Transcript Document

Responsible Alcohol
Sales & Service
Working with Retailers:
Self Policing Strategies and Collaborative
Initiatives
William A. Alford, CFE
Moe McKnight
International Lighthouse Group, Inc.
Lowes Food Stores, Inc.
704.841.7759
[email protected]
336.775.3021
[email protected]
INTERNATIONAL LIGHTHOUSE GROUP, INC.
• Overview of Retail Loss Prevention
• Overview of a typical supermarket
• Involvement with NC Initiative to
Reduce Underage Drinking and RASS
• “Real World” Barriers to reaching our
common goals
• Finding retail “Champions”
INTERNATIONAL LIGHTHOUSE GROUP, INC.
Retail Loss Prevention
Security
Protect assets of company
Loss
Prevent Operational Losses
Prevention
Regulatory
Compliance
Insure laws and regulations are followed
INTERNATIONAL LIGHTHOUSE GROUP, INC.
Retail Loss Prevention
•Shrink Management
•Organized Retail Crime/Shoplifting
•Internal / External Investigations
•Food Security
•Safety (Accident Prevention)
•Safety (Risk Management/Claims Management)
•Crisis Management
•Guard Force Management
•Guard Force (Retail)
•Warehouse Security
•Transportation Security
•Pre-employment / background
screening
•Internal Audit
•Store-level operational Auditing
•Store-level financial Auditing
Corporate level internal audit
•Check collections
•Compliance (Underage Access to
Alcohol/Tobacco/Lottery, Antimoney Laundering, etc.)
•Executive Protection
•Information Technology Security
•LP Training and Awareness
(Workplace Violence, Bomb Threats,
Robbery Prevention, etc.)
•Physical Security (CCTV, Alarms,
Access Control, Locks/Keys, Safes,
EAS, etc.)
INTERNATIONAL LIGHTHOUSE GROUP, INC.
RASS
Responsible Alcohol
Sales & Service
“STOP LIGHT”
DRIVERS LICENSE
• Make it easier for cashiers to
accurately calculate age
• Increase clerk compliance regarding
alcohol and tobacco
sales
INTERNATIONAL
LIGHTHOUSE GROUP, INC.
•
•
•
•
•
•
•
•
143 Stores
5 States
17,000 Associates
$2.1 Billion in Sales
Profit - 2.46%
Average Transaction - $25.24
Profit per Transaction -$ .62
Customer Count
– 1.6 Million a Week
– 83 Million a Year
INTERNATIONAL LIGHTHOUSE GROUP, INC.

Total Alcohol Sales - $142 Million (6.7%)

Beer Sales - $66.5 Million (3.1%)

Wine Sales - $75.3 Million (3.6%)
INTERNATIONAL LIGHTHOUSE GROUP, INC.
Public Perception of Retailers

What is the likelihood that store clerks
would ask to see the ID before selling
alcohol to an underage person?
SCALE
Definitely Would
Probably Would
Probably Would Not
Definitely Would Not
TEENS PARENTS
31%
23%
49%
58%
14%
10%
2%
1%
UNC Highway Safety Research Center
INTERNATIONAL LIGHTHOUSE GROUP, INC.
Public Perception of Retailers

Do you know of a store in your
community were someone under 21 can
buy beer easily?
YES!
TEENS
PARENTS
30%
13%
UNC Highway Safety Research Center
INTERNATIONAL LIGHTHOUSE GROUP, INC.
Public Perception of Retailers

Where do teens think that their peers in
the community obtain alcohol?
50%
15%
11%
8%
7%
6%
3%
Acquire From Friends Over Over 21
Acquire From Other Teens
Take From Home
Buy in Store
Acquire From Strangers Over 21
Don't Know
Parent
71% FROM
ADULT
PROVIDERS!!!!
INTERNATIONAL LIGHTHOUSE GROUP, INC.
Public Perception of Retailers

81% of North Carolinians feel that
alcohol outlets are not careful enough on
preventing teenagers from buying
alcohol.
INTERNATIONAL LIGHTHOUSE GROUP, INC.
Retailer Alcohol Accountability

Sell legal but age-restricted product
responsibly.

Inform employees of laws.

Instruct employees how to perform
sales.

