Operations Manual
Table of Contents 1. GENERAL SALE PROCEDURES
1.1. Capturing Client Information 1.2. Data Privacy Policy 1.3. Tenders 1.4. Returns, Exchanges and Merchandise Repairs 1.5. Send Sale/Charge Sends 1.6. Bulk Buying and Corporate Gifting 1.7. Consignments 1.8. Merchandise Markdowns 1.9. Discounts 1.10. No UPC Sales 1.11. Voided Sales 1.12. Sales Tax 1.13. Gift Cards, Certificates and Store Credits 1.14. Merchandise Holds 1.15. Employee Numbers 1.16. Employee Purchases and Discounts 1.17. Float 1.18. Bank Deposits
2. INVENTORY MANAGEMENT (RECEIVING, TRANSFERRING AND HANDLING) 2.1. Inventory Receiving 2.2. Inventory Transferring 2.3. Inventory Handling 2.4. Merchandise Shipping 2.5. Lost Shipments 2.6. Damage Shipments 2.7. International Shipments
3. BOUTIQUE ADMINISTRATION 3.1. Supplies 3.2. Opening/Closing Procedures 3.3. Telephone Greeting and Messaging 3.4. In-‐Store Music 3.5. Petty Cash Fund 3.6. Budgeting 3.7. Accounting Requirements and Archiving 3.8. Operations Records 3.9. Employee Expense 3.10. Alterations
4. BOUTIQUE MAINTENANCE 4.1. Overview 4.2. On-‐Going Maintenance 4.3. Required Repairs and Replacement
5. LOSS PREVENTION 5.1. Theft 5.2. Internal Controls
5.3. Store Security 5.4. Store Visitors 5.5. Safety Procedures 5.6. Emergency Procedures
APPENDIX A: APPENDIX B: FORMS APPENDIX C: PHYSICAL INVENTORY
Section 1: General Sale Procedures
1.1 Capturing Client Information Gathering complete and accurate client information is essential to growing our business. We use this information to stay in touch with our clients and invite them to events, special shopping promotions, etc. Collecting complete information including mailing address, telephone and email addresses is required wherever possible as customers differ in how they wish to be communicated to. Guidelines for collecting Client Information:
• Ensure the accurate spelling of the first and last name when entering into the system • Explain how collecting this data will allow the customer to be involved in special promotions,
events and giveaway's • An example of a complete profile will include the following: first and last name, address, home
and cell phone numbers, email addresses and birthdays • Always check to ensure a client is not already in our system before adding another profile for
them
Guidelines for CALIFORNIA RESIDENTS ONLY: • Customer data can only be obtained either before they have begun to shop or after the
sale is completed • A completed sale is defined as the sales receipt being signed by the customer and their
purchase is being handed to them • Client information cards cannot be given to the customer while we are ringing up the sale • Customer identification should not be required unless the customer is redeeming a
promotional discount in their name only. Customer identification should never be taken to the back of house for any reason
• When ringing a sale, be sure to capture the clients first name in the CRM profile so you may attach their completed data obtained after the transaction
1.2 Data Privacy Policy At Tory Burch we respect and protect our clients’ personal information. We request this data for the purpose of providing a better customer experience and enhanced service. Credit card companies have joined forces to develop a security standard to protect cardholder data and to assure customers that their account information would be safe whether making a purchase online, over the phone, or in a store. This standard is called the Payment Card Industry (PCI) Data Security Standard (DSS) and sets forth security requirements that all members, merchants, and service providers that store, process or transmit cardholder data must adhere to. PURPOSE Payment Card Industry Data Security Standards (PCI-‐DSS) is a policy that has been set up to protect client’s privacy by safeguarding all personal client information, including, but not limited to, credit card numbers, physical and e-‐mail addresses, phone numbers, and purchase history.
Guidelines for Capturing Client Data:
• Client data such as credit card information should never be stored in client books or other open areas in the store
• Credit card information left at the store is only permitted to be stored on a Credit Card Authorization form and must be filed away alphabetically in the safe. This form is used primarily for transactions such as Consignments
• Charge send forms that contain client credit card information must be destroyed or kept locked away for future research
• Client books and other tools containing client data should never be on the sales floor or another area where the information may be compromised
• All customer data that is gathered must remain in the store • Credit card information should never be sent via email
Risk of Non-‐ Compliance
Licgacon Scff fines levied by credit card banks
Negacve client
experience
Loss of merchant
status: We can no longer
accept credit cards
1.3 Tenders Tory Burch boutiques accept cash and all major credit cards for purchases in our stores globally. Personal checks are not accepted as a matter of normal business. Below is a list of tenders that are accepted globally in our boutiques:
REGION ACCEPTED TENDERS US Stores USD, Yen (Hawaii only), MC/Visa, Amex, Discover, JCB, Traveler's Checks Europe Stores Euro, GBP (UK only), MC/Visa, Amex, Discover, Union Pay South America Stores BRL, MC/Visa, Amex, Debit Hong Kong Stores USD, HKD, RMB, MC/Visa, Amex, Discover, Union Pay, EBT China Stores RMB, MC/Visa, Amex, Union Pay, EBT Credit card transactions:
• The use of a credit card is non-‐transferable. A spouse, sibling or other party may not use the credit card unless their name is printed on the front and their signature matches the back of the card.
• Remember the client’s full name must be entered into the POS when paying by credit card. • The signature on the receipt must be matched to the signature panel on the card. If the
signature does not match, the sale cannot be completed. Handling potentially stolen/fake cards: If you believe the sale is suspicious or fraudulent notify your manager. Contact the authorization center anytime that you feel a transaction may be suspicious and request an authorization code for the amount of the purchase. If the card is declined and confirmed by the credit card company to be stolen, simply return the card to the customer and ask for another form of payment. DO NOT CUT UP OR KEEP THE CARD.
US ONLY POLICIES Cash transactions: Cash payments over $10,000 require the completion of IRS Form 8300. The form must be completed when the client is present. The form requires the client to present identification and their signature.* If no identification is present the sale cannot be completed. Travelers Checks: Tory Burch accepts Travelers Checks as payment for merchandise. The following guidelines apply for the handling of all Travelers Checks:
• Only a Travelers Check written in U.S. currency may be accepted. Currently, Visa, Citicorp and American Express are the only companies that issue Travelers Checks.
• All Travelers Checks contain a routing number that begins with 8000. If it has a different routing number, it is not authentic.
• The Travelers Check must be signed in the presence of a store employee. The new signature must match the original signature on the check. Pre-‐signed traveler's checks will not be accepted for payment. Pre or post-‐dated checks will not be accepted
• A state-‐issued photo-‐identification card or Passport number should be noted on the Travelers check during tender. We will not accept Travelers Checks when ID cannot be provided for verification
• The client’s full name must be entered into the POS when paying with Travelers Checks.
• The maximum cash change allowed to be returned to a client paying with a Travelers Check is $100.
1.4 Returns, Exchanges & Merchandise Repairs RETURNS/EXCHANGE Tory Burch is fully committed to the satisfaction of their customers globally. Our guideline for returns or exchanges of merchandise is within 30 days of purchase when accompanied by the receipt and in original condition. As we operate in many countries with different regulations, below is an outline of accepted return/exchange in each region.
REGION FULL PRICE BOUTIQUES United States Return/Exchanges
Returns can be processed via cash, credit card and mail check within 30 days of purchase. Past 30 days a Tory Burch credit will be issued.
Europe Return/Exchanges Returns are only issued in the form of a Tory Burch credit within 30 days of the original purchase.
South America Return/Exchanges
Returns can be processed in the form of a Tory Burch credit only within 30 days of purchase.
Hong Kong Return/Exchanges
Returns are only issued in the form of a Tory Burch credit within 30 days of the original purchase.
China Return/Exchanges Returns are only issued in the form of a Tory Burch credit within 30 days of the original purchase.
REGION OUTLET BOUTIQUES
US Return/Exchanges All Sales Final Europe Return/Exchanges All Sales Final South America Return/Exchanges All Sales Final Hong Kong Return/Exchanges All Sales Final China Return/Exchanges All Sales Final Guideline for processing returns:
• Always verify the ticket to the receipt, the date of purchase, and the condition of the garment • Circle items being returned on original receipt and staple to new receipt to give back to the
customer • Cash refunds will be granted up to a total of $250. Any cash amounts over that should be
refunded via mail check. It is up to the discretion of the manager to give over $250 cash back to the client.
• Returns to credit and debit cards will not be reflected on the client’s statement until the following night after settlement.
Price Adjustments
• Price adjustments on merchandise purchased prior to a sale will only be honored for purchases made within 30 days of the sale date. No Exceptions. Discussion on changing it to 14 days.
Web Sale Returns (US Only): We will issue our customers credits directly in store for any web purchased items. This will create the opportunity for the stores to interface with our web customers and build authentic relationships with them.
Damage Returns • Damaged merchandise returned to the store will be refunded completely given the merchandise
is damaged due to a quality issue. • Damages returned due to excessive wear by the customer will be refunded at the Manager's
discretion and only in the form of a Tory Burch credit • All merchandise should be inspected to identify the cause of the damage before proceeding
with the return Counterfeit Merchandise Returns As the company and its popularity grow we will unfortunately see the increase in counterfeit Tory Burch merchandise.
