NRF Retail LP represented in US DHS congressional roundtable
on Soft Targets - Today
The NRF's Bob Moraca, MBA, CPP, CFE, & Vice President Loss Prevention participated today in a roundtable discussion by the Congressional Homeland Security Committee as a result of the events in Paris in mid-November. The top issue they were universally interested in is how information flowed from the Department of Homeland Security (and other Federal entities) to the private sector following the Paris attacks. Was the information timely? Was it actionable (or accompanied by suspicious activity reporting guidance, etc.)? What actions does the private sector take after those kind of events?

The roundtable provided the opportunity to voice the LP industry's uneasiness as part of the DHS "Commercial Facilities" under Infrastructure Protection Program. As it seemed that most were frustrated and concerned with the lack of timely "Situational Awareness" and guidance by the majority of federal agencies after the Paris events and the verbal threats to Washington DC and New York by our nation's enemies.

Below is the list of panelists who attended the roundtable representing "Soft Targets." The discussions took place on Capitol Hill this morning at 10:30 am.

 ● Alan Orlob, Vice President, Global Safety and Security, Marriott International;
 ● Rob Kasden, Vice President of Security for the Mets;
 ● John Skinner, Director of Security, Major League Baseball; and
 ● Bob Moraca, Vice President, Loss Prevention, National Retail Federation

Walmart partnered with Lockheed Martin, FBI for employee surveillance
Between 2012 and 2013, Walmart reportedly hired Lockheed Martin and later began working with the Federal Bureau of Investigation (FBI) to monitor its employees suspected of being involved in labor protests.

Walmart contracted Lockheed Martin in the fall of 2012 to canvass and analyze social media sites so that they can keep tabs on employees when it caught wind of news that an advocacy group might stage a protest on Black Friday, according to Bloomberg Businessweek.

More than 1,000 pages of e-mails, reports, playbooks, charts, and graphs, as well as testimony from its head of labor relations at the time detail the retail giant's efforts to conduct surveillance on its employees and members of the Organization United for Respect at Walmart (OUR Walmart), according to the report. The documents were obtained prior to a National Labor Relations Board (NLRB) hearing into OUR Walmart's allegations of retaliation against employees who joined protests, the report said.

While Lockheed Martin is one of the biggest defense contractors in the world it also operates a tool called LM Wisdom, which the company advertises as having the power to analyze content that could "incite organized movements, riots and sway political outcomes." While there is no evidence that the tool was used, Bloomberg reported a single reference to it in the documents obtained in the form of a question asking a Walmart corporate employee if she had heard of it.

Walmart reportedly also used assistance from the contractor in April 2013 to monitor the movements of a "Ride for Respect" bus caravan organized by the protesters to arrive in Bentonville, Ark., the location of Walmart's corporate office, during a week long annual shareholder meeting.

Upon learning that members of the Occupy movement might join the protest, Walmart contacted the FBI Joint Terrorism Task Forces although the documents don't contain any details about the collaboration, according to the report. scmagazine.com bloomberg.com

Black Friday protests cost Chicago stores 25-50 percent of sales -
Had "dramatic" impact
Activists who blocked the entrances to stores on Chicago's North Michigan Avenue on Black Friday to protest the fatal shooting of a black teenager by a white cop may have split opinions with their tactics.

But their goal of forcing retailers to suffer economic pain on what's historically the busiest shopping day of the year was a success, according to unhappy store staff and managers who said Monday that Black Friday sales on the Magnificent Mile were 25 percent to 50 percent below projections.

Images of protesters marching down North Michigan urging a holiday shopping boycott dramatically reduced foot traffic while protesters who physically blocked shoppers from entering stores also hurt sales in a big way, according to the retailers, some of whom were critical of the low-key police response.

"We were down a lot," said Sarah Midoun, a sales associate at Aldo shoe store. "We were budgeted to make $37,000 but we only did $19,000 - customers told us they were concerned. "If anything the police were kind of encouraging (protesters who blocked the entrance to the store) by allowing it," she said. However, she added that if police had been too heavy-handed, "people might have rioted."

Aldo's near 50 percent shortfall of its target mirrored results at other stores. At Men's Wearhouse, Black Friday sales were down from $19,000 last year to less than $10,000 this year, according to store manager Jimmy Llorente, who said some shoppers asked to hide from protesters inside his store's foyer. And at the Stuart Weitzman shoe store, sales were some $20,000 short of the $50,000 managers had projected, according to associate Marisol Tapia.

Managers and staff at a dozen other North Michigan Avenue stores declined to speak on the record with the Tribune, citing company policies that forbid them to speak with the media, and referring questions to corporate officials who declined to comment. But workers at each of those stores confided that their Black Friday losses were in line with those described elsewhere.

