Retail Loss Prevention Technology

Consulting Services

With 12+ years experience in Retail Loss Prevention specific to the Grocery and Drug Store Industries, S·Design offers comprehensive consulting including but not limited to the Design, Development, Testing, Analysis and Implementation of customized Shrink solutions for all at-risk categories. We are unique in the industry as we do not represent one single solution provider nor do we promote the 'Cookie Cutter' approach of utilizing the same solution for each client. Rather, we consider each clients challenges, opportunities and objectives and then proceed with the development of the best possible solution.

Let us take the 'Guesswork' away from you. Don't spend countless hours searching for all available solutions. At S·Design we have done the legwork for you and have accumulated the most complete database of solution providers world wide. Let us know your issue and we will provide you with the best possible solution.

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Design

Since each retailer has a unique set of requirements, it is not possible to implement off-the-shelf shrink solutions for all store formats. This is why S·Design works with numerous manufactures to design optimal solutions with consideration (but not limited) to the following criteria's:

1. What is the nature of the shrink in a particular category (Sweeping, occasional theft, etc.)?
2. Is shrink for a particular category different in various geographical locations?
3. How is the product integrated in to the set (pegged, shelved, display case, etc.)?
4. Is the entire category at risk or just certain items?
5. Is this a high volume category?
6. How is the product packaged?
7. What packaging changes are anticipated and how will the solution be able to accommodate / adapt to product changes?
8. What is the predominant set size and shelf configuration for a particular set?
9. How many set variations exist?

These are just a very small sampling of criteria to consider when designing the optimum solution. It does however highlight the importance of custom designed solutions. Even if competitors utilize a specific solution successfully it does not necessarily mean this will work for every one the same.  

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Development

After the initial design is completed, one can expect several generations of any particular solution to incorporate continued product developments for increased efficiencies and functionality to meet the customers needs. In many cases Information Systems Technology integration is desired which, while prolonging the development time will increase the effectiveness of any solution. Often times solutions are upgraded after an initial roll-out to incorporate new and emerging technology.

Important in the product development cycle are the following points:

1. Product durability
2. Ease of installation
3. Ease of operation by both customers and staff
4. Product security
5. Maintenance (if required)
6. Set integration & integrity
7. Product integration
8. Impact on SKU's (if any)  

Testing

In order to assess the solution effectiveness it is important to test in a very controlled environment. Usually this involves the implementation of a solution in 5-6 test as well as control stores and is conducted over a period of 6 weeks. The duration of the test and number of test stores are ultimately determined by the client. A client may choose to conduct a test on their own or alternatively we can provide this service as well. In a case where a client chooses to utilize S·Design to conduct the testing, we will provide all or part of the following:

1. Determine the test and control stores based on shrink, sales and additional factors as deemed necessary.
2. Prepare all communications outlining test parameters and handling procedures as necessary.
3. Obtain the following metrics:
   • Baseline / Benchmark data (trending - Sales & Shrink)
   • Prior year sales & shrink data (52 weeks)
   • Beginning & Ending inventories of the category to be tested
   • Ship, scan & return data
4. Exit surveys of test stores including the solutions functionality, operation, observed effectiveness, improvement requests, customer feedback, operations feedback, store feedback and more.

Analysis

After test completion, a client may choose to analyze the test data or S·Design can provide this service. At a minimum the impact of the solution implementation should be determined:

• Shrink:
  • Test SKU's +/- vs. baseline
  • Test SKU's +/- vs. prior year
  • Test SKU's +/- vs. total category
• Sales:
  • Total Store +/- vs. prior year
  • Total Store +/- vs. baseline
  • Total Category +/- vs. prior year
  • Total Category +/- vs. baseline
  • Test SKU's +/- vs. prior year
  • Test SKU's +/- vs. baseline
  • Test SKU's % to total category +/- vs. prior year
  • Test SKU's % to total category +/- vs. baseline
  • Total Category % to total +/- vs. prior year
  • Total Category % to total +/- vs. baseline

Implementation

Upon completion of the test analysis, an ROI calculation should determine the viability of implementing the solution. Generally the solution should pay for itself within a 14 - 42 week period. This is just a rule of thumb and can vary in length depending on category, shrink opportunity and sales lift achieved. If a favorable ROI is achieved, the client may choose to implement the solution as deemed fit. If a solution can be implemented company wide the benefits would be greatest. In any case, a survey of all stores within the company should be completed to determine what stores can accommodate the solution. Depending on budget, some clients my choose to only implement a solution in their top opportunity stores first and perform subsequent roll-outs as deemed necessary.

S·Design can coordinate distribution as well as installation of any given solution utilizing third party providers. After a completed roll-out, stores should be audited for proper fixture installation and to ascertain that store personnel has been properly instructed in the handling procedures (if required).

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Focus on Retailer Needs

With a thorough understanding of the retailers needs, S·Design further differentiates itself from other solution providers who often times push their hardware without regard for overall impact on a company. A common 'Knee Jerk' reaction to a loss situation is to just lock up the at risk product or remove this from the sales floor entirely. This of course results in negative product sales as well as a tremendous inconvenience to the legitimate customer.

It is our believe at S·Design, that all facets of the business should be involved in the decision making process and most importantly, the sales aspect should not be overlooked and/or ignored. With proper solution design & development, shrink reduction should be achieved while increasing sales.

In past tests of high shrink category solutions, average, shrink reductions of 47%+ and sales lift of 18%+ have been achieved.

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