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June 20, 2013

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"THIS IS RETAIL - Think you know retail? THINK AGAIN" Last week's NRF LP Conference in San Diego establishes milestone in the LP industry  Last week's NRF LP Conference went extremely well from the first dynamic keynote speaker all the way to its closing speaker - the entire NRF Team out did themselves and delivered one of the best ever. With one of the most dynamic openings this writer has ever heard Rorke Denver, Lieutenant Commander (LCDR), United States Navy Seals, led the conference with a leadership message that every one was impacted by. From the main sessions to the breakout sessions, the entire group of speakers covered the gambit and showed their vision in discussing and presenting the issues and solutions the retail LP industry is now facing. With 22 retailers bringing five or more members of their LP teams, the LP community showed their support of this industry leading event. With 8 hours of exhibit time, the solution providers had more time with industry leaders than ever before and absolutely added value to the attendees by showing some of the most advanced solutions we've ever seen. It was a great event, led by a great team, and held in a great city. It was an absolutely great event. Job well done NRF and Rich Mellor, VPLP for the NRF. Stay tuned as the Daily brings you more updates and news about their direction, focus, programs, and leaders than any other publication in the LP space.

Online computer & electronic retailer former president indicted for $7M kickbacks/bribes from suppliers  Carl Fiorentino took kickbacks from suppliers, the feds say. Carl Fiorentino, former president of online computer and electronic retailer, was indicted today on charges that he took at least $7 million in bribes from suppliers in Taiwan and California. TigerDirect is part of Systemax Inc., No. 25 in the Internet Retailer. In a statement today, New York-based Systemax Inc. says it fired Fiorentino in 2011 after “an internal whistleblower investigation.” The direct marketer of computer gear and consumer electronics last year also accepted the resignation of Gilbert Fiorentino, the former CEO of its technology products group. He is Carl’s brother. (Source

More Details Emerge Around Federal 7-Eleven Raid  Today, authorities are investigating an additional 26 7-Eleven locations for similar acts. These stores are located in Florida, Illinois, Maryland, Michigan, New Jersey, Pennsylvania and New York. These defendants ruthlessly exploited their immigrant employees, stealing their wages and requiring them to live in unregulated boarding houses, in effect creating a modern day plantation system," federal prosecutor Loretta E. Lynch told the news outlet. The alleged illegal conduct has gone on since at least 2000, federal authorities claim. In a statement released yesterday, 7-Eleven said it has cooperated with the government’s investigation. "All of our franchise owners must operate their stores in accordance with laws and the 7-Eleven franchise agreement. 7-Eleven Inc. will take aggressive actions to audit the employment status of all its franchisees’ employees," the company said. (Source

Former 7-Eleven employee of one of the arrested store managers says he always suspected something was up  The former employee said the payroll listed only 40 hours under his name when sometimes he worked as many as 70. He also claimed to have seen seven extra names - three he had never heard of and four employees who told him they went back to Pakistan to visit family. In an interview with federal authorities, illegal immigrants told investigators the Baig brothers gave them stolen social security numbers to use for payroll, so 7-Eleven corporate officers would not know they were in the country illegally. (Source

Express Scripts, Nation's Largest Pharmacy, Gets Even Bigger- 1,500 Jobs coming to St. Louis-Same Place it Started in 1986  Officials from the pharmacy confirmed on Thursday that the company plans to add 1,500 jobs over the next five years as part of their headquarters expansion near University of Missouri-St. Louis. Construction could start this year, depending on approval of tax incentives from St. Louis county and state of Missouri. This will mark the third big expansion around St. Louis announced in the past two months - Monsato, which is based in the city, announced the addition of 675 jobs through an expansion in Chesterfield, MO, and Boeing will add 400 through an upcoming IT center that will be created in Hazelwood. (Source

Employee Theft On the Rise and Expected to Get Worse  A study of 23 large retail companies by loss-prevention consulting firm Jack L. Hayes International shows that 71,095 dishonest employees were apprehended in 2012, up 5.5 percent from 2011. In total, more than $50 million was recovered in those cases, up 7 percent from a year earlier. Poor pre-employment screening and a decline in supervision are contributing to the rise in employee theft incidents, new research shows. (Source

