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Case Study: Reducing Returns at Rouses Markets

IDWare Profit helps 65-store grocery chain reduce returns value by 36% during pilot

Read Time:  3 Min

The following is a case study for Rouses Markets’ use of IDWare Profit. A PDF of the case study can be found by clicking here.

IDWare Profit in Action

IDWare Profit is a loss prevention solution for retailers and grocers that deters fraud, tracks store operations, and manages vendor activity. It was developed in partnership with Rouses Markets, a supermarket chain with 65 stores across the Southeastern United States. Rouses saw a dramatic reduction in returns during a five-store pilot.  After a successful pilot, Rouses is implementing IDWare Profit across all locations.


Ready to learn more about IDWare Profit? Click here for more information.


Situation Overview

Rouses, one of the largest independent grocers and fastest-growing family-owned companies in the United States, employs more than 6,700 employees in its 65 stores across Louisiana, Mississippi, and Alabama. Returns fraud proved to be a significant source of losses, with some customers fraudulently returning items they had never paid for. Other loss prevention challenges included frivolous slip-and-fall litigation and the inability to track vendor activity. The company was in search of a solution to deter fraud, track store operations, and manage vendor activity.

Inventory shrink from theft, shoplifting, and fraud costs the U.S. retail economy $46.8 billion — or an average of 1.33 percent of sales — last year alone, with loss from annual merchandise return fraud topping $18.4 billion, and fraud and abuse combined estimated at $24 billion, according to the National Retail Federation.

Losses from fraud and slip-and-fall lawsuits — among other sources — have hurt bottom lines, impeded employee morale, and threatened in-store safety. Times are challenging for brick and mortar retailers, and Rouses was no exception.

Objectives

  • Decrease or eliminate returns fraud
  • Empower store managers to make informed decisions in real-time using data
  • Enable sharing of critical data amongst stores
  • Manage and prevent additional losses related to vendor visits and routine operations
  • Ensure compliance with store operations and applicable laws

Requirements

  • Easy-to-implement — no IT or T-Log integration required
  • Multi-functional — a single application to manage many functions
  • Highly configurable — management and employees can set return parameters and modify timers as needed
  • Cloud-based — for visibility across and between all store locations

Results

  • 36% reduction in total value of returns across five stores in the first five weeks of implementation
  • 5.7% of initiated returns were rejected by manager or abandoned by customer
  • Instituted timers to manage and ensure compliance with specific store functions and audits
  • Identified and curbed fraudulent returns by delivery services
  • Eliminated of “pencil whipping” of floor care and restroom check logs

Rouses Breakdown of Returns

Outcome

IDWare Profit has provided Rouses executives and store managers with actionable business intelligence making it possible for them to accurately assess situations in real-time and share important data across stores. As a result, Rouses has standardized their return process, changed behavior, and deterred fraud. With IDWare Profit offered at an affordable, per-location monthly rate, the solution paid for itself in less than 30 days. Moreover, by empowering employees and management with a tool to curb false returns, they no longer feel powerless dealing with theft and morale has noticeably improved.

Click here to download a PDF of the above case study. To learn how the loss prevention solution can help your retail or grocery establishment, visit our IDWare Profit page or call 888.430.8936. Be sure to visit Booth #203 at NRF from January 12-14 in New York.