• Merchandise believed to be counterfeit and not accompanied by a receipt is permitted to be refused for return
• Customers requesting merchandise to be authenticated is not permitted. We do not authenticate merchandise
Wholesale Returns Tory Burch will accept returns from customers purchased at our Wholesale partners (Neiman Marcus, Saks Fifth Avenue, Nordstrom, etc.). These returns will be refundable ONLY by a gift card. Merchandise being returned that is beyond the 30 day return policy can only be issues a gift card for the lowest selling price. No Exceptions. What if they have the original receipt showing they paid the full price MERCHANDISE REPAIRS At Tory Burch we strive to provide our customers with the highest level of service. All merchandise can be returned to a Tory Burch full price boutique globally for assistance with repair. Guidelines for processing repairs:
• Merchandise believed to have a quality issue will be repaired at the cost of the company • Merchandise repairs due to excessive wear can be repaired but will be at the cost of the
customer. Tory Burch will send out the garment for a repair quote and communicate this to the customer before performing any repairs
• Merchandise believed to be counterfeit or procured through a sample sale should never be offered repairs or alterations by the store
For any of the above scenarios, the repair function in the register should be used. A copy should be attached to the garment and another one given to the customer with a tentative completion date.
1.5 Send Sends/Charge Sends There are many different ways a customer can purchase merchandise from one of our boutiques. The three most common are listed below:
1. A client places an order over the phone to be shipped to them (Phone Sale) 2. An Associate wishes to sell merchandise to a client that is not available in his or her own
boutique but is presently in stock at another location (Charge Send) 3. A store will transfer an item to another location to be sold to a particular customer (Inter-‐Store
Transfer) Guidelines on processing Phone Sales:
• Fill out the appropriate Charge Send Form with all client information and ring the sale • After the sale is completed and the package shipped to the customer, the charge send form can
be destroyed. If a store wishes to save this information, they are permitted to do so however, all credit card information must be completely removed from the document
• All phone sales should be sent "Signature Required" Guidelines on processing Charge Sends:
• Fill out the appropriate Charge Send Form in its entirety and fax the paperwork to the store which will fill the request. This paperwork should be kept on file in the store for 30 days should any customer service issue arise
• Contact the sending store to ensure the paperwork was received and the merchandise is available to be sent to the customer
• "Signature Required" can be waived with the customers approval on the charge send form • Shipping stores should be selected based on proximity to the customers desired ship to address • Shipping costs should not be charged for customers falling in this type of transaction unless
expedited shipping is requested
Guidelines for processing Inter-‐Store Transfers (Asia Only): • Call the store where the transfer is being requested to confirm they have the merchandise
in question • Once confirmed, send an email with the specifics of what is to be transferred • Upon receipt of the merchandise in your store, receive it into your inventory and then
process the sale and ship the merchandise as needed
1.6 Bulk Buying and Corporate Gifting BULK BUYING In order to protect our brand from unauthorized resellers and counterfeiters, a limitation of no more than 5 units has been placed on the number of units each customer can purchase of the same style. This limitation is a lifetime total and does not pertain to purchases made in one day. We fully stand behind our General Managers refusal to sell merchandise to a customer known to be a bulk buyer. CORPORATE GIFTING Sales associates are encouraged to reach out to their good clients and other businesses in the area to set up Corporate Gifting through the holiday season. For these purchases, we have associated a discount that can be applied to full price merchandise only:
• 10 to 20 items 10% Discount • 21 to 50 items 15% Discount • 50 items and up 20% Discount
Companies requesting to purchase bulk items from us will need prior approval from your Regional Manager and Loss Prevention Director. They will be required to sign a contract stating the purchase of these items are for gifting purposes only and are not for resale.
1.7 Consignments and Event Organization CONSIGNMENTS The classic consignment offers a “private shopping” experience for your customers and allows them to mix and match items with their other Tory clothes. A package is filled with a selection of merchandise that is shipped to a client. The consignment package is not charged to the client’s credit card until the unwanted pieces are returned to the boutique. This is an exceptional way to enhance your personal sales dollars and UPT’s. Classic consignment customers can be identified by the below:
• A customer who visited your store • A customer who lives in another area of the Country • A customer with limited free time • Most importantly someone that you have made a "connection with" • Should already be an existing client with an excellent shopping history and pattern.
Guidelines for processing Consignments:
• A credit card authorization form must be filled out completely before offering a consignment to any customer
• There is a maximum retail value limit of $2,500 USD for each consignment unless approved by the General Manager
• Contact the client before shipping any packages to them to confirm expected arrival date • All Consignments must be entered appropriately into the POS and tracked regularly
OFF SITE EVENTS Shopping events organized outside of the store location must be treated the same as events taking place inside the store. Movement of product should be handled similarly to the way we would normally receive/transfer merchandise in a store. All product must be accounted for both on the way to the off-‐site location and back to either the store or the warehouse immediately post event. Guidelines for processing Off-‐Site Events:
• All merchandise being sent is accounted for using the "Consignment" function in POS and the appropriate paperwork to accompany all items (two copies, one to go with the merchandise and the other to remain in the store)
• Upon arrival at the event, the merchandise MUST be confirmed against the consignment receipt to ensure nothing was lost in transit
• Transactions should be rung up at the event using the credit card machines provided by Operations
• Post event, all merchandise should be counted, packed up and sent back to the store by a Tory Burch employee
• Once received at its destination, it will be counted against the original consignment report for accuracy and the consignment then closed out
1.8 Merchandise Markdowns SALE MARKDOWNS Planned merchandise markdowns are administered and setup in the POS by the planning/allocation team and communicated to all boutiques via the bi-‐weekly communication at the time they are initiated. All merchandise markdowns should be automatic when being rung at the POS (the pre-‐set discount percentage will be applied to the sale automatically). If a boutique discovers that an item or group of items included on the markdown list is not ringing at the appropriate discount percentage, the boutique should alert the planning/allocation team immediately so that they can investigate and correct the issue. While waiting for a response, each boutique has the ability to override the price for the correct amount as not to lose the sale and keep the customer waiting. RED LINING MERCHANDISE Once markdowns are communicated, the store staff is required to mark down all qualifying merchandise to the current price that matches in the system. This includes both the merchandise that is on the sales floor and all back stock. Prior to transferring any merchandise to an outlet or back to the warehouse location, the operations/stock personnel must ensure that the items have been red lined with their current price.
1.9 Discounts VIP DISCOUNTS As VIP customers are identified in each region, a request must be submitted to Retail Operations to include them on the Master VIP list. Wherever possible, the following information should be sent to add each person to the list; full name, address, telephone, email address, qualifying discount percentage. Customer data will be captured at time of sale and entered in the system for future purchases. during this time, a "trigger" will be added to their profile which will automatically notify any sales person of their VIP status for future purchases. There are two levels of discounts for VIP customers; 30% and 40%. The 40% VIP customers are reserved only for family members and close personal friends of the Robinson and Burch families. The 30% list is for all other investors, editors, etc. VIP discounts are eligible on full priced merchandise only and cannot be combined when purchasing sale merchandise or during promotional periods. BOUNCE BACK CARDS These discount cards are mailed out periodically by our Marketing department usually around holiday periods such as Mother's Day, etc. These discount cards are not eligible to be used towards sale merchandise or combined with any other promotional event including a VIP discount.
1.10 No UPC Sales Occasionally, you may ring up an item for sale that the system shows as having "No UPC On File". In the event this happens, you will need to refer to your "NOT ON FILE" list located in the register binder to enter the appropriate information for sales audit to reconcile on the back end. It is very important that you enter this data accurately and on hand inventory must be adjusted to reflect what was actually sold. Guidelines for processing Not On File sales:
• Enter a detailed description of the item (ex. Simone Black Small) • When prompted for amount, enter the price of the item. • When prompted for serial number, type the style number and the color code. • Any issues with this process should be communicated to the helpdesk for further assistance.
1.11 Voided Sales Voided Sales (Post Voids) should be used only to correct mistakes caused by cashier or client error at the POS (i.e. cashier processes sale under CASH instead of CREDIT or the client changes her/his mind while still in the boutique). They should not be used to reverse a sale that a client purchased earlier in the day they no longer wish to keep. Guidelines for voiding sales are as follows:
• Sales can only be voided during the same business day as the original transaction • Sales from a prior day that need to be corrected must go in as a return • Copies of voided sale receipts should be kept on file for future reference
All voided sales to a credit card will not be put back onto the client’s card until the following night after settlement. This is the policy of the credit card companies and not Tory Burch.
