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June 25, 2013

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Perrigo Nutritionals and Tyco Integrated Security Introduce Anti-Theft Infant Formula Packaging for The Kroger Co.  Perrigo’s SmarTub packaging design aims to improve ease-of-use and reduce theft of infant formula. In order to combat high theft numbers and prevent losses, Perrigo Nutritionals invested significant resources in developing the SmarTub packaging to aid retailers in reducing the costs of theft associated with infant formula. The SmarTub includes a Sensormatic® Acousto-Magnetic Electronic Article Surveillance (EAS) tag that resonates when placed in an electromagnetic field, alerting the retail store’s staff of the theft. "This is the first infant formula package on the market that is compatible with our EAS tag and designed to significantly reduce shrinkage for retailers across the country that sell Perrigo baby formula,” said Mike Creedon, Vice President of Retail Sales and Operations for Tyco Integrated Security. "We have been attempting to have infant formula source tagged for many years and have finally demonstrated through the partnership we have with our private label brand that it can be done,” said Karl Langhorst, Corporate Director of Loss Prevention, The Kroger Co. “Our desire would be for the national brands to follow suit. Tagging compliance and labor savings through Source Tagging is critical to our program’s success, but more importantly, it helps us maintain in stock availability, which improves the shopping experience for our customer.” (Source yahoo.com)

"I Guarantee It" Men's Warehouse founder and chairman clashed with hand picked CEO last six months and lost  Tensions started rising at Men's Warehouse Inc over the past six months, as founder and executive chairman George Zimmer increasingly butted heads with his handpicked CEO over the clothing retailer's strategy. The new CEO wanted to sell K&G Fashion Superstore and increase compensation for top executives and Zimmer wanted neither. Zimmer was shocked when the Board announced his firing, sources said, and is now mulling his options which may include teaming up with private equity firms to launch a buyout or wage a proxy battle. The CEO, who had been hand picked by Zimmer had been with the company for two decades in an office next to Zimmer, and the public response has been in favor of Zimmer. This isn't the last you'll hear of him. Strangely enough Zimmer's employment contract has no provision that compensates him following the ousting other than a licensing agreement that pays him $250,000 for each of the next four years if they continue to use his image for advertising. Sounds like he was rather tough on employment agreements which came back to bite him. His family does own 4.7% of the stock in the company but certainly not enough to do what Best Buy's former Chairman did last year by getting back on the board. (Source reuters.com)

Barnes & Noble says Nook, retail sales plunge, more pain coming
  Barnes & Noble Inc (BKS.N) reported on Tuesday that its quarterly net loss more than doubled as sales of its Nook device and e-books continued to plunge, and it forecast a sharp drop in business at its bookstores. Sales at stores open at least 15 months fell 8.8 percent last quarter with revenue down 7.4 percent to $1.28 billion. The retailer reported a net loss of $118.6 million, or $2.11 per share, for the fiscal fourth quarter ended April 27, compared with a loss of $56.9 million, or $1.06 per share, a year earlier. (Source reuters.com)

Now it's Canada's Hudson Bay Co. thinking about buying Saks Inc. along with a number of other potential buyers  A few weeks ago it was Neiman Marcus talking about a possible merger with Saks Inc. and now it's Hudson Bay Co. who also owns Lord and Taylor in NYC. A source close to the deal said Hudson's Bay is one of a number of potential buyers vying for Saks, which means that a deal could happen quickly but added that one of the obstacles of the acquisition is its valuation. Retail consultant Wendy Evans said this acquisition would be a smart move for HBC, because its CEO is an American and the company already owns 48 Lord & Taylor department stores in the eastern U.S. (Source kamloopsnews.ca)

Neiman’s IPO to drive greater growth of discount format  The upscale department store retailer plans a public stock offering and in its registration statement filed with the Securities and Exchange Commission indicated a desire to more rapidly expand small format concepts branded as Last Call and CUSP. "We believe Last Call represents a meaningful growth opportunity relative to the number of the off-price retail locations of other luxury and premium multi-branded U.S. retailers," the company indicated in its registration statement. "Over the next five years, we believe there is an opportunity to approximately double our Last Call store count. Combined with lastcall.com, we believe there is an opportunity to enhance our existing, nationwide, omni-channel experience for the aspirational, price-sensitive yet fashion-minded customer." The company said total revenue including retail stores was $3.53 billion for the 39 weeks ended April 27, up 5.7% and operates 41 full-line Neiman Marcus stores, two Bergdorf Goodman stores (both in New York City) and 35 off-price, smaller formats. (Source retailingtoday.com)

