SPENCERS HYPER ANAND FORT,MALVIYA NAGAR JAIPUR.

PROJECT On SHRINKAGE CONTROL MEASURES at Spencers Hyper (5 May to 15 July 2008)

Submitted By:RAHUL MATHUR PGPRM Sec A IILM, Gurgaon.

ACKNOWLEDGEMENTS

I Rahul Mathur student of IILM, would like to express my gratitude to all who gave me the possibility to complete this project on (Shrinkage Control Measures) and made my summer internship a good learning experience. I would like to thank Department of Electronics and Electricals and FMCG Department at Spencer for giving me permission to intern in the first instance as well as to do the Project work and to use departmental data for completion of my project. I am deeply indebted to Mr. VIJAY YADAV my Store Manager and Mr. NAVEEN AGARWAL my Floor Manager, for their help, stimulating suggestions and encouragement which helped me in preparation of this project. Further, I would like to thank my colleagues for all their support, interest and valuable hints. Finally, I owe special gratitude to my teachers and family for their continuous and unconditional support.

1.0 Introduction Profile Operations Other Information of Store

2.0 My Project- SHRINKAGE CONTROL MEASURES Place TYPES OF SHRINKAGES FACTORS OR REASONS AREAS SHOULD BE TAKEN CARE OF

3.0 Conclusion

INTRODUCTION Industry profile Indias entire retail market, fighting tooth and nail for the most attractive retail destination in the world at a time, in other words, this fight will be about a Rs. 14,40,000 crore market, where just about 3 percent share belongs to organised players and which is growing at 8 percent annually. Indias organised retail, although less than Rs. 45000 crore in size, already boasts of several players and different formats and categories. The big players are Future Group (Big Bazaar and Pantaloon) of Kishore Biyani, the Tata Group (it runs departmental stores under Westside, a books and music chain called Landmark). Sanjiv Goenkas RPG Group (Food World & Spencers) and Dubai-based Micky Jagtianis Landmark Group (Lifestyle). There are several smaller players, including Subhiksha, Tru Mart etc. The so awaited retail market in India as hit the shores. One want to be Indias Wal- Wart and the other is (Bharti) Wal- Wart. It is a battle of equals- Reliance and Bharti-Wal-Wart has more or less equal strengths. Both are ambitious to be pioneers and leaders in their fields and want to be excel in the task they tackle. Compare their financial strength, capabilities or the environments management they are more or less on the same platform. The fight is not about wining a few customers here and there rather there is ample space in the market 6-7 large players and each can grab a substantial share in the market. Reliance and Bharti both are all set to dump a huge sum of capitals to bang the booming sector. Competition is also well prepared to fight the brunt which shall be posed by Wal-Wart and Reliance retail. India is best known Hyper Market (Big Bazaar) has its plan to open more stores, Kumar Mangalam Birla has also announced plans of entering retail and The RPG groups Goenka wants to have 1,900 food stores by 2010, compared to 110 today.

These are the fights that will leave industry looking very different form what it is today.The TATA Group- a big player with Westside and Landmark- has lined up investments in its existing. It might also bring in TESCO. Reliance group, which has about Rs. 1,01,563 crore in annual revenue and a market cap of Rs. 1,76,669 crore has announced plans of investing Rs. 25000 crore in retail. Reliance has superlative project management skills, and has hired top-notch retail professionals to run its various retail verticals.

3% 7% 7% 9% 13%

2%

clothing, textilies, accessories food & grocery

40%

durables

Footwear

19%

jewellery & watches home dcor

The Organised Retail Pie

421

2010
2008 321

368

2006
2004 2002 2000 1998 0 204 201 238

278 200 400 600

Indias Retail Landscape Organised retail just coming of age. Present organised retail penetration just 5.3%. Around 65 to 70 hyper markets in India today. Scope for 600 hypers in 50 cities by 2010. Current industry focus largely on big cities. Retail CAGR in next 5 years likely to be 30%.

Favourable Demographics Large & burgeoning middle class, to increase to 32% by 2010. 53% of population below 25 years of age.

Mall boom Real estate key to retail expansion. Over 600 malls expected by 2010. Current Sft of mall property- 27 mn; nearly 50% in NCR. Expected to grow to 75 mn by end 2007.

Rising consumer income Real income expected to increase @ 6% + over next 5 years. Growth driven by 67 cities having population over half a million.

Retail Macro Environment

Retail growth in India India projection (in Rs bn)

2007

2010

Estimated Size of retail in India

10360 14000

Share of organized retail (%)

5.3%

10-12%

Size of organized retail in India

550

14001600

Company Profile Profile Spencers Retail is one of Indias fastest growing retail stores with multiple formats and retailing food, apparel, fashion, electronics, lifestyle products, music and books. It is a RPG company established in 1996, Spencers has become a popular destination for shoppers in India with supermarkets, hypermarkets and dailies spread all over India.

