DISCIPLINE
• Training that corrects,
molds, and perfects!
• Control gained by
enforcing order.
• To train or develop by
instruction and exercise
in self-control.
FOCUS
• The center of activity
or attention!
• Concentrate
• Attention on the most
urgent problems
Shrink Control
Attitude
• Each Store Manager
must develop a shrink
control ATTITUDE!
SHRINK ATTITUDE
Receiving Product
Do you understand and enforce correct check-in procedures for all
deliveries?
Are your
stockroom,
coolers, and
freezers
prepared to
receive
product?
Are Vendors
permitted to
wander
throughout the
store and be left
unattended away
from their
authorized area?
Receiving Product
Who is responsible
to ensure that all
invoices are
processed
properly?
Do you have
established times
for deliveries?
How can you better
monitor receiving
procedures in your
store?
Who is authorized
to check in
vendors?
Are Invoices
reviewed for
correct cost and
retail extensions?
Handling Product
Do you understand and enforce correct handling procedures?
How much time
have you spent in
properly training
your employees to
stock?
How do you
account for the instore use of
product?
How is perishable
product handled at
your store?
Are there any opened
product or packaging
found laying around
in the breakroom,
bathrooms,
backroom, office, in
the trash or in/on top
of coolers and
freezers without
proof of purchase? Is
a policy for
employee purchases
in place?
HANDLING PRODUCTS
STOCKING PRODUCTS
Handling Product
What is your
procedure for
maintaining proper
temperature
control for
perishable
products?
How do you verify
proper rotation of
product?
How do you insure
there is no razor
cut product in your
store?
How are damaged,
reduced, or spoiled
products handled and
accounted for?
What method do you
use for proper
storage and rotation
in your stockroom,
freezers and coolers?
How can you
improve your shrink
loss in handling
product?
PERISHABLE HANDLING
PRODUCT ROTATION
BREAKROOM ACTIVITY
Front End
What causes shrink losses due to relaxed Front End operations?
What is covered in
training employees
to operate a cash
register in your
store?
How do you handle
file maintenance,
price errors, and
“Not on File” items
in your store?
How do you
monitor cash
register
transactions?
How does inaccurate
pricing adversely
effect your store?
How are voids,
refunds, and
coupons
monitored?
How often and who
conducts till audits
and customer bag
checks in your store?
Front End
Is your store on a
retail bill out
system to identify
what your
inventory loss is?
How are relatives
and friends of
employees
checked out?
When and who may
make price or
department changes
in your registers?
Store Security
Do you understand what total store security really means?
Who has the keys
to your store,
office, backdoor,
cash register,
journal tapes, and
vending
machines?
Who watches the
front doors to
insure the proper
entry and exit of
customers and
employees?
Are locks, security
codes and safe
combinations
changed whenever a
key employee leaves
the company?
Are all doors and
windows kept closed
and locked when not
attended by an
authorized
employee?
HI’S, EYES, AND HELP!
• HI’S
All employees say hi and smile at
customers. The customer knows you saw
them and may think you know them.
• EYES Make eye contact. Have a
watchful mindset. Be aware of what is
going on in your store. Watch suspicious
customers.
• HELP Be visible, approach customer
and say “Can you find everything you
need? “ If not, take them to the item. (Get
those extra sales).
HI’S, EYES, AND HELP!
• Use Hi’s, Eyes, and Help as a
deterrent to customer theft in your
store. At the same time, improve
your customer courtesy level and
your sales. Demonstrate your
customer courtesy standards
consistently. We all do this, but
we can all improve!
Store Security
What is your
employee
purchase policy?
Who has access to
your store’s alarm
codes?
What steps do you
take to prevent
shoplifting ?
What steps are taken
to prevent employee
theft?
How do you
identify and
monitor the top
five high theft
items in your
store?
Is the store ever left
unattended without a
qualified
management person?
Store Security
What is the
procedure for the
inspection and
disposal of trash?
What steps are taken
to screen new
employees prior to
hiring?
Does the store
manager
periodically assist
in the calculation
of the meat and
produce
inventories?
Are check lanes
blocked off when
registers are not in
use?
