WWD Apparel & Retail CEO Summit: Marvin Ellison Retooling J.C. Penney
Marvin Ellison is stepping into a new role as CEO of J.C. Penney next month, and
all eyes are watching to see what this master of retail turnaround has in store
for the iconic American brand. During his 12 years at Home Depot, Mr. Ellison
made massive changes by capitalizing on technology and social trends, focusing
on customer experience, and building loyalty among consumers and
employees-nearly tripling the company's stock and cementing it as an industry
leader. Now, in the face of a rapidly changing retail environment, learn about
Mr. Ellison's goals for JCP, his plans to position the company to compete online
and on Main Street, and how he believes this transformation will pay off for
shoppers, suppliers, associates, and shareholders. For more information and a
full list of speakers for the WWD Apparel & Retail CEO Summit
click here. Register now to reserve your seat before this exclusive event
centralizes security efforts
Target Corp. is taking a centralized approach to security to help ensure that
data breaches such as the one which inflicted serious financial and branding
damage in late 2013 do not happen again. Target has opened a Cyber Fusion Center
(CFC) that brings Target's key information security teams together.
The center features a large open space designed to enable collaboration. Teams
sit in an open format, arranged based on the logical flow of information.
Launched in late 2014, the center houses security teams including a Cyber Threat
Intelligence team that monitors and analyzes trends and patterns in cyberspace,
a Cyber Security Incident Response team that watches systems and networks, and
Security Testing Services that evaluates new and existing technology to identify
areas of concern.
In addition, The Red Team simulates real-world attacks on Target's environment
to uncover defensive control weaknesses, and a group of Continuous Improvement
experts documents the teams' learnings, captures metrics and reporting, and
prioritizes team efforts. These teams share the CFC space with other information
security experts involved in the same investigations.
"Data security is a top priority at Target," said Brian Cornell, chairman and
CEO, in a blog post. "So we continue to invest heavily in top talent, as well as
technology, and focus on continually evaluating and evolving our processes as
the landscape changes. It's an important part of the $1 billion Target plans to
invest in technology and supply chain this year."
Wal-Mart's Mexican Profits Rise, Will Spend $800 Million in Bribery Case -
Launched 14-step Compliance Program The U.S. Securities and Exchange
Commission and Department of Justice are leading an inquiry into whether the
alleged Mexican payouts violated the Foreign Corrupt Practices Act. Wal-Mart is
also investigating its subsidiaries in Brazil, India and China and has launched
a 14-step global compliance program to ensure the Mexican ordeal is never
repeated. They have invested $600 million since the case began and will
invest another $160 million to $180 million for FCPA and other
compliance-related activities for the ongoing inquiry," said the source, who
requested anonymity, adding that no fines have been assessed so far.
Wal-Mart has not revealed investment by division but has "done a bunch of
things in Mexico" to help pursue the investigation, the source added. They
include spending on lawyers and anticorruption officers in a country with one of
the world's worst corruption profiles, analysts said. A Wal-Mart spokesman said
"the investigation is ongoing and it's inappropriate to comment further on
specific allegations." He said, however, that the firm invested $173 million for
the probe last year.
Retail Design to Deter Shoplifters
Talk of retail design generally revolves around ways to draw customers into
stores to generate sales. Good design, however, can go beyond that, preventing
retail loss (shrinkage) attributed to the behaviour of the not-so-welcome store
guest - the shoplifter. While RFID technology is proving to be beneficial when
it comes to retail security, technology shouldn't be the only method relied on.
Interior design doesn't usually receive as much attention as the built
environment when it comes to retail security plans, but it can offer
considerable theft-deterrent strategies.
Two researchers from Lancaster University Centre for Doctoral Training have
suggested a preventative "natural surveillance" approach to shoplifters to save
people from going to prison. The strategy they propose involves leading
potential shoplifters to areas where they are placed in the spotlight and where
other shoppers are involved in deterring them. The researchers, Dhruv Sharma and
Myles Kilgallon Scott, wrote the recent paper Nudge: Don't Judge: Using
Nudge Theory to Deter Shoplifters, with Sharma deciding to conduct the
research after taking on a pre-Christmas job in a department store.
Sharma and Scott delved into Nudge Theory, which suggests that "some
people make decisions unconsciously, non-rationally and are influenced by
contextual cues which means their behaviour can be manipulated." "We are not
suggesting we should make it harder for people to interact with products,"
Sharma said. "Instead we simply propose 'nudging' people to act as observers,
thereby enhancing surveillance." Sharma and Scott cited examples on the website
The Conversation, stating that all buildings imply at least some
form of social activity prompted by the arrangement of wall partitions, doors
and other furniture.
Pattern Language Methodology is another strategy to fighting shoplifting.
Last year, researcher Adrin Mehdizadeh, California State University wrote a
paper that studied the re-design of a clothing store in downtown Los Angeles.
Due to recent market losses (that included a major security problem), the owner
wanted to remodel the store. The design team was made up of the store owner, two
employees and two interior designers experienced in pattern language
When assessing the store design, blockades were highlighted as a hindrance
limiting lines of sight between employees and shoplifters. The team then applied
Crime Prevention through Environmental Design (CPTED) Principles. "Returns and
store safety were recorded to have increased tremendously upon employment of
natural surveillance," Mehdizadeh wrote of the application of CPTED. Editor's
Note: Great article to read fully and has a number of study's it refers to that
helps elevate your conversation with store planning, buyers, and operations.
