Second Pass Audit: More Than Double the Findings for a US Grocer

Published: July 1, 2026

In grocery retail, margins are tight and every dollar counts. Massive SKU counts, constant inventory turnover, high transaction volumes, and a web of supplier deals, promotions, and rebates make the path to profit incredibly complex. Even with a primary audit firm in place, the sheer volume means recoveries inevitably slip through. 

That’s why many grocers engage a second audit firm — a built-in check and balance to catch what the first review missed. A major US grocery chain chose the PRGX Retail Merchandise Profit Recovery program as their 2nd pass audit partner, bringing in a team that knows where to look, how to work with suppliers, and how to turn findings into lasting process improvements.

The Challenge: Even Good Audits Can Leave Money Behind 

The client already had a primary recovery audit firm in place. But they recognized that a single audit pass — no matter how thorough — couldn’t catch everything. They needed a secondary partner with deep grocery expertise and the independence to look at the data with fresh eyes. 

The Approach: A Hands-Off Program That Goes Deeper 

PRGX was brought in as the 2nd pass audit provider — a hands-off, start-to-finish engagement designed to complement the primary firm’s work without creating operational burden for the client. 

PRGX’s Retail Merchandise Profit Recovery program combines purpose-built technology and AI with decades of grocery and retail expertise. The team analyzed $2B in spend across a 12-month engagement with a focus on areas where the primary firm’s review may not have reached — including promotional funding. 

Rather than simply flagging additional recoveries, PRGX dug into the root causes behind each finding. Where claims surfaced, the team traced them back to their origin — whether that was a pricing error, a promotion setup issue, or a miscommunication with a supplier. 

The Results: More Than Double the Industry Average

In a single audit year, PRGX delivered a 36% 2nd pass recovery rate — more than double the 10-15% industry average. 

Top finding categories included promotional funding — particularly scan allowances, off-invoice deals, and billbacks — along with pricing errors, duplicate payments, and delivery discrepancies. 

Beyond the Recoveries: Root Causes, Relationships, and Retail Expertise 

The value of a 2nd pass audit goes well beyond the additional dollars recovered. 

PRGX’s findings gave the client clear visibility into where and why the primary audit was falling short — providing actionable intelligence on operational and process areas worth addressing. Root-cause analysis highlighted patterns in how errors were occurring, enabling the client to make targeted improvements to prevent future leakage. 

PRGX also recommended the client pay special attention to category personnel turnover and ensure deal structures account for all distribution channels — common sources of missed recoveries. 

Critically, PRGX’s approach is built around protecting supplier relationships. With 50 years of experience working with many of the same suppliers across the retail industry, PRGX understands how sensitive these partnerships are. Every claim is handled transparently, with a vendor-sensitive approach that resolves disputes professionally and keeps relationships healthy. 

Ready to See What Your Primary Audit Missed? 

PRGX is the global leader in Retail Merchandise Profit Recovery. Our 2nd pass programs are designed to complement your existing audit, uncover hidden recoveries, and deliver the root-cause insights that strengthen your processes for the long term. Speak with a PRGX expert to find out how much value may still be on the table.