Are 2 people always
on duty? Does
anyone close the
store alone?
CHECKLANE SECURITY
BACK ROOM SECURITY
Attitudes Are
Contagious!
• If the manager has a shrink
control attitude the other
associates will develop a
shrink control attitude!
SHRINK………..
• ANY ACTION OR LACK
OF ACTION THAT
DECREASES THE
VALUE OF A PRODUCT!
•
•
•
•
•
•
•
•
•
CAUSES OF SHRINK
THEFT
Internal
Shoplifting
Vendor
DSD
Pricing
Damage
Code Dates
Overstocked Backroom
CAUSES OF SHRINK
• Grazing
• Over merchandising
(cutting, trimming, etc.)
• Poor Refrigeration
• Counter and case shrink
• Late reaction
• Poor Rotation
• Poor Training
• Poor Record Keeping
Shrink Reduction Action
What does it take to replace the cost of the product when lost,
damaged, stolen or un-accounted for?
Product
Country Farms Yogurt
Holley Hill Grade A Eggs
Butterball Bologna
Dentyne Ice 3 pack Gum
6 Pack Snickers
1 LB Ground Beef
1 Gal. Milk
Total
Qty
Price
Total
1
1
1
1
1
1
1
7
0.39
0.85
1.29
1.69
2.29
2.39
3.14
12.04
0.39
0.85
1.29
1.69
2.29
2.39
3.14
12.04
REPLACEMENT
SALES
(w/ 1% Avg. Profit)
$ 39.00
$ 85.00
$129.00
$169.00
$229.00
$239.00
$314.00
$1,204.00
REACTION TO PRODUCT
GRAZING
ROTATION
DAMAGED PRODUCTS
Employee Theft
“THE SILENT KILLER”
• The object of this
presentation is to
help our retailers
recognize and react
to a problem that
exists in every retail
grocery store.
EMPLOYEE THEFT
• Employee theft is one of most serious threats to
the success of a Save-A-Lot food store. It alone
can be the difference between a profitable or
non-profitable operation. Save-A-Lot operators
and their management must learn to deal
effectively with this area of shrink, not only to
prevent loss from dishonest employees, but to
realize the full potential of security procedures
throughout their prospective operations.
Employee Theft
“THE SILENT KILLER”
• Few employers or employees
readily accept the possibility
that the most significant factor
in their total shrink figure is
indeed employee theft. Most
grocery retailers seem
inclined to ignore this facet of
their operation. This is not
indicative of a lack of
management skill, but rather
human nature. Managers, as
well as owners,often fall victim
to an unfortunate paradox- --
“THE SILENT KILLER”
• EMPLOYEES WHO HAVE
SIGNIFICANTLY CONTRIBUTED TO THE
SUCCESS OF THE STORE ARE NOT
STEALING FROM THE STORE. Long
standing friendships can become
obstacles when considering employee
theft as the root of low gross, high shrink,
and eventually a failing business.
Employee Theft
“THE SILENT KILLER”
• Hiring honest people and
helping those people stay
honest is the simplest way of
summarizing the most
productive approach in
controlling employee theft. Of
course all employees are neither
honest or dishonest, but if
proper policies and procedures
are in place we can help to
preserve a healthy work
environment as well as secure a
successful store operation.
T.C.B.
• “AN OUNCE OF PROTECTION IS WORTH A
POUND OF CURE”, is a wise old saying that
really applies to eliminating employee theft. IF
means, method, and opportunity are controlled,
it is likely that employee theft will be also. Lets
review some alarming facts taken from recent
industry surveys and important areas where
control must be established and maintained, and
how that can be accomplished.
Components of Shrink
Pricing
4% 3%
22%
5%
Accounting Errors
Damages
20%
Shoplifting
Receiving
35%
11%
Cashier Caused
General Employees
Shrink Reduction Action
POPULAR THEFT TYPES
40
30
26.7%
23.7%
20
15.6%
9.7%
10
6.7%
5.7%
5.6%
3.3%
2.9%
as
h
C
er
ch
an
di
se
M
in
g
isc
ou
nt
D
Sl
id
in
g
ng
Sn
ac
ki
er
O
th
s
ef
un
d
oi
ds
/R
or
V
ac
kd
o
B
C
ou
po
n
0
Shrink Reduction Action
THEFT TRIANGLE
ABILITY
DESIRE
OPPORTUNITY
19% of us has the ABILITY to steal, 36% of us has the DESIRE to steal, and
45% of us will steal if given the OPPORTUNITY to do so.
