Shrinkage Expert Group – Summary of 11/12 December 2013 meeting Present: Adrian BECK, (University of Leicester) Fredrik BISTER (IKEA), Mark BOGGIS (Proctor & Gamble), Megan BORNMAN (University of Leicester), Rob BROECKMEULEN (Eindhoven University of Technology), Vincent CARTON (ECR Europe), Mark CASSIDY (Asda Stores), Luc COOMAN (Carrefour), Ruud DE WEERD (Bijenkorf), John FONTEIJN (Royal Ahold) Retail Co-Chair, Kris HAMER (Asda Stores), Steve HEWITT (Marks & Spencer), Erik KOK (Ahold),), Hans MATHOT (Jumbo Supermarkten), Neil MATTHEWS (Checkpoint Systems UK), David NICHOLSON (Tesco) Peter OLIJSLAGER (Metro Group), Colin PEACOCK (Proctor & Gamble), Mick PHIPPS (Wilkinson), Dominique REUMERS (Checkpoint), Regnier SCHOUWENBURG (Diageo), Paul SMITH (Sainsburys), Graham SWALLOW (Wilkinson), James TUPPER (IGD & ECR UK), Tony VENDRIG (Albret Heijn), Wybren VLASKAMP (AS Watson), Peter WERRE (Ahold), Stefan WINTER (Oliver Wyman), Scott ZITER (Ahold USA), Chris ZWAM (Ahold) Date: 11/12/13 Excused: Micheal ANDREWS (Boots), Dorle BAHR (Beiersdorf), Rob BEASTALL (Asda), Geoffrey BERGER (Carrefour), Nathalie BLEACH (L’Oreal Benelux), Brian BOYLE (Asda), Tim BUTLER (Wal-Mart), David COOKE (Beiersdorf), Richard COUCH (Beiersdorf), Vincent DE BOER (Jumbo Supermarkten), Jan DEKEGEL (D.E. Master Blenders), Arnaud DUSAINTPERE (Oliver Wyman), Anna-Liisa FLINK(SOK), Jackie FOXFORD (Marks & Spencer), Bernard FRADIN (Mondelez International EU), Jan Jaap GERESTEIN (Jumbo Supermarkten), Christopher GIUNTA (Ralph Lauren), Mark GENTLE (APAC), Christophe GOEDGEZELSCHAP (D.E. Master Blenders), Paul GOLDSMITH (Diageo), Simon GOULBOURN (Boots), Philippe GRYSON (Auchan), Xavier GUIZOT (Carrefour), Phillip HAGON (Sainsburys), Richard HESKETH (Asda), Hiddo HILBOEZEN (Checkpoint Systems GmbH), Ady HOUGHTON (Iceland), Egbert IJZERMAN (BCC Elektro-Speciaalzake), Johan INGVARSON (ICA), Micheal KERN (Beiersdorf), Annemari KLARIC (ICA), Jens KUNGL (MGI Metro Group Information), Paul LUCAS (Musgrave Retail Partners), Joost LUIJBREGTS (Heineken), Stuart MCLEAN (Menzies Distribution), James NEWTON (Asda), Ray PALMER (B&Q PLC), Anastasios PATROUNADIS TASSO (Carrefour Belgium NV), Julian PIERCE (Diageo UK), Robert PLENDER (Proctor & Gamble), Dalibor POZNIC (Konzum), Josep RAGULL (Diageo Brands), Katrin RECKE (AIM), Clint REID (Marks & Spencer), Juhana RINTALA (Rimi Baltic), Attilo RUINI (Eridania), Claire RUSHTON (Asda), Issa SAOUMA (Chiquita), Dominique SCHERMESSER (J&J Global Supply), Klaus SCHMID (Checkpoint Systems GmbH), Peer SCHMIDT (Bacardi-Martini), Regnier SCHOUWENBURG (Diageo), Maria TENA (Aecoc GS1Spain), Sabine THALER (Rewe International AG), Patrick VAN DAELE (Ralph Lauren), Johan VERRECAS (Carrefour Belgium n.v), Raymond WESSELSE (GSK), Angela WOOLLER (WM Morrison Supermarket), Anna ZOLOTARJOVA (Rimi Baltic Group) 11th December 1. Welcome and Introduction John Fonteijn welcomed the group and all the members. The group were all reminded of the anti-trust caution* and were given the opportunity to introduce themselves briefly. John reviewed the agenda and Peter Werre outlined the workshop agenda for the afternoon. *Reminder of anti-trust caution: ECR Europe will not enter into any discussion, activity or conduct that may infringe, on its part or on the part of its members and participants, any applicable competition laws. By way of example, members and participants shall not discuss, communicate or exchange any commercially sensitive information, including non-public information relating to prices, marketing and advertisement strategy, costs and revenues, trading terms and conditions and conditions with third parties, including purchasing strategy, terms of supply, trade programmes or distribution strategy. This applies not only to discussion in formal meetings but also to informal discussions before, during or after meetings. 