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August 5, 2014

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News Brief
Sponsored by WG Security Products, Inc.

Target's data breach gross expenses $148M
Partially offset by a $38 million insurance receivable, related to the December 2013 data breach. These expenses include an increase to the accrual for estimated probable losses for what the Company believes to be the vast majority of actual and potential breach-related claims, including claims by payment card networks. (Source

Striking Change in Retail Robberies - Robbers 'Coming Guns Drawn'  In what appears to be a trend nationally a number of LP executives have recently commented that they've seen a striking change in the robberies occurring in their stores. It used to be the robbers would enter the store, approach the register and pull out their weapon. Now, according to a number of conversations, they're seeing robbers coming in the store guns drawn and ready to fire. Setting the tone from the start of the incident. Coupled with the increase in 'Active Shooters' are we seeing a real increase in violence in the retail world?  And of interesting note is that the pictures the Daily uses in the banner of our Robberies column are recent real-life incidents.

When it comes to back-to-school, brick-and-mortar stores still rule — but at a price  But there’s a hitch: Forget full-price selling now that b-t-s sets have been unveiled as more families are shopping later in the season. So after a tough first half at retail, the amount of discounting during the b-t-s season could place further pressure on firms’ margins in the second half. On Solid Ground: Brick-and-Mortar Is the Foundation of Omnichannel Retailing.” The survey noted that while omnichannel might be the buzz word, it’s still brick-and-mortar that plays the pivotal role in value creation. (Source

Sears Canada may avoid liquidation - Sycamore Partners may be interested - Liquidators are Scrambling  An auction of the struggling department-store chain has attracted the interest of Kaluzny’s Sycamore Partners, a prolific private-equity firm known for scooping up distressed store brands, The Post has learned. Sycamore, which recently bought Jones Group, Talbots and Hot Topic, is considering a bid for Sears Canada with a plan that could include “running the business,” according to a source close to the situation. An initial round of bids were completed in June, and a second round of bidding began last month with meetings planned between bidders and the retailer’s management, according to insiders. Sycamore may be the only firm that’s serious about keeping all of Sears Canada alive. Interest from retailers including Walmart, Hudson’s Bay and Canadian Tire has been limited to a fraction of Sears Canada’s real-estate locations, insiders said. Indeed, sources said the fragmented interest has posed a challenge for retail liquidators led by Hilco and Gordon Brothers, who have been scrambling to assemble proposals to break up the chain. (Source

Office Depot increases store closings for this year to 165 with goal of 400 by 2016 & annual synergies savings of $700M

Simon malls, Premium Outlets and Mills centers installing iBeacon technology in 200+ retail destinations

Old alarm central stations to be more like data centers in the future  That data will include video and other information from sensors, Childers explained. In the future, central stations will do a variety of analytics on that data and provide information back to its customers. To stay relevant, central stations need to be paying attention to the Internet of Things trend and thinking about what kinds of services it needs to offer its dealers and customers. “If you’re not looking at [your central station] as a data center, you’ll be lost,” Childers predicted. Just how big is the Internet of Things phenomenon? By 2020, somewhere in the neighborhood of 56 billion devices—26 billion wired devices and 30 billion wireless devices—will be connected to the Internet. (Source

UK retailers downplaying employee theft? - New survey shows whopping 26% decrease since 2013  A recent survey of 100 of the UK's top retailers shows the biggest source of store loss remains shoplifting. The 2014 UK Retail Fraud Survey, now in its fourth year, reports employee theft as the second biggest cause of store loss at 20% - a 26% decrease since 2013. This decrease in employee theft is so significant that it is believed that this figure may have been under-reported on by retailers. It has been suggested that this may be due to a reluctance from UK retailers revealing that employee theft is as much of an issue as it really is. “Interestingly, American retailers generally put losses owing to staff ahead of losses owing to external shrink, as identified in the US Retail Fraud Survey 2013 and 2014”, commented Retail Knowledge MD Paul Bessant. (Source