The effect of the protest on the city's premier shopping street was dramatic. theheraldbusinessjournal.com

Retailer's Alert - Write Your Mass. State Representatives
Increasing felony theft threshold for shoplifting would be step in wrong direction in Massachusetts
In response to the Nov. 28 editorial "State should raise felony theft threshold," it is important to keep in mind that shoplifting is not a victimless crime. US retailers lose more than $30 billion annually to shoplifters and sophisticated theft rings involved in organized retail crime.

The estimated $750 million in stolen merchandise in Massachusetts translates into $46.8 million in lost sales tax revenue, and results in increased prices for honest consumers.

Increasing the felony threshold for shoplifting, without increasing the current statutory fines, would be a step in the wrong direction. A first-offense fine of $250 for the theft of $1,000 worth of merchandise is an inadequate deterrent against future theft. The notion that the punishment must fit the crime must go both ways.

No one wants to see the life of a first-time offender ruined by a felony conviction for shoplifting, yet as the editorial points out, our courts avoid such harsh outcomes by acting responsibly and fairly in their application of the law. If professional criminals or repeat offenders are unwilling to take advantage of the opportunity presented by such leniency, then they should certainly be held accountable for their ongoing criminal activity.

Ryan C. Kearney, general counsel
Retailers Association of Massachusetts bostonglobe.com

The Bottom Line Benefits of Risk Management
Companies that employ strong risk management practices have better operating performance and less stock price volatility, according to a report from Aon AON -0.22% Global Risk Consulting and the Wharton School at the University of Pennsylvania. While this would seem to make sense from an intuitive standpoint, Kieran Stack, a report co-author and managing director at Aon Global Risk Consulting, said the research provides validation for the concept. "This puts some science behind it," he said, adding it is hard to draw a direct line to what the return on investment is if a company invests $1 million in its risk management program.

The report cites some best practices being used at companies that are ahead of the curve on this issue, said Mr. Stack. These include having awareness of where the most critical risks are in the organization, securing agreement on what actions to take and following through with proper alignment, or execution, of the strategy, he said. To do that, smart companies are emphasizing strong communication to identify areas of concern, collaboration between various business units and winning consensus for a plan of action. wsj.com

In-store sales decline need to be viewed in context
In-store sales declines over Black Friday weekend had many analysts buzzing about the future of brick and mortar. But an expert in store traffic cautioned that the declines should be taken with a grain of salt. "It's important to view the decrease in context."

Martin noted that where are several contributing factors, including fewer available store hours on Thanksgiving Day and a later Hanukah that is anticipated to push sales into December.

"Most importantly, the success of the holiday season doesn't hinge on the performance of a single day," he added. Thanksgiving Day 2015 grossed an estimated $1.76 billion in sales, which is a 12.5% decrease versus 2014; Black Friday 2015 garnered an estimated $10.21 billion in sales, which is an estimated 11.9% decrease versus 2014.

Seven out of the top ten sales days still remain, and December is anticipated to be strong," added Kevin Kearns, ShopperTrak's chief revenue officer. "With that in mind, we still maintain our 2.4% increase in sales for brick-and-mortar retail this holiday season." chainstoreage.com

Black Friday still a big thing in Britain
Black Friday may not be what it used to be in the United States, but the tradition has caught on big time across the pond, according to a report by the New York Times. The BBC reported that shoppers in different parts of the country experienced gridlock, biting, pinching, punching, kicking and merchandise flying through the air as shoppers leapt over barriers to get their hands on heavily discounted items, the report said. retailingtoday.com

'Predictable Scheduling' - The Next Big Legislative Trend?
While no predictable scheduling laws have yet to take effect outside of San Francisco, the near simultaneous interest in the topic by three forces - state and federal legislatures, the U.S. Department of Labor, and the New York Attorney General - could signal an up-and-coming debate over employees' rights to predictable schedules. The sheer number of proposed laws in this area also indicates that it will be an issue facing employers in the future. If you have any concerns about whether your current scheduling practices are at risk of legal challenge, reach out to experienced employment law counsel.  law360.com

Sephora posts their Director of Loss Prevention position in San Francisco
The Director, Loss Prevention (LP) is responsible for the execution, direction, advising and oversight of the District Loss Prevention Managers (DLPM) and all of the Loss Prevention plans, programs and activities within geographically diverse markets and enterprise-wide in order to reduce shrink, minimize company liability / exposure as well as protect assets, resources and staff. The primary metric for the Director, LP is the reduction of shrink at a company level.

