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The D&D Daily Mobile Edition

May 16, 2014

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News Brief
Sponsored by WG Security Products, Inc.

Tim Fisher was named Director of Loss Prevention for T Mobile.  Tim was the previous Director of Assets Protection/Safety for Best Buy and had worked there for over fourteen years. He has been involved in the Investigations and Loss Prevention industries for Target where he had such positions as Manager Fraud Investigations, District Asset Protection Team Leader, and District Loss Prevention Manager. Congratulations Tim!
Timothy Kidd was promoted to Senior Director, Loss Prevention Operations for Ross Stores.  Tim had previously been the Director of Loss Prevention Operations and Initiatives for Ross Stores and has been part of the Ross Stores Loss Prevention team since 1991. He started as a Loss Prevention Agent, and worked his way up the ladder, earning promotions such as District Loss Prevention  Manager, Corporate and Distribution Center Loss Prevention Manager, and Director of Loss Prevention Operations. Congratulations Timothy!

Social Media Makes It's Impact - Target Headquarters "In Desperate Need of Help," Says Employee - Target's CMO responds - 'The truth hurts'  Union-busting retail giant Target is having a tough time: its CEO just resigned, its stock is down, and it faces an existential threat from Amazon. We now bring you one current Target headquarters employee's thoughts on what's wrong with Target. An email sent to the popular blog site the gawker from a current mid-level employee at Target's headquarters in Minnesota. This represents just one person's experience inside the center of the Target bulls-eye. Target purposely staffs assuming that everyone is working at 50% productivity. In essence they have 2 people doing a job that 1 person could do at another company, because the rest of the time you're in status meetings or volunteer events or FFF events (that's Fast Fun & Friendly, basically an excuse to not be working). They have a culture that makes decision via consensus, so it takes FOREVER to make a decision and implement even the smallest change. That keeps them from being able to make the necessary changes, and they won't ever get there without a big change in leadership and a true vision beyond "keep the doors open". If Target doesn't make a serious change in their leadership and culture, it will end up being a Kmart, a Sears, or even worse a Circuit City. The Twin Cities would be devastated - around 15,000 people work for Target HQ at one of their numerous sites in the Twin Cities. Target Canada from the very beginning it was a bad decision, but the company had already made contractual obligations and couldn't get out of them. So they carried forth with a really bad plan and had people in charge who don't know what they are doing, making bad decisions. Very simple, elementary things in retail/supply chain are being messed up which is why the Canada opening has gone so bad. To make it worse, they are repeating all the things they did wrong in 2013 - absolutely nothing is getting better. A few execs came back to Target US from Canada and were given promotions, after a complete failure in Canada. (Source gawker.com)

Target's CMO's response: 'The Truth Hurts'
I shared this message with Target’s team members moments ago. As I told them, the truth hurts, but it can also set you free. To say that the last five months at Target hav e been difficult is an extraordinary understatement. The data breach we suffered rocked consumer confidence and ignited a nationwide discussion about phishing, cyber-security and the realities of living in today’s data-enabled world. Thanks in large part to social media, it looks like this will have been one of the most covered business crises in American history. And just last week, our CEO stepped down after six years in position and 35 years at Target. His departure has already spawned over 6,000 articles wondering and speculating about what happened. You’d think that these two incidents alone would create enough pain to last a brand a lifetime but one of the most challenging things that has happened, in my opinion, have been reports, some attributed to unnamed team members, that paint a picture of a culture that is in crisis. When a recent post on a well-known blog called me out by name, it only felt right that I should respond. And while it was difficult for me to read this account for many reasons, the reality is that our team members speaking with honesty is a gift. Because much of what they are saying is true. Target is not the first brand in history to hit a rough patch. And we won’t be the last brand to do what it takes to recover. But the very real fact of the matter remains, we have hard work to do. The kind of work that is unafraid to challenge what we’ve known and what has worked in the past. The kind of work that expects more than ever from our team, and ourselves. The kind of work that will be uncomfortable, in order to make Target irresistible. (Source linkedin.com)

