The D-D Daily Mobile Edition

February 12, 2013

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News Brief
Sponsored by WG Security Products, Inc.

Year to date 9 senior Loss Prevention positions have been eliminated in the first 6 weeks  With two new ones popping up, that makes for a net loss of 7. Now Orchard Supply eliminates their Dir. of LP Operations position after eliminating their VP spot last year as well.

The World's Top 10 Most Innovative Companies in Retail  Nike, Burberry, 7-Eleven, Sephora, Everlane, Black Milk Clothing, Supply, Crate & Barrel, MakerBot and Uniqlo. Find out why they're considered the most innovative. (Source fastcompany.com)

NY mall evacuated on fears of roof collapse 
One of the biggest malls on Long Island, the Smith Haven Mall in Suffolk County, was evacuated Monday because of major roof leaks after a rainstorm followed nearly 3 feet of snow, police said. The Smith Haven Mall has more than 140 stores. Mall management will have to call in a structural engineer to determine the mall's structural safety and when it can be reopened. (Source msn.com)

Wet Seal's SVP of store operations resigns after joining in late 2011  Last week they announced the COO resigned and that they were cutting 32 corporate office jobs and three in the field. (Source retailingtoday.com)

Sport Chalet, Torrance store surveillance video shows rogue cop killer in Los Angeles filling scuba tanks two days before murders  Here's where a retailers LP program helps the U.S. Marshals. Surveillance video from a Sport Chalet store in Torrance shows alleged cop killer Christopher Dorner buying scuba equipment two days before he began his murder spree. The bodies of Dorner's first two victims - Cal State Fullerton assistant basketball coach Monica Quan and her fiance, USC public safety officer Keith Lawrence - were found in Irvine at 9 p.m. Feb. 3, just 48 hours after the trip to Sport Chalet. (Source pasadenastarnews.com)

In-store Shopping Still Center of Shopping Experience  While digital technology continues to reshape the way companies and consumers interact, social media is not replacing the in-store shopping experience, according to a new report by PwC, "Demystifying the Online Shopper: 10 Myths of Multichannel Retailing." Great read for the serious retailer. (Source progressivegrocer.com)

New study shows 2% increase in payroll tax may change lower-income families shopping behavior  For a consumer with household income of $40,000, the 2% increase in the payroll tax represents $800 in reduced spending power per year. This can be the difference between shopping at a lower-cost dollar store versus a mass merchandiser, increasing purchases of a store brand versus a national brand, or suppressing an impulse to pick up a snack on the spur of the moment while shopping in the store. (Source retailingtoday.com)

Trade Union GMB in the UK is picketing 9 Amazon distribution centers for paying one penny over minimum wage  The union will also hand the online retailer anti-social behavioural orders in protest at what the union claims is Amazon’s failure to pay proper taxes in the UK. Last year Amazon was one of a number of companies forced to appear before the Public Accounts Committee to explain why it had not paid any corporation tax on profits despite generating sales of 3.3 billion pounds ($5.14B U.S.) in the UK in 2010. (Source theretailbulletin.com)

UPS was target of $1.2 million fraud scheme - the old authorizing phony invoices scheme A UPS employee and an Indianapolis contractor are accused of scamming UPS out of more than $1.2M. They allegedly converted company money into gift cards to buy things like cars and flat-screen TVs. The contractor was providing general contracting services for UPS at 3 dozen locations in Indiana and Illinois. The UPS employee, who was authorized to sign off of invoices up to $5k, authorized invoices up to $1.2M and the both of them would then buy prepaid Visa gift cards that they used for personal purchases. The bank they used became suspicious and notified authorities. (Source ajc.com)

Man hid in Woodbridge Target, stole $10,000 in electronics.  Police are looking for a man they believe hid inside the Target in Woodbridge, then stole thousands of dollars worth of merchandise after the store closed. Officers went to the store for an alarm around 3:30 a.m. Saturday morning. Police found a back emergency door was not closed and looked at the surveillance video. In the video, the man can be seen using tools taken from inside the store to break into locked cabinets. After the suspect stole iPads and other items, valued at about $10,000, he fled out the emergency door, triggering the alarm. (Source wjla.com)

