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February 21, 2013

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News Brief
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It's all about cutting costs - merging Office Depot with Office Max and Staples may win out  While the combination has the potential to extract cost savings and make the chains stronger, Staples, already widely considered a better-managed operator, is poised to grab market share in parts of the U.S. where it has lagged behind. Some analysts think Federal regulators may block the deal again, as they did almost 16 years ago when Staples tried to merge with Office Depot. And even a few think “the argument against this sector is that people are using less paper, everything is going online, and you just don’t need these guys as much.” Even another said this merger "pushes consolidation into overdrive, leading to as many as 600 store closings." That means jobs. (Source

With both companies experiencing sales declines, the merger makes sense for now  Both companies reported a sales decrease and a net loss for their fourth quarter. Office Depot was down 12% in 4Q and reported a net loss of $17M with North America same store sales down 6% and sales down 13%. Office Max 4Q sales down 7.4% and reported a net loss of $33.9M with same store sales down 4.1%. (Source

Albertsons Unveils Post-Merger Organization - business as usual at sold divisions at least initially  With the new management teams just named for the various divisions Supervalu just sold to AB Acquisition it would appear that most operating groups will be staying in tact post sale. That's great news for the Loss Prevention executives, as it appears it'll be business as usual in the Albertsons group and the other brands they bought (Acme Markets, Jewel, Shaw's/Star Markets). (Source

Retail experts are expecting February to be a softer month across the board  Since Americans have recently been slammed with higher costs while also taking home less pay. The price of gasoline has also increased more that 13% in the last month alone, and most of the country's 160 million workers are seeing smaller paychecks since the payroll tax cuts expired last month. Workers earning the national average salary of $41,000 are receiving about $60 less each month. (Source

Omnichannel retailing - connecting with consumers in any and every possible way
Mostly through mobile phone, e-commerce, social media, bricks and mortar, and even TV. With omnichannel retail, a shop can satisfy a consumer’s needs by juggling every solution available—and with every shopping channel. At the most futuristic level of omnichannel, a store employee located at a remote site can help consumers and give real-time directions on where to find an item at a neighborhood store. (Source

Wal-Mart expands self-checkout in stores via its iPhone app  Wal-Mart Stores Inc. has its sights set on the smartphone-wielding shopper, this week expanding use of the “Scan & Go” feature for its iPhone app to 40 stores in the Denver area. It has been testing the mobile commerce technology in stores in Northwest Arkansas, Atlanta, San Jose, CA, and Portland, OR. (Source

VF Jeanswear Wrangler distribution center in Alabama is on its way back to recovery following a tornado; $31 Million in State aid.  The VF Jeanswear Wrangler distribution center in Hackleburg, Alabama was destroyed in a tornado in April of 2011. The State of Alabama with the leadership of Senator Jeff Sessions fought to get VF the help they needed to rebuild the distribution center. The new facility will open in May and employ 200 people from the area. A total of 18 people were killed when the tornado hit the city, one was killed in the distribution center. (Source

Why "Good Jobs" Are Good for Retailers 
The United States needs better jobs, not just more jobs. Service businesses—including low-price retailers—that currently don’t invest adequately in their workers could be part of the solution. Why Do Retailers Underinvest in Labor? Great article from Harvard Business Review for any retailer to read remembering it's merely an opinion of one researcher. With Home Depot's former CEO Robert Nardelli's model for increasing profits and reducing costs example front and center. (Source

NYPD could have a money maker on their hands with new "Domain Awareness System"  Along with Microsoft the NYPD developed a new software system that they've been quietly using for the last year known as The Domain Awareness System and once Microsoft starts selling it to law enforcement agencies the NYPD gets 30%. A 911 call comes in about a possible bomb in lower Manhattan and an alert pops up on computer screens at the New York Police Department, instantly showing officers an interactive map of the neighborhood, footage from nearby security cameras, whether there are high radiation levels and whether any other threats have been made against the city. Coming to a town near you! Just think of the retail applications. (Source

U.S. plans to wage war on IP thieves
Following weeks of reports of cyber attacks on US firms, allegedly perpetrated by China, the White House has said it will be ramping up diplomatic pressure and preparing laws to protect American interests from IP thieves. President Obama has already signed off an executive order requiring federal agencies to share cyber threat information with businesses. (Source