Professor complains of racial profiling at Best Buy in Lafayette, IN  A Purdue University faculty member has taken to her social media accounts, saying she was a victim of racial profiling at Lafayette's Best Buy. Roxane Gay, an African-American author and essayist who this year joined Purdue's creative writing program as an associate professor, said that on Friday an employee at the store stopped her after she presented her receipt for several items she had purchased. When Gay showed the employee her receipt, she said, the employee appeared to not believe she had purchased the items. The employee called over the salesperson who had sold Gay the items to confirm the purchase. "I have never in my life experienced something like this," Gay wrote on her Tumblr blog, which has since been recirculated by several websites and blogs. "My receipt was right there. My purchases were plainly identified. For whatever reason, that was not proof enough?" (Source

July Same Store Sales Results

Walgreens up front-end up 1.1% and pharmacy up 7.6%

Quarterly Same Store Sales Results

Michael Kors Holdings Q1 up 24.2% with revenue up 43.4%
Vitamin Shoppe Q2 up 5.1% with revenue up 9.6%
Jamba Juice Q2 corporate stores up 2.5% with revenue down 5.4%
CVS Drug Stores Q2 up 3.3% with net revenue up 11%
Ingles Markets Q3 up 2.1% with sales up 4.7%
Office Depot Q2 North American retail down 3% with that same division reporting an operating loss of $6M
Coach Q4 North American 17% with North American sales down 16%

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RLPSA 2014 Conference

Everything You Need to Know
from RLPSA: Day One

By: Amber Virgillo
Owner & Brand Strategist
Calibration, LLC

The Restaurant Loss Prevention & Security Association (RLPSA) started day-one of educational content with sessions from heavy-hitters, subject matter experts and a Chief Innovation Officer.

Wasting no time, the conference welcomed Steven Davis, Chairman and CEO of Bob Evans Farms, Inc. who spoke about brand protection, building a culture, and understanding how important loss prevention is for the overall business. Davis conveyed several real-life experiences that helped illustrate for the audience how important the role of crisis planning is in a comprehensive program. He gave specific examples of how the LP team operates at Bob Evans, sharing these points:

- The Security team is the subject matter expert for operators

- A strong partnership with the team builds trust and lets managers manage

- Value adds from a strong partnership include:

Security helping operations review processes

Remote audits allow for remote problem-solving

Analytical tools used for LP, but shared among operations

Davis closed by challenging attendees with two key takeaways:



Educate their organization on the value LP brings


Form strong partnerships with operations by educating on the LP processes

Other sessions included “A Moment in Leadership,” from Chief Innovation Officer Kurt Reinhart. Reinhart gave audiences practical principles to implement in order to build a culture of learning within their organization. Wayne Hoover, CFI, vice president of CFI programming for Wicklander-Zulawski & Associates taught attendees the Selective Interview technique through an interactive review of two real-life cases.

Why take our word for it? Hear from attendees:
“Spotlight sessions given by solution providers are great information,” said Ken Keegan, senior risk and LP manager for Jamba Juice. “I like the diversity of brands from smaller and larger companies because it provides a variety of perspectives that we can all learn from.”

“RLPSA offers such quality programs and today was no different,” said Vince Vittatoe, director of security and LP for Bob Evans Farms. “Today’s agenda delivered relevant speakers and created an environment for open information sharing leading to problem-solving and identifying of best practices.”

“RLPSA has evolved and grown into an educational communication source for restaurant loss prevention professionals, where sharing of best practices helps strengthen the industry,” said Jeff Levitt, senior manager loss prevention for Panera Brand. “The membership is proficient, professional and prepared to accelerate the professionalism of both new members and seasoned veterans. As an executive of a member company, I am more comfortable that the decisions I make that impact profitability and safety can be benchmarked against other food service concepts.”

“If there is one show I attend every year it is the RLPSA annual conference,” said Gene James, director of asset protection for Jack in the Box. “RLPSA is the definitive gathering of restaurant safety and security professionals. The RLPSA board and executive director, Jim Florenza, consistently deliver a quality educational agenda while exceeding my expectations year after year.”


