Last month, LP Innovations presented a webinar focusing on the key steps to developing and executing a successful high loss improvement program, also known as a Target Store Program. We understand that scheduling conflicts occur; therefore, provided below is a high level recap of the presentation along with a link to download the entire presentation.
Every company is challenged with those locations that post-inventory, are categorized as high loss. Often we find that this sub-group of locations, if corrected, can bring greater results to overall company profits and inventory results. What is needed to reduce the loss is a structured program focused on uncovering the root cause of loss in each location and correcting these causes.
LP Innovations has been developing and executing successful Target Store Programs since our inception in 1998. Our record of success includes many best practices, approaches and program elements that have worked in all segments of the retail industry, with retailers of all sizes throughout theU.S.and Canada. Our program is based on five important steps (see the image for the five steps).
We welcome you to download our webinar presentation, which includes speaker notes of everything discussed during the presentation. (Click on the button on the bottom of this post)
But before you do…
Here are the questions asked during the presentation. We want you to get the full benefit of what was discussed.
Question 1: How long should a Target Store remain a target?
It depends on the findings of each location. Most companies will keep a target store on the program until an inventory period shows an acceptable result. However, some locations could be removed earlier, if during your execution and analysis, a reason is found, resolved and you feel certain will not happen again.
For other locations, it may require multiple inventory periods. Like other parts of your program development, make sure to create a plan for removing locations and do so with Operations, Finance and other partners. You may also want to create a “watch list” of stores that had high loss and are being watched but not currently on a Target Program.
Question 2: In the presentation you discuss multiple visit types; audits, store visits, check-ins, etc. Explain the difference in these visit types and lengths of time for each visit.
A good Target Store program is comprised of various in-store touches. The audit should be the cornerstone of your program. It is the longest and most comprehensive as these visits involve looking to find out why losses are happening. Other in-store touches like store visits, check-ins and training meetings are often shorter (an hour or less) with the focus being to generate awareness, follow up on action plans and make certain the associates are on track with their progress.
It is important before executing a Target Store Program the objective of each visit or “store touch” is determined and even scheduled to a certain degree. Visits do not need to be announced (we recommend not announcing any visits other than maybe the initial audit and training visits) but need to be outlined and scheduled to be certain target stores are visited often enough.
One last thing…
We are pleased to provide free information to help you achieve more. We would appreciate it if before you download our free presentation, you leave a comment with a tip, suggestion or idea about what makes your target store or loss prevention program successful.
Let’s pay it forward and learn from each other.