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Prepared for Jewel / Proprietary and Confidential / January 8, 20032
Agenda Introductions and expectations PSI ACM self checkout key advantages ACM self checkout program at Jewel
– Goals and overview– Description– Importance to Jewel’s success
Program outline details Measurements Self checkout “Best Practices” review Summary and next steps
Prepared for Jewel / Proprietary and Confidential / January 8, 20033
ACM 700 self checkout key advantages
Any size order any time Higher sales and item
throughput Lower intervention rates Incremental security Intuitive system makes
ACM easiest to use
Prepared for Jewel / Proprietary and Confidential / January 8, 20034
Key advantages - continued Faster throughput at peak
times Faster processing of non-
barcoded items with graphic images
Modular configuration options fit all store formats and sizes
Flexibility to accommodate use of baggers
Prepared for Jewel / Proprietary and Confidential / January 8, 20035
Jewel Store #3162 ACM floor planA L B E R T S O N ’ – J E W E L / O S C O P R O P O S E D F R O N T E N D
N o v e m b e r 2 7 , 2 0 0 2
C o n v e n t io n a lL a n e # 6
C a n d yR a c k
M e d i u mA C M
4 B a gC a r o u s e l
M e d i u mA C M
4 B a gC a r o u s e l
L o n g A C M
P a yS t a t io n
C o n v e n t io n a lL a n e # 2
C a n d yR a c k
4 0 . 4 4 "3 0 . 9 6 "
B a g R a c k B a g R a c k
L o n g A C M
B a g R a c k
C o n v e n t io n a lL a n e # 1
C a n d yR a c k
B a g R a c k
4 9 "
BANK
4 5 1 "
3 0 . 6 0 "
4 0 . 4 4 " 4 9 "
2 9 "2 9 "3 6 "2 9 "3 4 "3 9 "3 4 "
2 9 . 0 8 " 2 9 . 1 6 " 2 9 . 0 8 " 2 9 " 3 6 " 2 9 " 2 9 "
Prepared for Jewel / Proprietary and Confidential / January 8, 20037
Success criteria for ACM self checkout at Jewel Industry-identified self checkout goals
– Enhance customer service
– Increase store labor productivity and profits
– Improve competitive advantage
Prepared for Jewel / Proprietary and Confidential / January 8, 20038
Prove success with ACM self checkout study ACM self checkout study program quantitatively proves
self checkout success Monitors self checkout sales, items and customer
throughput – Increased customer utilization = higher customer acceptance– Increased self checkout sales and item throughput = increased
opportunity for labor savings Establishes customer service improvements
– Reduced customer line size Identifies opportunities for labor productivity
improvements– Locate opportunities to reduce labor hours on the entire front-end – Increase in overall front-end productivity levels
Prepared for Jewel / Proprietary and Confidential / January 8, 20039
Program overview
Customer line size and labor utilization survey– Pre-self checkout– Post-self checkout
Measurement criteria– Front end sales, item and customer transaction throughput
• Self checkout and conventional lanes– Shopper line size per open lane– Number of associates working on a customer order – Labor hours used on front-end, self checkout and conventional– Labor hours earned from self checkout
Post-install consumer survey
Prepared for Jewel / Proprietary and Confidential / January 8, 200310
In-store customer line size and labor utilization survey provides accurate, credible data
Real-store data supports ROI – Labor hour savings opportunities– Customer service improvements
Based on in-store observations and data analysis– Collect store-specific information, pre- and post-self checkout– Observe customer lines and front end staffing
• 15 minute intervals, 12 hours per day for 7 days– Collect data on store customer line size per lane
• Conventional lanes, Self checkout and service desk– Collect data on labor scheduling and resource utilization
• Count actual associates servicing customer orders• Assess information on labor scheduling and labor productivity levels
– Gather information on front-end procedures and policies
Prepared for Jewel / Proprietary and Confidential / January 8, 200312
In-store customer survey Goal - obtain information on customer’s perception
of self checkout– Why they choose self checkout– How often do they use self checkout– What do they like about self checkout– Knowledge of self checkout at other stores
PSI interviews customers as they exit the store
Prepared for Jewel / Proprietary and Confidential / January 8, 200313
Supporting information needed from Jewel
Retailer self checkout goals and expectations– Self checkout throughput– Labor savings– Customer service improvements
Weekly store throughput numbers – Sales, items, and customer transactions
• By hour, by day• Conventional lanes and self checkout
Actual weekly labor schedules for front-end staff– Identified by function
• Shopper’s assistant, bagger, carry/out, service desk, supervision, etc.