Stay tuned to the D&D Daily for more news about RLPSA.
Why wait? Follow us live via Twitter @DandDDaily or #RLPSA


eBay News

Paramus man faces impersonation, theft-related charges in eBay scheme

A 34-year-old Paramus man is accused of using a false identity to facilitate the sale of counterfeit merchandise on eBay, including rare sports memorabilia and rare gold coins and bars, as well as selling counterfeit sports trading cards, authorities said. Andrew D. Mei is charged with theft by deception, impersonation (identity theft) and computer-related theft. He was remanded to the county jail in lieu of $75,000 bail after being arrested Monday. Mei’s fiancée, Deborah A. Fernandez, was charged with the same crimes and served with a complaint-summons. In April, the U.S. Postal Inspection Services received information from PayPal and eBay that Mei had been using a false identity to facilitate the sale of the counterfeit merchandise since 2008, the release said. Mei allegedly bought authentic sports trading cards on eBay, replicated them and then sold the counterfeits on the website. In 2012, eBay uncovered Mei’s activities and shut down his accounts, but in 2013, he allegedly started new eBay and PayPal accounts using an identity stolen from a California victim and continued the fraudulent transactions.

Read more here.

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Loss Prevention News Network
"Live in Ft. Lauderdale at the NRF Show 2014"

Axis Communications

Hedgie Bartol, Retail Business Development Manager for Axis Communications - North America, discusses the evolution of the camera and its application in retail loss prevention. As the market leader in network video, Axis offers network video solutions for professional installations featuring products and solutions based on innovative and open technical platforms. Hedgie tells us why migration strategy is so important for retailers, especially when upgrading from analog to digital IP video technology.

Episode Sponsored By:


LPNN Quick Take #3

In this LPNN Quick Take, MC's Joe and Amber discuss what they love hearing about from service providers at the show. They also talk about the importance of retailers and law enforcement collaborating. Lastly, they share their thoughts on the NRF conference and what is the most valuable takeaway for them.

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

Sponsored by The Zellman Group

How will HCE affect mobile payments security
Consumer confidence in providers' ability to protect cardholder data is the determining factor in whether mobile payment services succeed or fail. The EMV card, with its secure microchip for transmitting data, is a physical asset that provides security via encryption. The next step is to duplicate this security virtually. HCE (host card emulation) has been a boon to the mobile payments industry, reducing costs and lowering barriers to entry. Secure Element is no longer necessary since the introduction of HCE because the full payment card data — an exact representation of the card using only software — no longer needs to reside on a physical chip. (Source

Apple, Visa to Accelerate e-Payments Where Google Failed, Says Pac Crest

Wal-Mart reveals plans for major e-commerce push

"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


ORC News
Sponsored by Security Resources

Shoplifting mob hits Naperville Apple store
Naperville police on Monday continued their search for 10 people who stole nearly $9,000 worth of wireless telephones over the weekend from the Apple store in the city’s downtown. Police Cmdr. Lou Cammiso confirmed the mass-shoplifting occurred about 12:30 p.m. Saturday at the store, at 120 W. Jefferson Ave. “Ten subjects all walked in the store together ... and grabbed a total of 15 cell phones off of display tables,” Cammiso wrote Monday in an email. “The total loss on the full retail value is $8,835,” Cammiso said. “The (police) investigation continues.” (Source

Television news-anchor busted in $2,500 Coach wallets theft after being seen on TV  A Sacramento-area television news anchor charged with grand theft and burglary over the alleged theft of Coach wallets from an outlet store. The award winning anchor was charged last week in connection with a 2013 incident in which merchandise was stolen from a store in the Sacramento suburb of Folsom. Charged with conspiracy, store employees recognized her from her role as a local television anchor. Rodriguez's fiance, is said to have been a co-conspirator in the case. Gray also faces methamphetamine, marijuana and arson charges in an unrelated case. (Source