Thorough employee screening is an essential - and extensive - process
Almost all retail employers perform background checks, according to NRF survey
data, looking at everything from criminal and address history to employment and
education verification. 52 percent of HR directors that used background checks
did so to reduce legal liability for negligent hiring, while 49 percent did
so to provide a safe work environment. Forty-five percent of employers used
credit checks to reduce or prevent theft. 96 percent of respondents said they
would not make a job offer to a convicted violent felon; 74 percent said
they would not make a job offer to a non-violent felon. While theft is a top
concern for retailers, it's not always identifiable on a background check unless
the person has been convicted of a crime.
Class Cert. Upheld For 200,000 Employees By Calif. Court In Safeway Wage Action
A California state appeals court on Wednesday upheld class certification of a
group of Safeway Inc. employees accusing the grocery chain of not paying them
for missed meal breaks in violation of California's Unfair Competition Law,
saying the lower court did not abuse its discretion. The trial court certified a
class of about 200,000 Safeway and Vons Companies Inc. employees who
claim Safeway had a practice of never paying premium wages for missed meal
breaks as required by law.
Amazon's momentum in North America will spur further retail industry
consolidation mergers and acquisitions and bricks-and-mortar store closures
While Nike, Under Armour and other global brands should benefit, 'middle of the
mall' retailers are at most risk near-term, with longer-term risks to department
stores and broadlines," the report cautioned. "We see non-differentiated
retailers at greatest risk," it added, referring to retail companies selling a
broad swath of merchandise in multiple categories - Wal-Mart Stores Inc. and
Target Corp. in particular. The firm cites its proprietary survey data as an
indicator that Amazon's apparel sales are growing dramatically as it increases
its selection of top brands and improves fulfilment capabilities.
Vindicated: Muslim woman wins $25K from Abercrombie for hijab discrimination
case & Abercrombie's "look policy" Abercrombie & Fitch on Tuesday
agreed to pay $25,000 to settle a lawsuit brought against the company for
refusing to hire a woman because she wore a hijab. The settlement comes less
than two months after the US Supreme Court ruled Abercrombie & Fitch violated
the civil rights of the job applicant. In addition to paying $25,670 in damages
to Elauf, Abercrombie must pay $18,983 in court costs.
Abercrombie & Fitch has since changed its "look policy" to allow headgear,
including hijabs. The company has previously paid settlements in discrimination
suits, including a $50 million payment in 2005 to Hispanic, African-American and
Asian job applicants in a lawsuit alleging a lack of diversity.
D&D Daily 'Retail Crime' Reporting Leads to Arrest of Nationwide
Making the Retail Crime & ORC Columns
Pay Off in Your Investigations
We've heard from a number of retailers over the past 2 or 3 years
telling us they've started incorporating the D&D Daily's reporting
of ORC and Retail Crime into their own LP investigative processes.
We at the Daily take great pride and responsibility in our daily
efforts to gather and present such information to the industry, so
it's always rewarding when we hear from executives in the field or
corporate offices saying that we've helped in some small way.
In a recent conversation with Jim Mires, VP of Loss Prevention for
DSW, we learned that an article posting in the Daily's Retail
Crime column on
March 7, 2014 helped DSW investigators identify and track down a
suspect who had committed a string of multi-state armed robberies,
including one at their own store. After an
armed robbery occurred at a DSW in Littleton, CO, on Feb. 3, 2014,
RLPM Dave Holt and Investigator Greg Dolcich did their due diligence
in sharing information with other retailers, posting BOLO alerts and
checking Denver-area camera systems. They learned of a similar
robbery occurring at another retailer in San Francisco, with the
suspect wearing the same clothing and carrying out the robbery in
the same way. He would shop around a store for about two hours
before going to the register and taking out a handgun.
The investigation went quiet until Jordan Rivchun, Sr. Manager of
Investigations for DSW, came across a D&D Daily posting about an
armed robbery at an American Apparel in New Orleans, which
included a picture of the same suspect getting away with cash and
merchandise. "This sounds like our guy, looks like our guy," Mires
recalls Rivchun telling the DSW team. They contacted the detective
in New Orleans and issued a multi-state bulletin for what was now a
federal case. This led to the
arrest of 29-year-old Steven Joseph Rodney, who was picked up in
Las Vegas on March 14th following a robbery at Walmart.
Mires credits the solving of the case to great pictures and video,
partnering with other retailers, and his team reading the D&D Daily
every day - which he says ultimately helped them make the
connection. Like many others in the industry, Jim knows how powerful
a tool information sharing can be, and this is just one more case
that proves it.
We would like to thank Jim for sharing this story with us, and
allowing us to share it with a wider audience. It's stories like
this one that truly affirm the Daily's ongoing mission of informing,
educating and instilling a sense of community for the retail LP
Are the 'Retail Crime' & 'ORC' Columns Part of Your Investigative
Money Gram post VP Retail Risk Management position
in Frisco, TX
Apple Retail Stores - 265 U.S. stores - with sales
running at about $5,009 per sq. ft.
Tractor Supply plans 110-115 new stores - That
means LP Jobs
Wal-Mart Is Ending Overnight Hours at Some Stores
Quarterly Same Store
Tractor Supply Co. Q2 comp's up 5.6% with net sales up 12%
Smart & Final Stores Q2 comp's up 3.5% with net sales up 9%
McDonald's Q2 comp's down 0.7% with revenue down 10% (increase of 1% in constant
Cabela's Q2 comp's down 0.9% with revenue up 10%