1.12 Sales Tax Tory Burch must collect the appropriate sales tax for all merchandise sold in all regions where we operate. The sales tax calculated can be included in one of two ways:
• The tax amount is added to the total transaction after all items have been rung up (US and Singapore)
• The tax amount is already included in the price per item with no additional line outlining the amount (Europe and Brazil)
Sales tax on send sales (US Only) will calculate based on the state the items are being shipped. Items being shipped to a state where we do not have a business operation will have no sales tax added to the transaction. Sales tax exemptions are only granted for those people that can provide a valid Tax Exemption certificate. The certificate must be in the purchasers name and present at the time of sale. Discrepancies in tax calculations should be overridden in the system and communicated to Sales Audit.
1.13 Gift Cards, Certificates and Store Credits GIFT CARDS Tory Burch Gift Cards can be purchased online at toryburch.com/giftcards, and all cards, regardless of where they were purchased, can be redeemed either in Tory Burch owned boutiques globally or online. General information about Tory Burch Gift Cards:
• Gift cards can be purchased in any denomination • There is no expiration date • Gift cards are not able to be re-‐loaded • They are used as a Tory Burch credit as well in the event of a past due return • There is no limit to the number of gift cards that can be redeemed in one transaction • Gift cards must be swiped at the POS to load and redeem (avoid keying in wherever possible) • Gift cards should be packaged and presented to the client in accordance with the established
gift-‐wrapping standards • Gift cards can be converted into cash using the Tender Exchange function. This is only at the
approval of the General Manager and should not be used a regular business procedure Balance Inquiry:
1. Can be done at the POS 2. By calling the toll free automated phone number 1-‐866-‐921-‐0734 3. Via www.toryburch.com/giftcards and use the “Check Balance” feature
Lost Gift Cards: Tory Burch will replace a lost or stolen Gift Card, if the client is able to provide the 19 digit Gift Card number found on the back of the card. The replacement card issued will be for the current remaining balance. Boutique handling of Gift Cards: All unissued cards should be kept in the cash drawer or the safe at all times. Redeemed gift cards can be cut in half and disposed of, they do not need to be kept on file or sent to Finance. Customer owned gift cards must be sent to them immediately upon loading, they are never to be kept in the store for future use. GIFT CERTIFICATES (US ONLY) In the early days of Tory Burch, paper certificates were used as the form of "gift card". As none of these tenders expire you may see these paper gift certificates from time to time redeemed in your store. Any redemption must be kept and submitted to sales audit post transaction with a copy of the receipt and client information. STORE CREDITS These credits also pre-‐date the new gift card program launched in 2009. They look similar to a sales receipt and are still able to be redeemed in the store as they too have no expiration date. Any
redemption must be kept and submitted to sales audit post transaction with a copy of the receipt and client information. 1.14 Merchandise Holds Holding merchandise for a customer is a normal business process in retail. Below we have outlined the process in which merchandise is accepted to be held in the stores.
Guidelines for processing Merchandise Holds:
• Merchandise can be held for no more than 24 hours • Holds are limited to full price merchandise only. Sale merchandise is not permitted to be put on
hold for any customer • The items must be appropriately marked with the following information: client full name,
contact information (telephone, email, etc.), sales associate, expected pick up date/time • Hold merchandise should have a segregated area in the BOH to avoid confusion with active
product • Operations/BOH staff are responsible for maintaining the hold bar and returning merchandise to
its location after the 24 hour period • Holds for employees are not permitted
1.15 Employee Numbers Every new employee will receive a unique number that identifies them in a number of systems. Most notably, this is the number that will be used when ringing up sales in the POS. This number ensures your commission is appropriately allocated to each sale. Guidelines for using Employee numbers:
• Numbers cannot be shared by multiple employees • Transfers of employees from one store to another will prompt the employee to receive a new
employee number (making their old number invalid) • Employee numbers are recognized in all stores globally (with the exception of China and Brazil) • They must be recorded in every transaction used in the POS (ringing a sale and making a
purchase)
1.16 Employee Purchases and Discount PURCHASES All employees at Tory Burch, whether full-‐time or part-‐time, are eligible to make purchases in any Tory Burch wholly owned store globally and use their discount. Identification, such as an employee id, may be required for any purchases made in a store outside of the employees home region. Unpaid merchandise is never permitted to leave the store for or be worn by any of the associates during business hours. All merchandise taken from the boutique must have a matching sales receipt. The closing manager should inspect all employee bags and packages each evening. Guidelines for making Employee Purchases:
• Purchases should be made after the employees shift or on a day off • Employee purchases must be removed from the store after purchase and cannot be stored in
the BOH for any reason • They can be returned at the leisure of the employee • Price adjustments are not permitted • Designated employee numbers should be attached to every employee purchase • Employees cannot process their own sales
DISCOUNTS Tory Burch offers a very generous discount program for their employees to use at their leisure. Guidelines for processing Employee Discounts:
• Discounts of 40% off are granted towards full price and sale merchandise in both the full price and outlet locations globally (certain promotional events may not be included)
• Family member eligibility include: parents, siblings, children, spouse or domestic partner) • All sales must be processed by a Manager in the store at the time of sale • This discount does not apply to temporary employees, consultants, interns or freelancers.
1.17 Float Each POS register will hold a certain amount of cash in each register to account for change returned to a customer as well as petty cash expenses needed in the store. Guidelines for use of the Float:
• Cash amounts per register are equivalent to $500USD in each region • Cash drawer keys should be kept in the safe to prevent opening the register The key to the cash
drawer should NEVER be kept in the drawer; it should be stored in the boutique’s safe • The cash drawer should remain closed at all times and only opened when performing cash-‐
related transactions or using petty cash • The float must be counted daily against sales totals to identify any overage/shortages
Guidelines for processing Shortages/Overages:
• Do not short the deposit to account for the shortage/overage in the register • Email Director, Loss Prevention and Regional Manager immediately with the shortage/overage
information and begin looking into the issue • All findings should be communicated right away to both of the above parties
1.18 Bank Deposits Bank deposits should be made every day wherever possible. Taking bank holidays into account, no store should hold more than two days of cash deposits in their safe. All bank deposit slips should be held for future auditing as necessary. Guidelines for processing Bank Deposits:
• Cash should be counted by two people to ensure accuracy • Bank trips should be made with two Tory Burch employees at all times • All cash, not deposited, must be locked in the safe at the end of each evening. No deposits are
to remain in the cash drawer • Access to the safe should be limited to store management • Deposits should be removed from the premises ONLY to be taken to the bank. No exceptions
Section 2: Inventory Management (Receiving, Transferring and Handling)
2.1 Inventory Receiving Merchandise is shipped to the stores in many ways. It can come from one of our warehouses globally, transferred from another store or www.toryburch.com. In each of these references, there is a specific process in which will receive an account for this merchandise accurately and in a timely manner. WAREHOUSE SHIPMENTS Merchandise being shipped from one of our global warehouses, will have a specific receiving barcode on the exterior of the box that can identify what is inside. This barcode should be scanned into the inventory receiving program (Web IM) to begin receiving merchandise. Guidelines for processing Warehouse Shipments
• Check all cartons to ensure they were shipped to the correct location • All shipments must be received into inventory within 24 hours of physically receiving the
merchandise • Merchandise must be received piece by piece and not by shipment (i.e. each item scanned into
inventory) • Receiving paperwork should be kept on file for future auditing where necessary
TRANSFER SHIPMENTS Merchandise can be transferred in between locations identified in the inventory receiving program (Web IM). Most transfer shipments happen between stores for purposes such as send sales and stock rotations. Guidelines for processing Transfer Shipments:
• Stock rotation transfers can only be done with the permission of the buying department • All merchandise transferred must be appropriately ticketed with the correct selling price • Packaging merchandise transfers should be handled in a way where the merchandise will not be
damaged in shipment • Transfer paperwork should be kept on file for future auditing where necessary
REPLENISHMENTS Merchandise replenishments are based on stores selling the most in each category/style/color. As many items are set up for "model stock", the more you sell, the more you will be replenished. Guidelines for Merchandise Replenishments:
• Requests for additional merchandise can be done by contacting your Regional Manager. No store should contact the buying/planning team for individual requests
• Replenishment shipments should be processed in the same manner as any other Warehouse Shipment
• Merchandise replenishments take an average of 3 days to be allocated and shipped to a receiving store
Below we have outlined the two most common cases that affect the Merchandise Replenishments: • A style will over perform the sales plan, not leaving enough to allocate back to the stores.
Higher volume stores are prioritized in this instance. If a style sells extremely well the merchant team may decide to “re-‐cut” the style. In this case, new forecasts are given to production and the production process begins again.
• A style may not perform as planned, not requiring replenishment and leaving excess inventory in the warehouse. This is something that may not be re-‐cut in the future due to its poor selling company wide. Many re-‐cut decisions are made on company performance and not by store.
2.2 Inventory Transferring TRANSFER LOCATIONS Merchandise can be transferred in between locations identified in the inventory receiving program (Web IM). Most transfer shipments happen between stores for purposes such as send sales and stock rotations, however, we have many other locations outside of the retail environment that merchandise can be "transferred" to. These are listed out below.
