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June 10, 2013

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7-Eleven adds 35 Asset Protection positions - the biggest Asset Protection roll-out of 2013  The evolution of the Asset Protection program at 7-Eleven has taken off since Mark Stinde, VP AP joined the organization a couple of years ago. Driven by analytics, they have been able to show a significant return on their investment to the point where it's justified adding 35 Asset Protection positions this year. This is the leading retailer of the year for Asset protection growth.

Raley's Family of Fine Stores Targeted in Cyber Attack - They're on the clock - as days count in law suits  The West Sacramento, Calif.-based regional independent grocer with 120 stores immediately initiated an investigation to determine whether cyber criminals may have obtained customer credit and debit card information. At this time, the company has not confirmed any unauthorized access to payment card data, but its investigation remains ongoing. Raley's does not believe that debit PINs, could have been accessed as it does not collect Social Security or drivers' license numbers in association with payment card transactions. (Source progressivegrocer.com)

"Unlocking the secrets of Big Data" - National Security Agency is way ahead of everyone in the world and in March collected 97 billion pieces of data  Today, a revolution in software technology that allows for the highly automated and instantaneous analysis of enormous volumes of digital information has transformed the N.S.A., turning it into the virtual landlord of the digital assets of Americans and foreigners alike. The new technology has, for the first time, given America’s spies the ability to track the activities and movements of people almost anywhere in the world without actually watching them or listening to their conversations. It's already been used to develop complex equations used to thwart Russian mobsters intent on credit card fraud. (Source nytimes.com)

Government's internet surveillance dominates NY Times Saturday digital edition with over 30% of the articles - and with the majority against it, are we headed for new legislation? Ultimately if legislation comes it will probably impact the retail industry as well. At least from the prospective of how far retailers can go. With the emphasis placed on how it's collected, protected, stored, and used. (Source nytimes.com)

Santa Monica Shootings 'Premeditated,' Shooter 'Ready for Battle,' Police say; and it could have been a retailer, mall or shopping center just as easily  Seems like it is happening every month in the U.S. A man who allegedly killed four people in a shooting spree in Santa Monica, Calif., before being gunned down in a shootout with police in the Santa Monica College library planned out the attack, police said Saturday. The suspected shooter was carrying approximately 1,300 rounds of ammunition, in addition to a revolver and a rifle similar to an AR-15 semi-automatic in a duffel bag, Seabrooks said. (Source yahoo.com)

Watch out Drug stores and Dollar stores - Here comes Wal-Mart speeding up the roll-out of new Neighborhood Market grocery stores  "Neighborhood Market is a really cool format” he said. “It’s a grocery store combined with a drug store put in a place where a dollar store would be. It has performed really well from a convenience standpoint," said Bill Simon, U.S. CEO. They're opening 80 and 100 stores this year and next and may speed that up because returns on newly opened stores approach those of the Supercenter format. (Source supermarketnews.com)

Luxury Sales Wane as Taxes Bite U.S. High Earners  High-income Americans are demonstrating some frugality as the positive wealth effect from a rallying stock market is being offset by tax increases. "For the most part, we’ve been in static tax environment for a few years and now that’s changing,” said Liz Dunn, an analyst for Macquarie Group in New York. “That’s the factor that has really changed for luxury retailers.” Seattle-based Nordstrom reported earnings and revenue on May 16 that missed analysts’ consensus estimates. Tiffany & Co. (TIF) experienced “somewhat softer” than anticipated sales in the Americas during the three months ended April 30th. Some categories of consumer spending now are holding up better than luxury retail. (Source businessweek.com)

Convenience stores are "struggling" with rapid growth of dollar stores and their recent adoption of tobacco products - "key triggers of c-stores woes"  While the Sam’s Club division of Wal-Mart Stores is realizing strong sales gains from consumer members, many of the chain’s business members are struggling, Rosalind Brewer, chief executive officer of Sam’s Club in the U.S., said here during a presentation Thursday. Brewer characterized some business members as under more pressure today than during the height of the 2008 economic slowdown. Editor's note: The c-store industry's #1 purchase is a pack of cigarettes and a cup of coffee or other drink - always has been. With the dollar stores now selling cigarettes, they've got a new competitor right next door in many cases. Also of special note is that this is the first time a CEO of such a large retailer has referred to the times being tougher, even if it is only in one sector, than the 08' economic slowdown. The signs are there even if the stock market isn't. (Source supermarketnews.com)

