Responsible Alcohol

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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_at_ILHGroup.com
Moe McKnight Lowes Food Stores,
Inc. 336.775.3021 Moe.mcknight_at_lowesfoods.com
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• 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

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Retail Loss Prevention

• Security Protect assets of company
• Loss Prevent Operational Losses
• Prevention
• Regulatory Insure laws and regulations are
  followed
• Compliance

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Retail Loss Prevention

• Store-level operational Auditing
• Store-level financial Auditing Corporate level
  internal audit
• Check collections
• Compliance (Underage Access to Alcohol/Tobacco/Lot
  tery, 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

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RASS
Responsible Alcohol Sales Service
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STOP LIGHT DRIVERS LICENSE

• Make it easier for cashiers to accurately
  calculate age
• Increase clerk compliance regarding alcohol and
  tobacco sales

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• 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

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• Total Alcohol Sales - 142 Million (6.7)

• Beer Sales - 66.5 Million (3.1)
• Wine Sales - 75.3 Million (3.6)

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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
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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
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Public Perception of Retailers

• Where do teens think that their peers in the
  community obtain alcohol?

71 FROM ADULT PROVIDERS!!!!
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Public Perception of Retailers

• 81 of North Carolinians feel that alcohol
  outlets are not careful enough on preventing
  teenagers from buying alcohol.

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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???
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Retailer Alcohol Accountability

• Executive Level Support
• Education, Training, Awareness
• Clear, Concise Polices
• Internal Consequences
• Iron Fist Velvet Glove

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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.

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Responsible Alcohol Sales and Service

• Card anyone Under 30 (includes Tobacco).
• Signage - Under 30?
• Point of Sale Prompt
• Third Party Sales.
• Intoxicated Customers.

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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 IDs, DUI arrests
• Media covers operation

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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!

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Recognize Cashiers Who Perform Well!

• Reward with cash or other incentives.
• Successful ALE / Law Enforcement Compliance Check
• Confiscate Fake IDs
• Observed behaviors

POSITIVE REINFORCEMENT IS MORE EFFECTIVE THAN
NEGATIVE REINFORCEMENT IN SUSTAINING DESIRED
BEHAVIOR
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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
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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.
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Responsible Alcohol Sales and Service
RETAILERS RESPONSIBILITY TO CASHIER

• Educate
• Train
• Support
• Re-enforce
• REPEAT!!!!

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BARRIERS

• Turnover

• 17,000 Associates
• 89 Turnover
• 7,000 Front End Associates
• 100 Turnover
• 3 Unemployment

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BARRIERS
Cashier Responsibilities

• 100 possible decisions during sale (Average
  around 12)
• Be Friendly and Courteous
• Do it Fast AND Accurately
• 100 of time

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BARRIERS
Cashier Responsibilities

• Training Manual - 29 Sections
• Test and Review - 344 Questions
• 8 hours (with OJT /classroom)

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BARRIERS
Cashier Responsibilities

• Follow Alcohol/Tobacco Polices

• 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

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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

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BARRIERS
Retail Perceptions

• Frustration - Ive trained themwhat more can I
  do?!
• Its the fault of the kids trying to buy the
  alcohol.
• ABC just wants to find fault and catch people.
• Public health do-gooders dont understand my
  business.

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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

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BARRIERS
Alcohol Law Enforcement

• 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

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BARRIERS
Courts (Cashier)

• Cashier receives Criminal Citation
• Suspended from job or put in non-cashier role
• Hires an Attorney
• Guiltyminimal fine and cannot work in
  establishment in selling capacity for 2 years
• May receive pre-trail intervention (no record)

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BARRIERS
Courts...Youth

• Using someone elses IDor 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

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BARRIERS
Courts...Retailer

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

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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!)

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CONSEQUENCES
Drunken Drivers Parents 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.
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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 rightand how!
• Praise them publicly.

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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.

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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,
  buttonsfrom ALL sources.
• Become aware merchants.

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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

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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....!!!

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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 Tobacco
Article - This is the final printed article
(abbreviated due to space limitations in trade
journals). William A.
Alford, CFE - Bio Moe McKnight - Bio
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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_at_ILHGroup.com
Moe McKnight Lowes Food Stores,
Inc. 336.775.3021 Moe.mcknight_at_lowesfoods.com