Sephora stores - Sephora operates approximately 1,900 stores in 29 countries worldwide, with an expanding base of over 360 stores across North America. Sephora opened its first U.S. store in New York in 1998, its first Canadian store in Toronto in 2004. Sephora's North American headquarters is located in San Francisco, with corporate offices in New York and Montreal.  successfactors.com

True Religion Jeans posts their Director of Loss Prevention
position in Manhattan Beach, CA
Reporting to the SVP of North America/ Direct to Consumer with 2 Regional LPM's reporting to it.

Natural Grocers posts their Loss Prevention Manager position in Lakewood, CO. - This is their senior LP position
The Loss Prevention Manager is responsible for protecting the assets of the stores and the company through the design and implementation of inventory and asset recovery programs including internal and external theft reduction programs. With 90 stores this family grown business is all about healthy food. ultipro.com

Revere, MA: Police receives $38,000 Grant to take swipe at Shoplifting
The Revere Police Department has received a $38,495 grant to combat an increase in shoplifting in the city. The Revere Police Department was one of 27 cities and towns in Massachusetts to receive the Edward J. Byrne Memorial Justice Assistance (JAG) Program Implementation grant, which is a federal grant administered by the Executive Office of Public Safety and Security and Office of Grants and Research. The purpose of the grant is to develop and implement a "No Tolerance for Shoplifting" program. Through Revere's crime analysis program, the police department has reported a significant increase in shoplifting offenses. itemlive.com

RETRACTION - In yesterday's article 'Calm During Crisis: Inside King Soopers' we incorrectly reported that Cathy Stark was previously a District LP Manager at King Soopers, a division of Kroger. She was not a DLPM but instead an LP Investigator.

Almost $4.5B U.S. worth of items stolen annually through supermarket 'grazing' by customers in the UK

Cabela's Inc. to Explore Strategic Alternatives

Toys R Us closing iconic Times Square flagship store


Quarterly Same Store Sales Results
Ascena Retail Group Q1 comp's down 3% with net sales up 40% (ANN INC acquisition)
Ascena Retail Group Division's comp's Justice down 15%, Lane Bryant up 4%, maurices up 7%, dress barn down 5%, Catherines down 1%

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Man Pleads Guilty in eBay and PayPal scheme
to steal Special Agent's identity

The PayPal Global Asset Protection Investigations team assisted the U.S. Postal Service and U.S. Attorney's Office (both based in Virigina, with their extensive investigation into the affairs of Rohit Jawa. Jawa, an Indian national, concocted a complex identity theft scheme to defraud financial institutions, insurance companies and others. The defendant repeatedly transferred money from the proceeds of his fraud scheme from and between PayPal accounts he controlled in victim names to accounts he controlled in his name. Jawa faces a mandatory minimum of two years in prison and a maximum penalty of 20 years. He will be sentenced on 12 February 2016.

For further information on PayPal GAP Team, email inquiries to lawenforcement@paypal.com. 
 

2 sentenced in $200M international credit card fraud scheme in New Jersey
Khawaja Ikram was sentenced Tuesday to 25 months in prison and fined $10,000, while Mohammad Khan was sentenced to 366 days behind bars for helping fuel a $200 million international credit-card fraud scheme, said New Jersey federal prosecutors.

The defendants were part of a conspiracy, which fabricated more than 7,000 bogus identities to obtain more than 25,000 illicit credit cards, and run up more than $200 million in bills, said Paul J. Fishman, U.S. attorney for New Jersey. The massive enterprise ran from 2003 through February 2013, authorities said, and spanned at least eight countries and 28 states, including New Jersey.

Ikram, 43, and Khan, 51, were among nearly two-dozen defendants, including the ringleaders, charged in February 2013, prosecutors said.

The scam consisted of a three-step process, said authorities. The defendants created false identities by manufacturing phony ID documents such as drivers' licenses, pay stubs, tax returns and Social Security numbers, said court papers. Next, they'd doctor credit reports to pump up the credit cards' spending and borrowing power.

Afterward, they'd spend or borrow as much as they could, based on the bogus credit history, without repaying the debts, court documents said. They caused more than $200 million in confirmed losses to businesses and financial institutions, said prosecutors.

The conspirators used more than 1,800 "drop addresses," including houses, apartments and post office boxes to receive bills and other mail relating to the phony cards, court papers said.

