Minimizing shrink is crucial for any retail business. Losses come in two main categories; known and unknown. As a loss prevention team, your goal must be to move as many losses into the known group as possible. That way, they can be more closely watched and managed.
Supermarket loyalty programs are the foundation of all knowledge. Gone are the little stamp booklets of yesteryear. With data-driven grocery retail operations, supermarket loyalty programs have taken on a whole new meaning, and customers want value in exchange for their personal information required for membership. Swipe and Save incentives have proven to be the market leader in loyalty program membership.
As we close this series on loss prevention and unsaleable products, we explore possible solutions owners, managers, and associates alike can begin implementing to bring about vast improvement. In part one, we presented a high level overview of the challenges related to the loss prevention of unsaleables. In part two, we zeroed in on how stock rotation, product dating, and product discrepancies can potentially exacerbate shrink and create consumer confusion.
Previously, we presented a high level overview of the challenges related to the loss prevention of unsaleables. Specifically, we examined how logistics, shelf life management, and the coordination between retailers and manufacturers all play an intricate role in reducing shrink. All of these factors can be small pieces of a larger problem or, on the positive end of the spectrum, small pieces of a larger solution when adequate changes and adjustments are made to facilitate loss prevention efforts.
When it comes to unsaleables, there are several factors that can contribute to the overall numbers. One area in particular that can result in unsaleables is damaged products. According to FMI, the average annual sales for a supermarket—based on a weekly average sale of $516,727—is roughly $26,869,804. Within these numbers, the average percentage of unsaleable for a store is 2.7 percent with 4 percent of that margin directly resulting from damaged goods.
A recent survey released by the West Coast poultry powerhouse Foster Farms, reveals that the attitudes of Millennials in regards to food concerns, consumer interests, and purchasing behaviors and preferences are significantly steering the food industry in a new direction.
In Central Florida, like other places in the United States, it is often the case that small health food stores serve as a community’s pioneers in the markets of organic food, natural health products, and vitamins.
Publix, Chick-fil-A, and Food Lion are among the companies that earned an “excellent” score in a recent study conducted by the Temkin Group that compared a wide variety of organizations and industry verticals. These companies, along with other supermarkets and fast-food chains like Kroeger, Save-a-Lot, and Wegmans, received top ratings from consumers.
Despite a two-year decline in profits, North American independent grocers were able to turn these numbers around in 2015. The NGA’s Independent Grocers Financial Survey reports strong financial indicators for the industry, confirming what many already know: independent grocers are resilient and driven towards continued improvement.
Companies across the board often turn to media characters to market their products. Why? Because it’s an effective, proven way to promote their products in order to maximize sales. Popular media characters used in brand marketing can connect manufacturers with children and influence a child’s product preferences. Kids are quick to develop emotional bonds even…