Any retailer, CPG or academic is invited to participate in any of the working group meetings participate, at no cost. Each session will start with a retailer case study or new research study, the group will then discuss the learning points. Be ready to contribute to the discussion.
The use of RFID in apparel retailing to count items using a hand held reader is now well established, with other categories such as furniture, electronics and others also being explored in those retail outlets, mostly fashion, general merchandise, sports and department store channels. What has not yet been established is the use of RFID in the supermarket / grocery retail channel. This session will discuss the possible use cases, hear from some examples of those use cases being trialled or even deployed that can help the fresh and ambient categories sell more and lose less.
While many retailers in Europe and USA will not present fuel for payment without pre-payment, some retailers, in some markets such as the UK, have a history of letting the customers fill up and then to make the payment, request they go into the store where they ideally make another purchase, a coffee, some confectionary, newspapers, essential foods, etc. This approach to fuel payment has proven to be highly successful, with retailers enjoying the often high margin incremental sales while being able to withstand the risk of customers not paying for their fuel, by either driving straight off the forecourt or declaring they have no means of payment.
However, the recent price increases have challenged the status quo of these retailers, with the potential risk of a growth in non payment and drive offs. In this session, we will explore what data retailers have on any change in risk levels, the possible counter measures to these risks, including technology such as ANPR / LPR, and then the role of collaboration with the police.
In our initial ECR research (click here) on food waste, we highlighted the different interventions that could shift the efficient frontier (see image below) to the right. The research called out the opportunity to reduce the minimum case size shipped from the DC and the addition of one extra shelf life day to the products. Both gave impressive results, however both required a degree of collaboration with external parties, which inevitably made them harder to deliver.
Also highlighted in the ECR research, and perhaps easier for retailers to execute as it requires less cooperation with others, was the concept of OSA service level differentiation, where the OSA targets for some items in the assortment, such as the slow sellers, were set to be lower than others in assortment, such as the fast movers. In the modelling, by setting the OSA at 3% lower for the slower sellers and 3% higher for the faster movers, a 13% improvement in food waste was predicted.
In practice, we have already seen the benefits of OSA service level differentiation strategy evidenced in the Meny bakery case, where the Category Manager intentionally planned for many of the 50 sku's in her bakery assortment to only be available in the morning, with a plan for those items to be out of stock in the afternoon. Recall in this case study, she reported that their end to end approach (they also looked at production planning, etc) delivered a 34% reduction in waste with no sales reduction, the OSA service level differentiation strategy was a major contributor to these impressive results. Click here to read an overview of this session and to request the slides and recordings.
In this session you will hear from the academics about the impressive results they have been able to model using service level differentiation, the group will then discuss these findings, sharing how retailers in the group are / are not leveraging service level differentiation as a strategy, and the categories that are most advantaged to this strategy beyond bakery.
Retailers reported in a recent study that 23% of unknown loss could be attributed to self checkout, so it is unsurprising that there has been a huge focus on managing losses at the Self Checkout, however, and as one retailer discovered, losses from the main bank tills can be bigger than self-checkouts, or at the least a significant problem that has not recently had much attention from the loss prevention team.
In this session we will hear from retailers who are adopting new approaches and technologies to monitor and manage losses attributable to the assisted checkouts.
Age restricted items, such as knives and alcohol, in certain countries and retailers, can trigger up to 15% of the interventions that need to be made the self checkouts. These interventions frustrate and slow down the [obviously] over 25 customers, while creating the opportunity for challenge with other customers.
In this working group session, the group will turn its attention to the use of age verification video technologies at SCO, with insights from retailers actively pursuing a scaled deployment in pursuit of colleague safety, productivity and customer satisfaction (fewer interventions)
Product returns, often 3-4X greater with online retail Vs bricks and clicks, and for some categories in excess of 25% of total sales, significantly impacts the profitability of online retailing while compounding the environmental impact the organisation has on the planet.
In the world of shoe retailing, 20%+ levels of returns can be expected, with online only retailers such as Zappos promoting very easy free returns as part of their proposition, encouraging customers to trial different sizes and returns the sizes that do not fit. For the customer, the ease of returns is a critical part of their whole shopping journey. However, for those managing risk in an organisation, the policies, and controls matter.
In this session, we will hear from Victor Bayata and how Clarks Shoes have identified new ways to reduce the cost of returns and the risk of bad returns. Following Victors presentation, the group will discuss the findings and learning points.
Facial recognition has been one of the most talked about video analytics for at least a decade. However, open questions on the technology itself, the business case and above all, concerns around privacy have slowed down its introduction in retail.
However, there are now some very compelling retailer use and business cases emerging on facial recognition, with proven results as to how the use of facial recognition has helped protect store workers and created a safer retailer environment. In this meeting, we will hear two retailers share their journey, their learnings, experiences, how they engaged their legal team and finally, the financial benefits and return on investment from the deployment of facial recognition across their business.
"I am just sick of firing amazing store managers because of their bad shrink results [the causes of which are not under their control]!" - this sentiment was the underlying inspiration for one very senior retail leader to apply for, and secure the position of head of loss prevention for a leading international grocery retailer. Once in post, this leader adopted a systematic approach to addressing both the malicious AND the non-malicious causes of losses, establishing a small team (two pizzas!) who, on a weekly basis, would review the results from the external inventory audits, identifying the variances, per sku, by exception Vs average shrink for the category, for the latest batch of stores audited.
Established now for over twenty years, in this session lead by Martin Hasker from Tesco UK, we will learn how this capability has helped ensure that the stores are not "booked" for the losses for which they have zero control, with the leading causes of these exceptions being set up errors on off shelf displays, mistakes on case sizes and item code errors. Where the largest errors are validated and root causes identified, the value of the losses will either be removed from the stores shrink results, allocated to other lines in the P&L, and / or be compensated for by their vendors. Without this capability, the cost to stores of their shrink is typically up to 20% greater than the first cut of the audit results. Further, with this process in place, stores are more accountable for their shrink number.
Upcoming ECR Working Group Meetings - April to July 2022
DRIVING THE RFID AGENDA IN RETAIL: A Two-day Interactive Workshop