$13.9B spent on 50 DC's between '10 and '13 alone - Now with Amazon Fresh - Move over Wal-Mart it's time for Amazon to take a piece of the supermarket business  The retailer’s 244 million active users coupled with fulfillment infrastructure, technology and content investments have helped it “play a prominent role in the structural shift away from brick-and-mortar retail, and it may lay waste to several other retailers in the years to come,” R. J. Hottovy, director of equity research, global, consumer cyclical and defensive industries for Morningstar said in a research note this month. “Given its compelling value proposition, expanded consumer staples product assortment, increasingly rapid delivery options (a byproduct of recent fulfillment center investments), we believe its conceivable that AmazonFresh will control over 1% of the forecast $950 billion domestic grocery industry within five years,” Hottovy said. And as Amazon makes an aggressive market share grab for products ranging from fashion to personal care, its play for a bite of the grocery business, for one, could just shake up the supermarket sector. (Source forbes.com)

Kohl's could be planning larger management shake-up  Kohl’s Corp. CEO Kevin Mansell could continue to shake up the company’s top management as he searches for a possible successor, according to an article published Tuesday on the Wall Street Journal's website. The article, citing “people familiar with the matter,” says Mansell is personally searching for a new chief merchandising officer who could be a candidate to succeed him. The Wall Street Journal article says the board wants Mansell to demonstrate progress at a board meeting Wednesday, when he is expected to describe plans for a “broader management reorganization." (Source bizjournals.com)

RadioShack Is Out of Options: Bankruptcy Looms  After years of unsustainable losses, RadioShack announced a massive round of store closings earlier this year, a necessary step in the company's turnaround efforts. However, RadioShack's agreements with its creditors forbade such a move without approval, and the company was recently forced to renege on its plans to close over 1,000 stores, which represent around 20% of the total store base. Instead, RadioShack will close far fewer stores, as its creditors will allow a maximum of 200 store closings per year, and the company will have to attempt to cut costs in other ways. Without the ability to close underperforming stores, bankruptcy now seems like an inevitability. (Source fool.com)

Target Breach Lawsuits Consolidated
In their lawsuits, banking institutions claim Target should be responsible for card re-issuance and replacement expenses that card issuers have incurred as a result of the retailer's breach. More than 140 lawsuits, including 29 brought on behalf of banks and credit unions, were consolidated into three groups before U.S. District Judge Paul Magnuson on May 14, according to local news publication Pioneer Press. (Source govinfoseccurity.com)

U.S. fast-food workers go on strike to protest low pay across 6 continents and in the U.S. looking for $15 an hour  Strikes were expected to be held in 150 cities, including Boston, Chicago, New York, Philadelphia and Miami, where about 50 people gathered in the rain outside of a McDonald's near a downtown hospital. Twenty cities in the UK go on strike. (Source reuters)

San Diego County declared State of emergency - Wildfires impacting retailers

Minnesota enacts first-ever smartphone "kill switch" law  Ideally, this law will lower phone theft rates, which the newspaper says accounts for about one in three robberies around the country. (Source scmagazine.com)

Quarterly Same Store Sales Results

J.C. Penney Q1 up 6.2% with sales
Nordstrom Q1 up 3.3% with net sales up 6.8%
Dillard's Q1 up 2% with sales up 1%

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New York City Loss Prevention Collaboration Meeting

In early May, retail and law enforcement professionals came together for the second quarter New York City Loss Prevention Collaboration Meeting. Attendees included representatives from 15 different retailers, mall security directors, the NYPD, and the United States Secret Service. The keynote speakers included Sergeant Tarik Sheppard of the NYPD and two Special Agents from the United States Secret Service. Topics ranged from the planned development of a New York Organized Retail Crime Association- (NYORCA) to electronic crimes against retailers. The NYC LP Collaboration Meetings focus on building relationship between law enforcement and retailers in an effort to combat retail theft. A special thanks to Sephora for hosting the second quarter meeting. For information regarding upcoming events contact the NYC LP Meeting coordinators Chip Chiappetta at ChipChiappetta@DSWInc.com or Tarik Sheppard at TARIK.SHEPPARD@nypd.org.

