Why – and How – Walgreens is Removing Friction to Stop Revenue from Walking Out the Door
It was fascinating to hear what the retailer’s loss prevention/asset protection team is doing to effectively detect and deter fraud and theft in stores (with the help of AI).
You might have heard all about the physical changes Walgreens is making in stores to enhance asset protection. But you might be surprised to learn about the big changes happening behind the scenes to achieve the same objective. For example, when I sat down with Walgreens’ Senior Manager of Asset Protection, Tim Bailey, for a discussion about the retailer’s approach to loss detection and loss prevention, I was fascinated to learn…
- Who’s really held responsible for reducing shrink at Walgreens’ 8,000 stores.
- The granularity of the retailer’s large-scale asset protection effort from a data analysis and investigation perspective.
- How task management software that’s typically reserved for operations management is providing widespread accountability among associates specific to asset protection.
- How a team of 12 people at Walgreens HQ has been able to quickly receive, filter and respond to feedback from 8,000 store managers about what’s contributing to losses and then make the necessary fixes to stop further losses.
- How AI is going to help Walgreens’ asset protection team better pinpoint loss sources, conduct investigations, and fix issues that lead to losses in the future.
- How the retailer may change the way it hires – who it hires – to support asset protection efforts in the future (and the added value that current team members will bring forth now that AI is being added to the mix.)
The one thing you must do if you want any investment in asset protection enhancement measures – or additions to your “red shopper risk management toolbox” to pay off.
Check this out:
It was so nice to hear that the Walgreens team isn’t just trying to add more friction to deter fraud or theft. We know friction doesn’t stop the bad actors because, if it did, theft and fraud wouldn’t be the $100B problem it remains to be in retail. All friction does is make the shopping experience more painful for your best customers, and we know that can lead to a whole other type of loss when people decide they aren’t going to wait for an associate to unlock the toothpaste cabinet or wait in a long line to pay with an associate because self-checkout is no longer an option. So, I think the approach Tim and his team are taking to remove friction in their approach to loss prevention and asset protection is very smart.
I believe you’ll learn a lot in this 20-minute discussion, so I hope you’ll tune in now (or download the MP3 to listen when you have a few minutes later).
Download Now
Once you get a feel for what Tim and his team are doing to stop losses in retail stores and even the supply chain, I’m sure you’re going to want the details of the technology they’re using to enable these strategic operations and investigative changes. So, the next thing you’ll want to check out is this case study...
Walgreens Boosts Efficiency and Sales with Zebra's Workcloud Actionable Intelligence
And this short video...
Retail Dive also hosted a loss detection webinar with Tim recently that you may want to check out to learn more about what he and the Walgreens team have been doing:
How Walgreens is Reducing Shrink & Preventing Theft in Stores
If you have any questions for Tim – or the Zebra team supporting Walgreens in this shrink reduction/accountability effort – reach out here.
Curious how else Walgreens has been tapping into technology across it's store operations? Check out this announcement...
Walgreens Saves Millions of Dollars by Optimizing Store Operations with Zebra’s Workcloud Software
There's also a more extensive story here:
Walgreens Boosts Efficiency and Sales with Zebra's Workcloud Actionable Intelligence
###
Here are a few more expert insights on loss prevention strategies that may be helpful as well...
Why Your “Loss Prevention” Efforts Aren’t Working
Do you know exactly when, where and why they’re happening? If not, it will be hard to figure out how to prevent them, fix inventory distortion, and eliminate friction for your loyal shoppers. So, let’s talk about loss detection.
Now Is Not the Time to Retreat from Self-Checkout (SCO)
It may be tempting to push customers toward staffed checkout lanes instead of self-checkout (SCO) to reduce losses. However, doing so could push your most loyal customers away. So, let’s talk about ways to stop SCO-related shrink.
Shoppers Say It’s Easy to Swipe Items at Self-Checkout. Here’s How Retailers Should Respond.
Convenience may be the top benefit of self-checkout. But retailers must make it harder for customers to leave without paying. Running this software behind the scenes can help keep things in check at the door.
Though meant to reduce theft, locking up products in your stores may be causing losses by deterring impatient shoppers from completing their purchase or complicating inventory management. Consider this instead.
Is Prescriptive Analytics the “Secret Weapon” for Fighting Organized Retail Crime?
Find out how prescriptive analytics is being used to fight organized retail crime. Read our blog.