Operations Spencers has retail footage of over 2 million square feet and over 400 Spencers stores in 65 cities. The company operates through the following formats: Spencers Hypermarkets : a fast growing retail network of hypermarkets with large formats stores in Mumbai, Gurgaon, Ghaziabad, Lucknow, Calicut, Hyderabad, Vizag, Vijaywada, Aurangabad, Dungapur , Jaipur and Kolkata. Spencers Super : one of the largest supermarkets chains in the food and grocery segments in India. Spencers Daily : small format stores conveniently located with a range of products to meet your daily household needs. Spencers Express : your food and grocery store next door.

RPG enterprises 6 Business Sectors 20+ Companies 40,000 + Employees 4, 00,000 + Shareholders

R- RESPOND P- Perform G- Grow

Milestones 2003 RPG crosses the 7000 cr turnover mark reaching 7472 Cr in sales. 2001 'Giant' hypermarkets is established. 2000 International Computers India Ltd (ICIL) becomes Zensar Technologies Ltd. Foodworld is established 1997 Music World and Health & Glow are formed 1996 RPG Netcom is established 1995 RPG Cellular commences its operations. 1988 HMV (His Masters Voice) is acquired 1985 Saregama India (formerly the Gramophone of India Ltd) is acquired 1983 RPG Life Sciences (formerly Searle India) is acquired 1979 Inception of RPG Enterprises by Mr. RP Goenka, a Rs. 700 million group, which comprises Phillips Carbon Black, Asian Cables, Agarpara Jute and Murphy (India).

What is it that defines RPG Enterprises success and carries it on through generations? The set of values and the visionary focus of its leaders, which forms the distinct identity of RPG Enterprises, is what constitute its business drivers.

Its Vision and Core Values are:

We shall be a leading Indian Group with a focus on market capitalization through : To be a customer focused differentiated, foods intensive retail company with clusters of destination and convenience stores. (Hyper, Super, Dailies) To establish Spencers express & mass proliferate. To set up Retail chains in focused verticals like music, books, mobility solutions, apparel, footwear, luxury brands and life style brands where domain knowledge exists or is acquired through partnerships. To achieve pan India presence with 2000 store through current verticals by 2009 & 5000 stores by 2011.

Leadership in profitability and revenue growth in our chosen businesses

Being a customer-centric organization and Being the most exciting workplace.

People Orientation Innovation & Entrepreneurship Transparency & Integrity Passion for Superior Performance

Group is to achieve customer satisfaction, through building trust and confidence in our customers by anticipating, understanding and meeting in full, customers' needs with a helpful attitude and supportive behaviour and providing them with consistent quality products and services.

We will attain this as a team with the full involvement of our suppliers, employees and partners."

One of Indias largest industrial conglomerates, RPG Enterprises comprises of more than 20 companies spanning across 7 business sectors, Retail, Technology, Entertainment, Power, Transmission, Tyres and Specialties. It has a turnover of US$ 2.55 billion and assets worth US$ 1.8 billion. Spencer's opens first outlet in Mumbai Spencers Retail today is the largest supermarket chain in India. At Spencers there are extensive range of products and durables, designed to satisfy all shopping needs. Today SPENCERS has 200 stores across 35 cities covering a retail trading area of half a million square feet and an astonishing 3 million customers a month. No wonder, after more than 100 years, people continue to trust the name Spencers. And this trust has been the outcome of a consistent high-quality service. In 1863, since we first opened our gates to the Indian consumer, But our Endeavour, by which we still stand firm, has always been to provide a pleasant and delightful shopping experience for you, our valued customer. As RPG, when we took over Spencers, we pioneered the retail revolution in India, by introducing the concept of specialty stores like Food World, Health and Glow and Music World. In 2000, SPENCERS introduced the Indian consumer to the first ever Hypermarket. SPENCERS is having four type of Outlet for different need of different type of customers. SPENCERS EXPRESS SPENCRES DAILY SPENCERS SUPER SPENCERS HYPER

Spencers way Organised modern retailing which encompasses the four key ingredients Price Product Service Ambience What we sell We believe in presenting you with a unique experience that compliments your shopping. An experience that can only be delivered through valuing your time and making you feel special. These are the values that we have internalized over the last 100 years to deliver what we call,' Shopping, the Spencer's Way.' Our endless choice of foods is what makes shopping at Spencer's so special. Exotic fruits & vegetables, sauces & supplies for your favourite international cuisines, and imported foods. Added to these are a wide range of diet food, organic food and specialty cuisines, giving you the perfect reason to indulge your taste buds at Spencer's.

