AAR AUDIT

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AAR Sections 1-4

Brand

Are all products security tagged as per the brand retail standards module? Criteria for "YES" - Security tagging can be flexible according to market needs - however these principles should be followed in cases where security tagging is implemented - Place the security tag in the most hidden position possible - When putting the pin through the garment, ensure it is placed through a seam to not damage the garment - Ensure security tagging is consistent through the whole store.
Are accessories merchandised tidily with brand retail standards as well as cross merchandised throughout categories? Criteria for "YES": 1. The accessory wall and/or fixtures are full, well arranged (bags, socks, bottles, etc.) and located near the cash desk (BRS). 2 The accessories used for cross-merchandising correspond to product category they are added to. Item is checked if categories of goods are available.
Pricing is clearly communicated and displayed on fixtures, products, and mannequins. (If applicable) Criteria for "YES" - Check for 10 products in Concept stores and 20 products in FO if price on the ticket matches the product and if the correct price for the product shows up on the till when scanning.
Is the lighting highlighting the space and product in the best possible way? Criteria for "YES" - Throughout the store lighting should be positioned on mannequins displayed and product, no lighting should be shining on empty wall space. No lightings are blinding the eyes.
Best sellers are positioned adjacent to Stockroom entrance or close to shop floor Criteria for "YES" - Best sellers for the week are placed close to the entrance/exit/elevator and are easy to find in the stockroom. A dedicated area can be set up to help the store replenish fast selling products.
Are highlight/new products as well as exclusives visible in priority 1 locations? Criteria for "YES" - Check if the top 10 articles from the weekly best seller report (or other focus products in FO) are displayed in prime positions of the store, if space and stock availability allow, should be double displayed and presented at eye level (e.g. front-facing for hanging apparel)
Is the footwear wall set up as per the latest guidelines? Criteria for "YES" - Footwear should be organized by latest updated silos and following the priority placement from top to bottom to score a yes.
Are footwear brand retail standards applied? Criteria for “YES”: 1. FO: Highlighted footwear (e.g.in window display) is laced neatly. 2. BCS: All presented footwear is laced neatly, no twisted laces, no laces untucked and hanging loose, and shoe fillers are used (ISC Directive, BRS). 3. BCS: Running shoes should use the cardboard shoe filler that comes with from the factory; plastic shoe fillers are not to be used. Check at least 20 shoes (in both formats) 18 out of 20 must be correct to answer “YES”.
Are all products clearly arranged by layout principles? (Division, sports, gender, category) Criteria for “YES”: 1. Brand Division (SP, Ori, excl. RBK): should be adjacent to each other not mixed (where applicable). 2. Gender (SP, Ori, RBK): Divisions are split into men, women, and young Athletes / Kids (if applicable). Unisex footwear can be double displayed. 3. Sports Category (Performance): products are divided into Running, Training, Football, etc. Originals silhouettes should be divided by Families (Running / Classics etc.)
Are all folded products at the highest standard, with variation throughout the space? Criteria for “YES”: Folded Products are displayed as neat stacks and follow the suggested folding techniques as per VM&ISC Module: Brand Standards. Check at least 6 pile of clothes. 5 of 6 must be correct to answer "YES".
Are hanging products presented on the correct height and on correct hangers with appropriate spacing? Criteria for “YES”: Articles are displayed with correct hanging spacing. Correct hangers according to products and Concept are used. Hanging apparel is hung properly, zippers up, collar folded and buttoned up. Check at least 10 hangers in CS and 20 in FO. 90% must be reached to answer “YES”.
Product replenishment is completed, and all available sizes are displayed on the shop floor. Criteria for "YES": Check at least 8 different apparel items and give priority to the best sellers/fast selling products. (3 men´s, 3 women’s, and 2 kids) if there is a complete size range/ or an appropriate quantity on the sales floor. If there is a missing size on the floor, verify via REPS App that size is not available in store (check the system or physically check the BOH). 7 of 8 must be correct to answer 'YES'.
