2. LPRC Presentation LNL Mat Test at Office Depot #186

3. Agenda What was the challenge? What was the test? How did it work?
Associate Feedback
Customer Feedback
Offender Feedback
Test Results
Areas of Opportunity

4. What was the Challenge Reduction of shrink
Improving associate-customer interactions
Drive sales in two specific areas
Canon®/Private Brand Ink
Bluetooth® Speakers

5. What was the Test
Used LNL mats in front of Canon®/Private Brand Ink and Bluetooth® Speakers
The mats were programmed to send an alert to the associates’ radios when someone stood on them for more than 10 seconds

6. How did it Work?
4’ x 2’ commercial grade rubber sensor mats were placed in front of Canon®/Private Brand Ink and Bluetooth® Speaker sections
Tested for 9 Weeks
Mats communicate back to LNL’s FlorLink Smart Hub system via a Bluetooth® wireless connection
Smart Hub sends alerts to the associate radios after someone stands on the mat for 10 seconds
No additional tasks required by the store

7. Associate Feedback
Ensured customers were assisted due to the store configuration
No additional tasks or daily requirements
Alerts would repeat if customers stood for extended time

8. Customer Feedback
27% of customers noticed the mat without being prompted
13% of customers believed the function of the mat to be LP related
40% believed it was for customer safety
33% believed it was covering a floor imperfection
10% of customers found the mat to be significantly unattractive
27% believed a branded version of the mat would increase attractiveness
60% percent reported that this change would not affect attractiveness
Overall, customers believed the mat to be an effective crime deterrent (m=4.8 on a 7 point scale)

9. Offender Feedback Learning Lab 2 Polling Question: Round 1
Please open the Impact App on your phone to participate now
What percent of Offenders do you think NOTICED the Mat pictured below? A) 0%
B) 10%
C) 50%
D) 90%
E) 100%

10. Offender Feedback
Display Results

11. Other Observations

12. Other Observations
Customers were significantly more likely to pause at the merchandise when the mat was present than not
Customers tended to lingered longer at the merchandise when the mat was present
Only 2 customers seemed to deliberately alter their path in order to not step on the mat.
Most did not seem to notice the mat
Associates assisted customers more often with the mat present (17 cases) than without (6 cases)
In most of those 17 cases, the associate seemed to have either already been approaching the customer or approached before the mat would have alerted them
In 5 cases, the mat could have been the reason the associates assisted the customer

13. Test Results Section 1 – Canon® & Private Brand Ink
Significant shrink reduction vs. pre period
Shrink improved more than surrounding stores
Could have driven shrink to other local stores
Sales impact lower than in surrounding stores
Section 2 – Bluetooth® Speakers
Shrink inconclusive as store and market was protected prior to test

14. Areas of Opportunity
Ability to change settings after initial set up (e.g. timing between alerts)
LNL can change the settings when connected via the company’s network or cellular connectivity
Bluetooth connectivity is sometimes an issue in larger stores because of coverage range
LNL’s next generation Smart Hub will utilize a new communication protocol which has a much larger range

15. QUESTIONS?