Westbury, NY Police arrest 2 for possession of 22 fake gift cards at Target  Two Brooklyn men are accused of possessing 22 fake gift cards. Nassau County police say the suspects were observed on a store security camera buying multiple items with a stolen credit card on Monday. They say it happened at a Target store in Westbury, Long Island. Police say the suspects were found to also be in possession of 22 fake gift cards that had been altered. They were identified as Denton Saunders and Ryan Fletcher. They were charged with possession of a forged instrument and identity theft. (Source

3 arrested for using fake gift cards in Westport, Conn. with 11 in their possession

2 men used fake gift cards at Hendersonville, TN., Walmart - Five involved

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Retail Crime News
Sponsored by NuTech National

Two-Truck fleet owner pleads guilty to being multi-state cargo theft ring leader  Two-truck fleet owner based in Memphis has pleaded guilty to heading a cargo theft ring in which he and two others would cruise through truck stops looking for unattended and unhooked trailers and drive off with them, according to prosecutors. Prosecutors say they plan to establish that the cargo theft ring included thefts in Arkansas, Illinois, Indiana, Iowa, Kansas, Kentucky, Maryland, Michigan, Missouri, Nebraska, Ohio, Tennessee, Texas and Virginia. When the trio would find a trailer that appeared unattended, they would hook and go, prosecutors allege. They would then transport the trailer and its goods to either Chicago or Detroit to be “fenced” or sold. Under federal statutes, Nunn and Sherley are each subject to a sentence of up to 10 years in federal prison without parole, plus a fine up to $250,000. (Source

$1 million fine ordered in KC-to-NY cigarette smuggling case  According to prosecutors, by buying the cigarettes in Missouri, the conspirators sought to avoid paying New York’s $4.35 per pack excise tax on cigarettes, which is significantly higher than the tax in Missouri. The "several hundred thousand cartons" of cigarettes were sold primarily on New York Indian reservations. (Source

West Chester, PA woman says HH Gregg employees falsely accused her of theft  A Chester County woman says that employees at a Delaware HH Gregg failed to register her payment for items purchased at the electronic retail store, ultimately resulting in her humiliating arrest by Delaware State Police. Jennifer Washco, of West Chester, Pa., seeks damages in excess of $50,000 on two counts against the Indiana-based business and one count of violating Federal Trade Practices Act against Fiserv, a Wisconsin-based debt collection agency. On Oct. 27, 2013, Washco traveled to the Wilmington, Del., store and purchased more than $8,000 in furniture and televisions. When Washco offered to pay by check, a store representative phoned her bank and received assurances that she had sufficient funds. However, the claim says, the bank refused to honor the check without Washco’s knowledge. The items were delivered to Washco’s home on Nov. 1, 2013, but in December she received a phone call from Fiserv, which said she still owed money for the purchase. The suit says that on Dec. 12, 2013, Washco mailed a check for the full amount, plus $40 for the declined check. The new check cleared on Dec.19, but the next day a store employee phoned the Delaware State Police. A warrant had been issued for Washco’s arrest, and a state officer called to request that she turn herself in for processing. Washco immediately called HH Gregg and spoke to an asset protection manager who assured her that the check she issued on Dec. 12 had been paid in full and that HH Gregg would issue a dismissal if needed. That dismissal never happened. (Source

Twin brothers who allegedly robbed at least 20 Starbucks in CA together ordered to stand trial  Twenty-six-year-old twins Jason and Devan Jackson each found jobs. Jason worked at a Starbucks in the Florence area and Devan worked as a guard for Ameriquest Security. But prosecutors allege the pair quit those jobs and went to work together, using Devan’s security uniform and Jason’s knowledge of Starbucks operations to commit 20 robberies at the coffee shops across the South Bay and Southern California, as well as two Shakey’s restaurants and a 7-Eleven store. Combined, the Jackson brothers could go to prison for 295 years for allegedly robbing 58 workers. (Source