Do the mannequins fulfil the health and safety requirements? Criteria for "YES": Check all mannequins in store and make sure they are fulfilling the health & safety requirements (escape routes, extinguisher, no risk of falling etc.)
Are mannequins and platforms in good condition? Criteria for "YES": Check at least 5 mannequins in store for broken fingers or other damaged parts. Minimum 4 of 5 need to be in good working condition for reaching "YES".
Is the consumer journey following the storytelling principles? Criteria for "YES": Are the touchpoints activated with the current campaign (Windows/Launchzone/category area/ftw wall)
Are products displayed on the mannequin easily to find nearby? Criteria for "YES": 1. the customer can find the presented product within a very short time nearby 2. well restocked and all sizes are available
Are mannequins styled according to key looks/Bestsellers articles and/or in line with seasonality? Criteria for "YES": 1. Realistic outfit presentation including accessories and shoes following the VM guidelines 2. Mannequin should include bestsellers
Are products in windows easy to find in launch zone? Criteria for "YES": Window products are presented in the launch zone, promotional areas or other prominent selling spaces and can be found within approx. 30 seconds of entering the store / floor. (ISC Directive).
Merchandised products in the windows are displayed based on the marketing calendar and VM guidelines Criteria for "YES": 1. Make sure that the correct outfits are worn 2. Make sure that the ISC Directive is being followed 3. Correct execution on the mannequins
Are the opening hours clearly posted? Criteria for "YES": 1. Sticker with store opening hours is clearly visible and includes the local website. Proper template is being used. 2. Check opening hours as well on digital devices (App, Store finder, Google)
Is the store outer zone (Facades, logos, windows, lighting) clean and in working condition? Criteria for "YES": 1. Store logo is clearly seen from the street / inside the mall. 2. Logo is not obstructed, and lighting is working. 3. The outer entrance zone is clean. 4. Facades and windows are clean outside and inside with no visible damage or spots. 5. Lighting is functioning and correctly focused.

Operations

Cash desk user access rights are set up correctly and monthly updates are reviewed? Criteria for "YES": 1. All employees have authorization code assigned in POS system. 2. Assigned level of user rights is aligned with employee's contract position and reflected accurately in the POS system. 3. Employees that no longer work in the store are de-activated; blocked & terminated in POS system. 4. Employees on temporary leave are blocked with correct reason status reflected in POS system.
Back office and safe are organized and locked when unattended. Criteria for "YES": 1. The office and/or cash office is organized, clean, tidy and gives a professional impression. Paperwork is stored in folders and no unnecessary paper is lying around. 2. Where applicable, the office is kept locked when empty. If cash is being handled, the office is locked, and 2 people are present. When not in use, the safe is locked. 3. Password and/or key for Backoffice and SAFE is secured as per required local Foundation standards. 4. All personnel files from employees are stored following local legal & HR regulations.
Team ensure that all store keys are locked in a designated area and key cabinet codes are changed every 6 months or when an employee with access leaves the company. Criteria for "YES": 1. The key cabinet is locked and "The Key Log Form" is up to date detailing all of the keys used in the store. 2. The "Nominated Key Holder Form" includes all current owners of the main store key and is up to date. 3. The correct number of people have access to store passwords (e.g. 3 employees have access = 3 names on the list). 4. Both forms are located in the main safe, not in key cabinet. 5. Keys should not be named by location they open or attached to adidas/Reebok keychain. 6. Number on the Key should match the number on Key Log Form. 7. Codes must be changed every 6 months or when an employee with access leaves the company.