Our product profile includes the following:

Fresh Fruits & Vegetable Groceries, Grains and Cereals Baked Chilled and Frozen Foods Personal Care and Baby Care Products Home Care Products

Office and Home Stationery Apparel and Fashion Accessories Electrical and Electronics

Spencers Retail Spencers Daily Spencers X-Press Spencers Super Spencers Hyper

Spencers Vertical Book & Beyond Music World Cellucon

Spencers retail- food vertical formats

Area in Sqft

Assortment Mix

Spencers Daily

3000-5000

Fruits & vegetables, Beverages, staples, ready to eat, processed foods, takeaways, bakery, home & personal care, fish, meat,

Spencers XPress

1400-1800

Store next door with essential SKUS form above

Spencers Super

10000-18000

Full offering of dailys + home, brown goods, select apparels

Spencers Hyper

30000-75000

Full offering of supers + full range HWP & Apparels, white goods, electronics & electricals

Spencers retail Growth Indias largest Super market chain 125 stores todays, and a new store every 2 days. Hypers and super alone will be 120+ by 2011

Brand strategy for Spencers retail Customers focussed, differentiated, foods intensive retail company with cluster of destination and convenience store Brand strategy for Spencers retail has been mapped with strong focus on unique brand differentiators Spencers Hyper, by its name its shows it has a hyper market format. Situated in MGF Mega city Mall, CTC Plaza, Gurgaon is a small world of products under one roof. Spencers Hyper by its tag line Taste the world shows that you can taste the world under one roof by great products

assortment and services. You can come and taste the world by 32,645 product varieties available at the store. Spencers Hyper has various sections like Electronic, Garments, HWP, Personal Care, Ready to Eat, F nV, Beverages, Grocery, International Food and many more. Products you find under these sections are :-

Electronics & Electricals All audio devices LCD/Plasma Televisions A/Cs Washing Machines Refrigerators, Kitchen appliances, Microwaves, etc.

Garments Womens wear Western, Ethnic, Lingerie, Fashion accessories Kids wear Infant, Boys, Girls Mens wear Formals, Casuals, Mens Basic

HWP (Home Work Play) Home ware Stationary Toys and Games Pooja Needs Clean and polish Household Cleaning Bathroom Needs Kitchenware Plastics

Disposable ware Tools Luggage Home Dcor Crockery Oven Friendly Glassware Cleaning Aids

Ready to Eat Pickles & Chutneys Ready to Eat Desserts

Personal Care Skin Care Oral Care Baby Care Sanitary Needs Pet Care

F nV(Fruits and Vegetables) Chilled Beverages Butter Exotic Vegetables Bread and cakes

Beverages Instant Mixes

Savories Soft Drinks Water Juices

Grocery Cereals Pulses Edibles Spices

International Food Chocolates Jams, Snacks, Sauces.

Other Information of Store Store Manager :- Mr. VIJAY YADAV No. of employees :- 90 Operative Timings :- 10 a.m to 10 p.m Annual Turnover :- 20 Crores Monthly Turnover :- 1.5 Crores No of footfalls per day >1400 to 1500 (approx) Space / Area:- allocation : Total Area :- 30000sqft Trading Area :- 26000 sqft Ware house/back office :- 2000 sqft(APPROX)

INFORMATION OF DISTRIBUTION CENTER

DC MANAGER : Mr KAUSHAL NO OF EMPLOYEES > 60 OPERATIVE TIMINGS > 10 am to 7 pm. SPACE >20000 Sqft Website :- http://www.spencersretail.com/ Competitors :- levies, Shopper Stop, Ganesham, Vishal Mega Mart.

MY PROJECT ON SHRINKAGE CONTROL MEASURES First of all we should know that what shrinkage is. SHRINKAGE > Definition: The percentage of loss of products between manufacture and point of sale is referred to as shrinkage, or sometimes called shrink. The average shrink percentage in the retail industry is about 2% of sales. While that may sound low, shrinkage cost U.S. retailers over $31 billion in 2001 according to the National Retail Security Survey on retail theft. Here are the four major sources of inventory shrinkage in retail.A reduction in inventory due to shoplifting, employee theft, paperwork errors and supplier fraud. Also Known As: Loss, Shortage. There are various reasons of Shrinkage in an retail store among all those the big ones are these four under which most of the causes takes place. These are as follows :Top 4 Sources of Shrinkage are

1. Employee Theft According to the National Retail Security Survey, the number one source of shrinkage for a retail business is internal theft. Some of the types of employee theft include discount abuse, refund abuse and even credit card abuse. Unfortunately, this is one loss prevention area that generally doesn't receive as much monitoring as customer theft.Employee Theft Employee Theft from a retail store is a term that is used when an employee steals merchandise, food, cash, or supplies while on the job. However, in the eyes of the law, employee theft is just theftthe elements of the crime are identical. To commit theft, the employee must intend to permanently deprive their employer of the value of the item stolen.