Supreme Court Raises Bar to Prove Job Discrimination  In two decisions issued on Monday, the Supreme Court effectively made it harder for workers to prove that they had suffered employment discrimination. One ruling narrows the definition of what constitutes a supervisor in racial and sexual harassment cases, while the other adopts a tougher standard for workers to prove that they had faced illegal retaliation for complaining about employment discrimination. (Source nytimes.com)

As Prisons Squeeze Budgets, GOP Rethinks Crime Focus with Georgia leading the way on this national push  Just over half of the states have embarked on criminal-justice overhauls of varying scope over the past five years, with 19 of those efforts led by Republican governors or GOP legislatures and nine by Democratic governors or legislatures. Some of the most aggressive moves have come in states, many in the South, with incarceration rates well above the national average. The number of inmates in state prisons nationally peaked at just over 1.4 million around 2009 after rising for decades, and by 2011 had fallen by about 25,000, according to Justice Department statistics. The conservative quest to rethink criminal sentencing and rewrite state penal codes got its start in Texas in 2007. The swing from tough sentences to programs designed around rehabilitation and counseling appears to have made slight positive impact however only time will tell, as retail crime continues to increase and property crimes is one of the areas their focusing on as an area to reduce sentences. (Source wsj.com)

Traverse City, MI., two store retailer Sportz R Us busted for selling counterfeit goods  Authorities said Harrison knowingly sold goods bearing counterfeit logos representing the Detroit Lions, Detroit Red Wings, Nike and University of Michigan, among other teams. Authorities seized 9,487 counterfeit articles from the two stores in January. Records show Harrison was arrested June 20 in Bay City. (Source record-eagle.com)


Swissair flight lands at JFK, $1.2 Million dollars in cash cargo missing.  FBI agents are investigating the apparent disappearance of $1.2 million in cash from the cargo container of a Swiss Air Lines jet that landed at John F. Kennedy International Airport Monday. Police and investigators say they believe the cargo container had not been tampered with, suggesting that the money was stolen before the flight to New York City. Three months ago, detectives cracked a long-running operation that saw thousands of packages stolen as they passed through Kennedy Airport’s huge U.S. Postal Service mail-processing facilities. (Source nypost.com)

4-alarm fire causes $500K in damage at Salvation Army store outside of Baltimore.  More than 125 firefighters from four Eastern Shore counties battled a four-alarm fire for about three hours Monday afternoon at a Salvation Army store in Cambridge. Investigators said the fire started on the first-floor of the store, which housed furniture, and spread to unoccupied apartments upstairs, causing about $500,000 in damage. Everyone who was inside evacuated without incident. No injuries were reported. A cause remains under investigation. Officials said they found no signs of arson. (Source delmarvanow.com)

Fire engulfs Bashas Grocery store in Flagstaff.
A Bashas supermarket and a connected strip mall went up in flames Monday night. The store was open at the time, and filled with customers. The manager went on the store intercom and ordered everyone out because of the fire. No one was hurt. The fire was so substantial, the roof partially caved in. Crews were able to extinguish the flames, but not before some serious damage was sustained. Flagstaff Fire Battalion Chief Pat Staskey says the cause of the fire may be electrical. "Some people did a really good job alerting people and getting them out of the store real quickly," said Staskey. (Source azcentral.com)

Quarterly Same Store Sales Results

Walgreen 3Q up 1.4% with pharmacy up 7.1% and total sales up 3.2%



Retail Crime News


Green Bay sees sharp increase in counterfeit money cases with 24 in last month alone  Since January 1st, there have been 63 cases of counterfeit money being passed in the community. Twenty-four of those cases have happened in the last month. Based on the victim reports and evidence, police say there could be multiple suspects involved. Investigators say suspects are targeting local businesses, convenience stores, restaurants and retail stores. (Source fox11online.com)

Jared the Galleria of Jewelry burglars in North Carolina lead Police on High Speed Chase.  Burglars fled the burglary scene at 11pm in two different cars, Police giving chase reported that one car crashed on Meridian Parkway in Durham and the driver was arrested. The second vehicle also crashed 6 miles away, the two suspects managed to elude police. Merchandise was recovered from the second vehicle. (Source yahoo.com)

Video released in Mayor’s Jewelers robbery in Atlanta; five suspects get away with nearly $1 Million dollars of merchandise.  As reported yesterday, the Mayor’s Jewelers store in the Lenox Square Mall was attacked by five suspects who smashed and grabbed Rolex and other very high end time pieces valued at nearly $1 million dollars. No customers or employees were injured. (Source myfoxatlanta.com)

Paramus suspect grabs and runs with a $43,000 Rolex from the Ross Simon store in Garden State Plaza.  The incident occurred late Friday night when a man asked the sales person if he could try on the $43,000 watch. The suspect pushed a security guard down and fled the store. Police say they have upgraded the possible charges to 3rd degree robbery because the security guard was assaulted. (Source northjersey.com)

