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Coles has limited the amount of cash customers can withdraw as some stores face a cash shortage this Easter long weekend.
Ongoing negotiations between secure cash delivery company Armaguard and the country’s largest banks and retailers over vital funding have seen Coles take a cautious approach to the cash it currently holds.
The supermarket giant has suspended all cash delivery services until April 5 over fears that Armaguard could go into administration, leaving its cash trapped in the company’s trucks.
Due to a shortage of cash on hand, Coles has limited the amount customers can withdraw to $200 to preserve cash floating in its tills.
A “cash process update” memo has been sent to Coles staff across Australia warning that its grocery and liquor stores could temporarily become “card only” between March 27 and April 5.
Coles will limit the amount of cash customers can withdraw to $200 over the Easter long weekend
Some Coles supermarkets and liquor stores could become card-only due to cash supply issues
The message told staff they should put up “card only” signs at checkouts if the store’s cash reserves dwindle.
Employees were also advised to consolidate the use of cash in a cash register while Armaguard cash collections are suspended.
According to the memo, customers should be reminded before initiating their transaction that cash cannot be used.
Workers also received an answer to use if a customer asks why cash is not accepted.
Staff should respond: ‘Our exchange reserves have been affected by a decline in cash transactions, along with industry-wide challenges with cash movement services. All card purchases are still accepted.
The memo was specifically sent to employees of Coles Liquor, including Liquorland, Vintage Cellars and First Choice.
Coles told Daily Mail Australia the temporary measure was due to “industry-wide challenges” with cash movements across the country.
“We are not transitioning to cashless transactions,” Coles said.
‘Due to industry-wide challenges with cash movements, we are taking some temporary measures to prepare for the disruption of Armaguard services.
“Cash transactions remain available in all Coles supermarkets and liquor stores.”
A “cash process update” memo (pictured) was sent to Coles staff across Australia warning that its grocery and liquor stores could temporarily become “card only” between March 27 and April 5 .
The news comes as Armaguard owner Linfox is engaged in negotiations for a vital $26 million financing package.
The news comes as Armaguard owner Linfox is engaged in negotiations for a vital $26 million financing package, citing the decline in cash transactions across the economy as the reason for its financial difficulties.
The big four banks – Coles, Woolworths, Wesfarmers and Australia Post – have offered the logistics company an ultimatum for Armaguard to accept or reject their funding offer before the close of business on Thursday.
Armaguard has reportedly delayed accepting the deal due to the Reserve Bank of Australia’s demand that it make its accounts and projections available to banks so they can determine how much funding it needs.