There are many questions worth asking when considering a new in-store program and process. How does it work? Who will use it, how often? How will it help the business, our stores and franchisees? Will it help the bottom line, drive sales, cut shrinkage or improve the customer experience? All these questions have one trait in common: they all deal with revenue generation and recovery.
The average retailer stands to recoup 2.7% of sales.
The stakes are high. With missed merchandising opportunity averaging 1% of gross sales and shrinkage averaging 1.7% of gross sales, the average retailer stands to recoup 2.7% of sales by auditing merchandising and loss prevention alone. Assuming a (small) 100 store chain with (conservative) 750K of annual sales per store, this mean an audit program can recoup over $2 million annually.
How much does it cost? A (small) fraction.
Retail success requires a great concept and a great brand. When you have the winning concept and the brand, success boils down to execution. Treat retail audits for what they are: a profit center with a cost component negligible compared to the tangible and near immediate opportunity to drive and recoup 2.7% of sales.