Update on Beall's ORC video posted Wed. - Suspect turns self in & admits to being part of 'large organized shoplifting ring' in Tampa  The woman suspected in a bold robbery caught on camera is under arrest Friday morning. Investigators say 20-year-old Tonea Crawford turned herself in at her mother's request. She's been arrested 24 times since the age of 13, but this most recent one got the most attention. She surrendered and even admitted that she was part of a large organized shoplifting ring. (Source myfoxtampabay.com)

Seven more arrested in Brownsville, TX Gas Theft Ring  Seven more people were arrested for allegedly being complicit in a Brownsville gasoline theft ring that spanned several months and resulted in more than $20,000 worth of gas stolen, authorities said. Authorities arrested four Brownsville residents and three San Benito residents. Cameron County District Attorney spokeswoman Melissa Zamora said in a press release that Olmito resident Larry Munoz, 41, who was arrested last week, worked as a manager of the 7-Eleven convenience store at 745 W. Elizabeth St. and used a keypad apparatus to bypass security measures at a gasoline pump to steal gas from his employer. (Source brownsvilleherald.com)


North Texas Area Crime Trackers (ACT)


The North Texas Area Crime Trackers (ACT) group and list serve began in 1999, and currently has around 550 members. ACT is a network of Law Enforcement and Loss Prevention professionals working together on common crime issues. Because it is simple to use and extremely effective, it continues to grow.

The list serve network is maintained by the Irving,Texas Police Department and was started originally by retired officer Tommy Hudspeth. Chief Larry Boyd of the Irving Department has continually supported this highly effective tool.

Charlie Tyner, Div. LP Manager for Kroger, has been the driving force behind this group. Members must apply to get on the list serve (through the Irving Police Department) and credentials are checked at the door of any meetings held.

Members may broadcast a message to all 550 plus participants by simply sending their message to the ACT email address. The rules are: only intel, and law enforcement related training opportunities, no solicitations or advertising or endorsing allowed. The group shares the intel with other similar networks when the information is relevant. ACT has helped to solve a lot of local crimes in North Texas through their list serve and local meetings.

ACT holds meetings about twice a year with average attendance ranging from 50 to 100 members, depending on what is going on at the time. Here are some photos from a recent ACT Intel meeting held at Cabela's Sporting Goods in North Fort Worth. The meeting was led by Charlie Tyner (Kroger Div LPM), Grant Gulickson (Capital One Investigations) and Brett Lefever (Cabela's Asset Protection), and 100 Law Enforcement and retail representatives gathered from all over Texas. 




ACT is a free service that allows you to share criminal activity with other members. We all know that there are professional criminals and families that make their living stealing, so let’s share that information.


To join ACT send an e-mail with your name, job title, your coverage area (ex. DFW, Texas),
company or agency name and phone number to:

Officer Chris Waldrum #638
cwaldrum@cityofirving.org
 

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Canadian Push
Sponsored by Vector Security
Sears Canada may be doomed but it could still be with us for years - with $513.8M in cash & no long-term debt  Sears Canada’s demise seems inevitable after news Wednesday that its biggest shareholder may pull its stake out of the ailing department store chain. But with no single retailer seen as an obvious suitor to acquire the entire operation, it’s likely Sears Canada will continue to languish in this market for some time, even if Sears Holdings Corp. sells its 51% ownership in the business. "The writing has been on the wall for Sears for several years,” said Jim Smerdon, director of retail and strategic planning at Colliers International in Vancouver. He sees four distinct groups of buyers who could work together to forge a deal, including major landlords and pension funds who are seeking out Sears Canada’s shopping mall locations; private equity or retail turnaround groups such as Sun Capital, Hilco and Gordon Brothers; domestic retailers such as Hudson’s Bay who might wanting to shore up market share; and U.S. department stores such as Macy’s or Kohl’s. (Source finanicalpost.com)

Canada declared International Retail 'Hot Spot'; by Women's Wear Daily  Canada is an international retail 'hot spot', according to the world's foremost fashion-industry trade publication. Many international retailers are contemplating Canadian expansions, following Nordstrom and Saks Fifth Avenue's lead. Home-grown retailers will need to innovate to compete, or risk facing demise, like bankrupt retailer Boutique Jacob. Women's Wear Daily referred to it as the 'department store effect': following Nordstrom and Saks Fifth Avenue's announcements that they would open in Canada, other international retailers followed. Mary Mowbray, Senior Vice President of the retail group at Colliers International in Toronto, said the following: "The Canadian consumer weathered the downturn better. They have more money to spend and are more comfortable spending it. Traditionally there have been fewer players in the mid- and higher tiers in Canada, and that’s left an opening for more brands to enter here." (Source retail-insider.com)