LOCATION NAME DESCRIPTION Head Office To the office location in each region for gifting or sampling Web To be sold online or borrowed for photography Damages Items that are being destroyed Public Relations (East Coast) Gifted items to local Celebrities Public Relations (West Coast) Gifted items to local Celebrities Tory Person For Tory's personal use Customer Accommodations To appease a customer in certain situations Clothing Allowances Looks for associates and managers in each store Guidelines for processing Transfers:
• Properly address all packages to ensure its timely delivery • Enclose all transfer documents in each package so the merchandise can be accounted for
accurately • Transfer paperwork should be kept on file for auditing purposes where necessary
ONGOING TRANSFER SHIPMENTS Clothing Allowance Transfers This account is to be used for merchandise in the store being taken from stock for the purpose of clothing allowances for store staff and management. Please refer to the Grooming and Garment Allotment Guide located on the shared drive for specifics around this policy. Processing Clothing Allowance transfers:
• Transfers should be made by person with comments included in the transfer paperwork for tracking
• All paperwork should be faxed to "Inventory Control" at the end of each month for accounting • All looks taken must be part of the "approved looks" as determined by the buying department
End of Season Transfers The Buying team will communicate styles to be transferred back to our global warehouses at the end of each season. This is the only time stores are permitted to send merchandise back to the warehouse.
Guidelines for processing End of Season transfers: • Use the lists provided by the buying team and gather all merchandise to be transferred out of
the store • Ensure all merchandise is properly ticketed, is accurately priced and in selling condition before
creating the transfer • Enclose all transfer paperwork in the shipment before sending it back to the respective
warehouse Stock Rotation Transfers Merchandise selling is monitored by our buying and planning departments in the corporate office and often times will result in sending slow moving styles to another store with a higher volume in that specific style. Guidelines for processing Stock Rotation transfers:
• These transfers can only be done with the permission of the buying department • All merchandise transferred must be appropriately ticketed with the correct selling price • Packaging merchandise transfers should be handled in a way where the merchandise will not be
damaged in shipment • Transfer paperwork should be kept on file for future auditing where necessary
Damage Transfers When merchandise at a store is deemed to be damaged (and not able to be repaired), the item should be transferred immediately out of the store's inventory and set to the side for destruction. Items that can be repaired at a reasonable cost should send the merchandise to a regularly used local vendor to try and repair it back to saleable condition. Guidelines for the processing Damage transfers:
• Damaged merchandise should be removed from inventory right away with proper documentation accompanying the item
• Create a monthly "Damage Destruction Form" with all items that are to be damaged that month. These should all be approved by the Store Manager before being damaged
• Destroy all items according to the Damages Training Program outlined on the shared drive • After the items have been damaged and disposed of, fax all paperwork to Inventory Control • Damaged merchandise cannot be sold or given to staff members
2.3 Inventory Handling All merchandise in the store should be accounted for and handled with the utmost care. This includes but is not limited to the below:
• items are properly tagged • all hardware is attached to the merchandise and in good condition • merchandise is protected from damage during storage • on hand units are accurate and sold under correct UPCs
Negative Quantities Ensuring an accurate on hand inventory is crucial to our business as inconsistencies can affect send sales and replenishment which will therefore affect a store's sales goals. For this reason we have posted an "On Hand Report" that is located on the share drive for the store's to view at their leisure. It is recommended that each week, the report is tallied for each store and the negatives researched for accuracy. Guidelines for processing Negative Quantities:
• Confirm your on hand account before starting any research into the issue • Using the Electronic Journal, Web IM and On Hand Reports, research all inventory movement in
those styles from the past week • When inconsistencies are found and the reason determined, email Inventory Control for
adjustments to be made
Semi-‐Annual Physical Inventories Tory Burch conducts two physical inventories per calendar year in all stores. The first coincides with the end of the company’s fiscal calendar (generally at end of January) and another about 6 months after that (around July). Tory Burch uses a 3rd party vendor to conduct the physical counts at each location. Guidelines for taking Physical Inventory:
• Ensure enough staff is scheduled for the inventory to take place • Create maps of the store and pre-‐count the entire store prior to the inventory to ensure
counting accuracy by the 3rd party • All cut off dates must be met and the inventory moved in a timely basis to avoid in-‐transits
Gift With Purchase (GWP) Merchandise containing no retail selling value is sent to the stores with the purpose of being given away with purchases at specific times throughout the year. The Marketing department owns the communication of these items and each store will be notified in advance of the shipment of these items. These items, while they carry no "retail" selling value, do carry a cost and must be accounted for accurately.
Guidelines for processing GWPs:
• All GWPs must be received into a store's inventory upon physical receipt to the store • During the selling process, these items must be included in the sale transaction to remove them
from your on hand inventory before being given to any customer • Post event, the total number GWPs remaining must be communicated back to Operations and
await instruction on where to send them to • GWPs are not permitted to be given to anyone without making a purchase, this includes
employees
2.4 Merchandise Shipping Client Shipping Merchandise being shipped to a client should be handled in the same manner as if they were purchasing in the boutique. Ensure the packages emulates the Tory Burch brand is important when opening their shipment. Shipping Charges Customers shopping in our boutiques who we cannot service due to lack of size, color, etc. they are requesting are offered free shipping on their orders that require to be sent from another location. Customers are only charged shipping when making telephone orders, do not want to carry packages home or are requesting expedited service to their home/office location. We currently offer the below shipping methods and costs for customer shipments:
US METHOD COST EUROPE METHOD COST Ground Service $15.00 2nd Day Delivery $25.00 Next Day Delivery $40.00 International (Canada/Australia Only)
$80.00 Canada $130.00 Australia
Guidelines for processing Shipping Charges:
• Inform the client of the shipping charges ahead of ringing up the transaction • Be sure to select the correct method of shipping when processing a transaction at the POS • Inform the client of the expected delivery date and gather their information to send tracking
information to them • Overnight delivery will always require a Signature upon delivery • Messenger pick up is not permitted for any customer shipments
2.5 Lost Shipments Customer shipments lost in transit must be communicated immediately to the shipper for confirmation. The customer should either be credited for the purchase, and where necessary, sent a replacement. Each store is required to file a claim with the shipper and provide a copy of the sales receipt with the total of the merchandise for refund to the company. Guidelines in processing Lost Shipments:
• Confirm all tracking information to ensure the package never made it to its desired location • Contact the shipper and provide them with all the details to file a claim for the missing
shipment. Incorporate all sales information for an accurate count of merchandise lost • Contact the customer and give them the option of being credited for their purchase or if they
would like another sent in its place (these packages should be expedited at no cost to the customer)
• Communicate all instances to Inventory Control for further procedure on how to ring sales or adjust inventory accordingly
2.6 Damaged Shipments Delivery to Stores from Warehouse Merchandise received that is damaged during the shipment from the warehouse to the store should be communicated immediately to Inventory Control and the proper documentation (Damage Destruction Form) organized. Guidelines for processing Damages from the Warehouse:
• Inspect all items upon receipt for any damages • Receive all merchandise into inventory as per usual • Create transfers to the Damage account and send all paperwork with supporting documentation
(Damage Destruction Form) to Inventory Control • Cartons that appear to look opened or re-‐taped shut should be inspected while the shipper is
present and any missing or damaged merchandise shown to them before leaving the store Delivery to Customer from Store Merchandise delivered to a customer that has been damaged in shipment should be sent directly back to the store and either their account credited or a replacement sent expedited delivery. Guidelines for processing Damages from Stores:
• Organize a pick up from the shipper to the customers home/office to pick up the merchandise right away for return to the store
• When requested, organize another package of the item that was damaged in shipment and send expedited delivery to the customers home/office
2.7 International Shipments Currently, International shipping from the boutiques is quite limited. Below outlines the stores that are able to ship and the regions where international shipping is acceptable:
UNITED STATES EUROPE ASIA Australia and Canada Intra-‐EU Countries Hong Kong Only
Guidelines for processing International Shipments:
• Ensure all client data is captured (i.e. full first/last name, home/email address, contact telephone numbers)
• Apply the correct shipping charges to each of these shipments (refer to the Shipping Charges policy outlined previously)
• Be sure to include any duties or extra fees in the total transaction so the customer is not required to pay upon delivery
• Contact client to inform them of expected delivery date and give tracking information • Fur or other exotic materials should not be sent internationally without approval of the Logistic
department • All international shipments are to be sent with a signature required at delivery
Section 3: Boutique Administration
3.1 Supplies All Tory Burch boutiques have been set up to order supplies for various uses within the stores. Most vendors have been set up with online ordering capability with each store having its own unique user id and password to order supplies. Below is a list of vendors Tory Burch currently uses and what supplies they offer:
VENDOR SUPPLIES OFFERED Infinity Global Packaging Branded packaging such as shoppers, boxes, ribbon, wooden hangers,
etc. Weeks Lerman Office, Kitchen, Bathroom, Shoe supplies and select printed items such
as client cards, business cards, etc. Uline Corrugated boxes for shipping merchandise Visual Team (Ally Sheppherd) Visual supplies such as lucite props, risers, handbag holders, etc. Operations (Nicole Worsham) Operations supplies such as sign holders, etc. All In One Suppliers Tagging guns and tags, Hold tags, Sold tags, steamers, rolling racks,
plastic hangers, etc. Guidelines for ordering Supplies:
• Supplies should be ordered at regular intervals, ideally once per month, and no more than twice per month
• Each store must use their own user id and password that is generic to their store • Expedited orders are not permitted unless permission is granted prior from Operations
3.2 Opening/Closing Procedures OPENING Routine is very important in maintaining the standards of our very unique boutiques. Prior to opening for business, the below list has been organized to stay focused on what needs to be done to remain on brand before our customers enter the doors: Window Display is in order and ready for opening
All lights are on and in workable condition (including table lamps)
Sales plans for the day are displayed to keep all staff up to date on goals
Voicemails from prior evening are listed and assigned for return calls
POS registers are open and all float accounted for and accurate
Emails are read, responded to and flagged for follow up during the day
Schedules are reviewed and staff has clocked in for work
Client follow up is reviewed and the plan created for each day
Previous days charge sends are all packaged and ready to be sent out
Communication board is reviewed and new communication called out in a morning huddle by the MOD
Music is turned and volume tested
Security cameras are functioning
Candles lit Staff is wardrobed and appropriately Branded
Cleaning crew has completed all assignments for that day
CLOSING It is very important for us to continue to keep the customer experience going until all customers have left the boutique and the doors have closed signifying the end of business for that day. For this reason, we have outlined the below duties that are acceptable to be done before the business day is over and once the business day has officially closed:
BEFORE THE CLOSE OF BUSINESS AFTER THE CLOSE OF BUSINESS Filling in the sales floor with styles that were purchased that day
Re-‐folding the merchandise that is displayed
Ensure all charge sends have been rung up with purchases packed and ready for shipment early next morning
Turn off the music and blow out the candles
Close POS 2 (only when there are minimal clients in the store)
Close POS 1
Remove all trash (for stores with a back entrance) Remove all trash (for stores with only a front entrance)
Clock out for the day Send out any nightly recaps required Ensure all exit doors are locked Staff have clocked out appropriately and have all
their belongings Conduct bag check Set alarms
Nightly Emails Each store is required to send a recap of their total sales and metrics for that days business. Below is an outline of what should be included in each email: SUBJECT: CT 02/10/10 – Actual $7,139; Plan $6,080; Returns: $500; Trans 25; Items 38; Ave. Sale $285, UPT 1.36. Business Breakdown: RTW: 49.3% Accessories: 7.6% Shoes: 43.1% Eyewear: 5 pairs Best Sellers: Julia Dress (4 units) Simone Cardigan (3 units) Puffer Jacket (5 units) Pertinent Information: Today we had a shopping event at the Theta Sorority house at USC. With the help of our College Ambassador, our event brought in about $9,000. Guidelines for sending out Nightly Emails:
• Best sellers should only be the top 5 styles sold that day. Please include the number of each item sold next to it.
• Refrain from including anecdotes, weather reports, etc. • Steer clear of excessive punctuation, bolding words or highlighting of information • Do not select “Reply to all” if you wish to congratulate someone
3.3 Telephone Greeting and Messaging GREETING Answering the telephone should be considered an extension of customer service as if the client was in person in the boutique. Below is a recommended script of what is acceptable to be stated when answering the phone in a boutique: “Thank you for calling Tory Burch Elizabeth Street. This is Judi speaking.” Guidelines for Telephone Greetings:
• Keep the tone up-‐beat and speak slowly so the customer can understand you • Keep conversation in the BOH to a low roar and professional at all time. A customer can hear
excessive noise and conversation while on the phone • The phone should not ring more than four times before being answered
MESSAGING Depending on a recording to relay the Tory Burch brand is quite tricky at times. It is recommended each store use an employee with a very friendly and up-‐beat voice so customer service continues even after the close of business. Below is a recommended script of what is acceptable to be stated when recording the stores answering message: “Thank you for calling Tory Burch Meatpacking store located at 38-‐40 Little West 12th Street. The store is currently closed. Our normal business hours are 10am to 6pm Monday through Friday and 11am to 7pm Saturday and Sunday. Please leave a detailed message and an associate will return your call as soon as possible. Thank you for calling Tory Burch.”
3.4 In Store Music Music playing in the boutiques is the same in all our Tory Burch stores globally. This includes both wholly owned global locations as well as partnerships. The music playing is selected by Tory herself to match her eclectic taste and represent the vibe in each of our unique Tory Burch stores. Players are provided by Play Network who can be reached for service at any time should there be any interruption. Please refer to the vendor contact sheet located in your Register Binders. Guidelines for playing In Store Music:
• Only the approved music is permitted to be played in the store. Personal iPods should never be played, even outside of business hours
• Lyrics on the tracks that are questionable or offensive in nature should be communicated to Corporate Operations as soon as possible
• No maintenance is required for the music player. Simply turn the music on and off each morning and evening
• The music players should never be disconnected for any reason
3.5 Petty Cash Fund Normal business operations will require each store to incur small unplanned expenses throughout the month. For this reason, we have set up each store with a petty cash fund. Below is an outline of the ways petty cash can be used in each store:
OPERATION DESCRIPTION PARTICIPATING STORES
Petty Cash Fund A small amount of money is allotted to each store to be kept in the safe and used for small needs on a monthly basis. Receipts are kept and submitted via petty cash report at the end of each month for reimbursement to the store.
China and Brazil
Paid In/Out Fund Float money is used to purchase needed expenses at the store. The receipts are kept and sent in monthly but no replenishment is required as cash sales will replenish the float on a daily basis.
US, Europe, Hong Kong and Canada
Guidelines for processing Petty Cash:
• Petty cash should be administered only by Store Management • All receipts must be kept on hand and reconciled via petty cash report at the end of every
month (for both petty cash and paid in/out functions) • Ensure the proper reason codes are attached for each expense • Petty cash should not be used for regular expenses such as florists, tailoring, etc.
3.6 Budgeting Each year, budgets are created in partnership with the store management team for the below accounts. It is the responsibility of the store management team to ensure they remain within budgets in all the below accounts throughout the year. GENERAL LEDGER ACCOUNT DESCRIPTION 65000 Alterations and Dry Cleaning 65002 Selling Expense 65009 Office Supplies 65010 Packaging 65021 Flowers 65022 Kitchen and Bathroom Supplies 65023 Printing 65024 Merchandise Related 71503 Repair and Maintenance 71504 Daily Cleaning 71506 Merchandise Repairs On a monthly basis, store's will receive an update on each of the accounts with the vendors that were posted to the above accounts in each month. This should be reviewed for accuracy and any changes to be made communicated to Retail Operations. Guidelines for maintaining Store Budgets:
• Store management should review these each month for accuracy and keep a spreadsheet outlining the detailed costs by month
• Most invoices will come directly to the Corporate office, however, any invoices sent to the store should be coded with one of the above codes and sent to Accounts Payable for processing. This should be done right away to avoid any interruption in service
3.7 Accounting Requirements and Archiving ACCOUNTING REQUIREMENTS The Finance Department requires each boutique to retain and routinely forward certain Sales Audit, Inventory and other boutique related documents/paperwork weekly, monthly or as needed. Please see below for the chart of requirements:
TYPE DOCUMENTS REQ SEND TO FREQUENCY Deposit Slips Bank confirmations Sales Audit Daily Invoices Original copy with coding Accounts Payable As received Expense Reports Originals Regional Manager As needed Damage Transfers Copy of document Inventory Control Monthly Clothing allowance Transfers Copy of document Inventory Control Monthly
Mail Checks Original and Return Sales Receipt Sales Audit As needed In addition to the timely submission of certain boutique related paperwork to the Corporate Office as described above, store business generated documents such as daily sales media needs to be retained at each store for a minimum of six months. ARCHIVING Certain paperwork is required to be kept on file in the store for auditing purposes (i.e. sales or return receipts, etc.) Each year, the store should box up all media saved, label appropriately the exterior of the box and send it off to the designated facility in each region. Guidelines for processing Archives:
• Boxes should be clearly marked with the data enclosed (sales receipts, charge sends, etc.) and then re-‐boxed in a corrugated box to be sent out
• Each store must email Corporate Operations for an archive number before shipping any boxes out. The archive number should be written on the exterior of the box before being shipped out to the designated facility
• All boxes shipped must have an archive number on it • Only the archive number should be written on the outside of the box. The words "Media" or
"Sales Receipts" should never be written on the outside of the box as we want to maintain the confidentiality of the contents of the box to non Tory Burch employees
3.8 Operations Records In order to maintain accurate records of inventory movement, each store is required to keep the below information on hand for 30 days. The below documentation will assist all boutiques when figuring out any inventory discrepancies as well as any customer service questions or issues.