A&P to hire compliance officer to monitor sweepstakes laws after being fined $102,000 by NY state for not "adequately informing customers that no purchase was necessary to enter" in their last one  "Today’s settlement ensures that A&P, which has previously ignored the law in this area, will provide an alternate method of entry which does not require a purchase and to fully inform consumers that no purchase is necessary to enter and win a sweepstakes. Because of the repeat violations, we are requiring that A&P hire a compliance officer and put strict safeguards in place.” NY State Attorney General said. (Source supermarketnews.com)

Big Data is talking. Are you listening? 
The marriage of Big Data and powerful predictive analytics tools offers businesses the opportunity to get results—if they ask the right questions. The amount of information managed by enterprise data centers will grow by 50 times this decade. Just over half of organizations (54 percent) are already devising Big Data strategies to generate more value from existing data. Organizations are transitioning from business intelligence, which draws on limited data sets and asks, “What just happened?” to predictive analytics, which taps seemingly unlimited data streams and can reveal what is likely to happen. Imagine the possibilities. Here's a white paper from EMC on the subject. (Source idgenterprise.com)

Negligence and glitches create 64% of data breaches  More data thefts are caused by employee negligence and computer glitches according to new study. Almost two-thirds of data breaches in 2012 could be attributed to negligence or human error (35%) and system glitches (29%), reported the eighth annual Ponemon Global Cost of a Data Breach study. "Data breaches normally aren't about bad people," Larry Ponemon, founder and chairman of the institute that bears his name, said in an interview. "It's normally about good people making mistakes or business processes that fail." (Source csoonline.com)

Mandatory Employer Use of E-Verify a Pillar of Comprehensive Immigration Reform  As expected, despite the protests from civil libertarians and privacy advocates, the much anticipated “comprehensive immigration reform” bill (S. 744) introduced a few weeks ago by the Senate “Gang of Eight” will require all employers — on a phased-in basis based on employee size — to use the E-Verify system to determine whether a new hire is eligible to work in the United States. (Source valiant.com)

Looters have come from afar to Oklahoma after tornado  Authorities say looters have come from as far away as New York and Virginia to steal from victims of last month's tornado in Moore, Okla. Several Moore residents were also arrested on similar misdemeanor complaints. Residents have filed theft reports for such items as a $50,000 watch, a $13,000 watch, a $2,000 fountain pen and a $1,300 hunting camera. (Source yahoo.com)

New Fed legislation goes after international hackers abroad and here on visas  The Cyber Economic Espionage Accountability Act directs the Administration to develop a list of cyber spies, make that list public, and enforce penalties for those bad actors. The bill is meant to encourage the DOJ to prosecute economic espionage criminal cases against offending foreign actors, to deny known or suspected foreign hackers visas and entry to the U.S., as well as freezing the financial assets and revoking visas for such hackers that currently reside in the U.S. Stealing intellectual property not only threatens the manufacturing jobs we have—it threatens the jobs we are trying to create. We need to ensure that countries like China and Russia no longer gain a competitive advantage through cyber crimes. (Source net-security.org)

Bomb Squad Detonates Suspicious Package in Downtown Iowa City. Authorities have detonated what was believed to be a suspicious package found in downtown Iowa City near the US Bank Sunday afternoon. The Iowa City Arts Festival was just winding down for the day when someone noticed a suspicious package inside a newspaper stand. Police detonated the package and no was injured. Police say a note was found with the package. (Source kcrg.com)

