Well our great brain trust are seeing the results what happens when you have no controls with inventory and poor morale. You get clubs that were never high shrink to all the clubs are high shrink. I guess they better build a bigger high shrink school for all the club managers to go to. The money they lost this week alone would pay for the audit teams for a couple of years. I'm so glad the member experience is so good, no wonder they are getting great deals free. And the DC associates are probably getting a great bonus since the claims against them are next to nothing. Go Sam's!!!! Another great plan from the people that have forgotten what it is like to work in clubs and the ones that never have.
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One more part of Sam’s club going down in flames . Gisele Is absolutely clueless and doesn’t understand the club business . ( she did wonders at Walmart and drove that business in to the ground before it was revived by Judith) .
Let’s eliminate audit and at the same time let absolutely every transient and thief into the club. Heck let’s allow them to come in durning plus hours. Brilliant idea !!! No wonder shrink is up . it doesn’t take someone from MIT to figure that out yet a executive can’t . Wow!
Let’s face a lead in audit wasn’t necessary but we should have kept atleast one audit associate ( like what Costco has ) but we are to stupid to even do that.
Gisele will run Sam’s club into the ground and we will get someone new. Buckle your seatbelts and hang on it’s going to be a ruff ride in 2018.
4yky
Our audit team kept our shrink under $100k every year. This year it ballooned to $490k.
That’s a jump that can’t be rationally explained away. Several other clubs who have inventoried are seeing similar results.
Small cost to pay for knowing where your shrink is coming from and putting practices in place to cut it down.
If your audit was just sitting in an office they definitely weren’t doing their jobs right and your shrink was probably bad already.
CIM is a disaster right now and things show up on hand for club pickup that has been gone for months. TLs don’t have time to spend with the reports while running the floor and a lot of times the front end. I wish I could keep track of how many upset members we have had because they ordered a grill or piece of furniture that we didn’t have. What’s the #1 priority? Take care of the member. Making them mad is far from that.
They won’t bring back an audit team but 1 or 2 people to manage the inventories and audits with TLs and get more high shrink categories looked at between would be a wise investment.
So what is happening now is that we are spending too much time looking for merchandise that is not here and are not getting replenished correctly because clubs are showing that they have on hands. They are now going from top 10 category audits to complete audits, and I guarantee you that team leads are not doing these audits. They are using previous audit partners to do these audits but at a lower pay because they had to take pay cuts when they took other positions. I miss my audit team!!!
It's no secret how to reduce shrink!!! Eliminate self checkouts...Eliminate Scan & Go...And require Membership Cards to be shown at the entrance (this has kept out at least some of the undesirables in the past). The Audit Team performed a vital function that helped to show where more attention was needed in the Club. But if no attention was then given by management, the work of the Audit Team was kicked to the curb and their collective hands were tied. Why showcase where the shrink is if very little can be done to reduce it??? Sadly, there are no answers to the mess that we now see.
Guesstimating, three audit employees collectively cost the company $125,000 annually. The first $125,000 in shrink is paid for by eliminating the audit employees.
In addition, just because audit employees pin pointed shrink/theft during the year does not mean the dollar amount was not shrink/theft. Audit employees did not stop shrink/theft, all they did was prove it.
With that said, audit employees did not offer much so it was a good business move to cut them out.
I agree management has no idea about audits. Home office should make them do audits so they can see the big mess that it has become. Who are we kidding?? Everything is blind receiving, claims throws everything in trash, and people just don't know and don't care. Not to mention scan n' go, pay only what you want to pay for, receipts at door not verified, no membership card required to come in,
one membership card for everyone you know can use (no questions asked).... I don't see it getting any better. Very frustrating when we can't find merchandise and club manager afraid to key out so she doesn't get in trouble. Just leave It for inventory to key out and pretend you don't know about it.
Lol love it high tech college grads running billion dollar clubs. Let’s set back and watch as it crumbles all around us!
The new club managers that have replaced the displaced " experienced club managers" will enjoy shrink school. The college graduates with their degrees, iPad and cell phones they will get things back on track.