The D-D Daily Mobile Edition

September 30, 2013

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News Brief
Sponsored by WG Security Products, Inc.

Shane Berry was promoted to Vice President, Asset Protection for Abercrombie & Fitch.  Shane has been with Abercrombie & Fitch for almost eight years. He was previously Vice President of Brand Protection & Sustainability, and before that Senior Director of Brand Protection for the company. Prior to joining Abercrombie & Fitch, Shane spent several years working for the FBI as a Supervisory Special Agent. He was also a Special Agent for the Florida Department of Law Enforcement. He graduated from Eckerd College with a Bachelor of Science degree in Sociology. Congratulations, Shane!
 

Ray Cloud was promoted to Group Vice President, Loss Prevention for Ross Stores. Ray has been with Ross Stores for five years. His previous role with the company was as Vice President of Loss Prevention. Prior to joining Ross, Ray worked at Target for a number of years, where he was a Group Assets Protection Team Leader. He was also Regional Loss Prevention Manger for Marshall Field's. Prior to that, Ray served in the U.S. Army for six years in a communications role. He graduated from Wayne State University with a Bachelor of Science degree in Criminal Justice. Congratulations, Ray!


Diana Gallion was named Corporate Loss Prevention Manager of Investigations and Security for Kroger.
Congratulations Diana!
 

The $12 Billion Threat of Friendly Fraud
Visa estimates that the total cost of friendly fraud reached $11.8 billion last year. Friendly fraud, which can only result from a card-not-present, or online transaction, is increasing as the world is changing to become internet-based. As e-commerce takes over the marketplace and expands, chargebacks have become a nuisance to online merchants. For many consumers, a chargeback has become a quick fix remedy that has the illusion of having no real consequence. Forgetting to contact the merchant within their return policy timeframe in order to get a refund has proven to be a leading source of friendly fraud chargebacks. Consumers will claim they never authorized the charge associated as a last ditch effort to get a refund. Consumers who want something for nothing in return will often pretend that an identity thief used their credit or debit card and contact their bank to dispute the charges. For most merchants, the process of fighting a friendly fraud chargeback is not only lengthy, but also costly—especially if the case is taken to arbitration. Eaton-Cardone warns merchants against dismissing the threat of friendly fraud as trivial, as the repercussions can be serious. (Source prweb.com)

Feds come calling on Lumber Liquidators with search warrants in hand  Lumber Liquidators, the nation’s largest specialty retailer of hardwood flooring in North America with more than 300 locations, disclosed that the actions by federal authorities, including the Department of Homeland Security's Immigration and Customs Enforcement and the U.S. Fish and Wildlife Service, were related to the importation of certain wood flooring products. The Company takes its sourcing and compliance very seriously, and is cooperating with authorities to provide them with requested information,” Lumber Liquidators said in a statement. (Source retailingtoday.com)

Retailers brace for weak holiday
It's barely October, yet the Grinch is already gunning for holiday retail sales. Shaky consumer confidence and a focus on bigger-ticket items, such as cars and houses, by potential shoppers are leaving apparel sellers and department stores out in the cold this year. The bleak trend is expected to last through the crucial shopping period from Black Friday to Christmas. Research firm ShopperTrak is predicting sales to be up a scant 2% this year, after a gain of 3% last year. In addition, this year there are six fewer days between turkey-carving and Santa's visit, which will compress shopping time and add to retailers' malaise. Sales are at the mercy of moody consumers whose confidence has yet to be fully restored. (Source crainsnewyork.com)

ICSC Forecasts Holiday Chain Store Sales to Increase by 3.4%  The International Council of Shopping Centers (ICSC) is forecasting a 3.4% sales increase, slightly stronger than last year, for the traditional November-December holiday period, even though retailers are expecting a more modest spending season. Additionally, ICSC anticipates that the other two measures of U.S. industry holiday sales—shopping-center inclined sales +3.4%, and chain-store sales +2.0—will both increase over last year. (Source businesswire.com)