L.A. Council Approves Plastic Bag Ban 
The City Council here voted Tuesday to ban single-use plastic bags in any store that sells groceries and mandated that retailers charge 10 cents per paper bag if customers don't bring their own bags. The vote in favor of the ban was 11-1. Because the vote was not unanimous, the council is required to vote on the ban again next week, with observers saying the outcome is unlikely to change. If the ban passes again, either outgoing Mayor Antonio Villaraigosa or Mayor-Elect Eric Garcetti, who takes office July 1, is expect the sign the ordinance to make it official. (Source

Staples unveils new "omnichannel" format in Norwood, MA and Dover, DE.  These two next generation Staples stores reflective of the company’s latest thinking when it comes to serving shoppers in a digital world. The stores feature several new kiosks with large screens to provide customers with access to an expanded assortment consistent with the company’s goal of providing "every" product a businesses need to succeed. The omnichannel stores also feature consultation areas for small business customers who need help from Staples EasyTech and Copy and Print employees. (Source

OfficeMax wants tax breaks to stay in Illinois 
OfficeMax Inc. is asking the state of Illinois for tax breaks to keep the company’s headquarters in-state after the office supply chain’s merger with Office Depot Inc. is complete. Gov. Pat Quinn signed similar legislation in 2011 that gave Sears and other companies more than $100 million in subsidies when they threatened to leave the state. (Source

Tyco to buy VMS provider Exacq for $150m
Tyco today announced that it will acquire VMS provider Exacq Technologies in a $150 million cash deal. When the deal is finalized, Exacq, which is based in Indianapolis, will become part of Tyco Security Products. Tyco expects the business to “generate annualized revenues in fiscal 2014 of approximately $75 million,” Tyco said in a news release. Exacq develops open-architecture video management systems and has been one of the fastest-growing VMS providers and security companies in recent years. Its products work for “small single camera applications to large, integrated systems with thousands of cameras. Tyco Security Products’ business unit offers access control, video, location-based tracking and intrusion solutions. (Source

NSA spying could mean U.S. tech companies lose international business  Domestic Internet firms face political, economic consequences for breach of trust over the NSA surveillance controversy. Many are concerned the revelations could hurt their bottom line. It is not just personal information that is being swept into the National Security Agency's (NSA) massive databases. It is corporate data as well. And that could cause some serious international blowback for the U.S., both politically and economically. (Source

Federal Trade Commission is expected on Thursday to recommend a sweeping investigation of “patent trolls"  Patent trolls are companies that buy large portfolios of technology patents and use them to sue software designers and makers of products like smartphones and tablet computers. They're making millions and just being paid off in many cases just to avoid the cost of litigation. These companies are not manufacturers and in some cases its outright fraud that has costs companies billions and including some retailers. If approved, which is likely, the F.T.C. investigation will require patent-assertion companies to answer questions about how they conduct their operations, including whether they coordinate their lawsuits with other patent holders and if they funnel proceeds from lawsuits and patent licenses back to the original patent owner. (Source

One day LP officers in stores will be wearing Google Glass - but for now 7 countries are pushing Google about privacy concerns  Glass, which is not yet available to the public, tethers to a user’s cellphone and has much of the same functionality, like text messaging and phone calls. It can also take photos and record video hands-free, and apps from news organizations, social networks, Google Maps and others send alerts and updates to a screen above the user’s right eye. The officials raised fears of “ubiquitous surveillance” and asked about Google’s privacy safeguards, what it plans to do with the data the devices collect and how it is addressing “the broader social and ethical issues” raised by Glass. (Source

Harrisburg, PA., Mall revamps security monitoring area-adds police substation  
The Harrisburg Mall’s recently opened security monitoring area caters to local police and shoppers seeking information. The facility includes a police substation for the Swatara Township Police Department, as well as a reception station for mall visitors. the monitoring area features glass window walls and is directly inside one of the mall’s main entrances. It also has an upgraded video surveillance system for tracking mall activity. (Source

Thwarting facial recognition systems with privacy visors  Despite Google announcement that it won't allow facial recognition on Google Glass (yet) and Facebook turning it off (just in Europe), every person should be aware that it is only a matter of time until the option is widely used - and not just on social networks or futuristic projects. Isao Echizen, Associate Professor at the Digital Content and Media Sciences Research Division of Japan's National Institute of Informatics, has developed a device dubbed "privacy visor" which uses 11 near-infrared LEDs to thwart face detection systems. Light from these near-infrared LEDs can't be seen by the human eye, but when it passes through a camera's imaging device, it appears bright. (Source

Quarterly Same Store Sales Results

Kroger 1Q up 3.3% with total sales up 3.8% excluding fuel center sales
Rite Aid 2Q down 2.5% with a profit of $89.7M