Lorain, OH man accused of robbing Home Depot  A Lorain man whom police allege was under the influence of heroin was charged with an Aug. 2 robbery at Home Depot. Loss prevention officers told police they saw a man, later identified as Christopher Partin, 26, enter a store “acting strangely,” singing out loud and continuously slapping his pants pockets with his hands, a Lorain police report said. Partin then selected 11 packages of Bosch jigsaw blades and four packs of cabinet door dampers from the store shelves and concealed them in his pants. He left the store without paying for the items. Loss prevention officers confronted Partin outside. They said they saw him place his hands into his pockets. Unsure of whether or not the suspect planned to pull a weapon on them, the officers grabbed a hold of the suspect, who immediately began fighting to get away. (Source

Woman poses for photo while using stolen credit card in Ocala, FL  The woman in the picture smiles coyly, posing with a stolen credit card and wallet, police say, moments before she used the card to buy more than $430 in beauty supplies. Ocala Police Department detectives are asking the public if they recognize the woman, whose photo was snapped by an alert store clerk who felt something just wasn't right with the purchase. (Source

Home Depot employee pleads innocent to stealing $9000 from the store in Richland, WA  A 14 year Home Depot employee blamed financial stresses for his alleged theft of more than $9,000 from the Richland store over a four-month period. Timothy David Thomsen, 52, of Prosser, pleaded innocent to first-degree theft. Between March 1 and July 7, Thomsen repeatedly processed returns on special orders that a customer didn't actually return. A Regional Loss Prevention manager with Home Depot investigated the theft and found documentation and surveillance video that puts the loss above $9,000. (Source

Distraction Team hits Zales in Maryland for nearly $50,000 in merchandise  On August 2, 2014 at 5:17 PM, two men entered the Zales in Towson, MD. The men asked to see diamond solitaires. While the Jewelry Consultant was distracted by the first man, the second man entered the store and reached into the showcase and removed several elements containing five rings. The 2 men left the store shortly after. The rings were determined to be missing after the subjects had left the store.

Mandeville, LA Police looking for jewelry store burglar  Mandeville Police need help finding the person or persons responsible for a weekend jewelry store burglary. Police said the burglary occurred Saturday (Aug. 2) at Anne Dale Jewelers, 12 Saint Ann Drive. Police said the suspect or suspects entered the store through the ceiling after defeating the alarm system. The burglary occurred after the store had closed for the day. Police said they still are working with the store's owner to determine exactly what was taken from the store. (Source

Lafayette, LA. sees 71% increase in armed robberies of mostly convenience stores - 24 in July alone

Colorado Springs Walmart store evacuated after bomb threat Sunday

Chesapeake, Va. man using stolen credit cards to buy gift cards in numerous stores - on the loose

Shoplifting turns to robbery outside the Bealls Outlet in Orlando

Zales in Las Vegas the victim of a $2600 Grab and Run

Brooklyn, NY Zales hit with a $6669 Grab and Run

Guam Grocery store employee loses eye in a fight with shoplifters

Robberies and Burglaries

Any Time - Houston, TX - Armed Robbery - brothers arrested
Boost Mobile - Tyler, TX - Burglary - 2 arrested
Cash America Pawn - Houston, TX - Armed Robbery - 4 arrested
Check-N-Go - Selma, AL - Armed Robbery - sentenced to 10 years
CVS - Murray, KY - Armed Robbery
CVS - N. Charleston, SC - Armed Robbery
Family Dollar - Denver, CO - Armed Robbery
General Store - Jacksonville, VT - Burglary
Handy Shop - Minn., MN - Armed Robbery/ shots fired
Katz - Houston, TX - Armed Robbery/ Shots fired - 3 teens arrested
Kings Grocery - Shreveport, LA - Armed Robbery
Minute Mart - Kingsport, TN, - Burglary
QT - Tucson, AZ - Armed Robbery
Radio Shack - Philadelphia, PA - Armed Robbery - 2 suspects charged
Shop Rite - Philadelphia, PA - Robbery/ assault on LP - suspect charged
Snac Shac - Grand Island, NE - Armed Robbery - 2 suspects arrested
Stop & Shop - Fairfield, CT - Theft - suspect arrested
.99 Cent Only - Rohnert Park, CA - Armed Robbery


Vendor Spotlight

Turtle is a new all-in-one security sensor with multiple applications.
Use Turtle by itself as an EAS tag or with strapping to protect packaged goods.

