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◀ Continued from page 35
•Mostperishableshrinkiscausedbypooroperationalcontrols,failuretoexecuteeffectivebestpracticesconsistently,and/ordepartmentpersonnelindifference.
• Individual perishable merchandising techniques and “go-to-market” strategies have a direct impact on shrink.
• Floral departments that operate as a sub-department to produce tend to experience 30% less sales and/or 18-27% higher shrink.
•Whenaproductdoesn’tsellasanticipated,thenaturalreactionisnottoreorderit,whichthencausessalestosuffer.Theremustbeabalancebetweenshrinkand
sales.
Note:
When store managers and loss prevention are fully trained to understand, inspect, manage and work together for the proper execution of
perishable department best practices, shrink can be reduce as much as 18-22%.
Perishable
Shrink
High
Medium
Low
Meat
5.8%
4.9%
3.7%
Produce
6.5%
5.2%
4.0%
Deli
8.0%
5.8%
4.9%
Bakery
10.2%
7.4%
6.5%
Seafood
6.3%
5.4%
4.1%
Floral
12.0%
10.5%
8.9%
*Estimates are format dependent and based on store sales of $15-20M annually.
Rethink the way you dispose of
something as simple as an orange peel.
| ALABAMA GROCER
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