Quarterly Same Store Sales Results

Sears Hometown Q1 down 5% with revenue down 3%

Retail Crime News


One dead after fight inside Sports Authority in Milpitas, California. A fight inside a Sports Authority store at the Great Mall turned deadly Friday morning when a man was killed after he was beaten with a baseball bat. Police arrested 26-year-old transient Nathaniel Manlangit on suspicion of murder after he and another man he knew got into a fight at 10:49 a.m. Friday . Manlangit picked up a baseball bat from a store shelf, then struck the other man several times. The killing does not appear to be gang-related, and investigators believe Manlangit is the only suspect in the slaying. Manlangit was booked into the Santa Clara County Main Jail. It was the first slaying of the year for Milpitas, and the third killing at the Great Mall in the past five years. (Source go.com)

Elderly driver hits two people and seven cars in San Diego area Mall parking structure.   Two people were injured and several cars were damaged after an elderly driver lost control of her vehicle in the parking garage at the Plaza Bonita Mall Saturday. National City police say the driver hit at least seven parked cars before veering toward a couple. The woman was clipped by the car and her husband was thrown onto the hood before ending up being pinned underneath it. However neither suffered life-threatening injuries. The 76-year-old driver was transported to the hospital as a precaution. (Source 10news.com)

Truck damages the entrance to Slinkee's and Stage Stores at the Alexandria Mall in Louisiana.  The front entrances to Slinkees and Stage had been vandalized. Surveillance video reviewed by the Alexandria Police Department showed a Dodge truck had backed into the businesses at around 1:15 am Saturday morning. The impact broke the glass and caused damage to the door frames. Mall representatives say nothing was stolen and that the incident was a case of "malicious mischief". The Alexandria Police Department says an investigation is ongoing. (Source kalb.com)

Bond denied for woman accused of running son over.  Bond has been denied for a woman accused of hitting her son with her car after shoplifting. Houston County Superior Court Judge Edward Lukemire said Thursday that Arkebia Albury had a habit of missing court dates and was too close to potential witnesses to be released from jail. Police say Albury was fleeing a loss prevention officer at a Belk store in Centerville last month when her son was run over. Assistant District Attorney Greg Winters says the boy suffered brain swelling, a fractured skull and cracked ribs. He says the boy may be taken off of life support Friday. (Source macon.com) (Source thedailyreview.com)

Two female shoplifters fight with JC Penney’s Loss Prevention agent in Albuquerque. A mother, her son and aunt are all believed to have been involved in hitting a JC Penney’s Loss Prevention agent as the agent attempted the apprehension. On Friday police responded to this JC Penny store at the Cottonwood Mall after reports of a fight. When officers arrived they say they found Tesie Silva, Angelica Perdomo Silva and Angelica's son hitting loss prevention officers. According to a criminal complaint, the mom and aunt were using the boy to shoplift by having him grab items, shove them in his pants pocket and walk out. Loss prevention stopped the boy at the door. The complaint states Angelica was stuffing items in her bra. (Source krqe.com)

Police Investigating Robbery at Joann Fabrics Store in Greensboro, NC Friday evening  Employees told police a man came inside the store Friday evening around 5 p.m., implied that he had a weapon and demanded money. (Source digtriad.com)

Asda grocery store in the UK, hit during cash drop-off by two armed robbers who hit guard with sledgehammer and got away  Two drivers from a security firm were making a delivery to the supermarket when a grey Nissan Qashqai pulled up and two offenders wearing balaclavas got out. One of the thieves had the sledgehammer and struck one of the drivers across the head but thankfully his helmet protected him from being injured. They made off with a substantial amount of cash and the dye safety feature was activated. "This was an audacious robbery in broad daylight by two offenders armed with extremely intimidating weapons. The fact that one of the drivers was wearing his helmet is the only reason he did not suffer a serious head injury when struck with the sledgehammer," said Detective Sergeant Rollinson from Wigan, U.K. (Source wigantoday.com)

Sonitrol audio alarm foils would-be jewelry thieves  HOLLYWOOD, Fla.—A pair of thieves attempting a heist at Koosh Jewelers here found themselves headed to jail instead after a Sonitrol audio detection alarm system heard them, barred them from entering and alerted authorities, according to a news release. In the early hours of June 7, an audio monitor at the store captured a loud pounding sound outside the jewelry store, alerting the central station. Sonitrol staff immediately notified police, who arrived and arrested two suspects trying to gain entry through a side window with an ax. (Source securitysystemnews.com)

