Talking Shrink: Using Business Know-How to Gain LP Traction

1. 6/28/2017
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Talking Shrink: Using Business
Know-How to Gain LP Traction
Ben Borer LPC, Director of Omni Digital Loss
Prevention, American Eagle Outfitters Inc.
and John Matas, Vice President of Asset
Protection-Investigations/ORC, Macy's, Inc.
Talking Shrink
Using Business Know-How to Gain LP Traction
John Matas
Macy’s Inc.
Ben Borer
American Eagle

2. 6/28/2017
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Agenda
1. Know Your Audience
2. Translation of Priorities
3. Key Tools to Drive
4. Team Approach
Merchant Partnership
Know Your Audience
• You are a:
– Merchant that specializes in LP
– Business Partner that specializes in LP
• People Like People Like Themselves
– Basic Laws of Attraction
Merchant Partnership

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Merchant Partnership
• Operational
– Quality of Hire
– Hours Utilization/Staffing
– Standards
• Profit Impact (Translation Loss=Missed Sales)
– Key Item Theft
– Returns
– Fraud
Merchant Partnership
LP Issue Profit/Loss Priority Merchant Translation Combined Company Goal
1 Internal Theft Quality of Hire Bad Selling Talent - Missed Sales Increased Sales/More Profit
2 Supervision Hours Utilization/Staffing Missed Sales Increased Sales/More Profit
3 Standards Poor Operating Standards Boring - Missed Sales Increased Sales/More Profit
4 Key Item Theft Customer Service Missed Sales Increased Sales/More Profit
5 Returns POS Standards Lost Sales Increased Sales/More Profit
6 Fraud POS Standards Lost Sales Increased Sales/More Profit
Merchant Partnership

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Laying The Groundwork
• Customer First
• Sales and KPI Driven
• Business Acumen
• Shrink Challenges
• Solution
• Store Leadership Rollout
• Version 3.0 Stores
– Flex Fulfillment
– Loyalty/Rewards
• Version 4.0 Corporate
– Margin Impact Categories
Future State

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Implementation
Recap on 3 Session Takeaways HERE
1. Embrace Corporate Culture
2. Link Between Shrink & Sales
3. Start With The Basics

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THANK YOU
John Matas
John.Matas@Macys.com
Ben Borer
BorerB@AE.com