Fighting Organized Retail Crime -
The Kroger Co.'s Unique Approach
Lee A. Pernice, LPC
Dennis Dansak first joined The Kroger Co. six years ago as its Senior Corporate
Manager of the Organized Retail Crime unit, it consisted of two other ORC
investigators. Today, that unit is comprised of professional ORC investigators
in most metropolitan areas in the country. Prior to joining Kroger, Dansak was a
Supervisory Special Agent supervising multi-jurisdictional and multi-state task
forces working with the FBI, DEA and local law enforcement agencies focused on
organized crime, counter-terrorism and narcotics. After 28 years, he was looking
for a new challenge. That is when he was approached by The Kroger Co. to help
address their growing problem with Organized Retail Crime. Given Kroger's
impressive footprint and diverse product offerings, this was an exceptional
based in Cincinnati, Ohio, is one of the world's largest grocery retailers, with
fiscal 2014 sales of $108.5 billion dollars. Its family of stores spans 34
states with store formats that include grocery and multi-department stores,
discount, convenience and jewelry stores. The company operates 2,626 grocery
stores, 780 convenience stores, 327 jewelry stores and 37 food processing or
manufacturing facilities. It also operates 2,117 pharmacies which are located in
its combination food and drug stores.
"When Karl Langhorst first approached me about the position, I was impressed
this organization was very dedicated in building a unit that could address
Organized Retail Crime in their stores and reduce shrink," said Dansak. "From
our first meeting it was clear that Karl, with his law enforcement background,
understood the problem and was willing to give me the latitude and support that
was needed to develop a comprehensive approach for dealing with ORC."
Dansak's started by hiring and training new members for the unit. Since ORC
investigations would result in criminal cases and are criminal investigations,
Dansak believed strongly that a solid background in identifying, investigating
and building cases were keys to being successful. He typically looks for
individuals that possess the skill set of law enforcement investigators with
experience in money laundering, narcotics and handling confidential informants
since ORC is rooted in drug use or money laundering to support illicit
activities. Over the years, he has found that 93% of the boosters used in ORC
cases are drug users with many of them holding no other jobs.
Read the full article on Denny Dansak
Agilence Named To the Top 100 Analytics Startups of 2015|
Mattermark notes Agilence as a top 100 Analytics startup for 2015 thanks
in part to the success of 20/20 Data Analytics. Agilence, Inc., the
leading provider of cloud-based data analytics reporting solutions for
operations and loss prevention, today announced that it was named to the top 100
analytics startups of 2015 according to a new report by Mattermark. Mattermark,
a leading source of business information, used metrics such as employee growth,
product acceptance rates, and funding events to analyze over one million
privately held companies across the U.S. It was also posted in Forbes
"The Top 100 Analytics Startups of 2015"
Read full Vendor Spotlight below.
Judge Blocks Kohl's Effort to Keep Former CIO From Joining Hudson's Bay -
non-compete doesn't hold up
A judge this week blocked an attempt by retailer Kohl's Corp. to prevent its
former chief information officer from taking the same role at Hudson's Bay Co.
On July 24, Kohl's requested a temporary restraining order that would prevent
Janet Schalk, its former CIO, from taking a CIO job at retailer Hudson's Bay. A
brief supporting the motion said Ms. Schalk signed a one-year agreement that
restricted the kind of positions she could hold at competing companies after
Given the sensitive proprietary information Ms. Schalk learned at Kohl's, a
direct move to Hudson's Bay violates the agreement and threatens its competitive
advantage, Kohl's says.
Attorneys for Ms. Schalk argue that Hudson's Bay isn't a Kohl's competitor and
that the non-compete agreement it too broad to hold up under Wisconsin law. Her
lawyers also said a year off could derail Ms. Schalk's career, given the pace of
technological change. A judge ruled against Kohl's on Monday, the Milwaukee
Business Journal reported at the time. He did bar Ms. Schalk from joining
Hudson's Bay for a week while Kohl's considers whether to appeal.
"To be clear, Kohl's very much considers HBC a competitor," court filings from
Kohl's attorneys say. Ms. Schalk's lawyer, on the other hand, argued that
Hudson's Bay was a high-end retailer while Kohl's operated "mid-tier" stores,
meaning they were not direct competitors. In the United States, Hudson's Bay
operates stores including Saks Fifth Avenue and Lord & Taylor, as well as its
Off 5th discount chain.
The judge on Monday said the deciding factor in the case had to do with the fact
that Kohl's highest-ranking executives have less restrictive non-compete
agreements than Ms. Schalk, the Milwaukee Journal Sentinel reported. In ruling
against Kohl's Monday, Mawdsley made it clear what the deciding factor was: The
company's highest ranking executives - people who presumably know more
confidential information than Schalk - have less-restrictive noncompete
agreements. Executives such as CEO Kevin Mansell and others could even go to
work for Hudson's Bay, Mawdsley noted.