Retail stores become shipping hubs to battle Amazon - "Ship from Store"  Instead of fulfilling Web orders from warehouses hundreds of miles from shoppers' homes, companies including Wal-Mart, Best Buy and Gap are routing orders to stores nearby. Store employees pick products from shelves, pack them into boxes and drop them into waiting FedEx and UPS trucks that zip off to homes a few miles away. The trend, known as Ship from Store, saves money through shorter delivery routes. More important, it speeds deliveries, avoids costly markdowns and recoups sales that have been lost to Amazon, the world's largest Internet retailer. "This is the most important thing that will change physical retailers over the next five years," said Matt Nemer, a retail industry analyst at Wells Fargo Securities. A network of large stores — with high overhead costs — has become a liability rather than an asset in recent years. Amazon, which has no stores, won market share with lower prices and huge selection. But retailers have begun fighting back by using technology to get more sales out of stores — and ship-from-store is a big part of the effort. (Source freep.com)

NRF announces new CMO Council (chief marketing officer council)

Macy’s, Inc. to Hire 83,000 Seasonal Associates in 2013

GameStop to Hire 17,000 Nationwide for product release & holiday season

Jo-Ann to Expand Field Workforce More Than 14% for Holidays = 3,000+ jobs


Fresh & Easy Files Bankruptcy - Just trying to get out of leases new owner doesn't want (50 stores approx)  It plans to sell itself through the bankruptcy auction process to Los Angeles-based Yucaipa Cos. SN reported Saturday, the company was likely to pursue a bankruptcy filing to exit the leases of locations that Yucaipa has not agreed to acquire. (Source supermarketnews.com)

Seattle Grocery Union Members Authorize Strike  The contracts, which cover approximately 20,000 workers at about 225 stores in the Seattle and Tacoma areas. Speaking on behalf of Allied Employers, the management group that represents Albertsons, Safeway and two Kroger-owned chains — Fred Meyer and Quality Food Centers — Scott Powers dismissed the significance of the strike vote, saying it was "not unusual." "The important thing is that we get back to the bargaining table and do the hard work of putting a negotiated settlement together." (Source supermarketnews.com)

Forget Fingerprints: Your Iris is Your New Identity  At the entrance to "The Vault," the most secure room within the most protected building operated by security services provider Symantec, an iris recognition system stands guard as the last line of defense. Employees who make it this far have already swiped an access card and entered a PIN at the building's main door and then submitted a finger to a biometric reader to move beyond the lobby. But the high accuracy rate of iris recognition technology, which uses near-infrared cameras to take a picture of the subject's iris and then applies specialized algorithms to encode the image and match it to an existing record on file, makes it an ideal access control choice. After all, this is the high-security area that holds the cryptographic keys to Symantec's certificate authority business, which provides e-commerce security services to many organizations. "We have to make sure that no individual can compromise those cryptographic tokens, [and] iris recognition has higher accuracy and less likelihood of false positives," says Paul Meijer, senior director of infrastructure operations at Symantec's identity and authentication division. (Source csoonline.com)


The CLEAR Conference will take place November 4, 2013 but don't forget to reserve your hotel rooms! Time is running out!

Just a reminder for conference attendees – the discount reservation block on the hotel expires October 7th. Also, please check out the updated agenda here. We have some awesome speakers and training planned. And don’t forget about the networking!!

For more details please go to - https://www.clearusa.org/index.php/conference

Hackers are winning right now! Security industry in 'rut,' struggling to keep up with cybercriminals  Dramatic changes are needed in multiple fronts if the security industry hopes to move ahead of cybercriminals, who are continuously finding new ways to breach corporate systems, experts say. Hackers are the ones who are faster at sharing exploits for the latest products and security professionals get paid for how they defend, not what they share, and companies view knowledge as a competitive advantage. In addition, companies fear being sued by customers or partners, if the data shared relates to them. So there's an inherent root cause contributing to why hackers are in front most of the time. (Source csoonline.com)

