STORES Magazine - January 2010 - (Page 66)

LOSS PREVENTION / SECURITY this as the Coast Guard was developing the operational plan for the Chesapeake exchange. His team took steps to protect their assets and the profits, which are used to fund MWR programs. An exchange draws from a customer base located within driving distance of a military station, which means that average sales per unit are relatively low by “This is the first time that an exchange will be situated in a location of this size with exposure to so many potential customers.” Off-base Approach Locating a military exchange in a traditional mall creates new LP challenges for Coast Guard BY LIZ PARKS — Jim Palmer, Coast Guard Community Services Command typical retail standards. But the Chesapeake Coast Guard exchange is located in a community where military retail sales exceed $400 million at existing exchanges – and that does not include the monies that military personnel spend at traditional retailers. he largest military exchange facility in Coast Guard history opened last fall in a strip mall location that once housed a Circuit City store. Its size alone (43,000 sq. ft.) was enough to make this location unique. But it is also the first Coast Guard exchange to be located in a mainstream retail setting. This provides accessibility to the largest shopping pool in Coast Guard, creating significant incremental selling opportunities — as well as a whole new set of loss prevention challenges. T Like any retail operation, military exchanges are vulnerable to some degree of shrink through theft. But because the people who patronize exchange stores are all either members of the military, their families or other select governmental employees, they are, in essence, authorized pre-screened shoppers. And, in most instances, there are greeters at the door checking customers’ status or eligibility before letting them shop. The exchange at Greenbrier shopping 66 STORES / JANUARY 2010 mall in Chesapeake, Va., is so large, and in a location that attracts so much traffic, that ineligible people, including members of organized crime rings, could sneak in, increasing the risk of external theft. Jim Palmer, director of loss prevention for the Coast Guard Community Services Command, which oversees the Coast Guard Exchange System (CGES) & Morale, Well-Being and Recreation (MWR) Program, was well aware of all Better exposure Since exchange customers, on average, buy goods for 20 percent less than what shoppers pay in privately owned retail stores, the Chesapeake exchange is expected to generate most of its revenues by attracting military customers who had been shopping for specialty goods at traditional retailers. “We are now going to where our customers live without being co-located on a base,” Palmer says. “This is the first time that an exchange will be situated in a location of this size with exposure to so many potential customers.” While the Coast Guard declined to provide sales projections, its secondlargest exchange — an 18,000-sq.-ft. facility in Aguadilla, Puerto Rico, generates $16.5 million in annual sales. At more than twice the size, the Chesapeake exchange is easily expected to outperform Aguadilla in its first year and to reach break-even in about two years, Palmer says. Palmer was hired in 2008 to develop the Coast Guard’s first internal LP program. In addition to a greeter checking WWW.STORES.ORG http://WWW.STORES.ORG

Table of Contents for the Digital Edition of STORES Magazine - January 2010

STORES Magazine - January 2010
Editor's Page
President’s Page
Retail People
CEO Profile
20 Ideas Worth Stealing
Digital Coupons
Customer Loyalty
Labor Scheduling
Data Management
Human Resources
Retail Fraud
Loeb Retail Letter
ARTS Update
NRF News
Point of View
Retail Industry Calendar
End Cap
Global Powers of Retailing

STORES Magazine - January 2010