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