Payless Shoe store in Pennsylvania was the victim of an armed robbery on Sunday.  The Payless Shoe store in Manheim Township (approx. 50 miles from Harrisburg) was robbed by an armed gunman who approached the female cashier at the front register. The robber got away with an undetermined amount of cash and no one was reported injured. (Sourcefox43.com)

West Virginia State Police apprehend Sunday’s Dollar General robbery suspect. WV Troopers and Mercer County deputies have arrested Christopher Small in Bluewell, he was driving a blue vehicle that was believed to have been involved in the Bluefield Dollar General robbery Sunday evening. The armed suspect in the Dollar General robbery was wearing a baseball hat but no mask, no one was injured. (Source bdtonline.com)

Two suspects captured on video during the iWireless robbery in Des Moines. Last Friday morning a man and woman entered the iWireless store in Des Moines, the female reached for something behind the counter, then the male suspect pulled his gun on the employee. Police believe the suspects were in the store shopping 11 days earlier. (Source whotv.com)

Thieves go through the roof to burglarize a jewelry store in Wellington, Florida.  Palm Beach County Sheriff’s Office is investigating the burglary of the Polo Jewelers in the Town Square Plaza. Police report the burglars accessed the store from the roof, but details were not made available. No report of the total value of the missing merchandise. (Source wptv.com)

Washington State man held on robbery charges at a Lowe’s store in Olympia. Saturday afternoon at 3:00pm a man was approached in the Lowe’s store by a suspect holding a hand gun, later found to be a BB Pistol. The suspect was apprehended as he tried to leave through the Garden Center exit. The suspect is now being held on first degree robbery charges with his bail set at $50,000. Olympia police officers located a BB gun magazine in Parmley’s front pants pocket. The gun was under some plastic storage bins outside the Lowe’s. Police covered all exits of the store as management forced an emergency evacuation of the building. (Source theolympian.com)

Las Vegas man charged with arson of an apartment building, later accused of burglary at a Walmart. Stephen Tyson was having a bad week, he set a fire that caused $350,000 with no injuries, because his friend had kicked him out of the apartment, then two days later went to Walmart and attempted to crash a fire exit with $350 worth of electronics. Tyson is being charged with burglary for the Walmart event. (Source lasvegas.cbslocal.com)

Three Walmart shoplifting suspects in Greenville, South Carolina apprehend on I-65 following police chase.  Suspects wanted in connection to a shoplifting incident at a Walmart in Butler County were apprehended after a short Police chase down I-65. Authorities with several law enforcement agencies followed the vehicle, which gave chase in the northbound lanes of Interstate 65. (Source greenville.wsfa.com)

Springfield, Illinois man charged with retail theft and Hit-and-Run following an incident at Walmart.  Police have arrested 19 year old Andrew Q. Westrum in connection to the theft of electronics valued at $350 he pushed in a shopping cart out the door of the Walmart store. Westrum in his attempt to get away hit a car at an intersection after running a red light. The innocent driver was uninjured in the crash, Westrum fled the scene of the accident. Westrum was apprehended hours later at his home, the merchandise was not recovered. (Source sj-r.com)
 

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ORC News
 

NY Woman Pleads Guilty In $250K Gift Card Fraud From Lowes  A New York woman has pleaded guilty to defrauding a home improvement company by pretending to be with its information technology department and getting employees to set up gift cards. According to her plea agreement, Abellard called employees at Lowe’s stores around the country pretending to be from the IT department. Prosecutors say Abellard would claim there were problems with a register, ask an employee to run diagnostics and do a test transaction. Officials say the test transaction would require putting a credit of about $3,500 on Lowe’s gift cards which Abellard held. Prosecutors say Lowe’s lost more than $250,000. (Source theepochtimes.com)

Smash-and-grab burglars hit for hair extensions - A growing problem in St. Louis - 14th incident in a month  Two men rammed a pickup into the store and stole thousands of dollars of hair extensions, one of the most popular items to steal for re-sale. This is a growing crime in St Louis. Rarely a week goes by that another business isn't hit by such thieves taking electronics, liquor, cigarettes. Several of those businesses have been beauty supply stores, like Eid's, owner of Kay Beauty Supply. On Memorial Day, for example, thieves rammed a truck into Kings Beauty supply store near the Halls Ferry Circle and made off with boxes of the extensions. At the end of May, police across the metro area had counted at least 14 similar crimes since April 25. (Source stltodaty.com) (Source ksdk.com)