Team follows the documentation policy manual to organize binders and folders. Criteria for "YES": The following paperwork must be kept on file for each store according to the legal requirements in the country: 1. End of Day Reconciliation Reports. 2. Cash Desk Drawer Reconciliations. (e.g. Z-Report, Credit Card Summary reports, Float entry, Tender declaration, Promat/marketing transaction, Open drawer, Return/exchange, Employee/Partners Discounts, price overrides, void transactions, Bank Deposit Receipts, etc.) are double signed by Store Manager or manager-in-charge. 3. Any other local documentation which needs to be signed daily is also signed in accordance with local standards. (e.g. Staff & visitors sign in/out, Bag check, Locker check, Signature list, Nominated key holders list, etc.). 4. All folders are setup correctly and according to Documentation Policy and local standards.
Stockhero app is actively used to serve our customers. Criteria for "YES": 1. Store team is using StockHERO app to check articles and sizes availability for consumers and checking EA options in case of no stock. 2. Store team is maximizing selling opportunities by using StockHERO to find articles sizes in nearby stores. 3. All team members have received training for the usage of StockHERO and are able to demonstrate how the app functions
Stockroom has a working table where tools and consumables are organized and fully replenished. Criteria for “YES”: 1. Working tables are in place to organize process products (Tables are at the appropriate height according to health & safety standards). 2. Clean, organized, near receiving zone and apparel area. 3. All tools and consumables are well organized and fully replenished. 4. Working material and all stockroom equipment (e.g. hangers, security tags, price labels, lists, etc.) are organized and quickly at hand for product handling. 5. Printer, handhelds and price scanners are available and working.
Cycle counts are performed, and discrepancies reported on time. Criteria for "YES": 1. Cycle count must be performed related to the store specific cycle count rhythm/ratio (weekly/bi-weekly) or upon store request for valid count reason, ideally on Bottom Line Wednesday, in the morning before trading. 2. Negative Stock issues, Items Returned in last 2 weeks, Top 10 high priced articles and Top 5 best sellers of the week and any other articles defined by the Inventory Controller are counted. 3. Physical count of the article is performed via FIORI device by store staff and system check with final count submitting to Backoffice is done by Store Manager/Manager-in-Charge. 4. Write-off adjustments for variance (staff uniform, damaged goods, aged goods, Promat sales) are done by the Store Manager/ Manager-In-Charge in FIORI. documents are completed, signed, and filed in respective folder
Defective and damaged products are kept in a separate place in the stockroom and processed accordingly. Criteria for "YES": 1. Defective and damaged products are clearly separated from regular stock whilst investigation is carried out. 2. Any stock returned by customer as damage must have purchase invoice attached. 3. Defective and damaged products (customer returns) are adjusted in the system via FIORI at least ones a week and paperwork must be signed by the store manager and attached together. 4. Product with in-store damage should be investigated and written-off at on the same day, but at least on weekly basis via FIORI. 5. All damaged products including Flocking letters and numbers should be disposed as per instruction of the Retail Back Office following the Global Product Disposal Policy.
Store to store transfers and returns to DC are actioned correctly. Criteria for "YES": All transfers should be done via FIORI device only!
All "Open cartons" are checked on a daily basis. Criteria for "YES": 1. System is checked regularly for outstanding deliveries/cartons. 2. Any delivery issue (damaged carton missing items, items discrepancies, surplus, missing items, wrong delivery address label) must be reported via the COMPLAINT TOOL within the defined limit in the Foundation. 3. not arrived / missing cartons must be raised via the COMPLAINT TOOL within one week related the expected delivery date (but not on the same day or 1day later to avoid invalid warehouse validations because of delivery delay)
Delivery receiving is actioned correctly. Criteria for "YES": 1.Delivery area exists and is used for delivery receiving only, not for storage. Cartons are validated at delivery (address, quantity of cartons, damages). If quantity and/or address of delivered cartons are not correct, this is to be clarified and noted on Proof of Delivery (POD). 2. Received cartons are scanned within the same day. (If applicable, all pallets and/or cartons are counted, checked, and scanned in, and the manager on duty has signed or claimed the proof of delivery)
Apparels, footwears & accessories are organized as per house of retail principles. Criteria for "YES": 1. Stockroom space is clearly split by Gender, Division & Category (Originals to arrange by product franchise). 2. Footwear’s are arranged by articles and size runs from left to right and top to bottom within a shelf. 3. Apparels are arranged by articles & product type and size runs top to bottom. 4. Accessories are arranged by article and product type. 5. Navigation signs are installed based on Heart of Retail guidelines for ease of finding products.