Make theft DIFFICULT, RISKY, and UNREWARDING for Shoplifters, Dishonest
Employees, and Dishonest Vendors!
Ways to reduce Employee
Dishonesty
• Minimize Opportunity
• Reduce High Risk Employee Hiring
• Create The Right Atmosphere
• Train Employees To Be Aware
Why Do People Steal?
• Excuses such as,Bills to pay
• Grudges against Employer
• Drug or Alcohol Addiction
• Justified by others stealing
Is Management Aware Of
Employee Theft Traits?
• Certain Customers
waiting for certain
cashiers to open
• Cashiers always
checking to the
penny
• Notes at the register
with numbers
CASHIER THEFT
• Notes at the register with numbers
• Misplaced change in the drawer. ( Sign of
cashier keeping up with under rings.
Penny=$1.00, Nickel=$5.00, etc. This money
would be taken out during down time prior to
final countdown and pocketed.)
• Always requesting to run the register farthest
from the office
• Personal phones calls
Is Management Aware Of
Employee Theft Traits?
• Constant eye
contact with
management
• Excessive
voids,refunds,or
no sales
• Cashiers asking
which
management
person is on
duty
THEFT TRAITS
• Excessive break time
• Over friendliness
• Excessive time “working stock” in
backroom or coolers
• Unnatural or changes in usual behavior
• Offering to “cover” for you while you take a
break outside.
Security
Cash Handling - You are trusted to handle a large volume
of cash transactions. You are responsible for accurate cash
handling.
Register Security - At no time may any employee open
another employee’s register without the employee
assigned to that register being present. Management may
open an employee’s register only in an emergency. At no
time may more than one employee use the same till to
ring up customer orders.
Employee Purchases - Do not ring up your own
purchases. Management or designated personnel will
check out your purchases. Product purchased for
consumption must have a receipt, initialed by
management, attached to the product. All other product
must leave the store after the purchase is made.
Lane Security - Whenever you leave the register be
certain that you close off the lane with a cart or stack
basket.
Under-ringing- Sliding or discounting by charging less
than retail price will be grounds for disciplinary action.
Verifying Truck Loads
• Verify the total load (All Pallets)
• Work from pallet to invoice, looking for all types of
discrepancies.
• The number on the invoice should be matched up with the
corresponding number on the pallet label. You are now ready
to check the load. Keep in mind that the first item on the
invoice may be at the bottom of the pallet.
• Read the manufacturer’s product description on the case.
• If items are found on the pallet but do not show on the
invoice, check the shipping label. Place a check mark next to
the item quantity on the invoice as you take the product off
the pallet to stock. If multiple quantities are invoiced, but you
find fewer, place the number found by the quantity on the
invoice.
• Product description. This could be a mis-pick. Write the item
in on the invoice, then show the item invoiced as short and
the mis-picked item as over.
• After any mis-picks are identified, check the invoice for
shortages. Identify the short items. Check the sales area for
the shorted item in the event it was stocked without being
noted on the invoice.
Verifying Truck Loads
• If the item does not show up on the sales
area, check the stock room for the
missing product. Shippers are often
overlooked or misplaced.
• Store Manager or Assistant Manager
should verify any items not found on the
invoice. If the item is still unaccounted
for, check the invoice for the item number
before and after the missing item to see if
you are over on one of these items.
• After completing all the steps above, fill
out the Store Credit/Charge Log and fax
to the warehouse.
Don’t
Leave The
Door Open
To Theft
LET’S THINK OUTSIDE THE BOX
• What are other potential shrink
factors:
–Workman’s Comp claims
–Customer accidents
–No signage or tagging on products
–Improper stocking procedures
WORKMAN’S COMP
CUSTOMER ACCIDENTS
SIGNAGE
IMPROPER STOCKING
Shrink
Control=
Road To A
Successful
Operation