Los Angeles Probation officer busted shoplifting and coaching her two teenage children to do the same at a Kmart store  A veteran Los Angeles County Probation Department officer assigned to aid in the rehabilitation of juvenile offenders has been placed on unpaid leave after being arrested on suspicion that she contributed to the delinquency of her own children. Ruth Marzan, an officer with more than two decades with the department, was arrested by sheriff's deputies May 25 at a Kmart in Temple City after security personnel alleged that they saw her shoplift items and coach her two teenage children to do the same. (Source latimes.com)

Greenwich Police charge Phillipsburg man with shoplifting from ShopRite five   times  Greenwich Police have charged Juan A. Pene, 41, of Phillipsburg with shoplifting from ShopRite on five separate occasions between February and June. (Source nj.com)

Identity theft suspects turn themselves in - in Suffolk, Va.  Two women surrendered themselves to the Suffolk Police Department in connection with an identity theft investigation. They were seen using a stolen credit card for purchases at various places in the City of Suffolk back in May. Matos and Delaney are both charged with identity theft, credit card theft, credit card fraud, and conspiracy to commit a felony. (Source wavy.com)

Last week's most popular news article--

FBI Launches Active Shooter Webpage - Active Shooter and Mass Casualty Incidents  Recent active shooting incidents have underscored the need for a coordinated and consistent law enforcement response to these incidents. And two recent actions—the passage of the Investigative Assistance for Violent Crimes Act and an administration initiative targeting violent crime—have enhanced FBI efforts to better assist its law enforcement partners who are almost always the first on the scene. Our new Active Shooter and Mass Casualty Incidents webpage highlights some of these efforts—training we provide to first responders; conferences we hold for law enforcement executives; operational assistance we offer in the event of an active shooter event; and assistance we offer to victims. The webpage also contains links to FBI publications on the topic, active shooter incident statistics, and a link to a public service video created by the city of Houston. (Source fbi.gov)

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NRF Loss Prevention Conference & EXPO
 
The best tool for combating ORC: Partnerships

By Jennifer Overstreet | Published: June 7, 2013

In NRF’s ninth annual Organized Retail Crime (ORC) survey, eight in 10 respondents said ORC has increased in the past three years, and 90 percent said they have been victims of it. And with ORC on the rise, more retailers and law enforcement are joining forces to fight it. Across the country, organized retail crime associations are offering a way for retailers and law enforcement agencies to team up and share information. Over a secure website, members can share things like surveillance video and suspect descriptions with other retailers and law enforcement officers, making it easier to connect the dots and catch criminals who are targeting multiple retail establishments.

With our Loss Prevention Conference coming up next week, we wanted to highlight the ways in which retailers are working together with law enforcement to combat ORC, so we spoke with Captain Bill Williams of the Los Angeles Police Department Commercial Crimes Division. Williams was an integral part of forming the Los Angeles Area Organized Retail Crimes Association (LAAORCA) in 2009, after retailers approached the department about the need for greater collaboration. Since then, the association has become a model for many other ORC associations across the country.

Read on to learn more about how this association helps retailers apprehend ORC suspects and what retailers can do to strengthen partnerships with their local law enforcement agencies.
 

ORC News
 
San Benito Police arrest five suspects in shoplifting ring at Bealls.  Five people were arrested on Saturday in connection to a shoplifting ring which was targeting Bealls in San Benito. All five remain in the Cameron County Jail under organized retail theft and engaging organized crime charges. San Benito police arrested Lorraine Betancourt, Diana Cordova, Liliana Guerrrero, Antonio Angel Hernandez, and Yessenia Nunez on Saturday amid an ongoing investigation. The group allegedly stole $1,175 worth of merchandise from the Bealls clothing store over a period of long time. Police are now working to see if this crime is connected to others they have been tracking in the city. (Source valleycentral.com)