Employee theft can occur just like shoplifting by concealing merchandise in a purse, pocket, or bag and removing it from the store. It can also occur by stealing cash, allowing others to steal merchandise, eating food, and by refund, credit card, or check fraud. Employee theft can sometimes be charged as embezzlement due to the trusted fiduciary status of the employee. All of these methods lead to loss of inventory (shrinkage) and/or profit for the merchant. Employee theft is an insidious crime because the merchant is paying a wage and benefits to the thief on top of paying for the cost of their dishonestly. Studies have shown that employees can do a lot more damage than shoplifters because they are trusted and have an insiders knowledge of store security measures. Employee Theft Profile There is no real physical profile for a dishonest employee. Dishonest employees come in all shapes, sizes, ages, sexes, ethic backgrounds, religions, levels of education, and economic status. You simply cannot accurately determine who is likely to steal based on their demographic status alone. However, an employer can make reasonable assessments based on their conduct, integrity, and judgment. A persons past conduct, integrity, and judgment often provides the best indication of their future behavior. Retail store employees have a constant opportunity to steal cash or merchandiseall they need is the desire and sufficient motivation to do so. What keeps most employees honest is moral character, loyalty, respect for the law and their employer, and the desire to be viewed as trustworthy. Studies support this by proving that shrinkage is significantly less in stores with reduced employee turnover and fewer part-time workers. For others, the only barrier to dishonesty is the fear of getting caught. The employee thief risks getting fired, being arrested, jailed, and paying restitution. The criminal record and bad job reference will have a compounding effect that will follow them for years. Merchants must not be sending a clear message to their employees because most employee thieves that have encounterd never thought they would be caught. Cost of Employee Theft According to 2005 National Retail Security Survey employee theft was estimated to be responsible for 47% of store inventory shrinkage.. This makes employee dishonesty the greatest single threat to profitability at the store level.

Despite these facts, most retailers mistakenly focus their loss prevention budgets on shoplifting. Loss Prevention Preventing employee theft is a constant challenge for retailers. The industry knows that it must put systems in place to prevent or deter internal theft. To be effective, loss prevention systems must be designed to reduce the opportunity, desire, and motivation for employee theft. One way of reducing employee theft motivation is to show a deep commitment to prevent losses at every level and a desire to prosecute thieves. This sends a message to employees that shoplifting losses can not be used as a excuse for shrinkage and that all thieves will be prosecuted. Basic loss prevention steps involve good procedures for hiring, training, and supervision of employees and managers. Procedures that are clearly defined, articulated, and fully implemented will reduce the opportunity, desire, and motivation for employees to steal.

Retail loss prevention is a profession that is responsible for reducing inventory losses inside retail stores. Loss prevention professionals manage in-store security programs that focus on reducing inventory losses due to employee theft, shoplifting, fraud, vendor theft, and accounting errors. Like others in the security industry, retail loss prevention professionals must interact with store personnel and store customers when dishonestly or carelessness occurs. As you can imagine, accusing someone of dishonestly or carelessness is not a small matter and must be done with the utmost care and professionalism.

Sources of theft The objective is to maximize profits through reducing retail theft, also known as shrinkage. According to the 2006 National Retail Security Survey, retail operations suffered an average annual inventory shrinkage percentage of 1.57% in 2006. According to the survey, shrink is divided into 5 categories:

46.8% from employee theft, 31.6% of shrinkage comes from shoplifting 14.4% from administrative error 3.75% from vendor error

2.86% from unknown error.

Although most retailers experience a shrink percentage of less than 2%, some smaller retailers often experience monthly and annual average shrinkage percentages as high as 20%. 2. Shoplifting Definition: The theft of property (usually less than $500) from a retail establishment which occurs with the intent to deprive the owner of that piece of property. Coming in at a close second is shoplifting. Customer theft occurs through concealment, altering or swapping price tags, or transfer from one container to another. While shoplifting remains a smaller inventory loss source than employee theft, stealing by shoppers still costs retailers about $10 billion annually Shoplifting . In order to stop a shoplifter, retailers must first be familiar with the categories of shoplifters, common shoplifting methods, and know what to look for in customers who exhibit strange behavior. Find out how to spot a shoplifter. Preventive Measures One of the most effective tools to prevent shoplifting is good store management. Retailers should also use store layout, adequate inventory controls and follow common security practices to combat shoplifting. How To Use Store Design to Reduce Shoplifting Here's How: 1. Checkout: Design the store lay out so customers must pass the register area and staff to exit the store. Never leave the register unlocked or unattended. Do not display merchandise near the store exits. 2. Tidy Up: Keep the store neat and orderly. Full displays and straightened shelves allow employees to see at a glance if something is missing. 3. View All: Use mirrors to eliminate blind spots in corners that might hide shoplifters. Maintain adequate lighting in all areas of the store, keep fixtures and displays low for better visibility. 4. Under Lock and Key: Place small, expensive items in locked cabinets or behind the counter. Rest rooms and dressing areas should be watched at all times. Keep dressing rooms locked and limit the number of items taken in by each customer. Use alarms on unlocked exits and close or block off unused checkout aisles. 5. Signage: Signs and posters reinforcing security messages should be used. Post antishoplifting signs like 'Shoplifters Will Be Prosecuted' in clearly visible locations. 6. Security: Use security equipment such as closed circuit television, security tags and twoway mirrors. Uniformed security guards are also powerful visual deterrents to the shoplifter. Tips:

