Wed, Nov 28, 2001 page19

• Ironing the kinks out of euro's introduction

  • AP
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  The cashier fumbles with the unfamiliar euro coins. The customer counts the change -- slowly. Behind them, the line grows. Customers grumble. Some walk out in a huff, cursing the store and the new currency.

  The threat of long lines during the introduction of euro notes and coins is a scenario haunting European retailers, who are being asked to shoulder much of the burden of the massive currency changeover beginning Jan. 1.

  During the conversion, retailers will be handling two currencies -- taking in national currencies and giving change in euros, as urged by the European Central Bank and central banks in the 12 countries using the euro. If all goes as planned, that will vacuum national currencies out of the economy within days.

  But retailers' simulations of the transition have shown that if precautions aren't taken during at crucial times, lines could get out of hand.

  McDonald's Europe ran tests at four restaurants, in Munich, Vienna, Madrid, and Utrecht in the Netherlands. The trial run showed that, without preparation, lines doubled or tripled. Not only did employees take longer to handle two currencies, but unexpected customer behavior also affected lines.

  "If the person at the register is hesitating when giving the change back, then the customer gets a little suspicious," said Guillaume Serey, overseeing the transition for McDonald's Europe. The customer then recounts their money, and things slow down.

  For E-Day, McDonald's solution is simple: one person handling the register and another putting together the order, instead of one person doing both, plus a designated person to answer euro questions. The result should be "a seamless experience" -- no added euro-wait, Serey said.

  Gerhard Westerhof, euro manager for the Dutch Railways, said a study he commissioned showed it took 60 seconds -- twice as long as usual -- to take in Dutch guilders and give change in euros at a ticket window, and two full minutes when customers paid with a guilder-euro mix.

  Using a mathematical model to determine what that would mean to morning rush hour commuters, the commission found that instead of the normal six people in line, the result is 140 people waiting for tickets at 9am.

  "Not many people know about the explosive character of waiting lines," Westerhof said. "There is a very possible serious problem."

  By studying the problem in advance, Westerhof said the railway believes it has a solution and will be able to control the lines by using more staff and persuading customers to pay electronically.

  The European Commission questions the pessimistic scenarios.

  Benjamin Angel, who coordinates euro matters at the European Commission's directorate for economic and financial affairs, said intense preparation by major retailers would limit problems.

  "Queues are the biggest problem we have to manage," said Angel. "The solution is to distribute the euro as quickly as we can ... The problem is that some small retailers may be less aware of the problem than large retailers."

  Germany's railroad, Deutsche Bahn, doesn't share the Dutch disaster scenario, saying it will prepare by adding ticket-window staff at critical stations and by pointing out that people can pay for tickets at machines and on the train.

  "Sure, we expect in the first days that there might be longer lines," spokesman Steffen Felger said. "But we expect that after a very few days, people will adjust."

  Carrefour, a Paris-based retailer, ran a simulation in Belgium with 80 employees playing 200 scenarios, including mixes of currencies, older people and people with pesky questions. Guy Huyberechts, euro manager for Carrefour Belgium, said that even with all 45 registers open at one of the firm's hypermarkets, lines may grow an average of 20 percent.

  Keeping all the registers open will be the key to avoiding euro-rage, Huyberechts said.

  "People accept lines more if every channel is open and they feel that everything possible is being done," Huyberechts said. "They are more likely to become aggressive if they see that not all check-out lanes are open."

  Carrefour is deploying head-office personnel as baggers -- a job widespread in the US, but not in Europe. The baggers will get people away from checkout quickly and relieve the cashier from answering questions.

  "A lot of conversations will take place between customers and cashiers," said Huyberechts. "If each one lasts 25 seconds and you have 10 of them, that is more than four minutes. And if you are the 10th one in line, you will be the aggressive one."
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