The Challenge

A leading specialty retailer was concerned about losses being incurred at the front-end of their stores. Although the retailer was aware of inconsistencies related to cash register transactions, management did not know the extent and source of the problems.

Sophelle’s Assessment

Sophelle conducted a complete front-end audit of all store systems and procedures, including:

  • Sales
  • Returns
  • Exchanges
  • Tendering
  • Discounting
  • Cash Management
  • Taxation
  • Employee Training

Sophelle identified several significant data and system integrity issues. In particular, store coupons posed a major problem. Sophelle found that coupons were not properly tracked, allowing for undetectable cash register theft by store managers and associates. In fact, upon review of Sophelle’s findings, a senior management official stated, “No one in the company was getting richer than the individual store managers.”


Sophelle recommended specific enhancements to the point-of-sale software and changes to the register balancing processes to achieve consistency throughout the chain’s stores. Store managers and associates were given specific protocols for all transactions, and a tracking process for coupons ensured that theft could not go undetected.


With the introduction of the system and process enhancements, front-end losses were dramatically reduced. In fact, within two months, they were virtually eliminated. In addition, the coupon tracking system now provides more accurate promotional data on marketing effectiveness, further enhancing the company’s ability to profit.

Please contact Sophelle today for more information.