1. A well-designed store layout will not eliminate all shoplifting but will help reduce it. Combine customer service techniques with good store design to combat shoplifting. How To Use Customer Service to Prevent Shoplifting Here's How: 1. Staffing: Schedule an adequate number of employees to work at one time. 2. Greetings: Greet every customer that enters the store. This lets the customer know you are aware of their presence. 3. Be Attentive: Make yourself available to all customers and never leave the store unattended. 4. Receipts: Give each customer a receipt for every purchase. Require receipts for refunds for cash. Trash any discarded receipts immediately. 5. Stay Focused: Don't allow customers to distract the cashier while another person is being checked out. 6. Bag Check: Implement a policy and procedure for backpacks and bags brought in by customers. 7. Code 3: If you notice suspicious activities, alert other employees immediately. Many stores have a security code to alert staff of possible shoplifters. 8. Helping Hand: Approach the suspicious person and ask if he/she is finding everything okay. Mention that youll be near by should he/she need your help. Make the shoplifter feel watched. 9. Tag Swap: Cashiers should watch price tags and be on the lookout for price switching. Ask for a price check if something seems out of place. 10. Hidden Items: Shoe boxes, pocket books, baskets with lids and any other product easily opened should be inspected by cashiers to be sure it does not contain other merchandise. 11. Sealed Shut: Every bag should be stapled closed, with the sale receipt attached. How to Identify Shoplifters Shoplifters can be placed in one of two categories, professional and amateur. While both groups can be quite skilled at the art of thievery, professional shoplifters steal to make a living and may use force or intimidation. The non-professional shoplifter may be easier to spot. Shoplifter Methods Many of these thieves work in groups of two or more to distract the sales staff while they pilfer. Shoplifters learn to take advantage of busy stores during peak hours or they may hit at times when employees are less alert, such as opening, closing and shift changes. Hiding merchandise is the most common method of shoplifting. Items are concealed in the clothing of the shoplifter, in handbags, strollers, umbrellas or inside purchased merchandise.

Bold shoplifters may grab an item and run out of the store. Other methods include price label switching, short changing the cashier, phony returns, and so on. Spot the Shoplifter Unfortunately, there is no typical profile of a shoplifter. Thieves come in all ages, races and from various backgrounds. However, there are some signs that should signal a red flag for retailers. While the following characteristics don't necessarily mean guilt, retailers should keep a close eye on shoppers who exhibit the following:

Spends more time watching the cashier or sales clerk than actually shopping. Wears bulky, heavy clothing during warm weather or coats when unnecessary. Walks with short or unnatural steps, which may indicate that they are concealing lifted items. Takes several items into dressing room and only leaves with one item. Seems nervous and possibly picks up random items with no interest. Frequently enters store and never makes a purchase. Enters dressing room or rest rooms with merchandise and exits with none. Large group entering the store at one time, especially juveniles. A member of the group causes a disturbance to distract sales staff.

3. Administrative Error Administrative and paperwork errors make up approximately 15% of shrinkage. Simple pricing mistakes due to markups or markdowns can cost retailers quite a bit. 4. Vendor Fraud The smallest percentage of shrink is vendor fraud. Retailers report vendor fraud occurs most when outside vendors to stock inventory within the store. According to the 2004 17th Annual Retail Theft survey, 63,289 employees were apprehended for dishonest activity. This is an increase of 4.01% or 60,850 employees over the figures of 2003.. . The passing of merchandise is usually discovered through the use of an exception report in which a particular employee is shown to have an unusual amount of voids or no-sales. Generally merchandise is rung up by an employee and subsequently voided out. The merchandise is then passed to a person at the counter, usually a friend or family member of the employee.

