CHICAGO (FNS) -- The specter of adverse publicity, hefty fines and corrupted internal databases should prompt retailers to institute programs to guarantee scanning price accuracy.
Pricing accuracy may seem like a minor issue, but corrupt scan data can and does result in increased media scrutiny, lost gross margins and, most serious, lost customers, said Doug Mills, director of retail services at Associated Grocers of Seattle.
Mills spoke at a seminar on price maintenance and scan data quality conducted by Retail Systems Consulting, Naples, Fla. The seminar was held in conjunction with the Retail Systems '95 conference here last month.
To combat the problem, Mills outlined a pricing accuracy program Associated offers to its 350 independent supermarket customers. The first step, he said, is to institute a consistent in-store pricing verification program that might involve, for example, checking one aisle or one section of the store every week.
One-hundred percent pricing accuracy is the law, Mills reminded attendees. "Is that program monitored regularly? Are the results showing an accuracy rate at or above 98 percent?" Mills said. Retailers should review their price maintenance procedures and make sure there is a designated pricing coordinator in every store who is responsible for accuracy and included in the store management team.
Ongoing verification procedures using handheld scanners also should be implemented and prices should be verified after any type of price change, he said. "Offer your customers a pricing guarantee. Customers will let you know if you have a problem. Correct the errors immediately and keep track of the errors to try and spot a bigger problem," Mills said.
Further, all store employees need to be involved in ensuring high price maintenance standards. "The stock clerk should understand what to do if he spots a missing shelf label."
The importance of timely and accurate pricing information must also be communicated to vendors, particularly those involved in direct-store-delivery programs, he said.
As an example of the high cost that inaccurate pricing can command, Mills cited several recent fines levied chains including Kmart, Troy, Mich., $450,000; Lucky Stores, San Leandro, Calif. $146,000, and Vons Cos., Arcadia, Calif., $26,000.
If retailers do receive a warning from inspectors about pricing inaccuracies, they should immediately take action to correct any problems and perform a complete store pricing validation check.
Retailers should also institute a consumer price guarantee and a procedure for reviewing the in-store pricing system. In addition, store management should explain to employees what is being done to correct the problem, offer suggestions on how to respond to customers' comments and reaffirm the store's commitment to pricing accuracy.
