Reducing Store Inventory Shrinkage with Frontline Engagement

Reducing Store Inventory Shrinkage with Frontline Engagement

30-Jun-2015 Rick Tucci Strategy Execution Download

Performance Snapshot Preview: Frontline employee teams at a chain store operation added $450,000 to gross margins for 10 stores using a simple-to-learn team engagement process over a 60-day timeframe.


A national chain store retailer was seeking a more effective way to increase frontline employee engagement in addressing profit-sapping shrinkage of store inventories due to damage, theft and misplacement.

Team Engagement Strategy

Teams of sales associates, stock clerks, and administrative staff from 10 store locations were recruited to attack the problem using Rapid Action, an "all in one" team engagement toolkit for accelerating results.

Rapid Action Project Charter

How can we reduce the level of theft, damage and the misplacement of items in store locations to reduce overall inventory “shrinkage” and improve product availability on shelves?

Sample of Solutions Implemented

  1. Developed an improved floor staffing model to ensure better coverage in high-shrinkage departments.
  2. Created a “demo” program to highlight products subject to damage due to customers opening packages.
  3. Established more stringent procedures for controlling inventory transfer from warehouse to store in order to avoid damage and misplacement.
  4. Developed a cross-training program for sales associates and stock clerks to improve floor coverage during peak hours and enhance rapid replenishment in slow periods.
  5. Installed a visual management communications board to highlight out-of-stock problems and trigger an immediate response when possible.

Rapid Action Team Results


solutions implemented across 10 store locations


annualized gross margin gains from reduced inventory shrinkage


best practices identified for chain-wide implementation

32 days

cycle time from team launch to wrap-up

Leadership Comment

"Rapid Action is a better approach than our in-store suggestion system for getting store associates engaged in continuous improvement. It makes both employees and managers accountable for results, and it builds teamwork and more informed employees at the same time." – Store Manager

Learn more about the Rapid Action Toolkit

Are you interested in accelerating results and increasing engagement from your organization’s change management and continuous improvement initiatives? Take a look “inside the box” of the most reliable process available for rapid, team-based improvement.

Peek inside        Schedule a demo  

Rapid Action Team Engagement Toolkit

Related Posts

No items found.
No items found.

Building Real Employee Ownership for Safety Discipline

In less than 60 days, a cross-functional team of corporate executives and plant employees devised a better way to increase employee ownership for adhering to safety policies.

Read More