Other forms of employee theft that are discovered via the use of exceptions reports are discount and commission fraud. Discount fraud is the fraudulent use of an employee's discount to reduce the price of merchandise for someone else. Generally this is done by an employee passing their discount card to a friend. Commission fraud is usually accomplished by ringing large return purchases back to another employee or recent ex-employee. Merchandise theft is often investigated though the use of CCTV cameras and investigator observations. The items stolen by employees tend to be small items which either have a high dollar value or are edible. Stockrooms have a particularly high level of employee theft and are often investigated using CCTV. Loss prevention often tours stockrooms looking for "stashes", out-of-place merchandise, and price tags. Typically a covert CCTV camera is placed in the areas of high opportunity for theft. MEASURES TO CONTROL SHRINKAGE( Equipment, tactics, and technology) CCTV camera systems CCTV is an abbreviation for Closed Circuit Television. CCTV camera systems are common to almost all loss prevention departments. The obvious benefits of CCTV camera is that the investigator can gain a better view of a suspect, record incidents, and not reveal themselves to shoplifting suspects. Some retailers use two-man teams in which one person uses the CCTV camera system to detect shoplifters and a floor man follows the suspect and apprehends them. CCTV camera systems have been drastically modernized in the last decade. Most systems now record digitally as opposed to using videotapes. Many systems now include a computer server that contain video for months at a time. One drawback of many of these digital recorders is their inability to move and view more than one fixed area of the store. Covert CCTV cameras Covert CCTV cameras are a fairly recent innovation within the loss prevention industry. These cameras are small and compact and can be easily moved from area to area. Covert cameras can be easily made to look like fixtures or boxes in a stockroom. Most covert cameras are undetectable by the average employee. PTZ (Pan-Tilt-Zoom) Cameras Pan-Tilt-Zoom or PTZ systems are a highly effective, highly advanced CCTV surveillance system, currently utilized by only a small fraction of retailers . PTZs are capable of panning 360 degrees in any direction. PTZs are also designed with a zooming feature enabling the investigator to zoom in on any object of interest revealing an image capable of reading type as small as what can be found on a common sales receipt. PTZs are covert cameras concealed in tinted domes and placed strategically above various locations throughout the interior and exterior of any retail location which may be perceived as high risk for potential loss.

Although this system can be expensive to purchase and install it has become a necessity given the very sophisticated operations of organized retail crime. A retailer not willing to invest in this equipment will see dramatic difficulty in reducing and controlling shrink. When a retailer fails to utilize this equipment they create an extremely difficult challenge for Investigators working to reduce loss, protect customers and employees, and control liability. Ultimately when companies who refuse to upgrade to the standards of modern techniques and technology they are forced to raise prices on goods and services to compensate for the loss created by operating with outdated shrink programs, causing high prices on goods and services and cause the eventual loss of valued customers and inevitable reduction of profit. The long term effects of retailers choosing not to provide Investigators with this equipment can be extremely harmful to the success of the companys operations and longevity Fake cameras Some retailers use fake (or "dummy") cameras in parts of their store, the rational is that the fake camera will cost less, but make the shoplifter too nervous to steal anything in front of it. Electronic Article Surveillance

A tag used for EAS Electronic article surveillance (EAS) is a deterrence system used by retailers to deter shoplifting. EAS involves the use of electronic security towers and electronic security tags. Hard tags or Sticker tags are placed on items throughout the store and are disabled at cashier by either removing the hard tag using a detacher or by scanning label tags over a magnetized strip or label deactivator. If the tag is not disabled it will activate the alarm tower, which is generally located at the exit to a retail store. EAS tags & labels are extremely effective in deterring amateur shoplifting, but most professionals require a combination of hard tags, labels, and ink tags to keep them in check. Even with the most elaborate anti-shoplifting systems some goods will be lost; this is possible with booster bags or simply a "grab and run".

Serial numbers Serial numbers are now being commonly placed on high-value merchandise. If loss prevention departments record the serial numbers, they can subsequently track stolen merchandise recovered by the police. Recording serial numbers is usually only done by larger retailers, due to the fact that they have district investigators who investigate organized shoplifting over a certain geographic area. . . Two-way radio sets Almost all loss prevention departments have some form of two-way radio communication. This technology is used by investigators to help two-man teams follow a shoplifting suspect in conjunction with the CCTV camera system or to summon

Ink tags Ink tags have been around for several decades and are most commonly used by clothing retailers. Special equipment is required to remove the tags from the clothing. When the tags are forcibly removed, one or two glass vials containing permanent ink will break, causing it to spill over the clothing, effectively destroying it. Ink tags fall into the loss prevention category called benefit denial. As the name suggests, an ink tag denies the shoplifter any benefit for his or her efforts. Despite this, shoplifters have found ways around them, such as duct-taping the holes through which the ink comes out and then removing the tag with pliers, resulting in little to no damage of the merchandise. This however isn't possible with all ink tags as the holes may not be visible. Ink tags are most effective if used together with an anti-shoplifting system so that the shoplifter can't take the product home and leisurely try and remove the ink tag. Another issue with ink tags is that a determined shoplifter may steal more than one of an item in order to be able to practice removing the ink tag. Dual Resonator EAS stickers Dual Resonator EAS stickers are usually placed on small items such as shaving razors and cold medicines. These items are popular items to sell at swap meets. Dual Resonator EAS stickers are printed on thin paper and are difficult to remove. Usually the sticker includes a retailer's company logo and serves as an indication to would-be buyers that the merchandise has been stolen.