Explosion of employee owned devices being used in the enterprise has become a main focus for CSO's  “There is a confluence of events taking place: it's quickly becoming more efficient for companies to use third-party cloud applications. And employees demand to be more mobile, bringing their own high-performance devices. The bottom line is there is no single best practice to securing corporate data on these devices — it requires a layered approach, balancing among cost, security, compliance, productivity and corporate culture,” said Bill Burns, Director of IT Security & Networking and Wisegate Member. Wisegate released a new report that answers the industry’s most complex “Bring Your Own Device” (BYOD) questions. (Source

12 member counterfeit check ring hitting Walmart stores busted in Spartanburg, S.C.  The suspects created checks using the victims’ bank information and cashed them, Nowak said. The bad checks total about $40,000, according to investigators. The investigation started when Burgess began looking into several mail thefts. Assisted by the U.S. Postal Inspectors, it was determined that mail with victims’ bank information was stolen from mailboxes. (Source

Huntsville flash mob shakes up Wal-Mart parking lot  More than 150 people gathered in the Wal-Mart parking lot on Highway 72 to film their rendition of the "Harlem Shake" Wednesday night. The young man who planned it at the last minute only expected 20 people to show up and he got over 150 to his surprise. And the only reason we've included it in today's Daily is that Flash Anything's are becoming a national past time and we've got to be prepared in all of our stores for this possibility. (Source

Facebook firestorm over Marines being asked to leave a mall in Clarksville, Indiana; Mall Security sited the “no solicitation policy”.  Back in late December or early January, mall security approached two to three Marines in the food court to inform them they had violated the facility’s no-solicitation policy, according to marketing and public affairs representative Sgt. Daniel Angel. The Marines were talking to some customers as they had lunch in the food court. Green Tree Mall Marketing Manager Heather Edge said she was not aware that the exchange took place until this week, after seeing hits on the mall’s ShopGreen TreeMall Facebook page, where people posted their outrage, some calling for a boycott of the mall at the idea that the mall would ask servicemen to leave the building. Edge stated the incident was a misunderstanding. (Source

New Jersey Woman takes a cab to rob a Rite Aid store in Camden.  Police in southern New Jersey say a woman needed a ride in order to go and rob a drugstore, so she hopped in a cab. The caper didn't end well. Police in Gloucester Township say Lauren Bianco pulled a gun at a Rite Aid store Tuesday night and fled with about $100. Problem was, when she tried to jump back into the taxi while being pursued by the store's manager, the cab driver locked the doors. Inside the cab was Bianco’s pocketbook with her identification. Bianco got a ride to her home in Camden but later turned herself in. She's charged with armed robbery. (Source

Two Family Dollar Stores robbed on the same night in Atlanta.  Atlanta Police are searching for four suspects who robbed two different Family Dollar Stores in the area on the same evening. A rifle was used to scare the employee in one location. An undetermined amount of cash was stolen in both cases and no one was injured. (Source

AutoZone in Frensno robbed by a lone gunman.  Placing items on the front counter, the suspect then drew a handgun and demanded the register cash. No customers were in the store during the 8pm robbery. Two associates inside the store were unharmed. (Source

Best Buy LP associate knocked to the ground during iPad theft in Saginaw; two suspects arrested.  Best Buy Associates surrounded the front doors of the store and were able to recover two iPads the suspects had concealed. One Loss Prevention associate was pushed to the ground and the two suspects managed to escape. Buena Vista Township Police pulled the car over on Interstate 75 and both suspects were arrested. The two now face charges of unarmed robbery and possession of criminal tools. (Source

Hialeah, FL Sprint Store burglarized; police not saying if related to similar robberies in south Fla.  The cell phone stores in South Florida have been a target of both burglaries and robberies for the last few months. The thieves are not brand loyal and have hit most of the large carriers in multiple cities in the area. (Source

