Stores Post Licensing Monitoring Report
Northern Territory National Emergency Response (NTER): Stores Post Licensing Monitoring Report - Early Indications of Impact of Income Management in Community Stores - First 20 stores
Executive Summary
Income management (IM) commenced in the first licensed community stores in September 2007. At least 12 weeks after income management has been in place, Department of Families, Housing, Community Services and Indigenous Affairs (FaHCSIA) officers interview store operators as part of a process of routine monitoring. This report sets out the findings from the review of the first 20 stores to ‘go live’ for income management. These stores went live between September 2007 and January 2008. At the time of interview, income management had been in place in these stores for three to five months.
The total number of community stores which will be licensed is 68. The remainder of the store operators will be interviewed when income management has been in place for at least 12 weeks.
In summary, the monitoring review of these stores provides early indication of strong positive results from stores licensing and income management. Specifically, the results indicate that:
- The overall impact of income management has been positive for stores, with many stores reporting an increase in turnover and a wider range of goods stocked.
- The overall impact of income management has been positive for customers, with people purchasing more food, including healthy food, and more money spent on the needs of children. The impact has been most marked in communities where previously not as much money had been allocated to the needs of children.
- There is less cash moving around the community and community residents comment that they have more control over their money, with less humbug for food or cash.
- Customer shopping habits have changed significantly in most stores as a result of income management, with an increase in the amount of food purchased, and an increase in the range of foods purchased, including more fruit and vegetables, dairy foods, and chicken and meat. These changes have been most marked in stores where customers previously did not purchase as much healthy food. Customers are also saving for the purchase of whitegoods, such as fridges, so that they can store perishables at home.
- Store turnover has increased in most stores. Increased turnover has also enabled stores to provide customers with fresher produce.
- There is some evidence that customers are not travelling to major centres to shop as much as previously.
- The transition to income management for stores was difficult in most cases, with increased workloads. The workload became easier over time as understanding of income management improved, and automated processes were established. Operators with less computer literacy faced the greatest increase in workload.
- The support provided to store operators during the transition to income management through the on-site presence of Income Management Officers for the first few weeks of income management was helpful overall, with some operators stating that the period over which the help was provided should have been longer.
All community stores are provided with FaHCSIA-funded upgrades to their point of sale (POS) systems to help them with the increased workload from income management, and in some cases provide a proof of identity system for customers. Training in new systems was provided to store operators at the time of the upgrade. These upgrades have significantly reduced the workloads for stores. These upgrades enabled itemised receipts to be provided to customers and, in larger stores, provided a kiosk from which customers can check their own income managed funds balances. Some stores had their POS system upgrades some months after ‘go live’. In most cases the upgrades provided the potential to improve the overall retail management of stores, including through better access to the internet.
Background
The purpose of the community stores post-licensing review is to monitor the impact of income management on community store operators and their perceptions of the flow-on effect for community residents who purchase food from the store, using income managed funds.
Twenty community store operators from stores in Clusters 1, 2, 3 South and Cluster 1, 2, 3 North were interviewed by phone from the FaHCSIA Community Stores Licensing Section in Canberra between February and May 2008. Income management had been in place for a minimum of 12 weeks and up to five months in these stores.
Store operators of remaining stores will be interviewed when income management has been in place for at least 12 weeks in these locations. This report will be updated to include the data from these additional sites.
Methodology
Interviews lasted from 20 to 45 minutes using both qualitative and quantitative questions. The following analysis is based on the operators’ subjective observations and perceptions of the situation within their communities, and did not include any examination of financial records or direct field reports.
Questions focussed on the impact of IM on both stores and community residents.
Store specific information was sought on:
- the overall impact of IM; positive, negative or neutral
- the transition to IM; very difficult to very easy
- support provided by Income Management Officers (IMOs) training and assistance
- Changes in shopping habits
- more fresh goods
- more healthy foods
- frequency of purchases
- understanding of IM
- purchase of clothing
- impact on store turnover
- impact on workload
The stores interviewed for the monitoring report include:
Apatula (Finke)
Mutitjulu
Titjikala
Areyonga
Papunya
Finke River Mission and
Ntaria Supermarket (Hermannsburg)
Santa Teresa
Wallace Rockhole
Peppimenarti
Palumpa
Kaltukatjara (Docker River)
Kintore
Mt Liebig
Nauiyu Nambiyu Store and
Daly River Tucker Store (Daly River)
Beswick
Mi Patha Takeaway Wadeye
Wadeye Butcher Shop and
Wadeye Murrinhpatha Nimmipa Store
Question 1 :
Has the introduction of Income Management affected your store?
| Has the introduction of Income Management affected your Store? | n= | % |
| Yes | 19 | 95 |
| No | 1 | 5 |
Has the introduction of IM affected your store? - Yes or No?
