Woolworths saga: These SA stores are already cashless
The trend of cashless retail is slowly but surely making its way through South Africa, with Woolworths and a few major retailers leading the charge.
Earlier this week a social media storm erupted over reports that Woolworths was going cashless. A photo of a Woolies poster was snapped, that said the following:
“From 16 January 2024 we will no longer accept cash, as we’ve joined a global responsible business initiative that prioritises customer and staff safety. We’re sorry for any inconvenience.”
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It turns out, the photo and message were taken out of context. The retail giant has since confirmed that it will no longer be accepting cash at its W Café outlets, but that its supermarkets will still make cash sales.
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CASH IS STILL KING AT WOOLWORTHS
Given the level of cash usage for grocery purchases, commentators say it is incredibly unlikely that any supermarket, least of all Woolworths will say ‘no’ to cash purchases any time soon.
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Critics of cashless systems have also cited concerns about excessive dependence on technology and the erosion of traditional monetary methods, especially in a country like South Africa.
Nonetheless, there are many advantages to going cashless and the W Cafés are following a trend. The cost of accepting cash is increasing almost monthly. Given the immense levels of risk in transporting cash, holders of it will do anything they can to reduce their holding.
STORES THAT HAVE GONE CASHLESS
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Shoprite’s first cashierless store, Checkers Rush (in Durbanville, Cape Town), was launched in 2021, three years after the retailer suffered 489 armed robberies in a year.
Starbucks operations in South Africa have refused cash purchases since late 2023. Reportedly, PNA will soon no longer accept cash.
Last year, Checkers opened the first of its Uniq clothing stores. These stores operate completely cashless, accepting only card payments and mobile wallets like SnapScan — and without tellers.
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The OK Urban concept store in Sonstraal in Cape Town’s northern suburbs launched in August 2023 and also operates cashless, offering a range of payments from Visa, Mastercard, Amex, Diners Club, and tap-and-go options.
It is unclear at this stage how significant cashless and cashier-less systems will be on the customer experience. Of more interest perhaps, may be the impact that cashless environments have on retail crime statistics in South Africa.