Ready for the challenge? Reshaping the Store Manager’s circle of influence to managing loss 2 Emerging trends 3 2017 year to date • Brick and mortar • Online retailing • Capital investment per m2 • ‘Other costs’ • Quality and availability of staff • Open front formats, self scan and Scan&Go • Introducing 100 new products every week • Inventory loss • Crime 4 What we did…. • Interviewed 12 store managers at Albert Heijn, Albert, Food Lion and Maxi. • Asked to provide feedback on the following statements: Given the future landscape of retail stores, introduction of new technology, next generation sales models and the associated loss risks…… 1. The current loss prevention strategy and expertise of Loss Prevention staff is supporting store management to control product and cash loss! 2. The quantity and quality of processes, people and technology in stores enable store managers to effectively prevent and mitigate product and cash loss! 5 What store managers say…… 6 Process “Our processes are robust, but still depending on staff (hours) to execute them in the way they are designed for. We have controls in place, but they often do not match with daily practice of the execution. Reporting is often delayed and does not help to detect and respond to bad execution or deviations” Albert Heijn, The Netherlands 7 People “Staff on the sale floor is getting rare! Next to this it’s getting more difficult to keep pace with the rotation in staff. We have difficulties in getting people and getting the right quality of people. Training schedules and content often does not match with store demand.” Food Lion, South Carolina USA 8 Technology “New sales features are introduced such as self scan, but investments in technology to detect and respond to customer abuse are lacking and current security technology is outdated. Security technology is not innovating in the same pace as retail technology and crime!” Maxi, Serbia 9 Strategy “Old school acting! We are slowly, too slowly implementing incremental and reactive strategies to respond to product and cash loss. I call it patching! Loss prevention is hardly a business partner for us, because they do not have an answer to the negative impact of the changing retail environment and associated crime levels.” Albert, Czech Republic 10 Questions for you! 11 Round table discussion Given the future landscape of retail stores, introduction of new technology, next generation sales models and the associated loss risks: • What is your advice (as experts) to retailers People with regard to setting an effective loss prevention strategy that will help store managers in the next 5 years to influence Strategy their loss figures? • What are key requirements for processes, Process Technology people and technology? Thank you.