Turtle can also be connected to a variety of cable styles to secure display products.
Turtle sounds tamper alarm as well as EAS gate alarm.


White Paper: Offender, Shopper & Employee Study on ILP's New "Turtle"

The Loss Prevention Research Council (LPRC) conducted a series of in-person survey interviews in the Gainesville, FL. Big Box retailer StoreLab in order to understand the impact of the Turtle on associates, shoppers and shoplifters.

This research focused on the Turtle’s impact on protecting DEWALT Power Drills, one of the Big Box retailer’s high-loss products.

  Employee Feedback

100% of interviewed associates agreed that the Turtle is effective in deterring theft.

100% of associates interviewed about the Turtle strongly agree that it is not disruptive to their daily duties.


  Offender Feedback

85% of the offenders said they would not steal the product if it was protected by the Turtle.

Over 90% of shoplifters noticed the Turtle and all of them understood the purpose of the Turtle.


  Shopper Feedback
90% of customers believe the Turtle is effective at preventing theft.

97% of customers stated that the presence of the Turtle did not have a negative impact on their shopping experience.

Learn more here.


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Peter Hebert was named Regional Loss Prevention Manager for Big 5 Sporting Goods.
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Jeremy Dudar was named Regional Loss Prevention Manager for Big 5 Sporting Goods.

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4 Ways to Retrain Your Brain to Handle Information Overload  Most times we try to cram so much information into our brains, it just can't handle it. We start to feel mentally exhausted and our brains can't keep up. We eventually become more forgetful, but there's some tips for getting over this feeling! (Jot it down)

9 Highly Effective Ways to Thrive in Chaotic Times  Change is a constant, both in business and in life, but it seems things are a little crazier than usual now. Change is happening more often and that leads to challenges and chaos. Use these tips to help you thrive in a rapidly evolving world. (Improv)

Schedule a 15-Minute Break Before You Burn Out  When you're in your routine, racing 90 miles an hour to get everything done, the last thing you want to do is slow down and potentially mess up your rhythm. However, slowing down and taking a break will help keep you from getting fatigued and more likely to get distracted. (Step away)

5 Tricks to Motivate Yourself and Get Stuff Done  Whether you have someone to hold you accountable or if you solely rely on yourself to stay motivated and stay focused on work, I'm sure we all get that feeling in the afternoon where our thoughts start to drift off. Here are some tips to keep yourself going. (Shake it off)

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Tip of the Day
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When anyone goes for an interview you’ve got to play to win. You should not allow: any outside variable, any future promotion thoughts or promises, your guilt feelings towards your current employer or boss, your preconceived opinions of the possible future employer, or any miss-step in the process on the part of the future employer disrupt or impact your performance

All interviews have long range implications on your career. The executives interviewing you are part of a community and you'll run into them again at another company. So if you do get involved and go for an interview, commit yourself all the way and play to win. It doesn’t mean you’ve got to take the job. It just means you have to perform at 100%.

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Upcoming Events

The 35th Annual RLPSA Conference
August 3-6, 2014
Orlando, FL

CCROC Annual Training & Conference
September 4-5, 2014
Oakbrook, IL

RCC Retail LP Conference
September 10-11, 2014
Toronto, ON, Canada

New York Metro ORC Alliance Kickoff Event
September 12, 2014
New York, NY

ISCPO Conference
September 9-10, 2014
Dallas, TX

NE ORC Symposium and Trade Show
September 18, 2014
Worcester, MA

Ohio ORC Retail Crime Symposium
September 19, 2014
Columbus, OH

CLEAR Fifth Annual Training Conference
October 13-16, 2014
San Diego Marriott-Mission Valley, CA

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