The Merchant Community, A Tale of Two Halves08th May 2018
If you keep up with industry development in the merchant community you might have noticed recently that there are two different stories being told. On the one hand, we’re reading a lot about record sales volumes and continual sales growth, with some industries (like convenience stores) experiencing record sales for the 15th straight year. On the other hand, our inboxes are flooded with news about lower profit margins, bankruptcy, and store closures. So, how do these two halves come together to tell the real story?
While it’s true that some industries are experiencing record sales, many merchants aren’t experiencing the benefits of this because their healthy bottom lines are being eroded by increases to minimum wage, taxes, insurance, utilities, fixed costs and rising card fees. The hard truth is that many merchant’s operating expense budgets have outpaced their sales growth, and merchants are struggling to keep up.
Merchants must mitigate rising operating expenses by holistically reviewing their cash and card supply chain arrangements on a regular basis. If increased sales aren’t leading to increased profits, merchants need to look at where and how they can cut costs most effectively.
At CMSPI, we’re working with merchants across North America to mitigate these increases and help merchants achieve significant savings.