As retailers begin to re-open stores during the COVID-19 pandemic, every aspect of brick-and-mortar retail will need to be re-examined. By knowing what to expect, you can jump into #RetailRecovery assured that your stores, and profits, are protected.
EXPECTATION: Employee theft, fraud, and error will increase.
- Efforts to be diligent on the register will be diminished.
- New fraud techniques may be learned. Bad actor demand.
- Need for cash.
- Inadequate background checking during mass hires.
- Sweethearting – willingness to collude with others.
- The “new normal” will lead to new fraud scenarios.
Internal loss can be managed, identified, and stopped. You have been using exception-based reporting (EBR) systems for years. This may require:
- The ability to quickly evaluate new processes and/or update thresholds. Maybe even create new queries.
- Returning to your earliest queries to find basic situations because you are dealing with a reset in store operations.
- A renewed diligence in coaching your cashiers.
Improperly addressing exceptions can quickly lead to increases in loss and shrink. New retail routines introduced new opportunities for loss, including:
- Fraudulent wastage.
- BORIS/BOPIS fraud.
- Delayed handling of returned merchandise due to policy or sanitation issues.
- Sweethearting/Robin Hood syndrome.
HOW CAN I GENERATE REVENUE?
- Minimize sales reducing activities (SRAs) and improve revenue preservation.
- Immediately address cashier errors to reduce loss and increase customer satisfaction.
WHAT CAN I CHANGE?
- Use analytics to find and focus on the highest value cases.
- Use AI to close cases faster.
- Discern intentional fraud from errors.
- Clear old exceptions and look for new patterns.
- Review that BORIS/BOPIS and return merchandise are being handled properly.
- Evaluate loopholes in new processes and create queries to quickly identify fraud.
WHO CAN HELP?
When you re-open, partnerships matter.
- Vendors have a broader view of the marketplace—ask for insights.
- Plan your next moves with financially strong partners, like Appriss, who have previously managed downturns.
- Look for partners with the stability of a large, diverse client base.
- We’re here to help if you want to talk about internal loss.
Tom Rittman, Vice President, Marketing, Appriss Retail
Tom Rittman, vice president of Marketing at Appriss Retail, is responsible for all aspects of branding, marketing, and business development. Prior to joining Appriss Retail, Tom served as the vice president of marketing for Datavantage, a retail technology company that is now part of Oracle. He holds his bachelor’s degree in Marketing from the University of Akron.