NYC cost per inmate almost equals Ivy League education  Recent report found NY city's annual cost per inmate was $167,731 last year -- nearly as much as it costs to pay for four years of tuition at an Ivy League university. They say a big part of it is due to New York's most notorious lockup, Rikers Island, and the costs that go along with staffing, maintaining and securing a facility that is literally an island unto itself. Other cities don't have Rikers Island," said Martin F. Horn, who in 2009 resigned as the city's correction commissioner, noting that hundreds of millions of dollars are spent a year to run the 400-acre island in the East River next to the runways of LaGuardia Airport that has 10 jail facilities, thousands of staff and its own power plant and bakery. The city's Independent Budget Office annual figure of $167,731 -- which equates to about $460 per day for the 12,287 average daily New York City inmates last year -- was based on about $2 billion in total operating expenses for the Department of Correction, which included salaries and benefits for staff, judgments and claims as well as debt service for jail construction and repairs. New York's annual costs dwarf the annual per-inmate costs in other big cities. Los Angeles spent $128.94 a day, or $47,063 a year, for 17,400 inmates in fiscal year 2011-12, its sheriff's office said. Chicago spent $145 a day, or $52,925 a year, for 13,200 inmates in 2010, the most recent figures available from that county's sheriff's office. (Source ctvnews.ca)

Quarterly Same Store Sales Results

Finish Line Q2 up 0.9% with net sales up 13.3%


Last week's most popular news article --

10 Retailers That Will Let You Return Anything
"The return policy is that there is no return policy," a spokesman, Colin Johnson, told Fox Business. "The bottom line is that we work with our customer." (Source businessinsider.com)

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EHS & Safety
 
Wegmans Announces New Food Safety Standards  Today, all food suppliers for Wegmans will need to show a Good Agricultural Practices audit which means the produce that is sent to the store needs to be packed, stores, handled and produced in the safest of manners to reduce the risk of microbial food safety hazards. The audit is done by a third party auditor and checks for irrigation, makes sure the growing practices are good and that there is good internal hygiene throughout the farm. This practice had started to be phased back in 2008, and some of their farms have made the updates needed for this audit. (Source cnycentral.com)

Respect in the Workplace Can Increase Safety and Productivity  Leaders are always looking for ways to motivate their employees and keep them productive throughout their work days, but now they are trying to improve safety in the workplace in addition to keeping employees engaged. It's a good thing that the two goals can be worked on together. The commitment to a safe workplace, and getting the most out of your employees revolves around one thing: respect. When you create a work environment that values esteem and letting your employees grow, it triggers the brain and releases all the needed compounds to enhance focus and engagement, thus making your employees more likely to stay cautious and careful when doing their work. (Source ehstoday.com)
 

Retail Crime News
 
Texas store owner arrested after killing robber stealing a 12 pack of beer  The owner of a South Texas convenience store has been arrested for murder after shooting a man attempting to steal beer from his shop. Rodney James Duve was being held Sunday in the Nueces County jail with bond set at $35,000. Corpus Christi police say a 39-year-old man came into his store Saturday evening and took a 12-pack of beer before attempting to flee. The 52-year-old Duve was arrested at the store. The robbery suspect, who has not been identified, was taken to a hospital where he died. (Source kiiitv.com)

Distraction Team hits Ultra Jewelers in Auburn Hills for $95,000  Moments before closing on Saturday a female customer entered the Ultra Jewelers store in the Great Lakes Crossing and asked to see an item displayed in a showcase near the front of the store, as the second employee was empting out the showcases, securing the merchandise into a tub. Once the employee had pulled the case she took the tub to the back of the store and set it on a showcase, then entered the backroom, retrieving the hook to pull down the gate and returned to where she had been pulling merchandise. At that time a second female and a male entered the store, the employee who used the hook to pull the gate down halfway stop to service the customers and walked to the rear of the store with the customers. The male subject stayed close by for about a minute then went to where the tub was. He saw the tub and moved it several times towards the main entrance. At that point he picked up the tub and left the store, the tub contained 35 pieces of LaVain jewelry. Valued at over $95,965. A short time later both female subjects also left the store.

