Cash machines users spend 65% more in convenience stores

Convenience store retailers have seen customers increase their average spend by 65% after using an in-store cash machine according to independent research carried out by HIM, as part of their Convenience Store Tracking Programme, in Spring 2006.

Convenience store shoppers spend an average of £5.64 per visit while a cash machine user at a store will spend 65% more, an average of £8.99. Interestingly, the research also found that the removal of a cash machine could have a detrimental effect on business, as 1 in 10 people stated they would shop elsewhere if a machine was removed from their local convenience store.

Cash machines also had a positive impact on ‘footfall’ numbers as it was found that the cash machine attracts more customer visits to a store than, for example, the sale of magazines or sandwiches.

Convenience stores may be missing a trick by having charging rather than free cash machines. LINK statistics show that the average free cash machine does 15-20 times more cash-withdrawal transactions then the average charging machine. A free machine results in higher takings over the till. The scales could be tipping further in favour of the landlord who chooses a free machine: while the average number of transactions at free cash machines has risen over the past years, the average number of transactions at surcharging cash machines as fallen.

Over two thirds of consumers (68%) now assume cash machines will be provided in store and expressed disappointment when there was no in-store access to cash.

Graham Mott, spokesperson for LINK said, “The research confirms our long held belief that cash machines in convenience stores have a positive impact on day to day business levels. Increased revenue and improved customer numbers make a compelling argument for retailers to consider installing a cash machine.

He added, “It was also very interesting to find that many shoppers now expect to see a cash machine in their local store and will actually be disappointed not to have access to their cash. We fully appreciate the important role in store machines now play in expanding the cash machine network, and for many people they provide easy access to cash in convenient and accessible locations.

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Contacts:
LINK Press Contacts

Notes to Editors:

• The LINK ATM network connects all but a handful of the UK’s 58,000 cash machines.
  
  
  • In the past five years the number of LINK cash machines has grown from 36,000 to over 58,000 today and of these, over 33,100 are free to use, an all-time high
  • LINK is the UK's national cash machine (ATM) interchange network and the busiest ATM transaction switch in the world. It deals with up to 225m transactions per month and at its busiest, it processes almost 1 million transactions an hour.  
  • There are over 130 million LINK cards in circulation from around 38 issuers.
• Around 96% of all cash withdrawals are free of charge.  A further 4% of cash withdrawals are made at charging machines, usually in convenience or remote locations where it would not be economic to run a free machine.  
• The value of free-of-charge LINK cash withdrawals has increased steadily year-on-year from around £3.7 billion per month in 2002 to over £7.7 billion per month today, as customers have become increasingly aware that the LINK Network means they can use for free any machine that does not display explicit warnings of charges.
• Since last summer, all machines which charge must carry three clear warnings of charges that customers who prefer not to pay should look out for, (1) on the outside of the machine, (2) on the initial screen as they approach the ATM, and (3) before they complete the transaction.