Store Closing Sale - A response to local government passing their blame.

Thoughts and prayers go out to the family of Loyce Wright as this is just a tragic and meaningless act of violence.  Reading about someone being shot while working and the resulting loss of life, just saddens me.  We should all take more time to stop and think how we would feel if this was to happen to our family?  What would we expect from the local authorities, company, and surrounding community?   How would we react, respond, and support good change and improvements to make our communities and workplaces safer?  This is the time to do more than only just extend our condolences.   This is our time to stop and feel.

Me, I don’t believe for one minute that this tragic event was the sole responsibility of the company and the fact that this article only cites a history of violations, complaints and investigations tends to suggest that exact thing.  I don’t know how many of us drive through communities like the 19th Ward in Chicago, but I would say that the experience can be very different than what many of us are used to experiencing in our local communities. 

The 19th Ward is an all-too-common example of a community in our country.  Another area where people feel unsafe to be out among their neighbors.  Schools, parks, and places of gathering go unmanaged if they even exist.  A community that when large groups gather many of us feel anxious and unsafe, rather than excited or joyful.   Many stores, shops, and other businesses continue to struggle to operate safely in these areas, many others just close.   We are seeing examples of large retailers closing locations all over the nation citing similar issues and underperformance. 

I need to call out and challenge Kennedy Smith and Matt O’Shea on their comments about companies that make billions not caring about their safety or just taking an easy way out by just paying the fines.  I think these are very easy comments to make and quite frankly, a cheap shot.  Fines alone cannot be the sole solution here without follow up, partnership and accountability taken by both the community and businesses.  I think that you both need to take a step back and gain more of a perspective on this growing situation to include productive thoughts around improvement.  Doing business in your neighborhoods can be difficult and, passing the blame will not get us closer to any improvement in your community.  Rents, Property Taxes, Fuel and Gas prices, all continue to rise with no relief in site.  Securing safe and affordable public transportation is getting tougher, especially in parts of the 19th Ward. Family Dollar stores and other smaller market operators are often the best an only option for your local families to supply and feed their families within a safe walking distance.  Many of these operations even manage and offer goods and services at a much higher retail price than the larger big box retailers.  This is one reason why we see 24000 Family Dollar stores in the US, Canada, and Mexico, it’s a lower cost convenience and necessity too many.  Smaller overall transactions than some of the competition, and over 120k employees, operating expenses, taxes along with other fees take a deeper cut into overall revenues more now than ever.  The pressures to manage loss is real for business and we all need to take part in an improving solution.  Revenue and expense concerns always find a way to follow each other and large companies like Walmart and McDonalds have both recently closed several locations in Chicago for “under performance”. 

I would hope that these issued fines were used in the case of last resort as these expenses only get roll up into the cost of goods and always hit the final price to our consumers and that doesn’t help any of these issues.

Family Dollar also doesn’t get off easy here because safety should be the first focus of all organizations.  Companies do need to do more to understand the problems they face in the communities that they service.   No longer can we continue to operate the same and expect a different result.  Retailers all over the nation have a security presence, often at the front door.  Does that really make anyone feel safe?  Do your customers even really notice these associates?  Many cities have taken a lighter hand with the punishment of theft which have dramatically reduced the effectiveness of these types of security procedures.  I would argue that these changes have also increased the risk of violence and injury. 

What can be done to think differently and change?  Many retail locations have also been historically designed to create flow and security for their people and merchandise.  Check outs are often located between their merchandise and the door.  These check outs also usually create a barrier between the clerk and customer.  These are old retail design principles that most of us never think about.  Maybe we need to look at creating that barrier between your security person and your customers.  Enhance your camera and surveillance to include your parking and lot space.  Elevate your security station and find a way to display this view as customers enter and exit.  Knowing that a retailer is collecting video can be an effective deterrent when criminals see themselves.  Collecting and keeping video of the outside lot activity can be a game changer as it offers more complete evidence of a suspect’s car and direction traveled.

Thieves are almost always thinking about easy opportunity and easier money.  Think more about taking both away.  Cashless checkouts, open layouts, curbside pickup, staff assistance to a car and delivery options have all shown some positive results around reduction of crime and theft.  

Community leadership also owns change, consider designed curbside pickup and drop-offs in key shopping areas, stop taking pictures on trashcans and start cleaning up the community, enforce clean space guidelines and requirements on property owners, help parents by enhancing education and after school programs, stop charging parents for the extras.  It’s hard to make a good life for a family, look to make it easier and safer.

My intentions here with the response is not to start a debate, only to influence more thought and possibly change. 

Jon Siffing, CEO - Dayton Management Group