Tulsa man sentenced to 112 years in prison for 3 check cashing store robberies. 
The jury sentenced Kenneth Mitchell to 45, 45 and 22 years with the time to run consecutively. Mitchell was found guilty of two armed robberies and one attempted robbery, all focused on check advance businesses. Mitchell had a previous conviction for robbery/ kidnapping in 2007. Mitchell will need to serve 85% of his time before being eligible for parole. (Source

Corpus Christi man sentenced to 30 years for Aggravated robbery at Walmart.   Jorge Calleros went into a Walmart, loaded two television sets into a cart and pushed them to the front of the store. When approached for a receipt by the Greeter, Calleros displayed a handgun in his waistband and continued to walk out of the store. Police later tracked down Calleros, the television sets were never recovered, but police did find an airsoft BB gun matching the one used at the store. Calleros has seven convictions dating back to 2008, including assault, theft and drug possession. (Source

Quarterly Same Store Sales Results

Wal-Mart 4Q up 1% with net sales up 3.9%

Senior LP executives - We'd like to hear from you  We are conducting an informal survey in regards to the traditional retail LP model to see how LP jobs have incorporated any components of the IT security. 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. Involvement may include but not limited to: mobile and tablet roll-outs, privacy issues, and internal threat analysis. Email Gus confidentially at Thank you.

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Press Release

New Ninja Label from USS Deters
Organized Retail Crime
Product Theft

Imprints Store Logo on Merchandise Box When Removed

Rancho Cucamonga, CA – February 19, 2013 Universal Surveillance Systems LLC (USS), the architects of loss prevention technology, has introduced the new Ninja Label built with unique dual technology to help prevent shoplifting and organized retail crime (ORC) theft. Equipped with effective electronic article surveillance (EAS) technology and backed with heavy duty adhesive, the very visible label imprints an extremely hard to remove color store logo on the merchandise box if peeled off, making sale of the stolen item more difficult and helping to trace its origin if subsequently recovered.

“The innovative Ninja Label meets the critical need for an effective loss prevention solution specifically designed to stop ORC and the resale of stolen goods at swap meets, flea markets and online sites while offering exceptional in-store EAS protection,” said USS President and CEO Adel Sayegh. “If a thief peels a Ninja Label from a merchandise box, a nearly impenetrable color store logo is left behind, significantly decreasing the thief’s ability to sell the item and providing an easy way to identify where it was stolen. The innovative Ninja Label is perfect for a wide variety of retail environments because of its unique, effective dual technology theft protection and deterrence.”

Compatible with all 8.2 MHz RF EAS systems, the highly visible 1.3” Ninja Label quickly attaches via a strong adhesive backing and is easily deactivated by store staff for operational efficiency. Its rugged construction assures a high pick rate, and its high visibility provides a significant theft deterrent.

For more information, visit or call 1-800-488-9097.


Scott Richardson
Corporate Communications Manager
Universal Surveillance Systems


ORC News

Three arrested in Walmart theft in Pueblo; ends in a crash.  Canon City police arrested three people Tuesday afternoon after stealing two computers from a Walmart . According to authorities, two men took two computers from Walmart, and sped off in the parking lot with a woman in a grey Sedan. The suspects headed eastbound on Highway 50 to southbound Justice Road before driving through a fence and into a nearby field. No one was hurt. (Source


2013 LAAORCA Award Winners

The following awards will be given today at the LAAORCA conference. Congratulations to all!

Industry Investigator of the Year -

Mike Swett, Formerly with TJX
This award is bestowed upon a non-law enforcement investigator (private sector) for their excellent investigative skills and outstanding performance that reflects the intent and mission of LAAORCA. The nomination must be based on the investigator's personal achievement not that of task force or team.

Law Enforcement Officer of the Year -

Detective Dave Barr, Seal Beach Police Department
The award for Law Enforcement Officer of the Year is based on the recipient's investigative pursuit, professional skills, and overall impact made toward the reduction of organized retail crime. The nomination must be based on the investigator's personal achievement not that of task force or team.

Member of the Year Award -

Officer Duc Dao, Los Angeles Police Department
Elena Del Valle, JC Penney
Christian Placencia, JC Penney

The Member of the Year Award honors a LAAORCA member who goes the extra mile for the association. This member has dedicated time and effort in exemplifying and furthering the organization's intent and mission.