Replenishment deliveries are prioritized first and delivery receiving, and processing are actioned correctly. Criteria for "YES": 1. Receive delivery during designated time and in dedicated receiving area in the stockroom. 2. Cartons are validated at delivery regarding address, quantity of cartons and damages before signed. 3. The delivery must be counted upon receipt and no later than the same day of receipt. 4. Replenishment of these products are prioritized to ensure consumer satisfaction. 5. Any delivery issues must be reported within defined time limit in the Foundation.
Products are returned promptly from fitting rooms try-ons and fitting rooms are clean and tidy. Criteria for "YES": 1. All products shall be returned to the sales floor if consumer is not purchasing. 2. Fitting rooms must never be used as storage space. 3. All fitting rooms are clean and tidy. There is no dust, dirt and no stock, hangers or loose tags left in the rooms. 4. All mirrors are clean. Fitting room hooks are operational. Seats are in place, if applicable. 5. Access to fitting room is monitored and controlled by a team member.
NPS Ipads are available in store and fully functioning. Store management share NPS results and improvement plans with the team. Criteria for "YES": 1. Ensure NPS terminals are on and functioning. Store ISC is visible, and terminals are not out of consumer’s sight. 2. Store Management reviews detractor feedback daily and ensures call-back is performed to further understand the consumer and provide suitable solution. Goal should be to convert these detractors into our promoters. 3. All inner loop action plan is driven by the SM to improve consumer experience in store. 4. Recognition is given to team for positive feedback, also improvement feedback is shared to act on what the consumer is saying.
Digital screens and consumer facing tablets are working and show appropriate content. Criteria for "YES": 1. Digital screens display (LED screens, TVs, computers, picture presenters, etc.) and tablets (if applicable) show appropriate brand-approved material (e.g. videos reflecting the brand or television sport programs like football 2. All technical functions of the devices (such as loudspeakers, touch functions etc.) are working properly. Tablets are fully charged. The equipment is in good condition.
SAM devices are correctly used and fully charged. Criteria for “YES”: 1. SAM devices are clearly visible on store associates. 2. Store associates demonstrate their ability to use SAM devices to effectively serve our consumers. 3. Ensure SAM devices are fully charged and ready to use for each day of business. 4. No applications, other than those prescribed by Global IT, are installed on the SAM devices. 5. Ensure that only authorized and properly trained team members know the access code (change the access code at least every 6 months). 6. SAM devices must never be left unattended on the shop floor unless they are integrated in a stand.
Store and especially experience space is tidy and available to use. (If applicable) Criteria for “YES”: 1. Experience space is clean and tidy, kept in good conditions. 2. Equipment is working, no obvious damage is visible. Damaged material / equipment is reported, removed, and replaced. 3. The area must be used for its purpose only. No boxes, unfolded products or other products not belonging to the area are stored there. 4. Store staff is proactively offering the experience area to the consumer. The consumer feels welcome to use the area (no closed doors).
Are all systems (POS), devices, and/or hardware functioning correctly? Including music system. Criteria for "YES": Check the following devices to make sure they are functioning properly: POS, Traffic Counter, Hardware, CCTV, Music system, speakers. If there are multiple devices check more than 1 of each type. If 1 is not working, answer 'NO' and include notes in comments on their next steps and actions to fix it.

