BELK:Loss Prevention

Jessica Green Jonathan TurnerAugust 21, 2012ECPI University

Founded in 1888 Under Third generation of leadership Located in 16 Southern States Has more than 20,000 employees

Belk History

What is needed to be changed? Is it managerial changes or more LP

changes? Who is this affecting? How will we innovate this change?

THESE ARE QUESTIONS THAT WE FIRST ASKED OURSELVES.

The Change… Loss Prevention

{ {Strengths

An established credit base

Community awareness

Wide ranges of storefronts

High quality of customer service

Weaknesses

quality management Problematic

scheduling Poor communication Lack of employee

involvement

SWOT

{ {Opportunities

Improved customer service

Product knowledge

More personalize experience.

Threats

Retails stores Theft Economy

fluctuations Unsatisfied

customers Weather conditions

SWOT Cont.

Headquarters Charlotte, North Carolina

Sector Department Stores

Primary NAICS Code 45211 – Department Stores

Primary SIC Code 5311 – Department Stores

Fiscal Year 2013 Ends on Feb 2, 2013

2012 Net Sales $ 3.70 Billion2012 Net Income $ 183.1 MillionStore Count* 303Total Selling Sq Ft* 22,800,000Employees** 23,000

*as of 4/28/12   **as of 1/28/12

Belk Inc. Profile

2012 2011Net Sales (1,000′s) $ 3,699,592 $ 3,513,275

Same-Store Sales Chg 5.5% 5.1%

Operating Income (1,000′s)

$ 300,910 $ 245,981

Net Income (1,000′s) $ 183,148 $ 127,628

Diluted EPS $ 4.02 $ 2.71Store Count 303 305Selling Sq Ft (1,000s) 22,800 22,800

Employees 23,000 24,000Advertising Spend (1,000s)

$ 152,000 $ 143,200

Company Wide: 80,943,873* yearly loss within 303 stores. (millions)

Belk Haywood Mall: 288,879* Similar size stores: 245,541* Smaller stores: 43,332*

Loss Prevention: Current State

*Approximate Loss

{ {What should be changed? Structure in…

Departments Scheduling Buzzer exiting or

entering building

Why this change?

Prevent Loss Accuracy Increase in sales Better for the

company

Change Strategy

Time Schedule

6 month Time FrameFebruary Fiscal year 2013: Beginning Inventory.

March

April

May

June

July Mid Year Inventory

http://www.youtube.com/watch?feature=player_embedded&v=_TrhphCRibM#t=39s

Prevent: Theft Videos

YAY IMPROVEMENT!

Improve by 50% by next years inventory.

EXPANSION!