Retail Crime News

Ex-Home Depot worker convicted in $2M extortion plot to blow up Home Depot stores on Long Island  A New York man has been convicted of trying to extort $2 million from Atlanta-based Home Depot by threatening to detonate a pipe bomb at stores last year. A federal jury convicted Daniel Sheehan, 50, of Deer Park, N.Y., on Monday after two hours of deliberation, according to several published reports. He is a former part-time handy man at a Home Depot on Long Island in Huntington. Sheehan was charged with attempted extortion and the use of a destructive device. He faces up to 30 years in prison at sentencing. (Source

Pennsylvania Giant Eagle shopper killed while chasing bank robber  Pennsylvania bank robbery suspect fatally shot a supermarket Giant Eagle customer who ran after him and tried to stop his getaway car. Kelley and his friend Jared Cameron, 21, were shopping at the Giant Eagle in Strabane Square when the man robbed an in-store Citizens Bank branch about 2:30 p.m. Sunday. "The guy pulled the gun on Vinnie right outside the store, and Vinnie didn't stop. He just kept going and I followed right behind him," Cameron said. The robber started driving away while Kelley jumped into the car and grabbed for a knife he kept on his belt. When he reached for his belt, the guy reached up behind his head over the seat and shot off six rounds out of his gun. (Source

Suspect shot and killed in Newark robbery attempt by store owner  Police are investigating a deadly shooting at a jewelry store in Newark, New Jersey. The attorney for the owner says the shooting occurred in the store, not on the street, and that the store owner was firing in self defense after the suspect made threats and demanded money. (Source

Kansas City retailer Joe Black owner pleads guilty to selling counterfeit goods  Admitting that 20% of his weekly sales are from counterfeit goods, such as Polo and Nike products, the store owner now faces 10 yrs. in prison and $250,000 in fines. (Source

Albany, Georgia Police investigating the passing of counterfeit $10 bills.  In the last two weeks the Albany Police have seen retailers being hit with counterfeit $10 bills at everywhere from Walmart to Burger King. Back in April, a 21 year old suspect was apprehended by police with $1900 worth of counterfeit $20 bills, police are investigating any possible connections. (Source

Four New Jersey men arrested by Union Police and the FBI for Target store ‘Black Friday’ robbery last year.  Four Essex County men face federal charges in a carefully planned robbery at a Target store in Union on "Black Friday," allegedly stealing more than $50,000. Authorities say that at 9:47 p.m. on Nov. 23, the day after Thanksgiving, near the end of one of the busiest shopping days of the year, two suspects entered the Target store at Springfield Avenue in Union, hid in an employee bathroom, and waited for the store to close. About 11 p.m. an employee attempted to enter the restroom, and the waiting bandits grabbed him at gunpoint, tied his hands with zip-ties and demanded the security code to access the store’s cash room. (Source

Dollar General Store Manager talks suspect out of robbing the store in Georgia. The manager and two associates were on a break just before the store opening as the gunman approached and demanded the 3 get back inside the store. As the armed gunman was making his demands, the manager simply spoke to the robber and said 'You don't want to do this,' and repeated that three times. The Manager is a man of faith and believes something changed in the demeanor of the robber who simply walked away. The manager and the associates locked the door and waited for police to arrive. No one was injured and police are looking for the suspect. (Source

Young man attempts to break into a Target in New Hampshire; suspect caught on tape inside the store hours earlier.  Greenland Police responded to the Target store early Monday morning to check on a burglar alarm activation. Police believe a man tried to pry open a door after checking for a method of entry sometime between 12:16 a.m. and 1 a.m. The suspect set off an alarm and never got inside the store. Police reviewed surveillance images from outside the store, and later checked cameras inside the store during its hours of operation. Police believe the same man entered Target between 8 p.m. and 9 p.m. and was “casing” the electronics section. (Source

Pink Panther gang member arrested in France.
A suspected member of the notorious Pink Panther gang of international jewel thieves has been arrested near Paris. Nijan Drobnjak had been on the run after fleeing Germany, where he had been sentenced to a seven and a half year prison term for armed robbery and kidnapping. He was captured by police on Tuesday and is expected to be swiftly extradited back to Germany, which has issued a European arrest warrant for him. The Pink Panthers gained their nickname with a raid on a London branch of Graff Diamonds in 2003. A stolen diamond was found hidden in a pot of face cream, reminiscent of a scene from the 1975 film "The Return of the Pink Panther". The group is believed to have been responsible for over $437 million dollars in jewelry theft since 1999. (Source