It's not just Sears—6 mistakes US stores make coming to Canada  Although there is no exact formula behind each individual retailer's struggles, experts offered a list of six common mistakes U.S. chains make when setting up operations in Canada. 1. They assume that Canadian consumers are the same as U.S. consumers. Many American retailers are under the assumption that what worked well for them in America will translate over to Canada. That simply isn't true, Sozzi said. 2. They should consider setting up online operations before investing in an entire store network. For retailers questioning whether their brand will gain a following in a new country, one thing to consider is building out their online shopping functionalities first. 3.They set prices too high. U.S. retailers often times price their products at a premium in Canada to compensate for their investment in the country, and to account for its steeper operating costs, including a higher minimum wage and cross-border duties. 4. They take on too much too quickly. Opening 124 stores in one year was too big of an undertaking for Target, which didn't yet understand the intricacies of the Canadian market. 5. They do not fill a hole in the market. One of Target's biggest issues was that Wal-Mart, Costco and domestic chain Giant Tiger have a huge hold over Canada's discount shoppers. 6. They overlook domestic competitors. There are a number of popular retailers in Canada that already have a stronghold on shoppers' loyalty. (Source cnbc.com)

Canada Outperforms United States in Fighting Debit Card Processing Scams  According to a report published last week by The Vancouver Sun, Canadian debit card fraud has reached record lows due to recent initiatives to improve POS and card technology. The report, which has compiled data collected over the last year, indicates that debit card fraud has dropped 62 percent. That marks a decrease in credit and debit card scams to $7.3 million - a considerable improvement from 2012's $18.2 million in losses. According to the Interac Association, the drastic drop in debit card fraud losses is due principally to a dramatic decrease in "skimming," or the stealing of information from the traditional black magnetic strips on the back of most credit cards. Chip and PIN technologies are much more difficult to skim and Payment Processors in Canada. (Source prweb.com)

Chico's to open first three stores in Canada

Retail Fast Facts: April 2014

Highlights:
Total monthly retail sales changed by 4.0% over the comparable month last year.
Total sales excluding food, automotive and gasoline changed by 3.6 per cent over the comparable month last year. Read more (Source retailcouncil.org)
 

Big Data
Sponsored by Verint
Breaking down the White House big data and privacy report - What are the implications for retailers?   Invasive, pervasive, sometimes abrasive - welcome to a world where businesses believe there to be value in "big data." Though the field is nascent - many businesses don't yet understand what data they have available to them, and even if they do, they may lack the resources to run sophisticated analytics on them -- it gained high-profile attention earlier this month when the Obama administration released its Big Data and Privacy Working Group Review. "The big data revolution presents incredible opportunities in virtually every sector of the economy and every corner of society," wrote John Podesta, counselor to the president, in his introduction to the report. "But big data raises serious questions, too, about how we protect our privacy and other values in a world where data collection is increasingly ubiquitous and where analysis is conducted at speeds approaching real time." Ninety percent of the data in the world today was created in the past two years, according to the Electronic Privacy Information Center. In 2020, the amount of digital data produced will exceed 40 zettabytes, which is the equivalent of 5,200 gigabytes for every man, woman and child on Earth. (Source cnn.com)

Temkin Group Presents Verint with 2014 Customer Experience Vendor Excellence Award 
Verint Systems Inc. recently announced that it has received the “2014 Customer Experience Vendor Excellence Award” from Temkin Group, a customer experience research and consulting firm. Temkin Group created the program to recognize companies that provide products and services designed to help businesses significantly improve the customer experience. (Source verint.com)

U.S. Retailers Join Forces to Thwart Data Thieves - Now Sharing Intelligence 

Five Reasons Too Much Data Can Be Risky
 

Loss Prevention News Network
 

"Internal Growth - Positioning Yourself for Promotion"

Leadership & Development Series

Jim D'Arcy, VP of Loss Prevention & Food Safety for A&P stores, talks about the keys to success in positioning yourself for internal growth and promotion within a company. Over the last five years, Jim has been promoted four times at A&P. Here he discusses what it means to eat, sleep and breathe a company's culture - and why a lateral move isn't always a move backwards. Filmed January 13, 2014 in NYC.