Store labor projection factors and productivity analysis data
Prepared for Jewel / Proprietary and Confidential / January 8, 200314
Program timetable
Key Project Milestones Description DateInitial Kick-off meeting January 8, 2003Store Kick-off Meeting Review project with store management January 19, 2003Pre-self checkoutobservations
In-store observations to obtain baseline informationon customer line size and associate staffing
Week of January 19,2003
Installation of ACM selfcheckout
PSI staff to install new system and start training ofstore associates
February 9, 2003
Introduction of ACM selfcheckout to Jewelcustomers
Open new ACM self checkout for customer use. PSIto provide assistance in “Hosting” customer orders.
Weeks of February 9th
and 16th
Store team manages newself checkout system
Store team schedules staff for self checkout trainingand operations. Implements and monitors BestPractices
Week of February 9th
and ongoing
Post self checkoutobservations
In-store observation to collect information oncustomer line size and associate staffing
Week of March 16, 2003
Consumer Survey In-store survey of Jewel customers that use selfcheckout
Week of March 16, 2003
Final report on store study Present final report on collected store information. Week of April 6, 2003
Prepared for Jewel / Proprietary and Confidential / January 8, 200315
Roles for effective implementation
Prepared for Jewel / Proprietary and Confidential / January 8, 200316
Sample Charts from Previous Studies
Prepared for Jewel / Proprietary and Confidential / January 8, 200317
Comparison survey data (Sample)
Prepared for Jewel / Proprietary and Confidential / January 8, 200318
Consumer line survey data (Sample)
Prepared for Jewel / Proprietary and Confidential / January 8, 200319
Consumer line survey data (Sample)
Prepared for Jewel / Proprietary and Confidential / January 8, 200320
Why shoppers use ACM self checkout (Sample) (Multiple responses accepted)
It’s easy to use
There were lines at the other lanes
It’s fun
Lanes handle small and large orders equally well
I like to do it myself
I like to bag my own groceries
My children like it
I don’t have to deal with the cashier
52%
0% 20% 40% 60%
52%
50%
45%
32%
23%
18%
0%
Prepared for Jewel / Proprietary and Confidential / January 8, 200321
Consumer survey data (Sample)
Much prefer ACMSomewhat prefer ACM
Both about the same
Somewhat prefer Other
38%28%
28%6%
Prepared for Jewel / Proprietary and Confidential / January 8, 200323
Recipe for success Company-wide commitment to support program Set goals for ACM Self Checkout
– Customer service– Labor reduction/reallocation– Throughput, sales, items and transactions
Select measurements and monitor performance Implement operational “Best Practices” for ACM at
store level Publish results with focus on improved performance Retrain as necessary
Prepared for Jewel / Proprietary and Confidential / January 8, 200324
Best Practices implementation crucial to success Keep ACM lanes open
– Open self checkout lanes to match store hours Train and staff lanes appropriately
– Staff self checkout with friendly, courteous associates– Train associate to be at front of lane to assist customers– Communicate self checkout benefits to customers and store
associates– Provide bagging assistance at the lanes as needed
Actively manage entire front end– Open conventional lanes next to self checkout first– Manage self checkout as part of the overall front end– Develop labor schedules using ACM lane capacity to improve
service while reducing hours
Prepared for Jewel / Proprietary and Confidential / January 8, 200325
Summary and next steps ACM self checkout offers Jewel unique advantages
– Easiest to use, fastest, friendly, flexible PSI self checkout study provides replicable tool to
prove success Next steps
– Review the study outline and provide feedback to customize it for Jewel’s needs (1/15/03)
– Set up store level meeting to review with store team (prior to 1/19/03)
– Review training materials and “Best Practices” to make sure they comply to Jewel’s standards and policies (02/05/03)
Prepared for Jewel / Proprietary and Confidential / January 8, 200326
Appendix
Operational Best Practices
Prepared for Jewel / Proprietary and Confidential / January 8, 200327
Operational best practices
Operational best practices really works! Successful implementation requires
commitment– Management support– Goal setting and measurement– Training on best practices
Best practices– Lane always on– Appropriate staffing and training– Actively manage entire front end
Responsibilities– Cashier, front end manager, store manager
Prepared for Jewel / Proprietary and Confidential / January 8, 200328
Best practices programs have increased usage by 35%
15.2%
16.5%16.2%
16.5%16.5%16.3%
17.8%
18.6%18.5%19.1%19.2%18.8%
19.8%20.5%
10.0%
14.0%
18.0%
22.0%
Cu
sto
me
r U
sa
ge
%
* 2001 utilization program. Percent of total store including deli, pharmacy, and other non front end depts.