Old Navy robbed by woman in Concord, California with her 4-year-old son in tow.
The 22 year old female had concealed clothing and fled the store, when approached by Loss Prevention the female drew a knife and began waving it at the agent. The woman was able to escape with another female in an awaiting car. Both females were later arrested and are believed to be tied to a Fry’s Electronics store robbery as well. The 4-year-old was released by police to a relative and Children and Family Services. (Source contracostatimes.com)

Altamonte Springs, Florida suspect apprehended after breaking into the same store twice in a week.  Gary Grimes broke into the Gold Mine 704 store twice in less then a week. The second time he entered the store he decided to steal a sword valued at $2500, that same sword also escalated his charge to armed burglary. Grimes is being charged with the theft of over $20,000 in gold, a computer and the valuable Civil War sword. (Source wftv.com)

Indiana man stole around $9,000 worth of Coach purses from Outlet Store.  Police said a man stole around $9,000 worth of purses and clothing from two different outlet malls Sunday. Police officers responded to a shoplifting complaint at the Coach store at the Outlet Shoppes at Fremont in Fremont, Indiana on Sunday around 5:45 p.m. Police said Coach employees provided police with a description of the suspect and his vehicle. Darrell Allen, 19, of Dayton, Ohio, had numerous Coach purses and other clothing items, totaling $9,000, inside of his trunk. Police arrested Allen for felony theft. Officers said throughout the investigation, they discovered additional stolen items inside of Allen's vehicle that had been stolen earlier on Sunday from a store in Battlecreek, Michigan. Additional charges may be filed in Michigan. (Source journalgazette.net)

Sears cashier robbed at knife point in South Burlington, Vermont store.  Monday afternoon a man entered the Sears store in South Burlington, dressed in black with a mask and a knife. The cashier handed over the money in her drawer and was not injured. Police believed they tracked the man back to a local motel, but the suspect is still at large. (Source fox44abc22yourvoice.com)

Second suspect in an international crime ring sentenced in Naperville.  Darrick L. Jordan has pleaded guilty to a felony count of conspiring to money laundering of more than $100,000. Jordan and six others are believed to have set up a “laboratory” in a hotel room with specialized printers to print phony documents and identifications. The group with ties to Eastern Europe is believed to be responsible for over 50 fraudulent money/wire transfers, 62 counterfeit identification cards, and numerous passports. Jordan was sentenced to 180 days in jail. (Source suntimes.com)

Quarterly Sales Results
Michael Kors 3Q same store sales up up 41% with revenue up 71%
Fossil 4Q revenue up 14% with U.S. company owned stores up 20%


Senior LP executives - We'd like to hear from you  If you are a senior Loss Prevention executive in retail and have any IT security responsibilities we'd like to hear from you and find out exactly what they are. This is an informal study meant to determine exactly where we are today and where we might be heading. So anyone that is a senior LP executive within the traditional retail model and has components of the IT security areas let us know. Even if it includes your involvement in the mobile roll-outs, tablet roll-outs, privacy issues, internal threat analysis. We will not share names or company identities but would like to present our findings from an industry wide prospective. Contact me directly at gusd@downing-downing.com

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eBay News
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Birmingham car thief convicted with the assistance of eBay Investigators receives pioneering cancer treatment has jail sentence cut

A luxury car thief from Birmingham became the “luckiest man alive” after surviving cancer behind bars with the help of pioneering drug treatment. Now Hasan Mohammed, aged 29, of Northfield, has had his jail sentence slashed by top judges and should be able to return home within a few weeks. Mohammed was diagnosed with stage four of Hodgkin’s Lymphoma while awaiting trial for the theft of 300,000 pounds worth of high value cars in January 2011. His barrister Chris Gibbons said that Mohammed’s earlier symptoms of the disease were put down to tuberculosis. He was a member of a highly organized gang who stole luxury cars from homes across the Midlands, using electronic equipment from a top-of-the-range BMW. The stolen vehicles were stripped down and parts and equipment were sold on ebay in a racket that lasted five months. eBay investigators working with local Police teamed up to shut this gang down. Click here to read the full article.