Organized Retail Crime:
Estimated Lost Sales Tax Revenue by State

The Food Marketing Institute has released a report containing Organized Retail Crime: Estimated Lost Sales Tax Revenue by State. Over the next several days the Daily will publish these figures. Stay tuned to see your state estimate! Click here to view.

For more information on organized retail crime, visit FMI's issue page.

Reporting ORC news increases awareness -
educates the retailers -
and hopefully creates jobs.
Share Your ORC News or Thoughts

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Vendor Spotlight
Vector Security

Vector Security® Announces insidePOS

New offering incorporates video, point-of-sale data and monitoring to improve business performance.

Intelligent security solutions and analytics tailored for you.

PITTSBURGH, February 18, 2013 – Vector Security® in partnership with Risk Management Services Loss Prevention, LLC announced today a Point-of-Sale (POS) monthly service to address the rise in employee theft and provide a tool for customers to review data and analytics to improve business processes.

The offering entitled insidePOS is a point of sale monitoring service that helps spot cashier infractions as they occur – not days, weeks, or even months later. insidePOS leverages customer-identified triggers such as refunds, voided transactions, no sales, sales under one dollar and a host of other examples which can result in employee’s friends and family sweet hearting, elaborate return schemes, or stealing directly from the cash registers.

“These triggers instantly create and transmit a video clip along with associated point of sale data relative to the event each time the identified event occurs.” said Jim Close, Managing Partner at Risk Management Services Loss Prevention, LLC. “This solution allows the customer or our investigative team to intervene if warranted, virtually on a real-time basis.”

Whether the intentions of their employees are dishonest or not, even untrained or unsupervised employees may be doing things incorrectly, which can impact customer inventory and auditing systems.

“insidePOS gives our customer a new level of transparency and control tied to the events that could impact their business on a daily basis.” said Art Miller, VP of Marketing for Vector Security. “insidePOS is an intelligent security solution that businesses can tailor to their needs and deliver analytics that matter most to them.”

While insidePOS will be officially introduced to the retail market at the Orgill Dealer Market in Orlando, FL from Feb. 21-23, the service is currently in use at Gordon’s Ace Hardware in Chicago, IL.

“The concept of combining a camera system, POS data, and a monitoring service into one product offering is a concept that will revolutionize the industry.” said Jeremy Melnick, Owner of Gordon’s Ace Hardware. “Since deploying insidePOS™, the video clips have been used to train our management team, fix loopholes in our POS security system, and our employees are subtly reminded that procedures must be followed or questions will be asked.”

Melnick adds, “I feel this service provides another level of control over my business and I can’t imagine running my company without it.”

Art Miller
Vice President, Marketing


Thought Challenge

Thought Challenge Review

Life Lesson

By Jon Grander
Vice President, Asset Management
Brown Shoe Company

as published on November 26, 2012

On November 5th, 2012, I lost one of the most important and influential people in my life, my Dad. His name was Lloyd George Grander and he had a great 82 years, and I was able to enjoy my life by being part of his. As my sister and our families met with the Pastors to prepare for his Funeral, we naturally migrated to all of his accomplishments. Whether it was his Masters degree from Rutgers University, his 30 plus years of being treasurer of the local Rotary Club or being a principal and educator for over 40 years, we were proud of what he did. When we had exhausted everything we could about his career, memberships, and other accomplishments, the Pastor asked two simple questions:

1. What do you remember most about your dad, in other words, what are you going to miss the most?
2. What makes you smile when you think of him?

Those two questions had a profound impact on me and my thoughts shifted. Two things came to mind when I thought about the first question. First was his faith. My parents were both very active in our church throughout their lives. This was more than just attending Sunday service. They were involved in making our place of worship a better place. He did whatever it took, and sometimes, just whatever my mom wanted. He was service oriented and even though he touched so many lives, he was always very humble. Second was his love. My parents were married for 56 years. They truly were that couple that still held hands every day. Although years had put wrinkles on their faces and skin, they still looked at one another like it was the first time. The love they had for one another was beyond something I could put into words. His love for my sister and I, as well as our spouses and children was something I’m not sure everyone gets to experience, but wish we all could. The love that he had was also shared with the relationships he had with people he came into contact with. As we were telling people about my dad’s passing, I had the opportunity to contact his college roommate, (My dad graduated college over 60 years ago but maintained this relationship). Of course his roommate was sad about the news, but shared some memorable stories I had never heard before.

