1. 2004-5 Work Plan ECR Europe Shrinkage Team

2. Where we started …. Zero collaboration around a difficult subject No common definition on scale or impact Blinkered approach, focussed on technology solutions Crisis driven

3. What we did …. Created a unique forum for ECR member retailers and manufacturers Created common definitions Quantified scale and scope of issue Identified opportunities to lose less and sell more Pioneered the ECR Road map approach Realised benefits of collaboration Generated new knowledge on key issues

4. The Team

5. Supply Chain and Logistics Expertise The Academic Support Excellence in Crime and Security Management

6. Specific Deliverables ECR conferences: 2 Plenaries & 4 Breakouts 2 Blue Books 2 Surveys 3 White papers (RFID, Hot Spots & KPI’s) 5 European seminars Outreach to international ECR bodies in: –Korea / Singapore / South Africa / North America / Australia Road Map won 2004 VICS award (Wal-Mart / Gillette)

7. Hall of Fame - 40% losses + 10% salesUKSainsbury’s spirits category - 50% losses + 33% salesUKB&Q & Plasplugs - 45% total shrinkPortugalFeira Nova & Danone - 85% losses + 18% salesBelgiumMakro & Gillette - 74% losses + 288% salesHungaryTesco & Gillette - 25% losses + 10% salesUKSainsbury’s & Menzies €1.5m savingUKTesco mobile phones - 7% lossesUKWickes & GET - 29% lossesPortugalSonae & Colgate Palmolive - 42% lossesPolandAhold & sausage suppliers ResultsLocationOrganisations

8. The ‘Road Map’ 0. Wake Up 2. Map & Measure 4. Develop Solutions 5. Implement 6. Evaluate 1. Plan 3. Analyse

9. From Projects to Programmes

10. Where we’re going …. 2004-5 Objectives: –Increase awareness / use of ECR Road Map –Launch collaborative projects across nations –Maintain European team momentum –Run breakout session at Paris conference

11. Work Plan Elements 1Shrinkage Across Europe - National ECR Initiative partnership 2European Shrinkage Seminar Series 3Shrinkage Team Project Meetings & Paris Conference Breakout Session

12. Work Plan Elements 1. National ECR Initiative partnership: êObjective: –Leverage National ECR organisations to help disseminate shrink learnings / Road Map êAction: –Sponsor & help organise 10 local awareness seminars êPlanned Outcomes: 1. National body launches a GLP programme 2. National body launches a national shrinkage project 3. Seminar inspires joint retailer / supplier projects using learnings acquired at the seminar / blue book with a view to sharing findings through ECR / winning the coveted shrinkage award.

13. Generic National Seminar Introduction - Local retailer CEO Scale of Problem- Adrian Beck Hot Concept - Adrian Beck Road Map- Paul Chapman Interactive session- Paul Chapman Case studies- Local Organisations Close seminar Plan projects- Paul & Adrian & ECR Nationals

14. Partnership ECR Europe Provide materials / speakers Part fund the academic fee’s / travel expenses Encourage and motivate projects National ECR Promote Manage local logistics Translate materials

15. Benefits ECR Europe Engage national bodies Encourage adoption of Road map Raise interest in Shrinkage Team Increase nominations for Shrinkage award Promote collaboration Help launch national GLP initiatives National ECR Raise profile on a hot topic Create networking opportunity Provide momentum for GLP initiative New members Make national initiative vibrant Enhance credibility Generate revenue (?) Build cohesiveness between Europe and the Nationals

16. ECR Nationals Super Hot Prospects Holland Spain Sweden / Norway Italy Belgium Hungary Ireland Turkey Austria UK Switzerland Portugal Germany Czech Republic / Slovakia Hot Prospects Denmark Finland France Greece Iceland Russia

17. Work Plan Elements 2. European Shrinkage Seminars #6 and #7: êObjective: –Promote ECR to a wider audience and leverage these delegates to “test” new theories and learn more about specific issues. êAction: –Design, organise, promote and facilitate 2 European level seminars, target 50-70 delegates per event êPlanned Outcomes: 1. Produce an increased quantity of “public domain” materials supporting the collaborative approach 2. Identify new trends / build evidence for new ideas 3. Attract new “recruits” to the Road Map / collaborative approach

18. Potential Seminar Themes Projects to Programmes - How to hold the gains from encouraging pilot projects Hot Stuff - New tools & techniques to win with the vital few Baking in solutions - How good design in both store layouts and hot product packaging can deliver results

19. Work Plan Elements 3. European Shrinkage Team Meetings & Paris Conference: êObjective: –Continue support for highly successful and growing forum promoting collaboration and best practice. Showcase this forum and the tangible outcomes at the Paris conference êAction: –Design, organise, promote and facilitate 5 European meetings and 1 Paris breakout seminar êPlanned Outcomes: 1. Develop new ideas and best practice 2. Keep alive this healthy network of Europe’s leading thinkers on shrink - “all that’s good about ECR” 3. Develop the 2006 work plan, which is likely to call out the need for new research projects

20. Work Plan KPI’s Input measures: –Number of events –Attendance at events Output measures: –Number of collaborative projects launched between companies –Number of GLP initiatives launched –Value of loss reduction & sales increase

21. Shrinkage and GLP Shrinkage project: Contributes to high-level awareness raising through national seminars Builds momentum for GLP initiative on shrinkage at local level GLP: Benefits from the momentum created by national shrinkage seminar Takes Shrinkage Findings one step further into companies through GLP initiatives

22. Work Plan Cost €60,942 €17,442 €28,500 €15,000 Cost to ECR €23,250 €8,250 --- €15,000 Cost to ECR Nationals Shrinkage Team Project Meetings & Paris Conference Breakout Session Travel costs Shrinkage Across Europe - National ECR Seminar Series (10) Work Plan Element

23. Is It Worth It? - Shrinkage Director UK Retailer