Editor's Note: This case, originally reported in 2014, will not be included in this year's Publicly Reported ORC Numbers. silive.com

Baltimore, MD: Conspirator in Counterfeit Credit Card Ring
Sentenced to Over 6 Years in Prison
Over 250 Individual and Institutional Victims Had Their Identities Stolen and Sustained Actual Losses of Over $126,000. U.S. District Judge William D. Quarles, Jr. sentenced Stanley Downey, age 49, formerly of New York, today to 74 months in prison, followed by five years of supervised release, for bank fraud conspiracy and aggravated identity theft, arising from a scheme to use of stolen credit and debit card information to manufacture counterfeit credit cards used to buy merchandise and services. Judge Quarles also entered an order requiring Downey to pay restitution of $126,318.99. justice.gov

Canadian Fencing Operation: Oshawa, Ontario shop owner, son, accused of selling more than $50,000 of stolen snow tires
An Oshawa tire shop owner and her son have been charged with stealing and re-selling more than $50,000 worth of winter tires.  The thefts are alleged to have occurred at car dealerships in Port Perry, Cobourg and Stouffville during the summer months, Durham police said. In one incident, the theft of $15,000 worth of tires and rims from Taylor Ford in Port Perry, surveillance cameras caught images of suspects, police said. durhamregion.com

Two Texas women plead guilty in Iowa; busted at airport fleeing the state
Charmaine D. Montgomery, 23, and Brooke A. Darby, 28, bought $5,562 worth of gift cards during 90 transactions carried out over four days in June at six Home Depot and Fred Meyer stores in the Treasure Valley. When the two Fort Worth women were arrested at the end of their spree, Boise police seized 424 counterfeit and fraudulently purchased gift cards and prepaid credit cards - the most ever recovered in a retail fraud case in Boise. The two women flew to Boise from Fort Worth on June 21. They rented a car at the Boise Airport and went to work using stolen credit card numbers embossed onto blank cards. Police investigated and detained Montgomery and Darby at the Boise Airport before they had a chance to leave the state. idahostatesman.com

Murfreesboro, TN: $5K worth of merchandise stolen from Victoria's Secret
Authorities are once again on the hunt for several suspects who allegedly stole more than $5,000 worth of merchandise from The Avenue's Victoria's Secret store. The manager of the store told officers that four or five females in scrubs entered the business and stole $5,250 on Nov. 25. Video of the incident shows the suspects walking into the store, grabbing the merchandise and quickly running out of the store. The theft only lasted seconds The Victoria's Secret location has been hit multiple times over the past few months. wkrn.com

Fairfax, VA: High School student charged with Stealing Thousands of Dollars of Goods With Fake Credit Cards; product re-sold in NYC
Fairfax County police have arrested a young couple from New York who allegedly used fraudulent credit cards to buy thousands of dollars of goods from Northern Virginia retailers, most of it high-end perfume. Messihana Alicia Porter, 18, is still in high school. Fairfax County Police she used the alias Tanya Harding on fake or cloned gift gifts and credit cards she received from 21-year-old Donovan Nedd. Court documents say Porter and Nedd used the fake cards in Virginia, and Macy's stores at Tysons Corner Center and Fair Oaks Mall were frequent targets. The two are charged with credit card theft and attempting to sell stolen property. Investigators say Nedd recruited Porter when she was still a juvenile. She told investigators Nedd would give her the fake or cloned cards. Her alias -- Tanya Harding -- was stamped on all of them. She said Nedd instructed her to buy high-priced items. Chanel perfume was a favorite. Nedd would then allegedly take the perfume back to New York to resell it. Porter was supposed to get a percentage of the profits. nbcwashington.com

Fort Myers, FL: Man steals nearly $2K worth of items
from Saks Fifth Avenue at Bell Tower
Authorities are looking for a man who distracted employees at the Saks Fifth Avenue store at the Bell Tower Shops before running off with nearly $2,000 in shirts. On Nov. 20, authorities say the man picked out a $295 Burberry shirt and a $595 hoodie. When he brought the items to the register, he asked a store employee if he could see some shoes. While she turned around to assist the man, he grabbed another shirt and ran out of the door with all three items, which totaled $1,185 in value. A loss prevention officer at the store said he recognized the suspect from previous thefts. winknews.com

St Peters, MO: Three Suspects Sought In Toys R Us Theft
Surveillance cameras were rolling when three allegedly woman stole merchandise from a Toys 'R Us store in St. Peters Saturday. Police say the suspects were captured on video surveillance pushing three shopping carts full of items out of the Toys R Us on Suemandy Drive at just before 3 p.m. Saturday. As they were putting the toys in the vehicle, a male customer was able to take back a cart full of stolen items and take it to the store, and as he grabbed the cart, the women grabbed items from it, police said. The female thieves loaded the remaining stolen items their vehicle and fled the area prior to police arrival. leaderstandard.com

To apply to today's Featured Jobs, Click Here

Cynthia Linke was named Regional Manager, Loss Prevention for Sephora.

Kevin Penharlow was named Safety & Risk Manager for Performance Food Group.
 

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