As I thought about the second question, it was obvious that my dad’s sense of humor was the thing that made me smile. He had a very funny sense of humor and would use it to tease people. While some things he said may be considered unfiltered, people that were receiving the teasing loved it because it came from dad. Not sure how he got away with some of the things he said, but I came to realize that they knew how much my dad cared for them, so it was never taken as offensive or in a manner that made people feel badly. Back when he was a Principal, his students would go out of their way to pass my dad in the hall so they could get teased. It made them feel special and connected with him. At my dad’s funeral one of the nurses at the Assisted Care Center he resided stated that my dad always asked how she was doing. She acknowledged being teased relentlessly by my dad, but followed up by saying that each time he asked her a question like how she was doing, he meant it in the most genuine manner. I also found out after his death he was known to give his treasured flashlight collection, generously to night shift nurses so they’d be safe going to their cars at night.

Like many of you, I have read countless books and articles on leadership, management, and personal development. Sometimes the most meaningful things in life don’t come from books but from experiences and people that you interact with day to day. When I think of my dad’s life, he lived the life I aspire to live. He had faith, love, integrity and purpose. He valued people and genuinely cared about the people he interacted with.

Imagine how differently we would conduct our day to day business with questions similar to the ones the pastor’s asked me... what do you enjoy most about the people you work with everyday? Do you ever tell them that or would you wait to eulogize them when clearly it’s too late? What makes you happy about your job and life? Do those two things compliment or conflict one other?

My dad was a great man, and I will miss him greatly. As he was a teacher in his career, he also taught me some of the most important things about life. To pay his life forward, it’s an honor to share some of his memories with you and our LP Community. My thought challenge for you is to reflect on the two questions above as it relates to you. How do you want people to remember you and what do you want them to smile about when thinking of you? What’s your life lesson?


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Mike Mann was promoted to Regional Director - Supply Chain Asset Protection - Macy's Logistics & Operations for Macy's.
Mike Andreotti
was promoted to Sr. Group Manager Assets Protection Operations for Target.
Jonathan Carroll was promoted to Regional LP Manager for Brookstone.
Christopher Castellani was named Loss Prevention Manager for Bloomingdales.
Brett Davidson was promoted to Market Asset Protection Manager for Wal-Mart Stores.

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Your Career
Sponsored by 3VR
Michael Porter on Why "Best" Isn't the Right Goal  "The granddaddy of all [strategy] mistakes is competing to be the best, going down the same path as everybody else and thinking that somehow you can achieve better results." (Don't chase the wrong goal)

Stop Competing to Be the Best  "May the best car win!" This phrase reflects an underlying belief about the nature of competition that feels so intuitively correct that it is almost never examined or questioned. But if you want to win, this is absolutely the wrong way to think abut competition. (No such thing as "the best")

How Constructive Employee Feedback Can Improve Performance Management  Why do managers shy away from giving performance feedback, both positive and negative? Employee feedback should be given as frequently as possible. (It's not scary)

How to Set Goals for Employees  What should we do? That is the first question the manager must answer. This may sound obvious, but it is remarkable how many managers never get tot his basic question. They take their mission, strategy and goals as given -- something set by others. (Be proactive)

CVR Video Surveillance - Video Intelligence


Tip of the Day
Sponsored by Vector Security

When anyone goes for an interview you’ve got to play to win. You should not allow: any outside variable, any future promotion thoughts or promises, your guilt feelings towards your current employer or boss, your preconceived opinions of the possible future employer, or any miss-step in the process on the part of the future employer disrupt or impact your performance. All interviews have long range implications on your career. The executives interviewing you are part of a community and you'll run into them again at another company. So if you do get involved and go for an interview, commit yourself all the way and play to win. It doesn’t mean you’ve got to take the job. It just means you have to perform at 100%.

Just a thought,

Gus Downing

Gus Downing

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