John Kirtley, an attorney representing Kohl's, had said earlier that the
different language for Mansell and others at the very top of the corporate
hierarchy reflected the supply of, and demand for, such people. "I cannot find a
basis for this disparate treatment," the judge said. jsonline.com
New Warning About Seasonal Cargo Theft Risks - October's Peak Month -
Electronics & Apparel Targeted - Driver Collusion or Complicity As the
North American supply chain prepares to enter its busiest season, organized
cargo criminals are gearing up to maximize opportunities to seize high-value
shipments that will saturate the target-rich environment encompassing the
remaining months of the year. That's according to the logistics security
services provider FreightWatch International in a new bulletin.
According to its data, in 2014, theft activity concentrated during the seasonal
peak period of September through December with a cumulative 245 incidents. the
greatest number, almost one third of the report period's total, occurred in
October as the surge of products flooded the demand to support Black Friday,
the day after U.S. Thanksgiving. Two coveted commodities targeted every year at
this time, electronics, along with clothing and apparel, comprised 23 percent
of the reported thefts yielding average loss values of approximately US$1.4
million and US$328,000, respectively.
Additionally, theft of full truckload constituted 89 percent of cargo theft
in the United States with a majority of reported cases occurring at unsecured
parking areas. Many heists also included driver theft incidents involving either
direct theft by the driver, the driver's voluntary collusion or complicity in
the crime, or a deceptive criminal posing as a legitimate carrier resource.
Movie Studio Offers to Pay for Security at 'Compton' Screenings This Past
Weekend Universal Pictures is offering to reimburse theaters for
security guards during opening-weekend screenings of "Straight Outta Compton,"
according to several theater executives. The unusual step was prompted by a
combination of recent attacks against moviegoers, continuing racial tensions
across the country and the rap biopic's gang-oriented subject matter. Editor's
Note: Los Angeles police were actually assigning officers at movie theaters
around the city as a safety precaution.
stage workers' rights protests at California Apple Stores For the past
couple of weeks, construction workers have been staging peaceful protests
outside a number of Apple Store locations across California, arguing for better
wages and working conditions from Apple and contractor Ledcor Group. The
apparent labor dispute has yet to gain the attention of local media, though
visitors to Apple Stores in San Francisco, Berkeley, Palo Alto and beyond have
for weeks been greeted by sign holders castigating both Apple and Ledcor for
unfair wages and benefits.
Most demonstrations are low-key affairs with a couple signs accompanied by a
handful of contractors, but others are more dramatic. A camp display at Apple's
Palo Alto retail location features a scythe-wielding effigy of Death, for
example. An oversized thumbs-down sign sits off to one side. Demonstrators are
their efforts to operational Apple Stores, as a cadre has been stationed outside
the upcoming Union Square flagship in San Francisco since the end of July.
While the initiative appears to be well organized, worker demands are not
clearly advertised on signs or flyers handed out at the scene and information is
woefully scarce. According to one account posted to Twitter, laborers are
handing out leaflets reading, "Apple Inc has failed to require Ledcor
Construction Inc. [...] to pay carpenter area standard wage and benefits on all
projects." The union or unions backing the effort are also unknown.
Police patrol Colonie Center after last Thursday's mall shooting in Colonie,
Police are investigating the shooting that took place in the Cheesecake Factory
parking lot last Thursday night. The mall has since increased security because
customer and employee safety is their top priority. We take their safety very
seriously," she said. "And we do have our security that will be here throughout
the weekend and additional police coverage that will also be here," said the
Oren Orkin sues retail store Nordstrom's over alleged security negligence
Cook County man is suing a Nordstrom's department retail store in Illinois over
claims he was injured by another patron during a fight at its Skokie store.
Oren Orkin filed a lawsuit Aug. 11 in the Circuit Court of Cook County against
Nordstrom Inc., citing negligence. According to the claim, Orkin was
shopping at the Nordstrom at 4937 Old Orchard Center, Skokie, on June 21, when
he was threatened and ultimately involved in an altercation with another patron
during an escalating argument near the fitting rooms of the men's department.
The suit claims he suffered numerous injuries, including fractures to his collar
bone after being struck in the head multiple times by the other patron. Orkin is
seeking damages of more than $50,000 for Nordstrom's alleged negligence in
allowing the altercation to escalate, causing him to spend money for medical
expenses to treat his injuries and ultimately harming his quality of life.
Haggen to reduce store count - Closing 27 stores - more to come
West Coast regional grocer Haggen is scaling back some highly ambitious growth
plans. Haggen, which made headlines by buying 146 divested Albertson's and
Safeway stores as an 18-unit chain in December 2014, is closing or selling a
number of locations in California, Arizona, Nevada, Oregon and Washington.
