The document discusses opportunities for improving loss prevention at retail stores. It outlines several internal and external initiatives that could help reduce inventory shortage, including redesigning training programs, establishing anonymous reporting hotlines, intensifying audit programs, enhancing surveillance systems, and increasing prosecution of organized retail crime rings. Implementing the recommendations could potentially reduce current inventory shortage by 22-35% while also boosting sales and customer service.

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2. Opportunities - External Key External Exposure Initiatives Include: Promote real time training of external theft and inventory loss scenarios Enhance customer service and minimize shoplifting through analysis and training of normal shopping behavior and customers purchase patterns Evaluate expansion of UltraMax EAS Tags and Systems Participation in LERP.NET. LERP.NET combines Federal, State and Local law enforcement with retailers nationwide to track organized retail theft rings (ORC’s) Consider Fence Investigations, Law Enforcement Liaison and a Legislative Strategy for ORC’s Monitor and investigate internet sites (e-bay) for high shrink items Review possible use Public View Monitors and adding networked CCTV Evaluate local “chain call networks” for groups of 5 to 10 stores to use to communicate movement of known shoplifter groups. Establish the use of name badges to identify store associates Recognition programs for associates and locations whose shortage performance exceeds expectations Review Existing Refund Policies Feedback from field interviews was the existing policy was to liberal Refund policy is not consistent with competitors Existing refund policy may be affecting morale of associates asked to protect store inventory Communicate Key Loss Items Only one of eight executives interviewed knew the top three classes of inventory shortage at their location Consider cycle count select key loss items in Target stores Inventory Shortage and Loss Prevention Assessment Opportunities - Internal Key Internal Exposure Initiatives Include: Redesign and Re-energize new hire, periodic training and orientation loss prevention programs Develop a collaborative approach with stores to identify opportunities to reduce inventory exposure Promote real time training of current internal theft and inventory loss scenarios Establish store design enhancements of display, fitting rooms, sight lines, etc to preempt shortage Establish anonymous internal hotline and ensure aggressively promoted Conduct comprehensive associate survey Establish target program for all high shrink locations Consider employee background screening and employment verification Intensify of store audit program in high risk locations Expand exception reporting investigations Integrate loss prevention audit results and inventory shortage performance to managements shortage incentive bonus Evaluate existing refund policies impact on internal theft Recognition and award programs for associates and locations whose shortage performance exceeds expectations Immediate response to internal investigations at Target locations Source additional investigative resources based on current loss prevention staffing Increase prosecution rate Enhance zero tolerance to theft standard Consider the use of clear plastic employee lockers Difficult for employees to hide merchandise in these lockers Establish integrity shopping service program from an apprehension and deterrent perspective Aggressively promote the integrity shopping program Implementation of the following recommendations have the potential to immediately reduce current inventory shortage by 22% to 35% (at retail), drive sales, enhance customer service and elevate associate morale S A M P L E

3. To Schedule a Loss Prevention Assessment Register Now Name Email Company Phone Or Contact Mike Gilligan • Ph: 847-849-2940 • email: [email_address]