Loss Leadership Toolkit · Confidential · For Internal Use
Store Walk Diagnostic
4 P's of Loss Diagnostic
A leadership tool for store walks
This diagnostic helps leaders understand where loss is coming from, why it is happening and what needs to change. It is not a compliance checklist. It is a structured conversation tool that invites judgment, root-cause thinking and prioritised action.
Designed for Store Managers · Area Managers · Loss Leaders
How to Use This Tool ↓How to Use This Tool
This diagnostic is designed to help leaders identify where loss is coming from, why it is happening and what needs attention first. Use it during store walks as a structured conversation guide rather than a tick-box audit.
- Prepare with your numbers. Before the walk, review your financial data. Know your shrink trend, top opportunity categories and any exception or incident patterns.
- Work through each P. Move through People, Place, Process and Product, or start with the section most relevant to your biggest opportunity. Use the questions to guide the conversation, not replace it.
- Rate each section. Good Order = controls in place and working. Opportunity = gap or weakness identified. Deep Dive Required = needs immediate follow-up or investigation.
- Record observations honestly. Write what you see and hear, not what you expect. The best diagnostics capture real evidence, not assumptions.
- Use the conversation prompts. The prompts below help anchor the discussion and move from observation to action.
- Link to your action plan. Every Deep Dive Required or Opportunity rating should generate a named action with an owner and due date.
Conversation Prompts
Use these questions to anchor your store walk discussion and move from observation to action.
- What are the numbers telling us about where the risk is?Ground the conversation in data. Start with evidence, not opinion.
- Where are the biggest opportunities or vulnerabilities right now?Focus attention before exploring. What are the highest-priority areas?
- What is working well and what is being missed?Acknowledge strengths first. Gaps often become clearer once strengths are named.
- What evidence do we have of consistent control?Separate what happens consistently from what happens occasionally.
- What is the root cause behind the issue?Push past the surface. What is actually driving the problem?
- What action will reduce the risk fastest?This will help inform the Loss Action Plan.
"This diagnostic helps us understand where loss is coming from, why it is happening and what needs to change."
People
How strong is the leadership, culture and accountability around loss in this store?
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Do leaders know their numbers?
Can leaders explain their current loss trend, week-to-date and month-to-date performance? What is driving improvement or deterioration? Are they reviewing data regularly, or only when prompted?
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Are expectations clear and consistently reinforced?
Do team members understand their role in reducing loss? Is loss discussed in huddles and regular communication, or only at stocktake?
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Is there a strong incident reporting and escalation culture?
Are incidents reported consistently and with enough detail? Are suspicious behaviours escalated, logged and followed up? Is there any sign of under-reporting or normalisation of theft?
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Are leaders actively coaching loss-prevention behaviours?
Are leaders checking, verifying and reinforcing the behaviours that reduce loss? Are coaching conversations happening regularly and with purpose?
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Is accountability visible in this store?
Are loss actions owned, tracked and followed through? Do leaders hold themselves and their teams to account, or are the same issues recurring without resolution?
Confidence in numbers, ownership of loss, team awareness, quality of communication, follow-through on actions, visible leadership discipline.
Place
How effectively does the store environment reduce opportunity for loss?
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Are entrances, exits, and registers visible and controlled?
Are sightlines clear from key positions? Is there clutter or concealment near exits? Are registers and service counters monitored, tidy and free from workarounds?
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Are fitting rooms and blind spots actively managed?
Are fitting rooms attended and item counts enforced? Are blind spots identified and mitigated through team positioning, mirrors, or CCTV coverage?
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Is back of house secure and access-controlled?
Are stockroom and BOH access points controlled? Are restricted areas limited to authorised personnel only? Are keys managed and accounted for?
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Is CCTV operational, well-positioned, and actively used?
Is CCTV credible and covering key risk areas? Does the team know how to use it? Is footage reviewed proactively?
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Are deterrents, signage, and security hardware in good order?
Are EAS, alarm systems and loss-prevention signage operational, maintained and visible? Do they create a credible deterrent environment for customers and the team?
Sightlines, clutter, concealment risks, access control, visible security measures, environmental weak points, areas of poor oversight.
Process
How well are the routines, controls, and reporting processes protecting the business?
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Are key operational processes being followed consistently?
Are cycle counts and fill routines completed accurately and on time? Where are the gaps between process and actual execution?
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Are receiving, transfer and verification processes controlled?
Are DC deliveries, IBTs, click-and-collect and supplier deliveries scanned, verified and receipted within required timeframes? Are variances identified and actioned?
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Are exception-generating processes tightly managed?
Are refunds, disposals, RTVs, write-offs and markdowns authorised, reviewed and reconciled? Are exceptions left open, or actioned within timeframe?
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Are reporting routines current and followed through?
Are dashboards, incident logs and loss reports reviewed regularly? Are exceptions followed up, or are they accumulating without action?
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Is process compliance verified, not just assumed?
Do leaders check that processes are actually being followed, or is compliance assumed because no issue has been raised? What is the evidence?
Control discipline, process adherence, exception management, reporting quality, repeat errors, gaps between policy and execution.
Product
How well is stock protected across the full product lifecycle; from receiving to sale?
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Is product received and recorded accurately at every stage?
Are discrepancies, short deliveries and variances identified and escalated at the point of receiving? Are negative SOH positions reviewed and resolved promptly?
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Are high-risk items adequately protected on the shop floor and in BOH?
Are high-value or high-theft products locked, tagged, or placed in controlled displays? Is protection consistent across all areas and all shifts?
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Are stock movements visible, accurate and traceable?
Are IBTs, adjustments and stock movements completed correctly and reconciled? Are unexplained variances investigated, or left unresolved?
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Are held stock, aged items and laybys controlled?
Are laybys, customer holds, CSR orders and aged items valid, current, clearly labelled and securely stored? Is anything overdue or unaccounted for?
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Is there any unexplained loss, damage, or discrepancy?
Are there product categories or areas showing unexplained shrink, damage patterns, or stock accuracy issues that have not been investigated or escalated?
Stock integrity, high-risk categories, receiving accuracy, product vulnerability, unexplained movements, shrink patterns, lifecycle exposure.
Store Context
Section Summary
| Section | Rating | Key Observation / Priority Theme |
|---|---|---|
| People | ||
| Place | ||
| Process | ||
| Product |
"This diagnostic helps us understand where loss is coming from, why it is happening and what needs to change."
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