2017Issue5_Alabama_v6

By Larry Miller

Let’s start with a simple premise: there is an acceptable and necessary level of perishable shrink, but there are proper limits.

to train your managers to understand them, and you simply cannot and will not achieve best-in-class perishable profit optimization within your company’s plan. Let’s begin by setting expectations. Use the chart on the next page to determine where you are today in your perishable profit structure and where you want to be in the next three to six months.

Amazon, Walmart and others are coming for our sales. Our best defense will be exciting, well merchandised, well run and excellently branded fresh/perishables departments. Do your stores deliver on your perishables brand promise? If not, take a fresh approach to quality and freshness through shrink anticipation and prevention. If we are to be sales-driven and control oriented, loss prevention professionals must collaborate with perishable supervisors to know each department’s profit objectives and help to implement operational processes to help assure profit realization. Anyone who has ever been responsible for selling perishables – whether it’s produce, meat, deli, floral, or seafood – knows that there is a direct correlation between display and merchandising and sales. The more you display, the more you sell, but more merchandising can also lead to higher shrink. Therefore, the smartest way to minimize perishable shrink is to sell it. And (of course) to sell it while it’s fresh. So, the science (and the art) of selling perishables and controlling shrink for perishable profit optimization is an important study. Here are some vital impact points that must be implemented to get the most profit out of your perishable departments. There are seven steps, or process effectiveness check- points, required to optimize perishable department profit. Miss any of them, or fail

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