Man and woman orc duo hitting Wal-Mart stores in Berea and Williamsburg, KY., for computers  Police say the man used other merchandise, such as pet food or toilet paper, to conceal the PCs. In one theft, video cameras capture images of the suspect leaving the store and removing his jacket at his car. He goes back inside, grabs the cart and walks right out the door. Investigators say a man and woman worked as accomplices during the most recent theft. (Source lex18.com)

Target Loss Prevention in Cleveland planned the apprehension on elusive suspect. Target Loss Prevention in University Heights knew that a suspect had hit the store for electronics early Saturday mornings for the past few weeks, so they were ready and waiting this past Saturday. The suspect entered the store like clockwork and was apprehended after attempting again to steal more electronics. The suspect was charged with the theft over $1400 in merchandise. (Source cleveland.com)

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Vendor Spotlight
 

Skechers Takes First Steps in Securing Flagship Distribution Facility with American Dynamics IP Surveillance Solution

Skechers USA Inc.’s latest distribution facility in Rancho Belago, Calif. moves a mountain of shoes each day. This high-volume center is designated as a U.S. foreign trade zone, which requires specific and measurable security standards as set down by U.S. Customs and Border Protection officials.

Introduction
Skechers, an award-winning global lifestyle footwear company, develops and markets more than 3,000 styles for men, women and children through its fitness and lifestyle divisions. With over $2 billion in sales, Skechers sells its products in more than 120 countries with over 300 retail stores in key metropolitan areas worldwide, and has partnered with distributors to open an additional 250 locations.

A significant portion of this worldwide product volume goes through Skechers newest distribution facility in California — a 1.8 million-square-foot, $250 million complex that serves as a U.S. foreign trade zone. A foreign trade zone is a designated location in the United States where companies can use special procedures that help encourage U.S. activity — in competition with foreign alternatives — by allowing delayed or reduced duty payments on foreign merchandise, as well as logistical and tax benefits.

Challenges
While being a foreign trade zone reaps benefits for Skechers, it also comes with some specific security requirements. Greg Drivas, Director of Loss Prevention for Skechers USA, says there is a higher expectation for perimeter security, as product is monitored entering and exiting the warehouse. Surveillance, especially in the form of high-quality video recording and playback, was a required feature for Skechers as it laid out its security plan to Select Systems Technology, Inc. of Torrance, Calif., the systems integrator chosen for the installation. That meant that the video needed to be quickly accessible, clear and smooth, and provide the ability to zoom in as needed, according to Vijay Patel, senior manager at SST.

Skechers also needed the video management system to have an open platform to accommodate cameras from multiple manufacturers and have a degree of scalability to grow along with the changing needs of Skechers operations. The integrator found this to be its largest distribution center and the one deploying the largest number of cameras. Patel says the challenges for SST included the length of the project—it took several years from concept to completion—and making changes along the way as the building took shape and needs changed, all while still staying within the structures of the budget.

Solution
Skechers and SST selected the victor video management system from American Dynamics. With the powerful victor unified client, Skechers’ security staff is able to view, manage, and control recorded video from five VideoEdge network video recorders. Some key features of victor, including its ability to instantly play back high-resolution video, and tie into the access control system to bring up video related to alarms, made it an easy selection for the project, according to Patel. For operators, victor is fairly intuitive so that officers could use it even before receiving formal training. “Even the least technical officer can get into the system, and set up views and do archiving,” said Drivas. “The user-friendly nature of the victor interface allowed our staff to be up and running on the system very quickly.”

One of the additional benefits, added Drivas, was the ability to capitalize on the clarity and accessibility of the video for non-security uses, such as the operations group at the distribution center using the video to monitor product movement on the conveyor system.

For cameras, SST installed a variety of cameras, including American Dynamics Illustra 400 Series Mini-Domes and IP SpeedDome programmable cameras. In addition, the project used Flir thermal imaging cameras to view the backside of the building, and four 180-degree megapixel cameras which increased the capacity of the 150 or so cameras to that of 300 individual camera views.

Skechers designed this new distribution center to give the company flexibility in its operations and a centralized distribution point for the next 20 years. By choosing victor and an IP surveillance solution from American Dynamics, Skechers is giving its security staff the same flexibility, allowing the camera network to grow along with the facility.

Contact:
Karen Olsen
Retail Sales
kolsen@tycoint.com

 

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Managing your career upwards requires a vision of where you want to go and how you're going to get there. Other than personal performance, one of the primary factors is who you know and how you develop those relationships. Everything you read talks about managing relationships around you in your current role, but the real key is the relationships you have outside your role or your company and not just in the LP community but with successful operators outside your current scope. If you expect to truly excel in your career, you've got to expand your contacts and develop them as you would the operator beside you. Obviously, this can be difficult and slow to progress. But give it some thought and set some goals of meeting new executives and expanding your circle. Because one person, one contact, can make a difference and you never know who that might be.

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