Watch the interview here.

LP Executives – 2014 LP Video Challenge

Have a video the industry could learn from?
Your training video, your investigative video, a case video – any video you think your colleagues would enjoy or learn from. Or maybe one that's just downright funny or interesting. Send it to us and be entered into the new 2014 LP Video Challenge.

Don't miss out on this great opportunity to win!
1st place - $2,000
2nd place - $1,500
3rd place - $1,000

Solution Providers, have a video or commercial you want to publish? Contact us.

e-commerce
Sponsored by The Zellman Group

The big security glitch Target.com, Amazon and others haven't fixed  Some major retail websites have a security glitch that could put customers' personal information in the wrong hands -- and one of those sites is Target.com. Target Corp. is certainly familiar with security issues. Now, a local security expert says a "misconfiguration of encryption software" could allow hackers to use stolen information to go on shopping sprees online and leave unsuspecting customers with the tab. Since the massive data breach at Target last year, the company has tried to reassure customers that their credit card and personal information is safe and secure -- but Mark Lanterman, CEO of Computer Forensic Services, says there's one gaping flaw the bulls eye brand hasn't zeroed in on yet. In January, Lanterman explained how hackers could steal customers' user names and passwords from some of the biggest retail sites -- including Target.com -- with under $100 in equipment. All the hackers have to do is set up a Wi-Fi network that prevents encryption under a familiar name in a public space -- like a coffee shop. Then, when people sign in, the hacker can see their private information in the lines of code. Target isn't alone. Lanterman says companies like Apple, eBay and Amazon.com have the same problem -- but none of them have already had a massive security breach that caused customer confidence to take a big hit. (Source myfoxtwincities.com)

Study: Data Breaches Make Huge Impact On Brand Reputation  Data breaches can have as much impact as poor customer service in their effects on brand reputation, according to a study published Wednesday. The new survey, "The Aftermath of a Mega Data Breach: Consumer Sentiment," was conducted by the Ponemon Institute and sponsored by Experian's Data Breach Resolution unit. It asked more than 700 consumers about their attitudes toward a company's brand, and their willingness to buy in the wake of specific events. According to the study, the three occurrences that have the greatest impact on brand reputation are data breaches, poor customer service, and environmental disasters. Breaches also have a major impact on customer fears about identity theft, the survey says. Prior to having their personal information lost or stolen, 24 percent of respondents said they were extremely or very concerned about becoming a victim of identity theft. Following the data breach, this concern increased to 45 percent, Ponemon says. Almost half of respondents feel their identity is at risk for years or forever. (Source darkreading.com)

Wal-Mart's Online Retail Segment Is Growing Faster Than Amazon.com

"Fraud is not a person - it is a dynamic grouping of statistics that deviate from the norm."
Stuart B. Levine, CFI, CFCI
CEO, The Zellman Group & Zellman Fraudnet

Be sure to attend Stuart Levine's NRF LP Session, "EMV Impact and an Omni channel Approach to Reducing Fraud" on Wednesday June 11, 11:30-12:30pm in room 304-305

 

Retail Crime News
Sponsored by NuTech National

Police still searching for shooter who wounded three Tuesday night at Lakewood Center Mall in Orange County  Meanwhile, business owners there expressed concern about how the incident will affect the mall’s reputation in the normally quiet bedroom community. Deputies from the Lakewood Sheriff’s Station arrived at the scene at about 8:50 p.m. in response to a shooting, according to a statement from the L.A. County Sheriff’s Department. Upon arrival, deputies located two female victims, ages 15 and 20, who officials say were sisters, were transported by ambulance to a local hospital for non-life threatening injuries. Another victim was also found at a nearby hospital with a gunshot wound to his left arm. A stray bullet put a hole through a window at Blow It Out blow-dry salon. Roscoe said mall security guards are trained in a thorough security program, and the center has stepped up security with the Sheriff’s Department during the investigation. (Source ocregister.com)

