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Some stores including Lululemon and Nordstrom won't take cash as they reopen, putting them further out of reach for millions of Americans

May 21, 2020, 18:56 IST
Business Insider
Some stores won't be taking cash as they reopen.Reuters
  • Lululemon and Nordstrom have both said they wouldn't be accepting cash as they reopen stores.
  • Public health officials have said they believe cash could contribute to the spread of the novel coronavirus.
  • But, some cities and states across the US have banned cashless stores, as millions of Americans do not have a checking or savings account.
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Reopening stores are making plenty of changes aimed at keeping employees and shoppers safe in the coronavirus era.

And, some are going cashless, at least for a period of time.

A note on Lululemon's frequently asked questions page says that the activewear retailer won't be taking cash at recently reopened stores.

"We won't be accepting cash payments for 30 days after reopen, and we'll reassess after that time. We prefer contactless tap payments like credit and debit cards or ApplePay. Check in with your financial institution so your digital wallets are ready to go!" the note says, adding that gift cards will still be accepted.

Nordstrom similarly said it would be working to make all transactions contactless, CNBC reported earlier in May.

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Lululemon and Nordstrom did not return Business Insider's request for comment on their decision to go cashless.

The CDC has issued guidance aimed at workers at grocery and other food retail stores to avoid touching their faces after handling cash or merchandise that could have been handled by someone with COVID-19, the respiratory disease caused by the novel coronavirus. Some public health experts have said they believe the virus could be spread by cash. Many local businesses that have stayed open throughout the crisis have opted not to take cash.

But, before the coronavirus pandemic swept the country, stores choosing not to accept cash were the subject of debate.

In January, the New York City Council approved legislation that prohibited stores and restaurants from banning cash. Philadelphia, San Francisco, and the state of New Jersey previously passed similar legislation. Roughly 6.5% of American households, or about 14.1 million people, are "unbanked," meaning that they don't have a checking or savings account and would not be able to make a purchase at stores that don't accept cash.

Sweetgreen, the trendy salad chain, had previously made all of its locations cashless but reversed course in response to the legislation. Amazon Go, the e-commerce giant's high-tech, cashierless-stores, similarly implemented the ability to pay with cash.

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It's unclear how stores' decision not to accept cash would fit in with this legislation, or whether retailers would accept cash in locations where cashless stores are not allowed.

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