For further information on PROACT email inquiries to; PROACT@eBay.com

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Press Release
 



RILA’s Horizons Committee
Helping to Stimulate Innovation

Since the RILA Technology Priorities Document (TPD) launched last August, our Horizons Committee has been relentless in their pursuit of innovation!

The TPD is a compilation of preferred technology functionalities for some theft deterrent solutions that retailers believe can advance with innovation. The spirit of the TPD and accompanying Request for Information (RFI) is to encourage collaboration across industries and to stimulate innovation for the benefit of the retail AP industry and the solution providers who offer cutting-edge solutions to problems retailers face in the future. RILA’s Horizons Committee is comprised of AP technology experts from RILA’s retail member companies.

The Horizons Committee regularly reviews the solution provider submissions and hosts webinars for participating solution providers to showcase their portfolios, products and concepts to committee members. Following the webinar, solution providers are offered options for marketing their products to the broader RILA membership.

The TPD is an exciting initiative that connects cutting-edge solution providers to many of the world’s leading retailers. Click here to learn how you can participate in the Horizons Committee TPD initiative.

 
ORC News
 

Counterfeit check fraud ring of 3 busted in Charlotte, N.C. hitting major retailers  
A large scale counterfeit check investigation initiated by the Stanly County Sheriff's Office ended with three suspects taken into federal custody. Authorities say the suspects were using identifying information to create and print counterfeit checks to complete fraudulent transactions. Investigators determined that one of the suspects was obtaining the victims' information while employed by a food distribution company. The fake checks primarily ranged from $200 to $400 and were passed to major retailers in the greater Charlotte area, for purchases of goods and gift cards. (Source wcnc.com)

Two woman ORC ring busted in Louisville, Ky. involved in "large scale theft ring"  Two Louisville women were arrested after police say they were involved in a large scale theft ring. Amanda Bruce, 21, and Elizabeth Bryan, 44, were arrested by officers conducting a theft investigation. According to a police report, multiple statements implicated Bruce and Bryant as key players in an ongoing theft ring. According to the police report, at least 160 gift cards have been sold since November totaling more than $14,000 in retail theft. (Source whas11.com)


 

Colorado Springs launches their COORCA program last Tuesday and the turnout was great!  COORCA has approximately 550 members overall in less than 12 months. The main chapter is COORCA-Metro (i.e., Denver). Web site is www.coorca.org. Their first meeting, pictured here, was at the Stetson Hills police substation in Colorado Springs. Pictured at left in front is CSPD Commander Rafael Cintron. Sr. Investigator-ORC for Safeway, Nathan Bandaries is standing in middle. And seated in front below the screen image is CSPD Det. Eric Frederic, who is the COORCA South chair, and CSPD’s full-time ORC detective. Congratulations to all involved - job well done and lets hope we see some major impact. Thanks to John Lites, Loss Prevention Director for Safeway's Denver Division for the submission.

Reporting ORC news increases awareness -
educates the retailers -
and hopefully creates jobs.
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Axonify. Learn More.

Vendor Spotlight
Axonify
Axonify - Pep Boys Case Study

Background
Pep Boys is a full-service automotive aftermarket retail chain, headquartered in Philadelphia, PA. Operating over 700 stores do-it-yourselfer, do-it-for-me (service) and buy-for-resale (sales to professional garages) who have come to rely on Pep Boys for high-quality, name-brands, low prices, convenience and un-matched service.

The Challenge
Pep Boys has always focused on delivering safety and loss prevention messages down to the associate level. Similar to other retail organizations, they had instituted a fairly robust store level awareness program that included posters, monthly manager-led meetings and when required, impromptu huddles.

