutionising sales

David McHale, marketing manager, Tokheim, believes “Outdoor Payment Terminals are currently helping revolutionise the way retailers sell their wetstock and are offering motorists an easier way to pay for their purchases.”

Tokheim installed its Crypto VGA terminals across 50 sites in the last year. McHale reports customers say they chose the solution for four key reasons. “Firstly, increased throughput through reduced queuing times for motorists. Secondly, reduced costs through unmanned options. Thirdly, a reduction in drive-offs and fourthly, a flexibility to connect to older systems or their existing third party POS.”

“All our Crypto-VGA terminals have been fully certified by AIB, Barclay’s, VISA/Mastercard and Laser,” he adds. “They also accept all major fuel cards for Irish oil companies. Installation is quick and easy and we can have the payment terminals up and running in hours with little disruption to the site.”

Retailers should also consider future proofing and the total cost of ownership, when deciding on the best system for their forecourt, says McHale.

Unmanned sites reduce costs

“In relation to the fuel retailing market, retailers should ask ‘am I maximising my operations through my current business model?’ Many European and now increasingly Irish forecourts are making excellent margins on unmanned stations. The unmanned or partly unmanned sites require very little forecourt space and reduced overheads offer a profitable and secure method of fuel retailing.”

McHale believes motorists will often bypass a station with queues at the pumps and therefore points out that “retailers can maximise their forecourt space by using fast lanes – an outside lane with OPTs installed – to increase throughput, free up space and make a better return on both their wetstock and their convenience items.”

Within the fuel retailing market, Tokheim also offers a complete suite of products and services. “We provide full site developments including project management, pipework, and installation of equipment,” says McHale. “We manufacture and supply dispensers, POS systems, tank gauges, CCTV and OPTs. We have a unique position in manufacturing and supplying a full suite of products and services worldwide and in Ireland.

“In relation to payment terminals we offer a number of options both for indoor and outdoor environments. In-store, the ‘Fuel POS’ system, our renowned EPOS solution is packed with the most innovative wetstock and retail management features. We offer debit, credit and fuel card transactions over broadband in under three seconds per transaction. Outside on the forecourt we provide two types of payment terminals. Dispenser integrated and standalone terminals. The standalone terminals connect to all types of dispensers and one OPT is only needed for use for up to 12 dispensers.” McHale says this unmanned solution offers a significant saving on overheads such as wages, electricity, and stock management.

Futhermore, McHale states prices are now more competitive as a result of the recession“and also because we sell our products directly to our customers rather than going through a third-party distributor. We continue to offer clear future-proofing of our equipment. Tokheim supply equipment that can be upgraded, rather than become obsolete after a few years, so our customers know they can get, in effect, a brand new piece of equipment for a fraction of the cost.”

Positive feedback

He adds customers have been very happy with their investment in Tokheim’s payment solutions. One example is that of GreatGas who have rolled out its outdoor payment terminals across many of their sites.

Tokheim installed Quantium 500T1 pumps with dispenser-integrated-terminals (DIT) on the GreatGas Dublin Airport site. The solution helps increase throughput on the site by up to 300% at peak times. The motorist pays with credit or debit card at the pump with bank authorisation happening in less than five seconds. The payment terminals are safe and secure – fitted with anti-fraud, anti-tamper and anti-skimming devices and they can link to CCTV solutions if required.

Ray O’Sullivan, MD of GreatGas says that the new solution allows his business to sell fuel at high-volumes without paying the high costs associated with staff, stock and electricity. He notes, “Our fuel sales are already higher than we had projected, and we hope to roll-out the concept to a number of other sites across the country.”

McHale adds Tokheim’s dispensers also offer a clear return on investment. “Our meters ensure reduced recalibration costs and faster fuel throughput. Standard Temperature Accounting (STA) is a fully approved technology that allows for fuel to be dispensed at 15°c. It means even a small site could save up to 15,000 litres of fuel a year. A huge saving to any business.”

Retail Solutions: problem solved

Seamus Quinn, technical director, Retail Solutions, says the company has developed an integrated loyalty solution with SMS and email that allows for targeted marketing of a store’s customer base,” adding that, “while the technology itself is not new it was not previously accessible by the smaller retailers due to financial barriers.”

Furthermore, Retail Solutions offers a complete wet and dry sales and stock analysis, with integrated accounts all the way through to profit and losses and the balance sheet. Quinn adds: “We also have an integrated deli terminal which allows the retailer to control items being sold or made up in the deli area in the same way as they would control other areas of the shop i.e. by item.”

