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.