• Incoming or Outgoing Charge Sends • Customer Repair Forms • Consignment Logs • UPS Shipping Logs • Inventory Movement (Receipts and Transfers) • Mail Check Requests
Guidelines for the maintaining Operations Records: • All records kept in store should be organized in a useable format for all staff • Customer data such as credit card information should never be displayed on any of the above
documents • One person in the store should be assigned to maintain the accuracy and organization of these
documents • Wherever possible, the above documents should be kept in a safe place
3.9 Employee Expense Should a Tory Burch employee be required to use their own personal money for company expenses, an Expense Report must be filled out and approved by their Regional Manager to request reimbursement. Guidelines for requesting Expense Reimbursement:
• Receipts should accompany all expenses requesting to be reimbursed. Expenses without proper back up may not be reimbursed
• Refer to the shared drive for a copy of the Employee Expense Report • Employee expenses should never be reimbursed through the petty cash function • Submitting accurate information will speed up the reimbursement process
3.10 Alterations Tory Burch does not offer an in house alterations service at our stores. We will alter merchandise for a client should the item require maintenance due to poor construction. If the Store Manager feels it is necessary for the boutique to cover the alteration cost for a customer, we allow for these decisions to be made at the boutique level. Any alteration services done, should be billed to the store through their partnered alterations vendor. Wherever possible, the petty cash function should not be used to cover this expense.
Section 4: Boutique Maintenance
4.1 Overview As our store's are very unique in appearance and contain may luxe fabrics and designs, it is very important to keep these items maintained as shabby looking furniture, fixtures, etc. will de-‐value the branding image we wish to uphold. A maintenance program has been established for each store to easily keep up with the required maintenance of our very unique store elements. This section will outline how to care for the below items in each store:
• Upholstered Items (Poufs, French Chairs, Stools, Drapes and X-‐benches) • Carpets and Area Rugs • Furniture (Tables, Lamps and Chairs) • Fixtures (Product and Chandeliers) • Brass (Interior and Exterior) • Lighting (Replacement and Re-‐positioning) • HVAC, Plumbing and Electrical
4.2 On-‐going Maintenance Each store has been set up with an on-‐going daily cleaning schedule with a local company. It is the responsibility of store management to ensure the cleaning companies are following the daily, weekly, monthly and quarterly checklists established by Tory Burch. When cleaning companies are not scheduled for a day, it is the responsibility of the store staff to maintain the Tory Burch maintenance standards both before opening for business and after the close of business. Checklists of work to be performed are outlined in the Tory Burch Maintenance Standards Guide located on the shared drive.
4.3 Required Repairs and Replacement While on-‐going maintenance of store items is required, furniture and fixtures in the store will often require to be repaired or replaced completely. For the ease of the stores, we have set up a maintenance company called Service Channel whereas each store can log in and note all items they wish to be maintained, repaired or replaced completely. Service Channel will route all requests to a Tory Burch approved vendor list for a quick turnaround time in the store. Items Service Channel should be used for are listed below:
• Cleaning of upholstered furniture • Steaming of carpet and area rugs • Stain removal of any furniture/fixture • Painting • Lighting replacement • Brass cleaning and lacquering • Area rug replacement and in-‐lay • HVAC maintenance and issue resolution • Furniture replacement requests
At the beginning of each month, store management is required to walk the store and note any imperfections they will to have maintained, repaired or replaced. All notations made should be logged immediately with Service Channel and workers will be dispatched. Keeping our stores in fresh and clean conditions is the responsibility of all Tory Burch staff.
SECTION 5: LOSS PREVENTION
5.1 Theft EXTERNAL THEFT External theft (shoplifting) is a common problem among retailers. Management and associates must be aware of what they can do to detect and to prevent shoplifting. Our goal is to prevent shoplifting and to diminish the opportunities that exist in our stores. SHOPLIFTERS We NEVER apprehend shoplifters. Many shoplifters are so skilled at what they do that they often fool the most seasoned sales associates. For that reason, we should not try to focus too much on how they behave, but rather how our selling skills can be a deterrent. Customer service is the best defense against shoplifting.
Guidelines for Deterring Shoplifting:
• Greeting customers promptly -‐ When a potential shoplifter is immediately greeted, he/she typically realizes that it is more difficult to steal from that location since the sales associate is aware of his/her presence.
• Communication -‐ always tell another employee when you plan to leave the floor. it should never be unattended. If you leave the sales floor unattended, you are giving the potential shoplifter ample opportunity to take our merchandise.
• Selling floor control -‐ At many times in our stores, there may only be two people on the floor. If you have a rush of customers, you may not be able to devote the desired amount of time with all of them. The potential shoplifter will notice this and attempt to steal when you are engrossed with one particular client. Being able to politely excuse yourself from one client to assist others will be a tremendous deterrent and will cut off many opportunities for the shoplifter to steal. The ability to assist more than one customer at a time will alert a potential shoplifter that are aware of everything going on in the store which is a tremendous deterrent.
• Fitting room control -‐ Since most shoplifters prefer anonymity, the fitting room offers the best opportunity for them to steal. Try to control the amount of merchandise that you are bringing into the room for a customer. Whenever possible, mentally count how many items you are bringing in. When placing the items in the room, allow the customer to see that you are placing them in one at a time. To a good client, this process is seamless, but to a shoplifter, she will assume that you are counting the items. When you follow up with the customer while she is in the room and you mention one of the items, it continues the dialogue for you and your client, but to the shoplifter, it serves as a reminder that you are aware of everything that is going on.
APPROACHING A SHOPLIFTER If an individual is observed concealing merchandise, the following procedures will help to recover the merchandise. Associates must always inform their manager prior to taking any actions towards a shoplifter. Remember that the safety and well-‐being of our associates is the most important factor in these types of incidents. No actions should ever be taken that places someone in a threatening position. Guidelines for Approaching Shoplifters:
• Approach individual immediately upon concealment. Continue to sell to them referencing the item they have concealed and what might be a good pairing with that piece
• Allow shoplifters to go into a fitting room, giving them the opportunity to “dump” the merchandise they have concealed
• Act as though they have done nothing wrong and you are simply providing assistance (i.e. “I noticed you have the Tory Tunic in a size 6. Here is a size 4, as well. Why don’t you go in the fitting room to try them on? I can get you some other matching pieces while you are in there.” Always attempt to give the shoplifter an opportunity to dump the merchandise. They will rarely take the concealed merchandise out in front of you.
• Never make statements that are accusatory. If the customer denies having the item, simply apologize and say that you were mistaken
• If the shoplifter leaves with the merchandise, let them go. Call the local police non-‐emergency number to file a report but do not request an apprehension. Where possible, casually observe the direction that the person is headed. If possible obtain a license plate number and a description of car.
• Notify Loss Prevention via an Incident Report Call Sean Bennett for guidance, if necessary. Do not use mall security (where applicable). If mall security responds instead of the police, ensure that you are clear that you are not asking them to apprehend the shoplifters.
WRONGFULLY ACCUSED SHOPLIFTER If the above standards are followed, you should never have a situation where an individual is accused of shoplifting. However, if a member of your staff accuses an individual of shoplifting or the individual states that they feel they are being accused, the following procedures should be followed:
• Attempt to diffuse the situation by explaining that we strive to give everyone excellent service and apologize for the inconvenience and misunderstanding
• Obtain their name and phone number. • Allow the individual to exit the store or to continue to shop • If requested, give them your information using the store address and phone number • Fill out the Incident Report and send to Loss Prevention and your regional manager immediately
for direction. SHOPLIFTING ACTIONS Since most shoplifting can be deterred through selling, there is usually no need to identify potential shoplifters through their actions. However, here are some common actions displayed by shoplifters:
• Wearing unseasonable, bulky clothing • Carries large shopping bag and conceals under legitimate articles. • Walks out wearing merchandise or wears under own clothing. • Creating a diversion in one area of store to divert attention from accomplices • Proceeding to areas of sales floor with limited staff and sales coverage • Utilizing secluded areas and fitting rooms to conceal merchandise • As a reminder, shoplifters should not be treated any different than regular clients. • NEVER judge someone to be a potential shoplifter based on any personal, physical
characteristics.
INTERNAL THEFT Although every effort should be made to hire and maintain an honest team, there may be situations when dishonesty occurs. By adhering to policy and procedure and being aware of the potential causes and types of theft most internal theft situations can be deterred, or at the very least, minimized and addressed in a timely and efficient manner.
WHY EMPLOYEES STEAL • Employees steal for many reasons. Some of the most common are: • Easy opportunity • Financial problems • Feel they have worked hard and “deserve it” • Compensation for perceived inadequate pay • Feel that a company like ours “won’t miss a few items” • Job dissatisfaction
METHODS OF EMPLOYEE THEFT There are many methods that an employee could potentially use to steal merchandise. Some of the most common are:
• Passing out merchandise to a friend • Allowing a friend to steal while “looking the other way” • Placing merchandise in his/her personal bag • Wearing store merchandise and leaving with it • Executing fake returns and issuing credits to friends • Falsifying post voids • Spending an inordinate amount of time in the back of house areas and “stashing” merchandise
that he/she intends to take at a later date • Placing merchandise in the trash • Taking cash from register
HANDLING EMPLOYEE THEFT Every effort must be made to provide a controlled environment that limits the opportunity for internal theft. If someone has a suspicion that an employee is committing theft, the suspicion must be communicated to Loss Prevention immediately. The suspicion should also be kept confidential and not discussed with anyone other than Loss Prevention unless directed to do so by Loss Prevention. The Mainline is an alternative method for reporting suspicions. This telephone number is monitored by an outside company, which allows the associate total confidentiality when reporting his or her concern. The information is then forwarded on to Loss Prevention to review. You may call The Mainline @ 1-‐866-‐546-‐9755. It is the responsibility of every associate to report any knowledge of employee theft to management. Additionally, it is the responsibility of every employee to cooperate fully with any company investigation.
