Page 204 - DMGT553_RETAIL_STORE_MANAGEMENT

Unit 11: Loss Prevention and Shrinkage Control

Notes
Retailers also try to stay away from waste in the supply area–forms and little things like
pencils and pens. All their budgets must be justified and assigned, with a certain person
accountable for each budget–maintenance, supplies, vehicle maintenance. And it’s really
important to do preventative maintenance on delivery vehicles, for example, so the vehicles
don’t run down to the point where we have huge repair bills.
Present day retailers been aggressively taking the early-pay discounts, and they certainly
don’t pay early to companies which don’t offer discounts. They try to help out local
people, for example, having all forms of printing done in the area. However, this becomes
tougher and tougher, with funds getting tighter and tighter. When a national printing
company offers better deals, they have, on occasion, gone out of state, saving as much as
25 percent, a significant number after adding up all the costs of refund forms, invoice
forms, purchase forms and miscellaneous printing.

Retailers nowadays should also take advantage of their electricity distribution company’s
free energy surveys. “They changed all my light bulbs to energy efficient fluorescents and
spotlights; and the whole thing was absolutely free! They last longer than the norm, and
my energy savings are projected to be “16,000 a year”, one Delhi based retailer says.
These cost-saving techniques may be familiar, but how many retailers are actually putting
these to good use? Remember, it’s the bottom line that counts, not the retail store’s gross
sales. Retailer stores must concentrate on reducing expenses and put more spendable cash
in their pocket.

Self Assessment

Fill in the blanks:
1. For all retailers, the standard sign of success is an annual increase in .................................

2. The real challenge is to try an avoid hurting customer service with .................................
3. To operate a successful retail business, we need to create a secure environment – for our
customer, our employees, and the ................................. itself.

4. Safety and protection should ................................. be overlooked.

Caselet Store Shrink Results Matter

ccording to Strack & Van Til President, Dave Wilkinson: After just 7 months on
the Total Store Manager (TSM) program, our Produce shrink is down 27%, Meat
AShrink is down 15%, Deli Shrink is down 18%, Grocery shrink is down 6% and
91% of our store associates understand our objectives and are actively participating. That’s
really impressive.
Store Managers and District Managers alike have embraced the TSM program. They are
actually excited and look forward to the workshops. Feedback is overwhelmingly positive
and RESULTS prove it. Stores are cleaner, cash flow impact is excellent, grosses are very
good and store teams are focused and determined.

Our Executive Team particularly enjoys the Quarterly Business Reviews. They help to
drive execution accountability and help us stay on track toward measured results and
consistent and constant improvement.
Contd....

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