2. Workshop The members were divided into three different groups – meat and poultry, health and beauty care, fruit and vegetables. The group then visited the Albert Heijn store and participated in a SWOT analysis and store rating. After returning to the Innovation Café at Albert Heijn, the group reviewed and discussed the SWOT analysis and various comments and recommendations made by the three groups. 12th December 1. Action/Decision/Remark Who When Welcome and Introduction John welcomed the group and the members who were not present the previous day were given the opportunity to introduce themselves. The group were all were reminded of the anti-trust caution*. The group reviewed and agreed the agenda of the meeting. John also reviewed the outcomes of the workshop and store visit the previous day. The floor was then opened to the group to make comments with regards to their experience of the workshop. John introduced the first speaker for the day. Resultaten workshop AH - ECR 11 december 2013.pptx *Reminder of anti-trust caution: ECR Europe will not enter into any discussion, activity or conduct that may infringe, on its part or on the part of its members and participants, any applicable competition laws. By way of example, members and participants shall not discuss, communicate or exchange any commercially sensitive information, including non-public information relating to prices, marketing and advertisement strategy, costs and revenues, trading terms and conditions and conditions with third parties, including purchasing strategy, terms of supply, trade programmes or distribution strategy. This applies not only to discussion in formal meetings but also to informal discussions before, during or after meetings. 2. Ahold Waste Reduction: Best Practices by Albert Heijn by Tony Vendrig Tony gave an informative presentation on Ahold’s Waste Reduction Best Practices. AH best practices Waste Reduction ECR workgroup 12-12-13.pdf 3. Fresh; linking OSA and Shrink by Rob Broekmeulen (University of Eindhoven) Rob outlined the proposed research outcomes for the new research project entitled: Establishing an efficient frontier for shrinkage and on-shelf availability. Rob also briefly reviewed the tool that will be used during the study. A request was made to retailers to participate in the study. Those wishing to participate are requested to contact John: john.fonteijn@ahold.com or Colin: peacock.c@pg.com by 20th December 2013. ECR Shrinkage proposal TUE dec 2013.pdf A Retailers wishing to participate in the OSA and Waste study to contact John or Colin Retailers 20th December 2013 4. IGD Toolkit Presentation and Interactive Session by James Tupper James gave an update on the activities of the ECR UK Product and Packaging Waste Workgroup and the IGD performance improvement programmes. ECR UK Waste and IGD PIPs at ECR Europe Shrink and OSA Expert Group meeting for PRINT.pdf 5. Ahold USA Perspective on OSA and Shrink by Scott Ziter Scott outlined and detailed the various aspects of Ahold USA’s Shrink Strategy. AUSA Shrink Strategy ECR-121213 (2).pdf 6. Live Demo for Benchmarking Tool and Update on Staff Satisfaction and Loss Project Megan gave a brief, live demonstration of the benchmarking tool and encouraged members to make use of the tool on the website: www.ecr-shrink-group.com Adrian reviewed the results of Staff Satisfaction and Loss project. The second week of January is the deadline for those who would like to provide feedback on the report. 7. Miscellaneous and next meeting Neil Matthews will be doing a webcast on Wednesday 18th December 2013 at 9:00 GMT on the Global Retail Theft Barometer. GRTB 2013 PPT.pptx The meetings for next year will be in first or second weeks of March, June, September, and December. Further details will be emailed to the members and updated on the website. John thanked all those present for attending the meeting and gave a special thanks to Scott Ziter for travelling all the way from the USA. Colin Peacock thanked John and Eveline for hosting the meeting. A Members to provide feedback on Staff satisfaction report Members 10th January 2014