Enforce laws and internal policies.
HOW???
INTERNATIONAL LIGHTHOUSE GROUP, INC.
Retailer Alcohol Accountability
 Executive Level Support
 Education, Training, Awareness
 Clear, Concise Polices
 Internal Consequences
 Iron Fist – Velvet Glove
INTERNATIONAL LIGHTHOUSE GROUP, INC.
Responsible Alcohol Sales and Service
• Cashier Training Manual (incorporates
Alcohol/Tobacco training)
• MUST RECEIVE TRAINING BEFORE
BEING PUT ON A REGISTER!
• In-house Video (Alcohol & Tobacco)
With Test (must retake if do not pass).
• Semi-Annual Alcohol Training Audits.
INTERNATIONAL LIGHTHOUSE GROUP, INC.
Responsible Alcohol Sales and Service
• Card anyone “Under 30” (includes
Tobacco).
• Signage - “Under 30?”
• Point of Sale Prompt
• “Third Party Sales”.
• Intoxicated Customers.
INTERNATIONAL LIGHTHOUSE GROUP, INC.
Responsible Alcohol Sales and Service
• Shopping Service (in problem stores)
• Close working relationship with Alcohol
Beverage Commission and Alcohol Law
Enforcement
• “Cops in Shops”
– Signs in store one week before
– Officers work in our stores as baggers, etc.
– Observe underage buys, intoxicated customers,
confiscate fake ID’s, DUI arrests
– Media covers operation
INTERNATIONAL LIGHTHOUSE GROUP, INC.
Responsible Alcohol Sales and Service
•
Develop Public Awareness and
Education Program (Fight negative
perception with POSITIVE
perception!)
•
Helps prevent teens from even
TRYING in your store!
INTERNATIONAL LIGHTHOUSE GROUP, INC.
Recognize Cashiers Who
Perform Well!
 Reward with cash or other incentives.
 Successful ALE / Law Enforcement
Compliance Check
 Confiscate Fake ID’s
 Observed behaviors
POSITIVE REINFORCEMENT IS MORE
EFFECTIVE THAN NEGATIVE
REINFORCEMENT IN SUSTAINING
DESIRED BEHAVIOR
INTERNATIONAL LIGHTHOUSE GROUP, INC.
Recognize Cashiers Who
Perform Well!
“Only one in three establishments
reward employees for good
performance, while 81% discipline
employees who do poorly in systematic
check.”
Mathmatica Policy Research Inc. 1997
INTERNATIONAL LIGHTHOUSE GROUP, INC.
Responsible Alcohol Sales and Service
Response to Customer Complaints
“We are a good corporate citizen and
are a responsible member of the
community. We are helping fight
underage drinking by being extra
careful when selling alcohol. We
appreciate your understanding.”
INTERNATIONAL LIGHTHOUSE GROUP, INC.
Responsible Alcohol Sales and Service
RETAILERS RESPONSIBILITY TO
CASHIER

Educate
Train
Support
Re-enforce

REPEAT!!!!



INTERNATIONAL LIGHTHOUSE GROUP, INC.
BARRIERS
Turnover
• 17,000 Associates
• +89% Turnover
• 7,000 Front End Associates
• +100 Turnover
• 3% Unemployment
INTERNATIONAL LIGHTHOUSE GROUP, INC.
BARRIERS
Cashier Responsibilities
• 100 possible decisions during sale
(Average around 12)
• Be Friendly and Courteous
• Do it Fast AND Accurately
• 100% of time
INTERNATIONAL LIGHTHOUSE GROUP, INC.
BARRIERS
Cashier Responsibilities
• Training Manual - 29 Sections
• Test and Review - 344 Questions
• 8 hours (with OJT /classroom)
INTERNATIONAL LIGHTHOUSE GROUP, INC.
BARRIERS
Cashier Responsibilities
•
•
•
•
•
•
Follow Alcohol/Tobacco Polices
Customer Service
Operating Register
Cash Over / Shorts
Produce Identification & Price Look Up Codes
Voids, Price Checks, Hand Keying
Price/Department
• Dealing with Angry / Rude Customers
INTERNATIONAL LIGHTHOUSE GROUP, INC.
BARRIERS
Cashier Responsibilities

