Shrink is a complex issue that affects every aspect of the retail business. However, it is possible to achieve significant shrink reduction by taking a systematic approach to address all areas of store operations. In this blog post, we will explore Connors Group’s holistic identification and evaluation of shrink causals solution, which offers a comprehensive strategy to identify gaps, set targets, measure progress, and implement initiatives for reducing shrink.
Front-End Controls: Enhancing Customer Satisfaction and Reducing Shrink at Checkout
Balancing front-end customer throughput with operational controls can yield substantial benefits. At Connors Group, our Front-End Controls approach involves analyzing point of sale (POS) system settings, thresholds, and limits for all transactional activities. To identify gaps and opportunities, we compare established policies and procedures for store-level cashiering with live environment transactions. Supervisory overrides and approvals are also considered for validation against the established standards.
Perishables: Effective Fresh Item Management and Operational Controls
Implementing robust management practices and operational controls in the perishable departments can reduce shrinkage and increase sales contribution. Our approach includes evaluating current systems and measuring their active utilization. By comparing store-level processes and procedures with desired outcomes, we identify areas for improvement. System data is analyzed for validity and compared against execution and effort.
Center Store Controls: Ensuring Shrink Accountability in Key Areas
To address shrinkage, we evaluate merchandising, product handling, inventory management, and asset protection across various departments, such as general merchandise, dry grocery, natural foods, frozen foods, beer/wine, and HBC. By aligning established policies and procedures with live environment operations, we identify gaps and opportunities for improvement.
Receiving/Back of House Controls: Strategies for Shrink Reduction
Connors Group uncovers the root cause of shrink by assessing receiving protocols, backroom organization, truck procedures, and trash procedures to identify areas where shrink reduction can be achieved. We evaluate receiving operations, DSD operations, vendor management, backdoor controls, leading practices, and analytics to determine opportunities for improvement.
Insights and ROI
Our assessments provide actionable insights that can drive better decisions regarding technology and processes, leading to holistic improvements in shrink, sales, and customer experience. By applying the identified gains and recommendations, retailers can achieve increased profitability.
If you’re ready to take the next step in reducing shrink and increasing profitability, we invite you to contact Connors Group today. Our experienced shrink team is prepared to discuss your current condition and work with you to create a roadmap to protect profits.
Take the first step toward optimizing your retail operations by scheduling your FREE Shrink Gap Analysis today. Visit https://connorsllc.com/shrink-management/ or call (800) 813-7028.