Lecturer: Joanne Cockings
Boots stamps down on fraud
New till software has already saved millions of pounds
High-street retailer Boots is installing software to reduce errors, theft and fraud at tills in 1,500 outlets after trials saved millions of pounds.
The firm initially tested technology at a branch in Aberdeen, before expanding it to more than 500 stores nationwide when the pilot delivered an immediate return on investment.
Robert Jennings, head of loss prevention and security at Boots, says its investment in the software was returned in weeks and has so far resulted in millions of pounds in savings.
‘With the increase in electronic payment methods, point-of-sale fraud and shrinkage had become more prevalent,’ he said.
‘We generate £1.5m in transactions a day and even with the best will in the world, errors will be made and theft reported.’
Between 30 per cent and 45 per cent of losses can be blamed on errors or theft at the till, says Jennings.
Advances in technology make it easier than ever to steal at the point-of-sale by adding refunds to credit cards or value to gift and loyalty cards.
‘We decided on the PCMS Vision Smartstore software because it is more a retailer’s tool than a shrink product,’ said Jennings.
‘It helps define acceptable behaviour at a store, improves customer service and reduces error and vulnerability to fraud.’
The software records all transaction at Boots and compares it with a defined set of rules before returning the data overnight.
When a rule is broken, it is flagged for the store manager’s attention. He or she can then speak to the individual involved, who can then be trained if they are making mistakes.
The software also compares trends across similar working groups and is proving a powerful source of intelligence, says Jennings. ‘Many store managers are seeing changes overnight after installation,’ he said. ‘At a store level we sit down with staff and offer coaching following implementation to improve performance and customer service.’
The software is customisable and the rules can be configured as Boots learns more about where theft and shrinkage occur most often.
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