5.2 Internal Controls Internal controls are established to reduce losses (cash, merchandise and company owned property) and to provide associates with safety from personal injury. Strict adherence to these controls will ensure a better work environment for all.
BANKING
• All banking should be done in the daytime hours. If banking before store hours, the store must be alarmed upon exiting
• Two people should accompany all deposits to the bank One must be a manager. • If the manager is leaving people in the store, there must be more than one person and one must
be a keyholder or manager • When going to the bank, no unrelated or personal side trips should be made • No personal banking should be done during the trip
BUILDING ACCESS PROCEDURES All employees must enter and exit the store at designated points for their location. This may vary from store to store and is determined by the General Manager. STORE OPENING PROCEDURES The following procedures must be followed when opening the store:
• A manager and one other associate must open the store together. Under no circumstances should an employee be alone in the store at any time
• If one of the employees who is opening is late or absent, the other may enter the store alone only after having waited fifteen minutes and contacting their direct supervisor immediately after entry
• Before opening the store, check the surrounding areas for suspicious persons • After entering the building lock the door immediately and disarm the alarm system • Only admit authorized Company employees into the store prior to opening. Customers or
friends may not be present prior to store opening STORE CLOSING PROCEDURES The following procedures must be followed when closing the store at the end of a business day:
• Once all customers have left, lock the doors • No one other than store employees may remain in the store during closing. Check the entire
store to verify that there is no one left in the store • Check the fitting rooms and return all garments to stock. We don’t want anyone hiding out. • Make sure that all doors and windows are secured and that no fire hazards exist (extinguish all
candles) • Ensure that safe is locked • Activate the burglar alarm and lock the door. There must be at least one other employee
present during closing • Re-‐entry by any member of management after store closing is prohibited. If an emergency
situation exists that absolutely requires re-‐entry, notification must be made to your direct supervisor
EMPLOYEE BAG CHECK
• Bag checks must be performed by a member of management every time an employee leaves the store during either working or non-‐working hours. Non-‐management employees may check management only when another member of management is not scheduled
• All checks should be performed at the exit. If a check cannot be completed at the exit, it can be conducted elsewhere, but the associate should be escorted to the door by the person doing the check
• It is the responsibility of the employee to open and expose all compartments of purses and bags. The manager must have an unobstructed view to the bottom of every bag. Coats must be put on in the presence of management at the door
• It is the responsibility of the employee to ensure that their bag is checked every time they exit • Whenever an associate leaves the store, regardless of whether he/she has a bag, a manager
should be notified and should verify that there is no bag to check EMPLOYEE PURCHASES AND PERSONAL BELONGINGS
• All employee purchases are to be made only at the end of a shift or on days off. Purchases cannot be made during working hours or on lunch breaks
• Upon exit all purchases must be matched to receipt. Managers should not assume that since the merchandise appears to be wrapped in the same fashion that they do not to detail check the items
BACK DOOR PROCEDURES
• Keep back door locked when not in use. Never leave the key in door • Always use the peephole and identify the caller before opening door • Always have staff supervise the loading and unloading of merchandise • Never leave the back door open while unattended by any member of the store • Back door should be equipped with a “Detex” alarm that provides audible notification of the
door being opened by unauthorized personnel TRASH REMOVAL The following procedures must be followed when removing trash:
• All trash and cardboard boxes will be inspected by management prior to the item being discarded in waste container
• Transparent, plastic bags are to be utilized for trash in order to aid in inspection All cardboard boxes are to be broken down flat prior to inspection and removal from store
5.3 Store Security
KEY CONTROL At time of hire and/or promotion to a keyholder/management position, the employee accepts the store keys and the following responsibilities:
• Maintain control of the keys at all times. Store keys are to be protected from theft and loss at all times, whether on or off duty
• Keyholders are not authorized to pass keys onto anyone including a third party or another member of the store for any reason
• Register keys must be locked in the safe and are to only be used in the case of an emergency • Management is responsible for ensuring all keys issued are accounted for at the end of the
business day CHANGING LOCKS AND KEYS In order to ensure the integrity of the lock and key control system, it will be necessary to occasionally change the store locks. Loss Prevention will be responsible for setting up any key/lock changes.
• Within 24 hours of a demotion and/or termination of a member of management, all locks must be re-‐keyed for security purposes.
• In cases of voluntary resignation, status change or transfer, the locks do not need to be changed as long as the keys are returned and the security code is deleted. If there is any question about a person’s status, contact the Loss Prevention
• If a member of management loses their keys, all locks must be changed ALARM SYSTEM Our alarm system allows us to monitor opening and closing activity, any after-‐hour activity (i.e. burglary), and in chime mode can act as an alert to our employees that a customer has entered our store. The store should always be alarmed when unoccupied (including short trips to the bank). ALARM CODES Pass codes are assigned to authorized personnel only. Pass codes are confidential and only belong to the associate they are assigned to. At no time are associates allowed to share their pass code with anyone. Pass codes will stay active for the length of the associate's employment. If you have lost your code or feel someone else may know the number, you may contact Loss Prevention to get a new code. Guidelines for requesting Alarm Codes:
• Codes are unique to individual people in the store and will never be re-‐used • Each code should be kept private and not shared with other members of the store team • Codes are issued by Loss Prevention to store management and designated key holders in the
store • New or departed employees must be communicated immediately to Loss Prevention for
activation or de-‐activation of the specific code • Changes in schedule or contact number changes must be communicated right away to Loss
Prevention for adjustment to the system. This cannot be done at the boutique level
CALL LISTS It is the responsibility of the General Manager to maintain the store’s call list by contacting Loss Prevention any time there is a change. The call list should be listed
in the order that the store’s managers should be contacted by the alarm company in the event of an alarm. Changing Phone Numbers The General Manager must contact the alarm provider with any management phone number changes. Identifying yourself to the Alarm Company When speaking with a representative of the alarm company, they will ask you for a passcode or password. This password is issued to you when you initially receive your code. If you forget your code when speaking with the alarm company, it could result in a police response. Please notify Loss Prevention if you need your code re-‐issued. SERVICE REQUESTS If you have any malfunctions with the system and need a service call opened, you must contact Loss Prevention. Loss Prevention will attempt to troubleshoot the problem before dispatching service. If service is needed, Loss Prevention will communicate all of the information about the service call to the General Manager. SCHEDULE CHANGES When store operating hours change the General Manager must contact Loss Prevention with the schedule changes as the entrance and exit times are closely monitored by this department In the event a store will need to open or close out of the ordinary operating hours the General Manager must contact the alarm company and let them know that the store will be opening early or closing early/late. AFTER HOURS ALARM CONDITION In the event that a manager receives a call alerting them of an alarm condition at the store, the following procedures must be followed:
• All managers must maintain a list with the phone numbers of the alarm company and local police. They should keep this list with them at all times
• After receiving a call from the alarm company, a follow-‐up call must be made back to them to ensure the validity of the alarm
• Contact local police to ensure they have been notified and dispatched to store. Give a description of your vehicle (or of your clothing) so they can identify you upon arrival
• Upon arrival at the store, do not exit your car (or taxi) until the police arrive. If a suspicious condition exists at the location, keep driving, and alert police once you are at a safe location
• Once police arrive, unlock the store but do not enter until the police have checked the store and determined it is safe
• Once the condition is rectified, rearm the building and lock the door • If the situation is an actual incident and not a false alarm, notify Loss Prevention as soon as
possible • On the following day, complete an incident report and forward to Loss Prevention
STORE RE-‐ENTRY
When closing the boutique for the day, the employee that is responsible for setting the boutique alarm system must ensure that the closing staff has all of their personal property with them before exiting the boutique. If a re-‐entry into the store, after alarming the system, is required, Loss Prevention should be notified immediately (via email) with the reasoning as the system is closely monitored.
5.4 Store Visitors The physical security and well being of our stores, merchandise, employees and customers is of extreme importance. Measures taken to ensure a high standard of security may vary by location; however, certain standards need to be followed on a consistent basis in order to safeguard our stores. VISITING EMPLOYEE PROCEDURES Being employed by the company does not give you access to all areas of a retail store unless it is your home store. Guidelines on handling Visiting Employees:
• Upon presentation of proper identification, visiting employees may have access to employee areas and/or information with the consent of the General Manager only
• Merchandise discounts should be applied per company policy and in accordance with each individual employee’s classification and benefits package
• If there is any question about a visiting employee’s status, you must contact Retail Operations for direction
NON-‐EMPLOYEE VISITORS This policy is intended to help secure and maintain a safe work environment for all employees and to protect merchandise from loss and theft. Guidelines for handling Non-‐employee Visitors:
• Non-‐employee visits should be strictly administered by management • Non-‐employees should not have access to the back of house or any off-‐site storage facilities • Employees should not have personal visitors in the store during work hours • Store tours of non-‐employees can be scheduled and conducted when authorized by the General
Manager and in partnership with the Regional Manager • Break periods with non-‐employees must be conducted off company property • Non-‐employees are not permitted in any store before or after business hours. This includes
during new store opening process MAINTENANCE AND HOUSEKEEPING SUPERVISION Close supervision of maintenance and housekeeping personnel is a policy that must be strictly enforced.