Question 1a:
To what extent has your store been affected?
| To what extent has your store been affected? | N= | % |
| Greatly | 14 | 70 |
| Slightly | 6 | 30 |
To what extent has your store been affected - greatly affected, slightly affected?
Income Management Impact on Store
Overall impact
- Nineteen store operators reported that IM had had a perceptible effect on their store.
- One store operator said no change had occurred.
- Twelve store operators said the impact had been very noticeable.
- Seven store operators commented that the extent of change had been slight.
Nature of impact
- Twenty store operators reported that IM had created a greater workload for them.
- Twenty store operators commented on the positive attitude of customers, saying there is less conflict or arguing
about what to buy, particularly between husbands and wives.
- All twenty store operators reflected that they were now able to offer a wider range of healthy food and goods, as more money was being spent in the store therefore their turnover had increased.
- Two store operators commented that young men and teenage boys were learning to shop - a new life skill for them. Female relatives were accompanying their teenage sons and showing them what items they should be purchasing, while girlfriends were teaching young men how to shop.
- All twenty store operators reported that residents were purchasing a wider range of goods.
- Community residents were requesting store operators to stock a wider range of products, plates and mugs, saucepans and cutlery.
- One store operator explained how the store had evolved from a convenience store to a supermarket model becoming in the process a community social centre, where people came to talk and look at the new range of goods on sale.
- One store operator commented that residents were asking for more choice in food-related items, as now they were cooking more at home, rather than eating takeaways.
- One store operator reported increased sales in personal hygiene products, soap, shampoo, toothpaste and tooth brushes.
- Three store operators commented that residents had complained that they could not buy cigarettes using IM funds.
- Two store operators reported that the sale of cigarettes had halved.
- Two store operators commented that residents had complained that they no longer have as much money to spend on alcohol.
- One store operator commented that they were not selling as many packets of playing cards.
- One store operator commented that IM had cut back gambling because there was not as much cash around.
- One store operator commented that the younger residents did not like IM because it interfered with their lifestyle (ability to buy drugs).
Question 2 :
Overall would you say that the introduction of IM has had a positive, negative or neutral effect on the community? (See Chart Impact of IM on community)
| Effect of Income Management on the community | n= | % |
| Positive | 15 | 75 |
| Negative | 3 | 15 |
| Neutral | 2 | 10 |
What effect has IM had on the community?
Positive impact
- All twenty store operators commented that IM has increased the capacity for people to shop for food every day - customers were eating better and buying more food.
- Seventeen store operators reported that IM had a positive impact on the community, commenting that whole families were now coming to shop in the store.
- Five store operators said that more money was being spent on babies, toddlers and children. Residents were finding different uses for money and asking for more choice in children’s items, such as clothing and baby carriers.
- Three store operators commented that more men of all ages were coming to the store.
- Two store operators commented that community residents like the fact that there is money there (in their IM accounts) if they need it.
- Two store operators stated that because there was less cash in the community - less ‘free money’ - the extent of gambling had decreased.
- One store operator commented that they had heard community residents referring to saved IM funds as ‘bucket money’. These funds were being saved to purchase certain items. eg. plasma TVs, white goods.
Negative impact
- One store operator referred to the difficulties involved in explaining the changes, especially to older residents used to having cash in hand, while countering the complaints of community members, mostly male, who were not happy with income management from both a political and financial stand point.
- One store operator reported that elders in the first communities to have IM were initially concerned about the two day gap when IM funds are transferred from Centrelink during the ‘go live’ period. They thought the government had taken the money or the store operators were stealing it.
- Twenty store operators commented that additional communication tools from Centrelink would have been helpful to ensure community residents understood IM. One store operator commented that community residents refer to IM as ‘head shaking business’.
- Store operators from two communities commented that residents felt deeply concerned by the implementation of IM. Residents thought they were being perceived as possessing similar problems relating to violence, substance abuse and especially to child abuse.
- In these same communities, the two store operators commented that residents, for a long time, had spent most of their money healthy food, and the children were well looked after. The community residents from one community reported feeling a sense of shame at being part of the NTER.
Neutral impact
- Three managers reported no change to the community, saying this was based either on pre-existing voluntary income management or a long term commitment to healthy food and caring for children in their respective communities.