The advantages these solutions deliver for retailers are that they provide total control, and more readily available information at the retailer’s fingertips. They also reduce costs through delivering better stock control, better cash management and increased security, which naturally delivers better margins.

Future-proofing crucial

“A retailer must always look to future proof their investment and in dealing with a progressive company like Retail Solutions they are doing that,” says Quinn. The quality of hardware and software provided should also be considered before looking at price first, because in Quinn’s view, “decisions made primarily on price are all too often the wrong decisions.” In saying this, he notes Retail Solutions has nevertheless significantly reduced its prices in the current climate.

On the subject of return on investment, he responds: “There is no quick answer to this question. If a retailer takes full advantage of the system then they can get gains upwards of a 1.5% increase in margin through better management of stocks and increased sales. There are further gains to be made from implementing deli controls via the RS-Deli Terminal. Tighter controlling of fuel via the RS-Fuel module will also deliver results.”

What is more, Retail Solutions are well-qualified to advise retailers in this area. The company has been developing and delivering solutions to the Irish forecourt and convenience sector since 1995, and its system is now completely multi-branch / multi location. “Indeed our product range continues to expand through in-house innovations and recent enhancements such as RS-Marketeer, our shelf talker and poster module, RS-Loyalty, our integrated customer analysis and promotional module, RS-Deli, an integrated deli service terminal, and RS-Fuel, an enhanced wet stock module controlling all aspects of forecourt,” notes Quinn.

An all-in-one offering

ADC Barcode Ltd supplies an innovative new retail technology solution, more than deserving of the title ‘multi-purpose’.
‘Accord’ is a complete retail management solution which is suitable for a broad range of retailing formats – from small chains of independent convenience stores and forecourts to multi-lane supermarkets. Fully integrated and modular in design so retailers can choose the functionality which meets their needs, Accord offers full Point of Sale (EPOS), back office, head office, cash office and supply chain functionality, in a real-time environment, so retailers can effectively manage and control all their retail activities. ADC Barcode will supply and support the full solution for the end user.

Accord provides real time operations, true visibility and outstanding reporting across the whole business, thereby allowing retailers to improve all aspects of their operations, grow sales, increase margins and improve overall profitability. Specific benefits include advantages such as creating streamlined stock holdings, to release working capital and maximise cash in hand. This is more important than ever when the economy is slow and access to external funds limited. The typical reduction in stock is 7%.

Another key advantage is that Accord offers lower operating costs and better customer service – by automating procedures and employing modern technologies like ESELs and RF for ordering, stocktaking, etc. Fast and resilient processing, broadband EFT, self-checkout tills and contactless payment all allow retailers to serve customers quickly and minimise queues. In the c-store sector, where Accord is particularly strong, comprehensive functionality means retailers can offer customers all the services critical to success in today’s c-store environment, if they are to compete successfully with the multiples – including food to go, top-up, and news.

The company says prices have not decreased drastically in the current climate, “although some very basic, low cost solutions have emerged with limited functionality and no proven pedigree. Retailers need to be realistic about what they need from a system and focus on the benefits retail solutions offer to the business and the savings they can offer not just now, but in the long term. Accord typically offers a ROI of 12 – 18 months.”

A c-store success

UK c-store operator Culverhill Retail is expanding its chain of convenience stores with the opening of a new store in Salisbury which will use the Accord retail system to control all point of sale and back office operations.

Owned and managed by Richard Higgins, Culverhill Retail employs a staff of 90 across a chain of five stores located in Hampshire and Dorset. Averaging 2,500 square feet in size, the stores all trade as high quality convenience stores under the Nisa fascia, offering a wide range of additional customer services including lottery, e-top up and, in three of the stores, a full Post Office service. The new store is a brand new build in Salisbury and is scheduled to open in March 2011.

All five stores use versions of the Accord solution to control store and back office operations. However the three lane system for the new Salisbury store will encompass the complete Accord branded EPoS solution providing the full range of point of sale functionality, including integrated EFTPoS, multicurrency and in store promotion control. This will interface directly to the Accord back office system for control over store operations, including product and price maintenance, auto replenishment, stock control, sales reporting and cash control.

According to Richard Higgins: “We love the Accord system in all its flavours. There’s no doubt it gives us much better control over all aspects of our business. The original BCP Accord offering has the additional benefit of extreme reliability backed by customer support which is second to none. All in all, the perfect solution for managing c-stores.”

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