26 arrested in Manatee County theft operation in FL  The operation, conducted on several days since Sept. 18, took place at stores around Manatee County include Walmart, Kohl's Home Depot, Macy's, Publix and other locations, according to the Manatee County Sheriff's Office. Most suspects are charged with misdemeanor or felony retail theft. Three face narcotics charges. Three of the 26 people arrested are juveniles, according to the sheriff's office. During the operation, $5,300 in case, two vehicles and 229 grams of marijuana were seized. (Source heraldtribune.com)

Houston-area police officer indicted on manslaughter in shooting death of teenager accused of shoplifting  They announced Friday that a Montgomery County grand jury indicted Conroe (KAHN'-roh) police Sgt. Jason Blackwelder on charges that also include tampering with a government document and making a false report. The July 31 shooting occurred after employees of a store called authorities to say they were attempting to detain a suspected shoplifter. Blackwelder saw 19-year-old Russell Rios of Conroe running away and confronted him before a struggle ensued. The grand jury found that the 29-year-old Blackwelder provided false statements to investigators. He's been suspended without pay. (Source chron.com)

Rooftop burglars make off with $500,000 in jewelry store heist in Prince George County  Police in Prince George's County are investigating a $500,000 heist at an Oxon Hill jewelry store. Police believe the robbers broke into the store through the roof in the middle of the night, lowering tools down through a hole and using a blow torch to break open the safe. Police on Friday released a video from the scene in hopes of generating leads. Authorities say the robbers spent hours inside the store and made off with an estimated $500,000 worth of jewelry. (Source foxbaltimore.com)

Grab-and-run suspect hits Shaw Jeweler’s for 2 pairs of diamond earrings valued at $11,198 in Montgomery County, Maryland  On September 28, 2013 Shaw Jeweler's in the Montgomery Westfield Mall was victim of a Grab & Run. At approx 7:45pm an African American male entered the location and asked to see diamond stud earrings for himself. The associate took him to the diamond earring showcase and the suspect asked to see a pair of 1.5 Ct Earrings. He then asked to compare them against a pair of 2 Ct studs. The associate show the suspect the earrings one pair in each hand. The suspect never handled the earrings. The suspect then grabbed both pairs of earrings from associates hand and fled the store. The Montgomery County Police Department and Mall Security were notified, but no arrest has been made.

Florida man gets 5 years in prison for shoplifting; caught in Yorkville Kohl’s  A Florida man has been sentenced to five years in the Illinois Department of Corrections for a retail theft after pleading guilty, according to Kendall County State’s Attorney Eric Weis. Miguel A. Roldan, 50, of the 700 block of James Avenue, Leigh Acres, Florida, was apprehended by the Yorkville Police Department earlier in August of this year after stealing a “high dollar” item from the Yorkville Kohl’s Department Store. Weis said that Roldan has an extensive criminal history, including multiple felony offenses, which warranted the five-year sentence. (Source yorkville.patch.com)

Thieves drive a truck through a storefront in Tucker, Georgia grabbing laptops  CSR Computers opened for business during a halting economic recovery three and a half years ago. The last few weeks saw an uptick. "It's a family business," said Chandra Singh, the store owner. "And we had just started to see a trend of up, which we think which was part of the holiday season upcoming." But the setback CSR suffered this week was jarring and destructive, and captured on the store's surveillance cameras in the wee hours of Thursday. A pickup truck backed up to the front door, then raced backward through a metal security gate, and through the glass storefront. The four thieves took off with armloads of laptop computers and printers. (Source 11alive.com)

Shots fired during Elkhart jewelry store robbery Saturday afternoon  Police responded to a robbery at Images Jewelers store in Elkhart on Saturday afternoon. Three suspects did fire shots, but no one was injured during the robbery. Police have no one in custody at the time and are not sure if the robber(s) got away with any money or items. (Source abc57.com)

D.C. police arrest man in 6 armed robberies, say weapon was a paintball gun Authorities have arrested a suspect in connection with four armed robberies in the District and two in Prince George’s County that were carried out with a paintball gun and targeted carry-out stores, a pharmacy and a post office branch, according to D.C. police. Police said they got a break after the latest robbery, which occurred Sept. 17 at a Dollar Store in Prince George’s. A witness wrote down the license plate number of a white Lexus leaving the area, which led police to a house in Northwest Washington and to the suspect. James Esau Davis, 55, of Northeast was arrested Monday and has been charged with armed robbery in the District. Authorities said additional charges are pending in Maryland. A D.C. Superior Court judge ordered him detained until a preliminary hearing, scheduled for Friday. (Source washingtonpost.com)