"The most surprising benefit of the Axonify solution was how well it was received and continues to be received by our employees." Bryan Hoppe, VP of AP, Pep BoysPep Boys found that although they were doing a variety of things around awareness training, they weren’t seeing the reductions in inventory shrink and safety incidents that they expected. Issues such as back injuries and internal theft were still plaguing the organization. They often saw their incident and shrink rates start to fall and then quickly rise again with no discernable pattern.

The team at Pep Boys hypothesized that their lack of sustainable success was largely due to the fact that their employees were not retaining and operationalizing their learning. Associates would get the message and shortly thereafter return to their prior habits with no long-term change in behavior. With over 19,000 employees being trained, it was virtually impossible to track who the message was getting through to and who it wasn’t. It was even more challenging to understand who was actually applying learning to their job.

The Solution
In 2009, Pep Boys implemented the Axonify solution as part of an overhaul to their loss prevention and safety awareness programs. The goal was to reduce their shrink and safety incident rates. Via the Axonify platform, associates now receive daily reinforcement of monthly training they’ve received through their LMS system. Employees answer targeted, quick questions related to risk, loss prevention, safety and operational policies and procedures that they need to know. If they answer correctly, they play a slot machine game titled “Quiz to Win” for a chance to win cash prizes. If they demonstrate a knowledge gap in a particular topic, the system pushes out at an immediate training burst to reduce that deficiency. Questions are repeated at various intervals until the employee demonstrates adequate information retention. It takes 30 - 90 seconds a day and is done either at the beginning of the associate’s shift or during downtime throughout the day.

To Read More Click Here to
Download the Case Study

 

Thought Challenge
 

Thought Challenge Review

Making it Count

By Dereck Ethington, LPC, CFI
Regional Loss Prevention Manager
Hibbett Sporting Goods


as published on October 23, 2012


Strive to be a catalyst! In order to make a difference in the world of retail, it is our goal to play a significant role which requires each and every one of us to fully commit every day we are in this game called loss prevention! Instead of going with what worked in the past, my challenge for us is not to embrace the status quo, but instead, to begin thinking differently - in a way that will offer new solutions and new ways of thinking that will ultimately revolutionize our perception of loss prevention as a whole and also the retail world as we currently know it. Let’s face it, being a 'team of one' can be quite challenging when it comes to truly making a difference in how our stores perceive the company’s LP initiatives. On average a district/regional LP manager can be responsible for covering anywhere between 12 – 400+ locations. With that being said, it is imperative for loss prevention professionals at the district/regional level to ensure they are having meaningful conversations with everyone they come into to contact with. It should be a goal of ours to walk away from every conversation leaving behind a 'golden nugget' of information. And for this type of conversation to ever take place, our dialog must be current and relevant to the issues at hand and delivered in a way that commands the recipients attention from beginning to end. On the other end of the spectrum, we risk that a portion or the entire message may be lost in translation if we fail to deliver without ever reaching the heart and soul of the message which were the intentions from the very beginning. This is where the challenge truly lies – being able to convey a message to numerous amounts of people one conversation at a time. The difficulty in this process is that the LP professional may lose heart or drive over a stretched out period of time. Being on the road and traveling from store to store hours upon hours has the ability to bring any one person to a screeching halt. And for this very reason, we must commit daily to reignite our fire before we step back out into a hectic world where it is our goal and objective to raise awareness dealing losses by way of initiating conversations one store at a time.

 

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Tip of the Day
Sponsored by Vector Security

Networking has always been a key to career development and finding that next job. However, if you're not careful it can also limit you, eliminate you and even work against you. If your network is comprised of executives doing exactly what you do, then you may have competition and may even find some working against you. You've got to broaden and expand your network outside your immediate group and establish relationships outside your company and your professional circle. Remembering that quantity is no substitute for quality and, as in any mutually beneficial relationship, what you bring to the table for them is as important as what they bring to the table for you.

Just a Thought,

Gus Downing


Gus Downing

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University of Florida, Security Research Project - Request the 2011 National Retail Security Survey: Final Report. Email Dr. Hollinger. You must send your name, title, company and address to receive password to open the .pdf file.


The Library of Loss Prevention - Search data now...
 



 

2012 Thought Challenge Committee

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