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Responsible Alcohol Sales & Service Working with Retailers: Self Policing Strategies and Collaborative Initiatives

Responsible Alcohol Sales & Service Working with Retailers: Self Policing Strategies and Collaborative Initiatives. William A. Alford, CFE International Lighthouse Group, Inc. 704.841.7759 balford@ILHGroup.com. Moe McKnight Lowes Food Stores, Inc. 336.775.3021

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Responsible Alcohol Sales & Service Working with Retailers: Self Policing Strategies and Collaborative Initiatives

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  1. Responsible Alcohol Sales & Service Working with Retailers: Self Policing Strategies and Collaborative Initiatives William A. Alford, CFE International Lighthouse Group, Inc. 704.841.7759 balford@ILHGroup.com Moe McKnight Lowes Food Stores, Inc. 336.775.3021 Moe.mcknight@lowesfoods.com

  2. 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”

  3. Retail Loss Prevention SecurityProtect assets of company Loss Prevent Operational Losses Prevention Regulatory Insure laws and regulations are followed Compliance

  4. Retail Loss Prevention • Store-level operational Auditing • Store-level financial Auditing Corporate level internal audit • Check collections • Compliance (Underage Access to Alcohol/Tobacco/Lottery, Anti-money 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.) • 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

  5. RASS Responsible Alcohol Sales & Service

  6. “STOP LIGHT” DRIVERS LICENSE • Make it easier for cashiers to accurately calculate age • Increase clerk compliance regarding alcohol and tobacco sales

  7. 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

  8. Total Alcohol Sales - $142 Million (6.7%) • Beer Sales - $66.5 Million (3.1%) • Wine Sales - $75.3 Million (3.6%)

  9. Public Perception of Retailers • What is the likelihood that store clerks would ask to see the ID before selling alcohol to an underage person? UNC Highway Safety Research Center

  10. Public Perception of Retailers • Do you know of a store in your community were someone under 21 can buy beer easily? UNC Highway Safety Research Center

  11. Public Perception of Retailers • Where do teens think that their peers in the community obtain alcohol? 71% FROM ADULT PROVIDERS!!!!

  12. Public Perception of Retailers • 81% of North Carolinians feel that alcohol outlets are not careful enough on preventing teenagers from buying alcohol.

  13. 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???

  14. Retailer Alcohol Accountability • Executive Level Support • Education, Training, Awareness • Clear, Concise Polices • Internal Consequences • Iron Fist – Velvet Glove

  15. 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.

  16. Responsible Alcohol Sales and Service • Card anyone “Under 30” (includes Tobacco). • Signage - “Under 30?” • Point of Sale Prompt • “Third Party Sales”. • Intoxicated Customers.

  17. 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

  18. 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!

  19. 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

  20. 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

  21. 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.”

  22. Responsible Alcohol Sales and Service RETAILERS RESPONSIBILITY TO CASHIER • Educate • Train • Support • Re-enforce • REPEAT!!!!

  23. Turnover 17,000 Associates +89% Turnover 7,000 Front End Associates +100 Turnover 3% Unemployment BARRIERS

  24. 100 possible decisions during sale (Average around 12) Be Friendly and Courteous Do it Fast AND Accurately 100% of time BARRIERS Cashier Responsibilities

  25. Training Manual - 29 Sections Test and Review - 344 Questions 8 hours (with OJT /classroom) BARRIERS Cashier Responsibilities

  26. 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 BARRIERS Cashier Responsibilities • Follow Alcohol/Tobacco Polices

  27. 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

  28. 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.” BARRIERS Retail “Perceptions”

  29. 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”

  30. Some not 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 BARRIERS Alcohol Law Enforcement

  31. 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)

  32. 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

  33. BARRIERS Courts...Retailer • Retailer Fined Civilly Strict Liability • License suspension (if multiple violations) • Negative Media Exposure

  34. 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!)

  35. 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.

  36. 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.

  37. 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”.

  38. 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.

  39. 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

  40. 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....!!!

  41. For more information visit: www.billalford.com/udetc Working With Retailers: Self Policing Strategies and Collaborative InitiativesPowerPoint - Presentation by Bill Alford of International Lighthouse Group and Moe McKnight of Lowes Food Stores, Inc.Collaboration to Achieve Positive ChangeArticle - 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 TobaccoArticle - This is the final printed article (abbreviated due to space limitations in trade journals).William A. Alford, CFE - Bio Moe McKnight - Bio

  42. Responsible Alcohol Sales & Service Working with Retailers: Self Policing Strategies and Collaborative Initiatives William A. Alford, CFE International Lighthouse Group, Inc. 704.841.7759 balford@ILHGroup.com Moe McKnight Lowes Food Stores, Inc. 336.775.3021 Moe.mcknight@lowesfoods.com

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