Question 3:
Overall would you say that the introduction of IM has had a positive, negative or neutral effect on your store?
| Effect of Income Management on store | n= | % |
| Positive | 14 | 70 |
| Negative | 4 | 20 |
| Neutral | 2 | 10 |
What effect has IM had on your store?
Positive effect
- Fourteen store operators reported changing spending patterns of community residents.
- The flow-on effect of this has been increased turnover in the stores, which is enabling
- the capacity to stock more and varied foods;
- an opportunity to employ more community people; and
- the capacity to stock practical hardware items requested by the residents eg. flood lights.
Negative effect
- Four store operators commented on the amount of time taken up to implement IM processes.
- Two of the four store operators commented on the reduced amount of cash going through the store, and one had to bring in cash for the ATM machine rather than using cash generated from sales.
Neutral
- Two store operators were not prepared to comment until the end of year financial position of the store had been examined.
- Two store operators commented that the community was very quiet and the residents already had good shopping and eating habits that were supplemented with lots of bush tucker.
Question 4:
Would you describe your store’s transition to IM as very difficult, difficult, neutral, easy, very easy, and what made it this way?
| Store’s Transition to Income Management | n= | % |
| Very difficult | 4 | 20 |
| Difficult | 9 | 45 |
| Neutral | 2 | 10 |
| Easy | 4 | 20 |
| Very easy | 1 | 5 |
How would you describe your store's transition to IM?
Very Difficult
- Thirteen store operators commented that the initial IM start-up was problematic, but as store staff became more familiar with the IM processes the work became easier. Taking customer photos, downloading Centrelink information, providing reports to Centrelink were all identified as ‘difficult’.1
Neutral
- Two store operators commented that their stores had good computer systems in place and the point of sale upgrades and installations had occurred prior to them being employed.
Easy and very easy
- Five store operators commented that IM was an easy transition. Those stores had either existing systems in place where the upgrade was minimal or had accounting support. One store operator indicated that the accountant had handled the transition, and another had the assistance of the Outback Stores centralised system.
1 Stores were offered upgrades to their point of sales systems. In some cases, the upgrades happened a couple of months after the ‘go live’ date. Some stores initially only had a till which could not print off itemised receipts for customers. Some store operators had low levels of computer literacy and found it difficult to adapt to new automated point of sale systems.
Question 5:
Did you find the assistance of Income Management Officers (IMOs) very helpful, helpful, neutral, unhelpful or very unhelpful? 2
Do you have any suggestions as to how the IMO service could be improved?
| Income Management Officers | n= | % |
| Very helpful | 9 | 45 |
| Helpful | 8 | 40 |
| Neutral | 0 | 0 |
| Unhelpful | 3 | 15 |
| Very unhelpful | 0 | 0 |
Income Management Officer Support
Very helpful and helpful
- Nine store operators found the IMOs very helpful, commenting that the manual developed collaboratively was an excellent resource.
- Eight store operators commented that the IMO support was helpful.
- Of the twenty store operators, two commented that the technical helpdesk service was unhelpful, and not available in a crisis.
- Three store operators asked if a help line for IM difficulties could be made available through Centrelink.
Unhelpful and very unhelpful3
- Three store operators commented that the IMO support was unhelpful because they thought the IMOs should have stayed for longer periods of time.
- One store operator commented that the combination of his limited computer skills and the initial teething problems culminated in a frustrating time when the IMO was in the community. Subsequently, the store operator has undertaken training arranged by the IMO.
Suggestions for improvement
- Overall the store operators commented that, although they were very pleased with the support they received from the IMO, in hindsight, it would have been useful if the IMOs were in the communities for a longer period of time (coming in earlier and staying longer after the go live date) extending their availability to around six to eight weeks.4
- Store operators with Indigenous staff wanted individual training sessions for these staff on handling the new software, as they did not feel confident enough themselves to carry out such training.
- Without exception, all were looking forward to the introduction of the IM smart card.
2FaHCSIA provided on-site support for store operators through contracted Income Management Officers (IMOs), whose role is to ensure that store operators understand income management and establish streamlined processes to manage the requirements of income management for operators. IMOs typically spend one week prior to ‘go live’ and two weeks post ‘go live’ working in the store.
3Store operators who requested further assistance have subsequently been provided with additional support.
4IMOs are a very valuable but expensive resource - in some cases, the period of on-site presence was extended where required.
Question 6:
Have the shopping habits of your customers changed since the introduction of IM?