People

High risk transactions like customer returns, VOID transactions, price overrides, No sale, etc. are authorized by store management, signed and filed. Criteria for "YES": 1. Consumer returns, void transactions, price overrides, no sale, etc. are authorized by store management, signed, and filled correctly. 2. The number of return invoices matches the number of transactions in the POS system. 3. Invoices should be signed by the consumer, a cashier, and a Store manager/Manager-In-Charge. 4. CCTV check completed for reviewing high risk transactions. 5. All employees are using their own password to access POS system and there is no sharing of POS user account or password.
Team know policies for how to manage all cash related tasks in the store. Criteria for "YES": 1. All reports related to Daily Safe Entry (Daily Safe Log), End of Day Cash up and Cash Drawer are double signed and archived. 2. Cash preparation, End of Day Cash up, and banking must be completed in a locked office, in the presence of two employees, one being Store Manager/Manager-In-Charge. (Rule of two). 3. Cash collection is done regularly and as per agreement with the Cash Collection company. 4. Any cash discrepancy above/below local threshold must be reported to DM, ROM, PP & Finance team via Incident reporting tool. 5. Analyse risk areas, cash shrinkage and irregular POS transactions to ensure store/company profits are protected.
Team follow health and safety procedures and report incidents to relevant retail back office functions. Criteria for "YES": 1. Any incidents types including theft/fraud, suspicious behaviour, health & safety, and damage & burglary should be reported through the Incident Reporting Tool. 2. All outstanding topics are being followed up with Health & Safety responsible person in Retail Back Office. 3. Check for last 2 incidents to ensure all detail is recorded, and in a timely manner. 4. Incident management book is being used.
Store management has the knowledge of all health and safety requirements in store. Criteria for "YES": 1. Emergency exits are visible and unobstructed. Emergency evacuation plans including local fire protection regulations are in place. 2. Fire alarm & break glass have been tested. 3. Fire extinguishers are available. and checked. The expiry date is not due. 4. First aid box is available and maintained. The content matches the list provided by Retail Operations/Profit Protection Team. The expiry date is not due. 5. CCTV cameras, security gates, store alarm, counterfeit money detector are all working. 6. Hazardous substances are within required levels and safely stored. 7. Correct ladders and safety knives are in use. All electronic equipment is safe. 8. All fixtures, fittings, and equipment on the sales floor and back of house are secured and maintained in good conditions.
All key documents updated on communication board? Criteria for "YES": 1. Roster/Scheduling (Week/Month). 2. Cash collector information. 3. Emergency contact numbers. 4. Campaigns, Staff incentives. 5. Updated store & back office contact list. 6. All other documents should be available in SAM digital folder e.g. Best/worst sellers, Sales & KPI’s, weekly updates, etc.
Are team huddles conducted daily? Criteria for "YES": 1. Team Huddles are held daily, including mid shifts. 2. Store leaders know the I-cubed formula for a successful Huddle. 3. They create the right dynamic finding the right balance between task and group process: Information + Involvement = Inspiration
Are store leadership actively using the role of team captain to lead service during the defined trading periods for this store? Criteria for "YES": 1. Store leaders can clarify the responsibilities of Team Captain 2. Store leaders understand the importance of Personal and Material Service 3. Store leaders know how to prioritize tasks to maximize service 4. Store leaders visibly action plan on how to bring Team Captain to life as salesfloor leaders.

Service

Store leaders provide regular feedback and coaching to the store team. Criteria for "YES": 1. Store leaders demonstrate the EEC model when providing feedback or coaching 2. Store leaders coach in the moment based upon 1st hand observations on selling and service skills 3. New store leaders are comfortable and confident in the use of the CEI coaching sheet
Store leaders are recognizing their store staff. Criteria for "YES": Store leaders can share examples of recent recognition (Public praise during a huddle - delegation of a huddle or a team captain shift - being the buddy for a new joiner - celebrating a birthday...)
Are store leaders communicating about service? Criteria for "YES": Store leaders actively share examples of great service and special service examples during daily team huddles and when on the salesfloor to ensure the team are always ensuring that every moment matters for our consumer.
