Store Checklist Whitepaper (2005)

Consumer goods retailing makes an important contribution to Europe’s economy and key to the success of this industry are the many stores where consumers shop. One area where retailers can control costs is in the management of shrinkage and previous research for ECR Europe identified that the level of shrinkage in a store is strongly related to its management. This suggests that adherence to operational standards is a mechanism for controlling shrinkage.
The purpose of this research was to investigate how operational standards can be maintained in stores. This was achieved by reviewing previous research into this topic and by examining the operations of seven stores in three retailers. The findings from this work identified that the frequent use of a checklist can help optimise store performance and reduce the errors that cause shrinkage. However it also became clear that in order to develop a useful checklist there first needs to be a set of operational standards that describe ‘what good looks like’ for the key areas of a store.


Putting the checklist to use meant using it at least once per day to audit the store against operational standards. Issues identified during this audit are written down and discussed with the store staff to assign responsibility for immediate resolution. Implementing these actions brings the store back in line with the operational standard. The regional store operations manager plays an essential role in reinforcing good practice by reviewing the checklists completed since their last visit to the store.

The regional manager should also review the way the daily check is carried out by conducting their own store review using the checklist and comparing their findings against that day’s checklist completed by the store staff. Differences between the two sets of findings reveal discrepancies in the way the check is conducted which should then be addressed. Where retailers follow a daily routine of auditing performance and actioning discrepancies they will maintain control of their store operations. This means their level of shrinkage should be minimised by reducing errors and mistakes and reducing the opportunity created by such errors for a range of malicious actions.
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