If yes, to what extent have their shopping habits changed?
| Shopping Habits changed | n= | % |
| Yes | 17 | 85 |
| No | 3 | 15 |
| If shopping habits changed, to what extent? | n= | % |
| Greatly changed | 10 | 50 |
| Slightly changed | 10 | 50 |
If yes, to what extent?
- Seventeen store operators commented that the shopping habits of community residents had changed considerably as a result of IM. More residents had access to food. Customers were regularly purchasing a wider range, more fresh fruit and vegetables, dairy goods, frozen vegetables, rice, (raw) chicken and meat. Store operators commented their orders for fresh fruit and vegetables had significantly increased. One store operator stated that before IM his weekly order for grapes had been two bags of green and red. He now orders ten bags of green and four of red. His vegetable orders had risen from four palettes a week to ten, and he expected it to go higher.
- These same store operators who commented that their customers’ shopping habits had changed, identified a secondary impact of IM where residents were saving to purchase other goods eg. kitchen goods, clothes and fridges so that they can store perishable food.
- Three store operators commented that there had been no change in their customers purchasing habits because they had already established, over the long term, good purchasing practices, understood the impact of good food and supplemented their diet with bush tucker.
- Ten store operators commented that their customers’ shopping habits had changed, and ten store operators commented that their customers’ shopping habits had not changed.
| Type of change in shopping habits | n= | % |
| Buy more fruit and vegetables | 14 | 70 |
| Unchanged in fruit vegetable purchases | 6 | 30 |
| Buy more healthy foods | 15 | 75 |
| Unchanged healthy food purchases | 5 | 25 |
| Make fewer smaller purchases | 11 | 55 |
| Unchanged incidence of smaller purchases | 9 | 45 |
| Understand the IM system | 18 | 90 |
| Unchanged understanding of IM system | 2 | 10 |
| Spend more on clothing | 13 | 65 |
| Unchanged spend on clothing | 7 |
Shopping habits breakdown
- Fourteen store operators commented that community residents were purchasing more fresh fruit and vegetables, five store operators commented that there had been no change in the purchase of fresh fruit and vegetables.
- Fifteen store operators commented that community residents overall were purchasing healthier foods more regularly. As well as the fresh fruit and vegetables, larger quantities of meat, tinned foods, rice and flour are being purchased daily.
- One store operator also commented that more personal hygiene products (including toilet paper), soap, shampoo, toothpaste and tooth brushes are being purchased.
- Only two store operators commented that there were unchanged purchasing habits in their community because of already established good purchasing practises.
- Eleven store operators commented that residents are shopping for fewer items more often. Store operators observed that previously residents would spend all their funds on a variety of goods in one go. Under IM, residents are shopping for fresh food on a daily basis when small amounts of IM funds are left.
- Nine store operators commented that community residents had not changed their purchasing habits by purchasing small amounts more often specifically, but were shopping more sensibly because of IM. However the purchase of junk food continued using discretionary funds.
- Eighteen store operators commented that once community residents had used the IM process a few times they understood how to purchase goods. Women and children were the most satisfied with the new system, but that the men were slowly adjusting to the changes and were now accompanying their female partners and relatives to assist with the shopping.
- One store operator commented that community residents had instigated a voluntary arrangement for the purchase of foods using their welfare funds some time ago, they were used to managing their funds so IM had not changed their existing purchasing habits.
- Thirteen store operators commented that residents were purchasing more clothes and shoes, and more specifically, children’s clothing. Seven store operators commented that they had been no change in the amount of clothing purchased.
Question 7:
Has the turnover of your store increased since the introduction of IM?
| Store turnover - increased | n= | % |
| Yes | 13 | 65 |
| No | 7 | 35 |
| If increased, by what percentage? | n= | % |
| 10% | 8 | 62 |
| 20% | 2 | 15 |
| More than 30% | 3 | 23 |
Has turnover increased - Yes or No?
If increased, by how much?
| If decreased, by what percentage? | n= | % |
| 5% | 2 | 28 |
| 10% | 2 | 28 |
| Unknown | 3 | 44 |
If decreased, by how much?
Store turnover
Increased
- Ten store operators commented that they had increased turnover in their stores of between 10 and 20 per cent, and three commented that they had had a large increase of more than 30 per cent. One store operator commented that his store had an increase of 100 per cent.
- Those that reported turnover increases also reported that the increase enabled them to purchase more regularly and provide fresher produce.
- Store operators commented that because of the increased turnover of fresh stock they were providing additional healthy takeaway meal packs for lunches and dinners.
