Magazine Article | January 25, 2011

Case Study: Regional Grocer Learns The Extent Of Shrink

Source: Agilence Inc.

By Matt Pillar, Integrated Solutions For Retailers magazine

Stephanie Skylar wasn't too concerned about the shrink she couldn't see. As CEO of 12-store Chief Super Markets, Inc. (which also operates stores under the Rays Supermarket banner), Skylar and her management team felt it had a pretty firm handle on POS activity among its approximately 1,000 store associates. For nearly 60 years, the chain has been operating without a surveillance camera in its stores. Like most executives of retailers its size, Chief executives often discussed LP and security, but considered any type of comprehensive LP implementation a big commitment in terms of time and money. "Our mentality has always been to focus on sales and service, so we lacked the conviction to allocate resources to loss prevention," explains Skylar. "If I'm going to put labor in the store, I'd rather that labor be focused on providing an excellent customer experience."