Dummy domes Dummy domes have become prevalent in all forms of retail loss prevention. Dummy domes do not contain cameras, although they are identical to those that do. Dummy domes can be strategically placed to herd shoplifters into a particular location or can be used as a deterrent to shoplifting. Ceiling mirrors Ceiling mirrors were once a staple of the loss prevention industry. Now, for the most part, they have been relegated to convenience stores. Mirrors allow loss prevention investigators to watch activity in a high-theft area without being seen. Some loss prevention departments have been known to use mirrors to increase the range of their camera systems. Bottom of Basket Bottom of Basket loss (BOB), occurs when an item is placed on the lower tray of a shopping cart and the cashier forgets to check the lower tray for items, resulting in the item not being paid for. What makes this form of shrink unique is that it may happen intentionally or unintentionally. All estimates for the dollar amount lost in this manner are over $2 billion US per year in North America alone, or $7 per checkout lane per day. There are a few products on the market to help prevent this loss. The most common are mirrors mounted across the checkout lane. Some stores have camera systems pointed at the lower tray with monitors for each cashier. Neither of these systems work effectively because the problem is not visibility, but the inattentive cashier. A newer type of system actively monitors the checkout lane and alerts when an item is detected on the lower tray of the shopping cart. The alarm will trigger when anything is on the lower tray including products, bags, or coats, but uses technology to distinguish the difference between a shopping cart and a person or bag passing through the lane, in order to accurately activate and begin scanning for items. Unfortunately, all these types of "alarm" systems have not proven any significant decrease in BOB loss as the cashier tends to ignore these alarms within 3 months of installation. And there is no way of knowing if the cashier simply ignored the alarm. . Consent searches Consent searches are widely used in law enforcement and are still present in loss prevention today. By asking a customer to consent to a search of their belongings, such as shopping bags and receipts, any illegal search or seizure requirements can be circumvented. Consent searches in some instances can be used to build on previously existing facts to establish the probable

cause necessary to detain a shoplifter. The extreme end of establishing probable cause through a consent search has been eliminated except with a few smaller companies who still utilize it. Viewing towers Although the necessity of viewing towers has been largely eliminated by CCTV camera systems, they still exist today. A tower is usually a centrally located observation platform raised above the sales floor. An investigator can spend time in the tower while searching for shoplifters or investigating employees, much in the same manner as with CCTV. Most towers are now obsolete and being eliminated in many retailers.

Packaging and labelling

Packaging is the science, art and technology of enclosing or protecting products for distribution, storage, sale, and use. Packaging also refers to the process of design, evaluation, and production of packages. Package labelling is any written, electronic, or graphic communications on the packaging or on a separate but associated label. Packaging can be described as a coordinated system of preparing goods for transport, warehousing, logistics, sale, and end use. Packaging contains, protects. preserves, transports, informs, and sells. . It is fully integrated into government, business, institutional, industry, and personal use.

The purposes of packaging and package labels Packaging and package labelling have several objectives:

Physical protection - The objects enclosed in the package may require protection from, among other things, shock, vibration, compression, temperature, etc. Barrier protection - A barrier from oxygen, water vapor, dust, etc., is often required. Permeation is a critical factor in design. Some packages contain desiccants or Oxygen absorbers to help extend shelf life. Modified atmospheres or controlled atmospheres are also maintained in some food packages. Keeping the contents clean, fresh, and safe for the intended shelf life is a primary function. Containment or agglomeration - Small objects are typically grouped together in one package for reasons of efficiency. For example, a single box of 1000 pencils requires less physical handling than 1000 single pencils. Liquids, powders, and granules need containment. Information transmission - Packages and labels communicate how to use, transport, recycle, or dispose of the package or product. With pharmaceuticals, food, medical, and chemical products, some types of information are required by governments. Marketing - The packaging and labels can be used by marketers to encourage potential buyers to purchase the product. Package design has been an important and constantly evolving phenomenon for several decades. Marketing communications and graphic design are applied to the surface of the package and (in many cases) the point of sale display. Security - Packaging can play an important role in reducing the security risks of shipment. Packages can be made with improved tamper resistance to deter tampering and also can have tamper-evident features to help indicate tampering. Packages can be engineered to help reduce the risks of package pilferage: Some package constructions are more resistant to pilferage and some have pilfer indicating seals. Packages may include authentication seals to help indicate that the package and contents are not counterfeit. Packages also can include anti-theft devices, such as dye-packs, RFID tags, or electronic article surveillance tags, that can be activated or detected by devices at exit points and require specialized tools to deactivate. Using packaging in this way is a means of loss prevention. Convenience - Packages can have features which add convenience in distribution, handling, stacking, display, sale, opening, reclosing, use, and reuse. Portion control - Single serving or single dosage packaging has a precise amount of contents to control usage. Bulk commodities (such as salt) can be divided into packages that are a more suitable size for individual households. It is also aids the control of inventory: selling sealed one-liter-bottles of milk, rather than having people bring their own bottles to fill themselves.