Accepting Multiple Types of Payment
– Cash
– Checks / Travelers Checks
– Credit Cards
– Debit Cards
– Food Stamps
– WIC
– Gift Checks / Gift Certificates
– Coupons: Store, Vendor, Manufacturer
INTERNATIONAL LIGHTHOUSE GROUP, INC.
BARRIERS
Retail “Perceptions”
• Frustration - “I’ve trained them…what more
can I do?!”
• “It’s the fault of the kids trying to buy the
alcohol.”
• “ABC just wants to find fault and catch
people.”
• “Public health do-gooders don’t understand
my business.”
INTERNATIONAL LIGHTHOUSE GROUP, INC.
BARRIERS
Public Health
•
Retailers are the enemy
•
ALL retailers only want sales...at any cost.
•
Do not want retailers “at the table” …fear of
discovering strategies.
•
“Law of Unintended Consequences”
INTERNATIONAL LIGHTHOUSE GROUP, INC.
•
BARRIERS
Alcohol Law
Some not Enforcement
proactive in training, education, &
awareness
• Most interaction with retailer is when a
violation occurs
• Some do not track total observations...only
violations
• Local vs. State Law Enforcement - delayed
reporting, questionable methods
INTERNATIONAL LIGHTHOUSE GROUP, INC.
BARRIERS
Courts (Cashier)
•
Cashier receives Criminal Citation
•
Suspended from job or put in “non-cashier” role
•
Hires an Attorney
•
Guilty…minimal fine… and cannot work in
establishment in selling capacity for 2 years
•
May receive pre-trail intervention (no record)
INTERNATIONAL LIGHTHOUSE GROUP, INC.
BARRIERS
Courts...Youth
•
•
Using someone else’s ID…or manufactures / buys
his or her own fake ID?
Or is found to possess alcohol?
•
$25 Fine..…probation
•
Law stipulates that person can lose
license for up to one year...rarely
happens
INTERNATIONAL LIGHTHOUSE GROUP, INC.
BARRIERS
Courts...Retailer
•
Retailer Fined Civilly
Strict Liability
•
License suspension (if multiple
violations)
•
Negative Media Exposure
INTERNATIONAL LIGHTHOUSE GROUP, INC.
BARRIERS
Public Policy and Law Makers
• “Right of Passage” Mentality
• Laws regarding underage drinkers
(probation, first offenders program, etc.)
• Wholesalers - Strong Beer/Wine Lobby (I.e.:
MONEY!)
INTERNATIONAL LIGHTHOUSE GROUP, INC.
CONSEQUENCES
Drunken Driver’s Parent’s Win Case
Fayetteville, NC
December 23, 2000
A jury ruled the Winn-Dixie grocery chain
should pay $100,000 to the parents of an
underage youth who claimed the store
allowed him to buy beer illegally before he
died in a car wreck.
INTERNATIONAL LIGHTHOUSE GROUP, INC.
RETAIL “Champion”
Self - Policing
•
Find company that is responsible (use
retail trade groups only to help ID a
company).
•
Contact corporate office or highest level
possible.
•
Ask what they are doing right…and how!
•
Praise them publicly.
INTERNATIONAL LIGHTHOUSE GROUP, INC.
RETAIL “Champion”
Self - Policing
•
Encourage them to speak at public
health events.
•
Encourage them to speak at legislative
hearings and work with legislators.
•
Encourage them to speak to other
retailers.
•
Raise the bar of performance and
advocate “self policing”.
INTERNATIONAL LIGHTHOUSE GROUP, INC.
RETAIL “Champion”
Self - Policing
•
Internal newsletters
•
“Alerts” – Holidays, Events, etc.
•
Executive Support and mandates.
•
Utilize Law Enforcement to assist in
training of problematic locations.
•
Send Message with Materials - Signs,
posters, buttons…from ALL sources.
•
Become “aware” merchants.
INTERNATIONAL LIGHTHOUSE GROUP, INC.
MOVING FORWARD

Public Health in the best position to be
the mediator, facilitator, provide the
“CALL TO ARMS”
Understand all side of issue

Bring all parties to the table

Put yourselves in the shoes of other
parties

INTERNATIONAL LIGHTHOUSE GROUP, INC.
MOVING FORWARD

Challenge.....before you advocate another
piece of legislation or public policy
initiative, go out and work in a retail
stores, talk with the cashiers.......ride with
Police....talk with the kids....!!!
INTERNATIONAL LIGHTHOUSE GROUP, INC.
For more information visit:
www.billalford.com/udetc
Working With Retailers: Self Policing Strategies and Collaborative Initiatives
PowerPoint - Presentation by Bill Alford of International Lighthouse Group and Moe
McKnight of Lowes Food Stores, Inc.
Collaboration to Achieve Positive Change
Article - Written for PIRE as a "roadmap" for working with and getting results from the
retail community.
The Power of Perception in Preventing Underage Access to Alcohol and
Tobacco
Article - This article was submitted to supermarket and convenience store trade
journals and outlines the need for being proactive in reducing youth access to age
restricted products.
The Power of Perception in Preventing Underage Access to Alcohol and
Tobacco
Article - This is the final printed article (abbreviated due to space limitations in trade
journals).
William A. Alford, CFE - Bio
Moe McKnight - Bio
INTERNATIONAL LIGHTHOUSE GROUP, INC.
Responsible Alcohol
Sales & Service
Working with Retailers:
Self Policing Strategies and Collaborative
Initiatives
William A. Alford, CFE
Moe McKnight
International Lighthouse Group, Inc.
Lowes Food Stores, Inc.
704.841.7759
[email protected]
336.775.3021
[email protected]
INTERNATIONAL LIGHTHOUSE GROUP, INC.