Woolworths, the Australian supermarket giant, has confirmed significant changes to its cash withdrawal policies in response to changing customer behavior and security concerns. The retailer announced that the cash withdrawal limit per transaction in stores will be reduced from A$500 to A$200, starting from mid-September 2023. Additionally, customers will only be able to withdraw cash if they make a purchase, a policy set to take effect by the end of October.
The changes were revealed after an internal memo was leaked online by a team member. The document outlined the upcoming adjustments at the checkout as shoppers continue to move away from using cash. The retailer confirmed these changes in a statement to Yahoo News and 7NEWS.com.au, stating that the new policies will be rolled out over the coming weeks.
The spokesperson for Woolworths cited a decline in cash usage as the primary reason for these changes. "This is due to the lack of cash being used in transactions, with the majority of customers opting for card-only transactions such as Everyday Pay," they said.
Despite these modifications, Woolworths clarified that there are no plans to eliminate cash transactions entirely. The spokesperson reassured that cash remains an important payment option for some customers, and hence the ability to withdraw cash will continue to be offered.
The leaked memo also highlighted security concerns associated with holding large volumes of cash in stores. While the spokesperson did not elaborate on this aspect, it was noted that Woolworths is introducing several security measures to combat rising shoplifting incidents amid the cost-of-living crisis. This issue isn't exclusive to Woolworths, as retail crime is reportedly on the rise across Australia and internationally.
These policy changes come at a time when thousands of bank ATMs are disappearing across Australia. Despite there being no obligation to offer this service, Woolworths acknowledged the public's need to access cash. The new policy requiring a purchase for cash withdrawal will not have any minimum purchase limits, allowing customers to withdraw cash even with a small purchase.
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