Three arrested in Fresno County for counterfeiting credit cards and IDs  Thursday three people were arrested for counterfeiting hundreds of credit cards and IDs. The sheriff's department pulled over silver Nissan Thursday on the I-5 in Fresno County. Inside the passenger seat investigators found bundles of credit cards and fake identification cards. Gina Garcia, Martha Siguenza, and Ronald Pena were all booked into the Fresno County Jail. They face several felony counts including grand theft and identity theft. (Source yahoo.com)

Virginia man sentenced to 8 years for 6 state-wide jewelry thefts  A Virginia man has been sentenced to more than eight years in prison for his role in a violent, multi-million dollar jewelry theft ring. Federal prosecutors say 34-year-old Luis Carlos Muchado was sentenced Friday in U.S. District Court in Norfolk for the ring that operated out of Richmond. According to court documents, co-defendant 37-year-old Alexander Cuadros-Garcia of Colombia led the group that stole more than $4.6 million in jewelry from victims in Virginia and at least four other states including New York, New Jersey, North Carolina and Maryland. Most of the robberies involved damaging car windows and threatening victims at knife-point. Cuadros-Garcia and Muchado were charged along with six other members of ring in March 2012. (Source wtvq.com)

Goodwill Drops Theft Charges Against Teen Who Gave Customer Discounts  A Goodwill store in Naples, Fla., reversed course Friday and decided to drop grand theft charges against a teen employee who had given discounts to poor customers. The decision came four days after the store had fired Andrew Anderson, 19, and had him arrested for granting discounts that totaled $4,000. As recently as Friday, the store defended its actions saying the money could have been better used on Goodwill’s other charitable projects. Goodwill contacted ABC News Friday afternoon to say that the organization was dropping charges against Anderson. “After completing our internal investigation we have determined that the individual’s actions were not for personal gain, but rather for the benefit of others,” the statement read. Anderson was arrested and jailed on Tuesday by Collier County police, but was bailed out for $5,000 the same day, according to police reports. (Source 630wpro.com)

 

Op/Ed
 

You Can't Fix Stupid

By Adam Creamer

Loss prevention can be a stressful industry at times. We see the worst in people, and spend much of our time trying to stop would-be thieves from affecting our stores. Dealing with thieves is never a good thing, and can often be very dangerous. However, every once and awhile you come across a thief who is so dumb that they manage to take themselves out before you need to do anything. Take these two for example:

This first gentleman is trying to get away with a case of adult beverages, but his pants have other ideas. Maybe the recent trend of cities banning baggy pants is a bad idea. Yes they look ridiculous, and yes it may be easy to stash small items in them, but when it comes to running away they act as their own anti-theft device by preventing the perpetrator from running.

Then there is this jolly looking fellow:

I’m not quite sure what he was thinking during this attempted break-in, but it clearly wasn’t very intelligent. Anyone who scopes out a store then puts on the mask is fine by me; it just makes our job easier. Also, I think he really likes his baseball.

In hindsight both of these situations could have turned bad fast, but thankfully they didn’t. In an industry where we see negative actions on a daily basis it’s not a bad thing to smile at a dunce every now and then.

Contact:
Derek Rodner
VP, Product Strategy
856-366-1200 x500

drodner@agilenceinc.com

 

ORC News
Sponsored by Protection 1

NYC ORC Trio busted hitting pharmacies in Westport  The NYC trio were hitting Walgreen and CVS pharmacy's in Conn. and were arrested last week. Sharri Anderson, 43, of the Bronx,; Shauntay Williams, 30, of Manhattan, and Tyrone Fox, 23, of the Bonx, were charged after officers stopped them on Post Road East about 6:30 p.m. Sept. 26 after they were reportedly seen shoplifting merchandise from the CVS pharmacy on Post Road East, police said. (Source westport-news.com)

Authorities identify armed and dangerous ORC suspect hitting supermarkets in Cumberland County, PA  Hitting Giant food stores and Weis Markets the 41-year-old has been recorded on video and the police have active warrants out for his arrest. (Source abc27.com)