• Maintenance personnel must be verified by management prior to gaining access to the store or to unauthorized areas
• Non-‐scheduled service or repair persons must be approved by the General Manager prior to performance of task or entrance to authorized areas
• Management must supervise any work being done in the store before, after and during store hours
• Bag checks must be performed when any maintenance or housekeeping personnel exit the store
CONTRACT GUARDS Some locations may find it necessary to utilize a uniformed security officer on days of heavy business traffic. When doing so, the following procedures must be followed:
• All security guard coverage must be approved by Loss Prevention • The guard company will be selected by Loss Prevention • Management must record the dates and hours worked by the security guard
• Record of hours worked must be forwarded weekly to Loss Prevention for reconciliation to the invoice
• Communicate to Loss Prevention any inadequate guard coverage or dissatisfaction with performance
MALL SECURITY Mall security (where applicable) should only be used to assist with safety and building issues. They should not be utilized to help deter/apprehend shoplifters. LOCAL POLICE The local police department can be a very effective tool in regard to safeguarding the store. Most departments have a community policing division that can supply management with information regarding trends in theft for the area. Management should partner with the local police to stay informed of local problems and concerns. DISORDERLY PERSON A disorderly person is described as someone who is acting in a manner that is interfering with normal business. In the rare occurrence when there is a disorderly person in your location, store employees should take the following measures:
• Approach the individual and politely ask him/her to discontinue the behavior or it will result in asking that person to leave
• If the person continues, politely ask him/her to leave the store • Do not physically confront the individual • If they refuse to leave, contact mall security and/or local police and inform them of the situation • Never get into a shouting match with a disorderly person. Maintain a professional demeanor at
all times. A confrontational attitude will usually only escalate the situation and sends a negative image to our other customers
5.5 Safety Procedures When most people think of assets, their first thoughts are often property, profit and loss, merchandise and money. However our most valuable assets are our employees and customers. With that in mind we would like to remind you of some basic safety tips. If you have any questions, comments or concerns do not hesitate to call your Regional Manager, Loss Prevention or Human Resources. Safety at Work
1. Keep all fire exits clear of and free of obstructions 2. Know the location of your stores meeting point outside of the store 3. Use a buddy system whenever possible when leaving work for the day 4. Keep all stockroom secured and doors closed 5. Notify management or loss prevention of any suspicious activity 6. Keep an eye out for:
§ Sharp objects left lying around § Overloaded shelves § spilled beverages especially around IT equipment
Safety Away from Work
1. Park in well lit areas 2. Have the keys in your hand as your approach your home or vehicle 3. Keep all valuables and packages locked in your trunk 4. Always lock your doors 5. If you are confronted for your valuables, remember to cooperate, your belongings can be
replaced. Your safety and well being are more important. ACCIDENT REPORTING Any unsafe conditions should be communicated right away to the Store Manager and Loss Prevention for corrective action to prevent injury to clients and staff. Guidelines for reporting Accidents:
• Complete the Accident Report Form (located on the shared drive) and send to your Regional Manager and Loss Prevention for immediate action
• Accidents that require medical attention should be handled in the following manner: o Do not admit fault o Determine the extent of injury (e.g. superficial scratch or deep cut) o Depending on the seriousness of the injury obtain medical assistance through Mall
Security or 911 o Keep the individual comfortable o Obtain their personal data and begin completing Accident Report o Identify and record names and telephone numbers of any witnesses o Make a phone call on their behalf to reach a friend or relative o Attempt to identify the cause of the accident o Notify Loss Prevention immediately
INCIDENT REPORTING
It is extremely important that store management report all loss prevention incidents that occur at their location. By reporting, monitoring, and tracking loss prevention related incidents, we will be better equipped to provide stores with the necessary tools to alleviate these issues. The following procedures outline the proper steps for reporting loss prevention incidents to the Corporate Office.
• Any time there is a loss prevention incident store management is required to complete a “Loss Prevention Incident Report”
• Store management must provide as much detail about the incident as possible • Upon completion of the incident report, store management must e-‐mail a copy of the report to
Loss Prevention and to their Regional Manager • All incident reports must be submitted within 24 hours of the incident • Loss Prevention will maintain a database of all incident reports
5.6 Emergency Procedures On rare occasions store employees may be faced with an emergency situation at their location. It is very important that each associate is aware of how to react to a variety of emergency situations. Emergency Exits Emergency exits are a very critical part of a store’s emergency procedure plan. Each staff member must be familiar with all the stores (or mall) exits especially the ones closest to them.
• Emergency Exit signs must be illuminated at all times and not blocked by boxes, etc. • Alarms on emergency exit doors must be functional at all times and should be tested once a
month • Emergency exit doors must be equipped with hardware that allows them to be opened from the
inside • Discussion of the emergency exits should be part of the first day of orientation of any new hire
that comes on board as well as conducting a quarterly re-‐fresh for all employees Power Failure The most common emergency situation that occurs in a store is a power failure. Although a majority of power failures are relatively short in duration, it is important to follow certain guidelines when a store has lost power:
• Discontinue the processing of any transactions • Place one associate at the customer exit and do not allow any additional customers to enter the
store • Place an associate at the register area to ensure the safety of the cash funds • Ask all customers to please come to the front of the store. Use flashlights (should be kept at
register areas) to ensure all customers comply • Customers must be allowed to exit if they desire • Notify Loss Prevention and your regional manager of the situation • When power is resumed, make sure registers are functioning properly before continuing
business • Audit the register to ensure correct amounts
Early or Delayed Opening or Closing In the event the store is required to open or close outside of the regular business hours, your Regional Manager, Loss Prevention Retail Operations should be notified immediately of the reason. The decision to open/close early or late should be made by the Director of Retail Stores and the Regional Manager. Types of incidents that may require an early/delayed open or closing are:
• Maintenance work • Store meetings • IT systems not functioning • Dangerous in store conditions
Non-‐Opening In an emergency when a store either cannot open for the day or must close mid day, the Regional Manager, Loss Prevention and Retail Operations must be notified in advance of any closings.
Mall locations should follow directions given by the mall with regards to non-‐openings or mid-‐day closings. Once that direction is given, the above people must be contacted to communication to all other necessary company people. Street store locations should consider closing if 50% or more of our competitor locations are also closing. These closings must be confirmed by the Regional Manager prior to notifying all other parties of the closing. Types of incidents that may require a store to not open or close mid-‐day are:
• Hurricane • Tornado • Heavy rain or electrical storms • Heavy snow fall • Earthquake
Bomb Threats In the highly unlikely event that a bomb threat is received at a location, the following procedures have been established to ensure a safe and orderly evacuation:
• If a bomb threat is received, remain calm. During the call, attempt to take note of background noises, dialect and distinctive phrases
• Upon receipt of the call, management should immediately call 911 from a different telephone that received the call, if possible. Follow their instructions
• Management should calmly search the store for any suspicious-‐looking packages. If a package is found, begin the evacuation process. Do not touch or attempt to remove the package.
• Assign an associate to the entrance to facilitate an orderly evacuation and to ensure that no one enters the building. Do not tell customers about the bomb threat. Simply tell them that there is a problem in the store, and that you need to temporarily evacuate the building
• Void any POS transactions that are in progress prior to exiting the store • Search the building from back to front to ensure all customers have exited • Once all customers and employees have left the building, lock the doors and escort everyone a
safe distance from the store to wait for police • Be aware that bomb threats are occasionally used as a distraction by shoplifters. You should not
be focused on the potential for shoplifting, but should be aware of everyone’s activity
Incidents of Violent Crime These procedures have been developed to enhance employee understanding of personal security and safety considerations. The objective is to minimize the risks associated with a violent or potentially violent situation. In the event of a violent or potentially violent situation:
• Remain calm. Immediately stop what you are doing and give your attention to the criminal(s) • Assume the criminal(s) is armed even if a weapon is not visible • Listen to instructions carefully and carry them out calmly and deliberately • Cooperate. If the criminal(s) instructs you to do something, do it • If the instruction requires you to move, explain your movement to the criminal(s): “I have to
open this drawer to get the key.” • Speak softly but clearly, so that you can be understood
• Never scream, make sudden movements with your arms or hands, or argue • Never use profanity or any terms of disrespect • Never stare. Focus on any spot other than the criminal(s) face • Never attempt to call the police or mall security unless the criminal(s) specifically instructs you
to • Completely follow all instructions of the criminal(s) • After the criminal(s) have left the building, lock the doors so they can not re-‐enter • Contact the police • Contact Loss Prevention
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