SHRINKAGE REPORT OF SPENCER HYPER (MARCH to MAY) S.NO CAT- NAME TOTAL SALES SHRINKAGE VALUE % OF SHRINKAGE -1.23 PHYSICAL STOCK DAYS COVER PERIOD 19th DEC 07 to 14th MARCH 08 19th DEC 07 to 14th MARCH 08 19th DEC 07 to 14th MARCH 08 19th DEC 07 to 14th MARCH 08 19th DEC 07 to 14th MARCH 08 19th DEC 07 to 14th MARCH 08 19th DEC 07 to 14th MARCH 08 19th DEC 07 to 14th MARCH 08 19th DEC 07 to 14th MARCH 08 19th DEC 07 to 14th MARCH 08 19th DEC 07 to 14th MARCH 08 20th DEC 07 to

STAPLES

4699104.52 -58017.4827

1218775.78 21.79

READY FOODS INSTANT FOODS BEVERAGES

2114630.3

5656.322

0.27

615292.99

24.44

832545.74

-16065.27

-1.93

196675.38

19.84

1220163.73 3902.16

0.32

262021.1

18.04

HOUSEHOLD NEEDS TOIETRIES

1230214.49 30577.58

2.49

447420.07

30.55

2889020.73 -53561.06

-1.85

1367893.92 39.77

BEAUTY AIDS

91064.04

-9018.99

-9.90

129483.95

119.44

LIQUAR AND CIGARETTES DELETED

-109.66

#DIV/0!

11750.65

#DIV/0!

810.54

#DIV/0!

5375.16

#DIV/0!

10

CHILLED AND FROZEN BAKERY AND FOOD SERVICE HOME

500819.15

-14596.73

-2.91

135132.09

26.17

11

1062964.14 -1399.23

-0.13

21722.72

1.98

12

3442770.97 -59047.01

-1.72

1898490.6

53.49

28 MARCH 08 13 WORK 384564.8 -1164.56 -0.30 228694.64 57.68 20th DEC 07 to 28 MARCH 08 20th DEC 07 to 28 MARCH 08 20th DEC 07 to 28 MARCH 08 20th DEC 07 to 28 MARCH 08 20th DEC 07 to 28 MARCH 08 20th DEC 07 to 28 MARCH 08 20th DEC 07 to 28 MARCH 08

14

PLAY

209068.15

-9059.22

-4.33

158045.18

73.33

15

GARMENTS

4824784.59 -163029.12

-3.38

2976073.72 59.83

16

FASHION ACCESSORIES ELECTRICAL

949864.51

-18014.9

-1.90

538351.91

54.98

17

2695211.39 -31907.66

-1.18

1373575.13 49.43

18

ELECTRONICS

10822538.1 -58260.51

-0.54

3526611.1

31.61

19

FURNITURE

2222.22

#DIV/0!

2222.22

#DIV/0!

GRAND TOTAL

37969329.3 -450082.581

-1.19

15113608.3 35.82

The amount of shriankage = 3.2 lakh for 3 months

How we calculate shrinkage ? There is a basic formula behind this which is as follows: SHRIANKAGE 100 SALES

SHRIANKAGE OF LAST Financial year of spencer was 2% of the total sales. Out of 2% 1% is of Distribution center. CONCLUSION

SHRIANKAGE is the most important part for an organization to be taken care of. If an organization wants to earn profit and wants future growth then shrinkage has to be minimize. All the measures mentioned above should be implemented if possible and security of the store should be tightend so that if any body found guilty can be caught inside the store or on the exits of the store . The most important part is to take care at the time of receiving and dispatching of the goods because if you have made mistake at the time of receiving for example: you have received 100 bottels of ketchup and the invoice is of 110 bottels but you had taken 100 bottels instead of taking 110 bottels without counting them or you have counted it wrong or whatever the reason will be. The datas will show 110 bottels and actually there will be 100 bottels that means shrinkage of 10 bottels and that cost ton an company heavely in terms of monetary value. Same thing is with at the time of dispatching of goods. As this type of negligence is been done mostly at distribution centers and warehouses. There should be a tight check on all these activities and the person who is performing this job should be attaintive and diligent so that he can perform this job better. At the end I conclude that little little things will supports our sales and also affects our sales. Its our job to find out weak points or loop holes in our selling process and try to solve them as soon as possible. One thing which we have to remember is one satisfied customer lead to ten customers to come to your store but one unsatisfied customer stops twenty customers to come to your store, so customer satisfaction is also one of our prime job. If we concentrate on all these points than target is not a difficult job. I learned a lot in these two months training that how to handle a customer, how stock take is conducted, what are the things to be kept in mind while doing floor walk, how proper colour blocking and staging is important in garments section, store opening and closing procedure, stock receiving procedure, data pulling and data fetching at tills, how indent is made, GRWM(Good Return to Warehouse Memo) process, What is NRGP(Non Returnable Gate Pass),GAD(Goods Acknowledgement Discrepancy) and much more which I have mentioned above.

Bibliography

1. 2. 3. 4.

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