Multi-Audit Programme Reduces Shrink and Improves Stock File Accuracy
The discount store selected RGIS due to our proven experience with large-scale retail shrink audits and our ability to manage multiple audit types simultaneously.
CHALLENGE
The customer operates a widespread discount retail network across the UK, Ireland, Poland, and Spain, with over 850 stores. Following an acquisition, the business implemented a strategic restructure that included downsizing the store estate to between 600 – 650 locations.
A thorough review of operational shrink highlighted the need to audit various in-store processes contributing to stock loss. The customer required an experienced audit partner to design and execute a targeted programme to uncover:
- Hidden stock loss.
- Stock file inaccuracies.
- Store-level process gaps.
All findings needed to be presented clearly and concisely for board-level reporting.
WHY RGIS?
RGIS was selected due to:
- Proven experience with large-scale retail shrink audits.
- Ability to manage multiple audit types simultaneously.
- Long-standing relationship with the customer.
- Capability to deliver reports ready for executive presentation.
OUR SOLUTION
RGIS deployed a multi-audit programme across selected store locations. The audits were conducted simultaneously to maximise efficiency and provide a holistic view of stock management. Approximately 5,000 – 8,000 SKUs audited across 1,000+ product ranges:
- Legacy Audit – Seasonal Lines: Counted pre-listed seasonal SKUs manually. Compared findings to current stock file. The results helped identify historical shrink due to overstated inventory.
- Store Audit – SKU Validity Check: All SKUs scanned at tills and non-scannable items and duplicates were identified. Cleaned stock file, improved margin accuracy.
- Date Check Audit: Audited expiry-dated items (Use By, Best Before). Barcodes were captured and photos taken for validation; this helped the customer remove short-dated and expired stock from active locations.
- Delivery Check Audit: Validated inbound deliveries at store level. Cross-referenced with prior audits to assess delivery accuracy improvement.
RESULTS
- Legacy Audit revealed shrink masked by overstated stock.
- Date Check Audit exposed inconsistencies in expiry stock handling.
- Store Audit achieved ~99% SKU accuracy; customer confirmed low risk in removing legacy codes.
- Delivery Check Audit confirmed operational improvement in stock intake processes.
CONCLUSION
RGIS delivered a comprehensive, coordinated audit solution that enabled the customer to take decisive steps in managing shrink, cleansing their stock file, and improving operational processes across their store estate.