2017Issue5_Alabama_v6

◀ Continued from page 35

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.

•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%.

Rethink the way you dispose of something as simple as an orange peel.

| ALABAMA GROCER 36