Two suspects wanted in theft at Best Buy in Mechanicsburg, PA Police in Cumberland County hope someone will recognize two people wanted for a retail theft incident at the Best Buy store near Mechanicsburg, Saturday evening. Police said the woman left the store with merchandise in a large bag. She was asked to return to the store by a manager, but she refused and got into a white, newer model Nissan, with Maryland license plates. The male exited the store shortly after the female also setting off the doorway alarms. (Source fox43.com)

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Thought Challenge
 
The FRUSTRATION of Loss Prevention's way of calculating an ROI

By Francis Clark
VP Business Development
Profitect

I very recently read of a case of lottery fraud in D&D and clipped these 3 lines out to make a point about how Loss Prevention’s use of LOSS as Value is misleading in examples of ROI.

√ $82,000 in losses
√ Validated Losses: $1210
√ Total value to client: $82,000

Obviously, the ONLY VALUE to the client was that the blood-letting stopped at $82,000 in LOSS. Not one penny of this proclaimed ‘value’ will show up in anyone’s pay check, bonus or shareholder benefit. It’s LOSS. Depending on the profit margin of the client and ENORMOUS AMOUNT OF SALES will have to be recorded to offset this NON VALUE-LOSS.

The additional frustrating element is that lottery schemes are ‘on going’ and by not being able to detect the initial patterns of deception the LOSS accumulates to $82,000 or greater before being discovered.

And likely this LOSS represents only the face value of the tickets scammed which has to be reimbursed to the lottery commission and does NOT include labor to investigate, potential prosecution costs, court costs, time in court away from work costs and ‘if’ a restitution scenario is developed...the cost to manage that scenario.

In addition, by publicizing this high LOSS amount the shift is definitely in the direction or REWARD than PENALTY. If the person hadn’t been so greedy, had been more clever, etc., it could have been more OR they would have moved on before being discovered. The ‘value’ of the $82,000 is what the their enjoyed, not the client!

Over and over we see high value lottery schemes and to me, VALUE would be in detection at a very much lower LOSS to the client but is still a LOSS.

But I’ve also seen these ROI conversations taken to an even greater extreme where it is claimed that ‘if we weren’t using X to find this the losses would likely have climbed to $146,000 until traditional audit or reporting scenarios would have tumbled to it…..so then they claim the even higher value as part of an ROI. REALLY?

I guess the perfect parting shot would be to find my ‘rose colored glasses’ so I can spin of a value proposition for a missing tractor trailer of iPads...wonder how much ‘value’ I can get out of that LOSS??
 

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It can be hard to get the ball rolling with innovative and original ideas, but it can be made easier if you start with the worst possible idea. Why? Discussion arises, and people become more creative and launch new suggestions into the air. Don't let the nerves take hold of you, just throw something out there and let the conversation progress. (Break the ice)

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After some time, some people become dissatisfied with what they are doing. Don't get stuck in the same routine. Get out of the rut, and find excitement at work again. Here are eight ways to bring that spark back, and maybe find the inspiration you need to keep going. (Switch it up)

Eight Surprising Rules That Will Get You the Job 
We all have our hearts set at some point on our "dream job" but how can we be sure that we land it? Some of these rules may shock you, and even seem completely counter-intuitive, but this elder statesman of the job search world, Bill Ellermeyer, tells his clients to follow these rules and promises them they will land a job! It's worth a try! (Stop looking for a job?)

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Tip of the Day
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Your self-evaluation is probably the most important document you'll write all year and it requires a degree of self-reflection and openness that, if done correctly, thoroughly, realistically and written well, will in actuality garner more respect than virtually anything else you can do. However, it's also a double-edged sword that mandates your adherence and constant effort to reach your written objectives and goals. The problem is that while most are rather open about their areas of improvement, very few actually quantify what they are going to do to improve and set specific goals that are realistically obtainable. The first step may be in just approaching and completing the reviews of your direct reports first and doing them with the same intensity and focus as you do yours. This step gets you in the game so to speak and allows you to tie yours into your teams and also may just give you some feedback you need to hear.

Just a thought,
Gus Downing

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