Market Overview: Smart Safes & Recyclers US Conference/workshop-1-smart-safe-and...Market Overview:...
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Transcript of Market Overview: Smart Safes & Recyclers US Conference/workshop-1-smart-safe-and...Market Overview:...
agenda■ Current Addressable Market ■ Future of Cash in Retail■ Market Proposition (Recyclers)■ Market Proposition (Smart Safes)■ Value Proposition to the Retailer■ Compare to ATM Trends■ Q & A
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panel■ Emily Shempp, Bank of America■ Peter Wolf, Glory Global Solutions■ John Rhoads, FireKing Security
Group■ Michael Hudson
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purposeEvaluate the Future of Retail Cash Management, which is
more than just ATMs and Off-Premises Cash
Dispensers
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Current Addressable Market
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Total U.S. market for retail cash management, across all segments, is roughly 1.5 mm locations, and all locations
utilize cash in their business
KEY FINDINGSFACTS:♦ Consumer sales occurs with cash
Association of Certified Financial Crime Specialists, August 2014
♦ Cash usage increases risk of loss ♦ Robbery ♦ Internal Theft♦ Poor Accountability
National Retail Federation (NRF): Loss Prevention
All retailers fit into one of four designations of demand with respect to cash management
Observations
All likely segments in the general retail category (QSR, c-store, grocery, big box, pharmacy, other) are accounted for
1. No Tech2. Low Tech3. Semi Automatic4. Automatic
- Source: US Census Bureau & National Retail Federation
Current Addressable Market
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U.S. Retail Locations Using Cash
MARKET SEGMENT # of US LOCATIONS
• Quick Serve Restaurants 200,000• C-Store / G-Store 125,000• Grocery / Supermarket 65,000• Other Restaurant 230,000• Liquor & Specialty Food 90,000• Pharmacy / Drug Store 45,000• General Retail (including DIY, Big Box) 160,000• Clothing 145,000• Electronics / Appliances 135,000• Other Retailers (Hobby, Office Supply, Dept.) 310,000
• TOTAL U.S. RETAIL MARKET 1,500,000U.S. Census Bureau
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Current Addressable Market
1/3 of the total market are either “No-Tech” of
“Low-Tech” Retailers
2/3 of the total market are either “Semi-Automatic Cash Handling (Smart
Safes)” of “Fully Automatic (Recycler)”
Retailers
1.0 mm Locations
500 K Locations
- Source: Industry Experts in interviews
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Service Addressable Market
The SAM for retail cash management, across all segments, is roughly 1.0 mm locations, 66% of the Total
OBSERVATIONS
• Typically, the “bottom of the Pyramid” represents 30 – 35 % of the total locations in every segment
• If 33% of the TAM is outside the qualifiers for SAM, this represents 500K locations
CONCLUSION500,000 Locations are not likely candidates for any technology
Another 500,000 Locations already have some “Low Tech” form of cash management, and, historically, have resisted change (low or no ROI)
Market Penetration
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Current Solutions in the Market
No cash management technology Low Sales Volume 500,000 locations
No Tech
Drop safe or Intelligent ‘B’ safe Cash Controller Low cash volume 500,000 locations Reluctant to change
Low Tech
Accountability & Reporting Semi-Automatic safe
counting Carriers & Banks Third Party service 425,000 – 450,000 locations
Smart Safe
Full automation End-to-end cash
management TCRs: Recyclers –
Deposit and Withdrawals 50,000 – 75,000 locations
Recycler
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Market Competition: U.S. Smart Safes
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Market Competition: U.S. Recyclers
Enjoined until 2017
End-to-End Cash Management Solution: State of the Business
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End-to-End Solutions Combine All of the Pieces Into One:
• Smart Safe = Semi Automatic Cash Management
• Recycler = Fully Automated Cash Management
Automated Cash Management & Recycler Solution
SMART SAFE
RECYCLER
Sales Counter Return on Investment• Accountability• Analytics• Accuracy • Cost Management
Cash Office Return on Investment• Reduce Payroll Hours• Analytics• Reduce (Eliminate) Cash Float• Accuracy • Increase Customer Facing Contact• Cost Management• Eliminate G&A Expense
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Summary Observations
Market Size
Total= 1.5mm LocationsServiceable = 1.2 mm Locations
Smart Safe Market Penetration = 10 - 12%(fewer than 150,000 units, total)
Current Annual Smart Safe Market = $ 55 mm (10,000 units)
Recycler Opportunity
Top Echelon Retailers = 100K – 150K Locations
Innovators and Technology Leaders
$ 5 Billion market ASP @ $50 K each
Intense Service Support Required