Second smash-and-grab burglary at jewelry store in Huntsville in last two weeks.  For the second time in as many weeks, a Huntsville jewelry store has been the target of burglars. One storefront window was shattered. Several glass cases may have been the target of the smash-and-grab burglar. Watches in particular were reported among the missing items. The investigation is still ongoing. Last week, Sabghi's was struck by a similar burglary. Surveillance video showed a woman breaking in through the front window, smashing several cases and quickly leaving with an unknown amount of jewelry. (Source

Man Stabbed In Chest Outside Times Square Disney Store.  A man was stabbed in the chest after a fight outside the Disney Store in Times Square Tuesday afternoon, in a surprise moment of violence in one of New York's busiest tourist districts. It was reported that two men were crossing 45th street when they began loudly arguing. The victim hit the other man with a folding chair before he was stabbed in the chest. A bystander reportedly broke up the fight. The 43-year-old victim was taken to hospital and is expected to survive, while the attacker fled the scene. It is believed the pair knew each other. (Source

Burlington Coat shoplifter caught on tape in Sanford, Florida.  Shopping with a friend, Alexis Davis conceals several items into her handbag, and then was stopped by Loss Prevention as she left the store. Davis stated her friend was not involved. (Source

Shoplifting Dog Knows What He's Doing (VIDEO)  Now, we know we shouldn't really condone criminal activity... But we have to tip our hats to the dog in this video - who, bold as brass, walked into a dollar store in Kentucky, found the dog food/treats aisle, took what what he wanted and left. In fact, the way in which he quickens his pace when he heads for the exit makes us think he knows exactly what he's done. (Source

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National Accounts Growth Continues at Vector Security

Two National Account Managers added to Support the
Company’s Business Development Goals

PITTSBURGH, PA, June 18, 2013 – Lynn Kresse and Jay Montgomery join Vector Security effective immediately to support the continued growth in our National Accounts division. Vector Security experienced one of its best years servicing National Account retailers in 2012, and this focus on new business development support the company’s objective to be the preferred national account provider of intelligent security solutions.

Lynn brings more than 15 years of national account experience to Vector Security. She comes to Vector Security from Diebold Inc., where she was a business solutions manager responsible for developing that company’s customer base. Prior to that, she held account management positions with Protection One and Morse Communications. Lynn has a wealth of knowledge in video, burglar alarm, fire, access control, Voice over IP, IP networking, telephony and wireless local area networking. Prior to joining the security industry, Lynn was a police officer for nine years with the Milwaukee Police Department. She holds a bachelor’s degree in Criminal Justice Administration from Mt. Senario College.

Jay has over 18 years of sales experience in the security and telecommunications industries. He comes to Vector Security from NuTech National providing solutions such as video surveillance, data analytics, electronic article surveillance tagging, access control, alarm and Central Station monitoring to Fortune 1000 companies. Prior to this role, Jay was Sales Manager for DTT Surveillance where he developed surveillance system solutions, POS integration and loss prevention services to the hospitality industry. He holds a Bachelor of Science in Education University of Maryland, College Park.

“We are proud to have Lynn and Jay on our National Accounts team as we continue to grow our service offerings to retailers,” said Michael Grady, Executive Vice President of Vector Security. “We continue to focus our growth strategy across the United States and Canada and look forward to these talented individuals providing the solutions our customers want and expect from a leading security provider.”


Art Miller
Vice President, Marketing


ORC News
Omaha Police arrest two believed to be serial shoplifters.  Shopko Loss Prevention apprehended a man and woman for shoplifting who had managed to get away from Loss Prevention at another area Shopko store. To make things even a little worse, the car that one suspect was driving was stolen and drugs were found in the vehicle. Both suspects were charged with felony theft. (Source

Two Oregon men sought in the theft of 6000 pounds of Watermelons.  With a truck and a pallet jack two suspects made of with 6 pallets of watermelons from one WinCo store and are believed to be connected to the theft of 11 pallets of melons from another area WinCo store. An alert associate notice the men loading the truck outside the store and went to get a supervisor, when they returned the thieves were gone. The associate was able to give police a description of the suspects and vehicle, surveillance video is being reviewed by the Beaverton Police. (Source

Toccoa, S.C., police make arrest in Wal-Mart 31 cell-phones theft from earlier this year (Source

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