Through the acquisition, Haggen expanded from 18 stores with 16 pharmacies and
2,000 employees in the Pacific Northwest to 164 stores and 106 pharmacies
employing more than 10,000 people in Washington, Oregon, California, Nevada and
Arizona. Haggen said its original stores continue to perform well. Editor's
Note: Shortly after the purchase Haggen listed a Dir of LP position which they
GA: Muslim woman denied service at Advance America store Remove hats,
sunglasses and though the sign doesn't say it, no hijabs are allowed there
either. She was denied service because she refused to remove her hijab for both
religious and reasons. Kamal' husband says he spoke with an employee over the
who said the hijabs raise safety concerns. Advance America responded with a
statement: "Advance America respects all religious beliefs and serves all
customers with dignity and respect. For the safety of our customers and
employees, we do have a security policy in place that requires anyone seeking
entry in to our centers briefly remove any hoods, hats, sunglasses or other head
coverings. It is an important security measure designed to ensure that anyone
entering our centers can be easily identified. That policy was being enforced in
this particular case. The safety and security of our customers and employees are
our responsibilities and we take them seriously."
Anthropologie's Security Guard claims he was fired
for complaining about racist bathroom graffiti
Jury slaps AutoZone with $186M verdict for
J.C. Penny's Has A Plan & Marvin Ellison's
Steering It - On the Come-Back Trail
Big Week This Week - Biggest Retailers Report Sales & Earnings This Week -
Analysts Don't Expect Big Results
Party City to open 30 new stores & complete 50-60 remodels & relocations this
H&M Sales Rise 16% in July
Quarterly Same Store
Canada's Leon's Q2 comp's up 1.7% with sales up 1.9%
Last week's most popular news article --
New Dollar General CEO Makes Sweeping Changes - Eliminates VP Asset Protection
In his first 8 weeks, Todd Vasos, Dollar General's new CEO, replaced an
Executive Vice President as well as the Chief Marketing Officer while
eliminating among other positions a Divisional Vice President and the Vice
President of Asset Protection position. Despite touting shrink reduction as
a key to Dollar General's recent financial improvement, the VP of AP position
was eliminated. Changes come even after Dollar General reports its first gross
margin rise in 3 years. Recent Dollar General numbers impressed industry
analysts, which the company said resulted from higher initial inventory markups,
lower transportation costs and improved shrink results. The direct quote from
the article: "Gross margin increased 45 basis points to 30.5% during the
quarter, which the company said resulted from higher initial inventory markups,
improved shrink control and lower transportation costs."
All the News - One Place - One Source - One Time
The D&D Daily respects your time & doesn't filter retail's reality
Appoints Janet Sherlock, senior vice president and chief information officer at
Carter's - Chair of its CIO Council Sherlock was appointed during the
annual meeting of the Council at NRFtech, an educational event NRF hosts each
year designed to bring together retail CIOs, CMOs and others charged with
driving innovation. Additionally, Michelle Garvey, senior vice president and
chief information officer at ANN INC., Michael Kingston, senior vice president
and chief information officer at Neiman Marcus, and Herman Nell, senior vice
president and chief information officer at Rent-A-Center were named to the
Council's Executive Committee.
The CIO Council also announced that HSNi's Executive Vice President and Chief
Information Officer Karen Etzkorn will chair the Networking, Communications and
Professional Development Committee, which oversees the new Women in Retail IT
Community. And, Cy Fenton, chief information officer at Books-A-Million, Inc.
and president of Books-a-Million.com will continue to chair the Council's IT
Security Committee and corresponding NRF IT Security Council, which boasts
nearly 200 participating chief
information security officers from across the
retail industry and oversees NRF's Cybersecurity Threat Alert System.
"We are looking forward to working with Janet and all of the council members
as we tackle some of the most challenging issues that exist in retail, including
cyber and data security, payment, technology compliance and high-value
innovation," said NRF Vice President of Retail Technologies Tom Litchford.
"The depth of expertise presented through our entire CIO Council is one of
tremendous prestige and we are fortunate to be able to work together as a
community to better educate the industry on retail technology and security
Wants One Language For Fraud A survey of 400 fraud mitigation
professionals by LexisNexis Risk Solutions found 84% of respondents said the
fraud they uncover in their investigations crosses into multiple industries. It
also found 87% saying they see a need for a universal and consistent way to
describe fraud across all industries. Three-quarters said they would use
information about fraud in another industry as an indicator of a potential issue
to watch for in their own company and sector. "The fact that data is not yet
better shared across industries reveals an exposure for organizations that are
combating millions in fraudulent activities each year by individuals and
organized crime rings."
Data-Crunching Is Coming to Help Your Boss Manage Your Time
A new generation of workplace technology is allowing white-collar jobs to be
tracked, tweaked and managed in ways that were difficult even a few years ago.
Employers of all types - old-line manufacturers, nonprofits, universities,
digital start-ups and retailers - are using an increasingly wide range of tools
to monitor workers' efforts, help them focus, cheer them on and just make sure
they show up on time.
The programs foster connections and sometimes increase productivity among
employees who are geographically dispersed and often working from home. But as
work force management becomes a factor in offices everywhere, questions are
piling up. How much can bosses ratchet up intensity? How does data, which
bestows new powers of vision and understanding, redefine who is valuable? And
with half of salaried workers saying they work 50 or more hours a week, when
does working very hard become working way too much? nytimes.com