Decreased
- Four store operators commented that they had had a decrease of up to 10 per cent in turnover.
- One store operator cited a decrease of 10 per cent, owing to the distribution of Centrelink food cards for Coles and Woolworths, and consequently taking custom from the community store, which is located near to Alice Springs.
Unknown
- Three store operators said that as they were new and had not managed the store over a full financial year period they were not prepared to comment on any increase or decrease in store turnover.
Question 8:
Has the administration of Income Management added to your workload, or the workload of store staff?
| Administrative Workload | n= | % |
| Increased | 20 | 100% |
| Decreased | 0 | |
| Additional hours per day | ||
| up to 1 hr | 9 | 45 |
| 1-2 hrs | 7 | 35 |
| 2-3 hrs | 2 | 10 |
| 3-4 hrs | 2 | 10 |
Additional hours per day
Increased Workload 5
- Twenty store operators commented that they were experiencing an increased workload.
- Sixteen store operators commented that it was taking up to an extra three hours per day to reconcile Centrelink payments.
- Four store operators spent more than four hours per month on Centrelink monthly reports.
- The four stores operators most affected by the extra workload thought that Centrelink should pay for the approximately 15 hrs per week spent in extra time, or for an extra staff member. One store operator had equated the extra time required to $45,000 per annum.
- Two store operators with limited computer literacy felt additionally burdened in coping both with the new systems plus Centrelink requirements. They commented that more computer training should be available.
5FaHCSIA has funded upgrades to stores’ point of sales systems to assist operators with managing the additional workload arising from income management. In most cases, these upgrades have the potential to improve overall retail management in stores, if utilised to full capacity.
GENERAL BACKGROUND COMMENT
Centrelink Cash Cards for use at Coles and Woolworths
- One store operator commented that the cash cards (Woolworths and Coles cards) were being sold for cash, often at lower prices. This cash was being used for alcohol and gambling. Customers were using IM funds to fill vehicles with fuel on Fridays and driving to Alice Springs to convert cash cards, spending weekends in town. As a result the operator of this store reported sales for weekend trading at record lows.
Credit availability requests
- Store operators commented that they are being requested to make numerous calls to Centrelink to check customer income management balances. Ten to fifty calls per day were reported, at cost to the store. Descriptive terms used included; “how much ‘book up’ or ‘voucher’ do I have?”
Communicating Centrelink IM requirements
- Store operators commented that time is needed to explain ‘balance on card’ to residents. This is particularly difficult at the beginning of the payment fortnight, as in some communities, a two day lapse occurs between deposit and availability of money.
Communicating the nutritional value of food
- Store operators observed that healthy food posters from the community nutritionist were helpful guides for residents buying fresh foods.
Stores included in monitoring
| Store | Cluster | |
| 1 | Apatula (Finke) | Cluster 1 South IM start date 14/09/2007 Interviewed 22 weeks after IM implementation |
| 2 | Mutitjulu | |
| 3 | Titjikala | |
| 4 | Areyonga | Cluster 2 South IM start date 09/11/2007 Interviewed 15 weeks after IM implementation |
| 5 | Finke River Mission | |
| 6 | Santa Teresa | |
| 7 | Ntaria Supermarket | |
| 8 | Wallace Rockhole | |
| 9 | Peppimenarti | Cluster 1 North IM start date 23/11/2007 Interviewed 13 weeks after implementation |
| 10 | Palumpa | |
| 11 | Kaltukatjara (Docker River) | Cluster 3 South IM start date 11/12/2007 Interviewed 22 weeks after IM implementation |
| 12 | Kintore | |
| 13 | Mt Liebig | |
| 14 | Nauiyu Nambiyu Store (Daly River) | Cluster 3(a) North IM start date 13/12/2007 Interviewed 22 weeks after IM implementation |
| 15 | Daly River Tucker Store | |
| 16 | Beswick | Cluster 2 North IM start date 13/12/2007 Interviewed 22 weeks after IM implementation |
| 17 | Wadeye Butcher Shop | Cluster 3(b) North IM start date 14/01/2008 Interviewed 20 weeks after IM implementation |
| 18 | Wadeye Murrinhpatha Nimmipa Store | |
| 19 | Papunya | Cluster 3 South IM start date 11/12/2007 Interviewed 22 weeks after IM implementation |
| 20 | Mi Patha Takeaway Wadeye | Cluster 3(b) North IM start date 14/01/2008 Interviewed 22 weeks after IM implementation |