Prepared for Jewel / Proprietary and Confidential / January 8, 200329
Successful implementation requires 3 commitments
Management support Goal setting and measurement Training on best practices
Prepared for Jewel / Proprietary and Confidential / January 8, 200330
Management support Strong, outspoken support from Executive, Division,
District, and store management Weekly inspection of SCO performance through
management reporting, rankings and measurements Actions to improve all stores’ performance
– Address underperforming stores– Support continuous adherence to best practices
Prepared for Jewel / Proprietary and Confidential / January 8, 200331
Goal setting and measurement Store specific goals for SCO customers, items and
sales, measured by – Absolute numbers– As a percentage of total front end numbers
Store specific goals on labor hour reduction/reallocation
Store specific goals on customer service levels (e.g., number of shoppers waiting in line)
Measure goals weekly and communicate absolute and relative performance of all self checkout stores
Prepared for Jewel / Proprietary and Confidential / January 8, 200332
Training on best practices Complete training provided to all stores
– Initial start-up training– On-going support and re-training for all front end
associates, particularly new associates Incorporate SCO training into present front end
training – Leverage PSI-developed training materials– Develop internal training programs and documentation– Leverage internal SCO experts
Prepared for Jewel / Proprietary and Confidential / January 8, 200333
Best practice #1: ACM lanes always open SCO lanes open when the store is open, handling
express and full service– Close only for maintenance, cash loading or balance
closing – At off-peak hours, set up conventional lane nearest SCO
lanes or customer service desk to accept suspended orders
Staff lanes with a trained SCO cashier Use signage and consumer education material to
drive usage Change “express lane” signage to accept full or
express sized orders to accommodate traffic volume
Prepared for Jewel / Proprietary and Confidential / January 8, 200334
Best practice #2: Appropriate staffing and training Assign the most customer friendly associates to the
SCO lanes Train SCO lane associate to be available at front of lane
to assist customers– Scan for customers who want full service– Encourage new users and show them how to use the lanes– Answer questions and guide use– Bag for customers to increase service and throughput – Enhance security through presence at the lane
Provide dedicated baggers if available at other lanes Train all store associates, particularly front end
associates, on use of SCO
Prepared for Jewel / Proprietary and Confidential / January 8, 200335
Best practice #3: Actively manage entire front end Adjust front end schedule to achieve labor reallocation
goals while maintaining service levels– Reduce conventional lane hours, especially during off peak times
Open conventional lanes as full service lanes first and as express only when needed
Open conventional lanes near SCO lanes first, then spread out
Open conventional express lanes only when third conventional lane needed
– First express located next to SCO lanes, then full service next closest
Close non-productive conventional lanes and reallocate labor to other departments
Prepared for Jewel / Proprietary and Confidential / January 8, 200336
SCO cashier responsibilities Consumer friendly and proactive with assisting
customers Work at lanes, not at paystation as much as possible Remain at SCO lanes, do not leave to perform other
tasks Priority of tasks
– Tender at the paystation when needed (< 10%)– Help customers at lane– Proactively seek new customers– Help customers bag their orders– SCO lane area maintenance
Prepared for Jewel / Proprietary and Confidential / January 8, 200337
During off-peak periods use flexibility of SCO lanes– Close conventional lane and reassign cashier to other tasks
During busy periods at the SCO, assist SCO cashier – Bagging customer orders– Providing assistance to customers at the lanes– Proactively seeking new customers
Schedule SCO lanes and front end as one– Utilize SCO lane capacity to absorb conventional lane volume during cashier breaks and lunches
Schedule SCO lane training for new front-end associates Manage SCO lanes as part of overall front end
Front end supervisor responsibilities
Prepared for Jewel / Proprietary and Confidential / January 8, 200338
Store management responsibilities Provide positive environment for SCO success
– Provide support to SCO lane staff– Ensure qualified associates are assigned to SCO lanes during
scheduled hours Communicate SCO benefits to store associates and
customers Manage SCO as tool to improve store performance
– Strive for improvement, review store performance and front end labor schedules regularly
– Monitor performance of the lanes, using SCO and POS reports