Store leaders are role modelling service behaviours on the shop floor. Criteria for "YES": Observe a store leader on the shop floor. They actively demonstrate the 20 essential and 10 hero behaviours of our Connect Engage Inspire service model during consumer interactions.
Do store staff create lasting impression? Criteria for "YES": Observe 4 consumers checking out. 3 times out of 4, store staff thanked the customer for their visit and ask them to leave feedback.
Do store staff check if the customer is part of Adi Club? Criteria for "YES": Observe 4 consumers checking out. 3 times out of 4, Store staff checked and propose to join if not member yet
Make the check out quick and easy for the customer. Criteria for "YES": Observe 4 consumers checking out. All store staff applied the following Store staff are is professional, friendly, and careful - check all footwear to make sure both shoes are the same style and size. Talk to the customer as you go through the payment process. Wrap and place purchases in carrier bag with care.
Do the store staff offer advice and suggestions to the customer to help them choose? Criteria for "YES": Observe 4 store staff when selling a product. 3 out of 4 shared styling advices or gave their genuine opinion to help the customer make a decision
Do the store staff suggest additional products to create an outfit or complete a sports kit for the customer? Criteria for "YES": Observe 4 store staff engaging with our consumers. 3 out of 4 inspired our consumers and proposed an additional product with the initial recommendation
Do the store staff propose alternative solutions when the product is not available? Criteria for "YES": Observe 4 situation where the initial product is not available. 3 out of 4 times, store staff proposed another model or color or Omnichannel solutions (EA / C&C)
Can the store staff serve two or more customers at the same time when necessary? Criteria for "YES": Observe a busy period - Store staff is following the CEI standard and techniques, not staying with the same consumer through the whole process but shifting from A to B and C customers and coming back to A and B and C again
Can the store staff deal with doubts and objections? Criteria for "YES": Share an objection with the Store staff on price or colour or style. They can demonstrate they know the technique to deal with doubts and objections (Ask the customer what they feel or think. State what you have heard to show you understand. Use doubts or objections as an opportunity to offer support and advice.)
Do the store staff encourage consumers to try on products? Criteria for "YES": Observe 4 store staff engaging with our consumer; 3 out of 4 guided the consumer to the fitting room when selling apparel or invited the consumer to actively try the shoes
Can the store staff share FAB's on any products? Criteria for "YES": Chose randomly three items in different categories and ask the store staff to give at least one Feature turning it into advantages and benefits
Do the store staff recommend products to match the consumer's needs? Criteria for "YES": Observe 4 store staff engaging with our consumer; 3 out of 4 used the FAB technique (Features, Advantages, Benefits) to describe the product
Do the store staff try to discover the consumers needs? Criteria for "YES": Observe 4 store staff engaging with our consumer; 3 out of 4 use the funneling technique for asking questions and demonstrate active listening
Do the store staff approach the customers? Criteria for "YES" Observe 5 customers coming in the store or in a store zone. 4 out of 5 times at least, store staff adapted to the consumer’s style and talked to them, using one of the three approaches (Product, service, or conversation)
Are all customers acknowledged or greeted? Criteria for "YES": Observe 5 customers coming in the store or in a store zone. 4 out of 5 at least have been welcome
Return/Exchange policy, tax free shopping, gift card/gift certificate and service messaging notices are clearly visible on display at the cash desk. Criteria for "YES": Observe 5 customers coming in the store or in a store zone. 4 out of 5 at least have been welcome
Are the cash desks clean? Criteria for "YES": No shopping bags, till rolls, returned products on the table
Are enough cash desks open for the level of trade? Criteria for "YES": Check if there is a long queue on the cash desk – if more than 5 consumers are waiting, there should be a second cash desk open (if available).
Does the store have a zone plan to cover key zones? Criteria for "YES": check the key zones and have a look if there is an employee close by