Serial shoplifter sentenced to one year in prison in Jackson, TN.  Having been found guilty in 2005, 2012, and two incidents this year hitting Sears stores, Michelle Singleton was ordered to spend 11 months and 29 days in jail and pay restitution. (Source wbbjtv.com)

Video of the Heisman Trophy winner Jameis Winston Shoplifting incident at Publix  The Leon County Sheriff's Office released Publix surveillance video that shows Florida State quarterback Jameis Winston leaving the store without paying for his groceries. Winston was later cited for shoplifting $32.72 worth of seafood. As he was leaving the store, Winston appeared to pause in front of a Leon County deputy who was working in-store security detail at the time. The pause, the incident report said, appeared to be an attempt to avoid walking in front of the deputy. Winston then walked behind the deputy, past all registers and out of the store. (Source yahoo.com)

West Michigan flooded with knock-off clothes, toiletries  Across West Michigan, untold numbers of counterfeit coats, purses and perfumes are being peddled at bargain-basement prices. But it's no bargain when coats start to unravel at the seams, or the Air Jordan moniker on your Nike shoes actually says "Air Jorban,'' – with a 'B.' That's what Michigan State Police detective Michael Stites found among hundreds of counterfeit items seized last month from a Muskegon store. "The quality is so bad,'' Stites said of the counterfeit clothes. "The stitching is horrible. The labels aren't correct and the names are wrong.'' It goes back to the old adage – if it looks too good to be true, it probably is. "You're not going to buy authentic brand-name merchandise for 50 or 80 percent off original market value,'' Stites said. (Source wzzm13.com)

Man dies in shooting at DeKalb County, GA strip mall  County police are searching for two men who shot and killed another man in front of a shopping center. Police believe two men got into a car after they shot a man near a busy gas station on Snapfinger Woods Drive just after noon on Thursday. The 20-year-old victim was taken to the hospital where he later died. (Source wsbtv.com)

Orlando store owner opens fire on robbers inside business 

Philadelphia Police release Metro PCS Armed Robbery video 

Anderson County, SC Armed Robbery suspect recently released from jail

Suspect Arrested in Connection With Bluffton, SC $200,000 Jewelry Store Burglary 

Man shot in Fred Meyer checkout line showdown sues shooter for $110,000 

Bismark, ND woman arrested on Robbery after assaulting a JC Penney Loss Prevention agent

Hadley, MA Police Searching for Best Buy Theft Suspect, altercation with Loss Prevention

Las Vegas man gets 5 years in prison for Beauty Supply Warehouse store arson

2 Man Distraction Team hit Kay Jewelers in Concord Mill, Ca for $1000

Distraction thief hits Kay Jewelers in the Tulsa, Ok Promenade for a diamond ring valued at $2799

Quick hands trick Kay Jewelers Outlet in Gonzalez, TX out of a $3100 bridal band

JB Robinson Jewelers in the Eastwood Mall, Niles, OH the victim of a $1500 gold chain Grab and Run

Kay Jewelers in the Windward Mall, Kaneohe, HI hit with a Grab and Run; Movado Watch valued at $995

Robberies and Burglaries

Bratton’s Pharmacy – Palestine, TX – Burglary
Cartridge World – Colorado Springs, CO – Armed Robbery
CVS – Antioch, CA – Burglary – 3 arrested in ATM theft
CVS – Portland, ME – Robbery – suspect plead guilty
Dollar General – Rogers, AR – Armed Robbery – 3rd robbery in the area this week
Family Dollar – Columbus, OH – Armed Robbery
Fox Pizza – New Kensington, PA – Armed Robbery - suspect arrested for 2 area robberies
GNC – Madison, WI – Robbery – no weapon was displayed
John’s Beauty Supply – Brooklyn, NY – Armed Robbery
Pet Kare – Bear, DE – Armed Robbery
Sac n Pac – San Marcos, TX – Armed Robbery
Smart Mart – Oklahoma City, OK – Armed Robbery
Turkey Hill – Wilkes Barre, PA- Armed Robbery – suspect arrested
United Dairy Farmer - Dayton, OH – Shooting
7 Eleven - Orlando, FL – Robbery
99 cent Store- Laurelton, NY – Burglary – hole cut in roof

 

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