Three brothers and a woman charged with a series of retail thefts in Hermitage, Pennsylvania  Hermitage police have charged three brothers and a woman who lives with them for a series of retail thefts and fraudulent returns of some of the stolen merchandise. Nicole M. Miller, 27 has been charged with summary retail theft for stealing $114 worth of merchandise from Kohl’s. Kenneth N. Matvey, 36, of the same address, has been charged with summary retail theft for stealing $80 in merchandise from Kohl’s. Kenneth Matvey stole ammunition valued at $741 on Sept. 13 from Walmart and selling $150 worth of ammo to Elite Firearms. Christopher Matvey is charged with retail theft and conspiracy to commit theft for selling more of the ammo Sept. 13 at Elite. (Source sharonherald.com)

Trio in Florida suspected of stealing laptops
Chipley police hope you might recognize these three women who are wanted on shoplifting charges. Police say the women walked into Wal-mart on September 12, selected three laptops and took them to the menswear department where they removed the electronic security devices were removed from the boxes. The suspects then stuffed the laptops in stolen canvas bags and/or purses and walked out of the store. (Source wjhg.com)

Buffalo man apprehended with $1000 worth of jeans at Fashion Outlets of Niagara  A Buffalo man who allegedly stole more than $1,000 worth of jeans from a store at Fashion Outlets of Niagara pleaded not guilty to a three-count indictment Friday in Niagara County Court.Tracy T. Rhym, 49, of Woodland Avenue, is charged with fourth-degree grand larceny as well as two drug charges: seventh-degree criminal possession of a controlled substance and criminal possession of a hypodermic instrument. The Assistant District Attorney Joseph A. Scalzo said there has been a rash of shoplifting incidents involving high-priced True Religion jeans at the Saks Off 5th store in the mall. Scalzo said that on June 29, Rhym allegedly “loaded a trash bag with thousands of dollars worth of merchandise.” After that arrest, Rhym, a parole violator, was arrested in Clarence on robbery and assault charges, and in Buffalo on a petit larceny charge, Scalzo said. (Source buffalonews.com)

“Protection 1 is proud to be sponsoring the D-D Daily ORC column to ensure the LP industry gets the information, education and critical data they need to fight this  national epidemic.” Rex Gillette, VP Retail Sales, Protection 1.

Do you have an ORC case to share?
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Vendor Spotlight
 

Sophisticated stealing: A new criminal enterprise
Going Global – the growth of Organized
Retail Crime (ORC)

Already widely recognized as a growing criminal trend, ORC is going global with rising rates of thefts being reported across all geographic regions around the world. As a result, retailers are under greater pressure to complement technology with processes and investigative resources that can help prevent, deter and reduce the impact of the problem. This white paper from Checkpoint Systems looks at the problem from a global perspective and includes approaches to combat ORC.

Download the whitepaper here.
 

 

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Shane Berry was promoted to Vice President, Asset Protection for Abercrombie & Fitch.
Ray Cloud was promoted to Group Vice President, Loss Prevention for Ross Stores.
Douglas Fessenden was promoted to Director of Loss Prevention, West Coast for Sears Holdings Corp.

Trisa Gildard was named Regional Loss Prevention Director for Ross Stores.
Diana Gallion was named Corporate Loss Prevention Manager of Investigations and Security for Kroger.
Chad Rusk was named District Loss Prevention Manager for Stage Stores.

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The Many Reasons You Can't Get Out of Bed  We're too tired, we are so warm and comfortable, we stayed up late last night- the reasons go on and on as to why we can't get out of bed and wake up. How can we make the transition from bed to workplace easier? It could be as easy as just changing our sleep habits. (Feeling groggy could be coming from one of these six causes)

Which of These Four Types of Managers Are You?  Are you the kind of manager to take charge, feeling in your environment when telling people what to do? Or, are you the type of manager to dislike being in the spotlight and center of attention? Understanding what type of manager you are can only help you be a better leader. (What kind of leader are you?)

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Every executive has an agenda out of absolute necessity and in the normal course of doing business. Agendas, in essence, drive performance and results. However, it's the hidden agendas that one must be on the look out for because those are the ones that do the most damage to executives and companies. And while many tend not to acknowledge them, they do exist, and finding them is the key. Dealing with them and managing them is extremely difficult and oftentimes one finds his or herself managing the after effect and not even seeing them until it's too late. Just remember one thing - If you know the stripes on a Zebra you can ride the Zebra and, if you don't know the stripes, the Zebra will ride you.

Just a Thought,
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