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The D-D Daily Mobile Edition

December 13, 2013

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News Brief
Sponsored by WG Security Products, Inc.
Counterfeiting and cybercrime causing retailers a Christmas headache  Online counterfeiting and e-crime are impacting the lives of retailers and consumers alike in the build-up to Christmas. Retailers are facing a battle to fend off the counterfeiters this Christmas, according to new research by KPMG. The business advisory firm commissioned a group of secret shoppers to track down counterfeit Christmas goods in 20 countries, setting them the task of finding 12 popular Christmas gifts including smartphones, high-end branded watches and branded jeans. The study found that the proliferation of imitation goods sold via the internet has reached such a level that all 12 items were traced online in Shanghai, Mexico City and Sydney. And another survey found that businesses are not yet doing enough to protect themselves from cyber-security threats and organizations should be educating its employees on IT security best practices – and that is a message aimed at retailers, as much as any other industry. (Source retailfraud.com)

Kenya Mall Attack Prompts NYPD Kings Plaza Mall Terror Drill  Late-night drill in Brooklyn mall tested officer’s ability to stop a similar threat. A team of heavily armed New York Police Department officers conducted a late-night drill at a closed shopping mall last month in hopes of avoiding a repeat of the chaos that accompanied the mall massacre earlier this year in Kenya, police officials said Tuesday. The after-hours NYPD exercise at Kings Plaza in Brooklyn was intended to test officers' ability to thwart rampaging gunmen in a crowded public setting, Police Commissioner Ray Kelly told reporters following a briefing for corporate security officials at police headquarters. (Source lawofficer.com)

The Smart Store - Coming Soon to your neighborhood  Amazon and eBay have forced a transformation on the retail sector and that much of the future success of retailing going forward will be decided in the logistical set up, in the supply chain of retailers and in their home delivery and online fulfilment capabilities. One of the central questions will be how to integrate the store of the future into this logistics network. The report finds that learning from online and incorporating key innovative online concepts into bricks and mortar stand the best chance of success. Retailers should pivot on existing infrastructure and find new use cases for assets, technology and retail space that has become redundant. Editors note: How does that impact Loss Prevention and broaden the risk factors. While the DC's in the past have been considered the step children, now we have them front and center. (Source theretailbulletin.com)

Department Stores Outpace Specialty Retailers in November  Department stores are “holding their own." Weakness in the teen sector has brought down the overall specialty store sales numbers. In the overall economy, retail sales rose 0.7 percent to $432.3 billion, driven by “sizable gains” in autos, electronics, furniture and online sales, said Chris G. Christopher Jr., director of consumer economics at IHS Global Insight. (Source wwd.com)

The end of an era - The last Blockbuster stores on the planet to close in the UK

JCP cutting back on store within a store and going back to more private label

AutoZone’s quarter web sales up 75%, Lululemon up 37%

Influx of millions of visitors to NYC during holidays turns everyday walkers into Scrooges - But it also fuels the retailers big time - so "bah hum" bug to those who don't like them

Dollar General is opening full-sized grocery stores

New report calls for UK police unit to combat fraud crime groups in food supply chain  On the heels of their horsemeat scandal and new report calls for a new police force to be created to combat fraud in the food supply chain because the risk of criminal activity is so great. the sector is a "soft touch" for criminals who know there is little risk of detection or serious penalty, that the Food Standards Agency is insufficiently robust, and that the industry's audits are inadequate to detect food crime. (Source theguardian.com)

Heads Up - LinkedIn invites ranked as the year's most dangerous messages  Websense says that the year's most problematic email message posed as a LinkedIn invite. The messages, with the subject of "Invitation to connect on LinkedIn" offered a classic pass at Phishing, playing on the fact that a majority of the corporate world uses the social networking portal for professionals. (Source csoonline.com)

Quarterly Same Store Sales Results

Canada's Sobeys supermarkets Q2 up 0.2% with sales up 2%
Gymboree Q3 down 4% with net sales down 0.5%

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eBay News
 

eBay Investigators work with Law Enforcement Sends Two ORC Boosters to Prison

In the latest development as part of Mobile’s largest racketeering and corruption prosecution in decades, a federal judge has sentenced two men to more than four years in prison apiece for their part in an Atlanta-based theft ring. According to court records, on Tuesday Chief U.S. District Judge William Steele handed down sentences for the Detroit, Mich., natives who pleaded guilty to conspiracy charges over the summer.

Both men admitted to stealing more than $200,000 worth of electronics from retail stores.

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Canadian Push
Sponsored by Vector Security
Canada's high-end retailers are getting ready for a fight and Hudson's Bay Corp is racing to ward off the Nordstrom invasion of Canada - Watch out for Holt Renfrew right beside you  With Canada's lagging behind in e-commerce offerings HBC is over-investing in it now. especially with Nordstrom coming north soon. U.S. high-end retailer Nordstrom Inc. will arrive in Canada next fall, with plans for as many as 10 full-line stores as well as up to 20 Rack outlet stores, and a goal of $1-billion in annual sales. Mr. Baker will bring Saks to Canada within the next two years, with plans for seven or eight stores along with as many as 25 of its Off 5th discount outlets. Other high-end players, including Holt Renfrew and men’s clothier Harry Rosen, are also working to raise their game. “There are a lot of competitors in the marketplace that are vying for similar space,” Mr. Penalosa said. There’s a sense of urgency,” said Michael Penalosa, managing principal at retail specialist Thomas Consultants in Vancouver. Editors note: Canada just hasn't developed their e-commerce business and quite frankly their high-end retailers have been stagnant for years. It's going to be interesting to see how this develops. Let's hope no one pulls a Target and under-inventory's their stores and gets lambasted by the consumers. (Source theglobeandmail.com)

Underground retail ring busted - major fencing operation shut down in Vancouver  Police recovered around $250,000 in suspected stolen property last week inside a Vancouver apartment that was operating as an "underground retail sales centre." Police said Wednesday the apartment was stocked with thousands of items of suspected stolen merchandise, organized into different sections as one would find at a legitimate store. There were racks of men's and women's clothes, expensive, name-brand winter coats, designer jeans, and high-end wallets, purses and sunglasses. A second room was dedicated to children's clothing. The illegal store, probably advertised by word of mouth and online, was doing brisk business. Police observed dozens of customers an hour passing through the property to shop, said Const. Brian Hobbs, who was at the scene. Officers also saw people coming to the apartment to drop off bags of suspected stolen merchandise to sell. (Source theprovince.com)

Canadian company launches no-waste gift cards  The zero-waste gift card created by Victoria, B.C.-based company kiind launched in Canada Monday. People who purchase gift cards through the company’s website are only charged when the gift is redeemed. By logging onto the website, people can purchase gift cards from big-name brands such as Nike, the Gap, Amazon and iTunes, which can either be used online or in stores. Kiind charges between 35 cents and $1 per card. Senders can set an expiry date for the cards, and recipients will receive notifications letting them know their offer is about to expire. If they never redeem the card, the sender will never be charged for the gift. (Source thestar.com)

Skimmers hitting Red Deer businesses in Alberta  Red Deer City RCMP have recently received several complaints about bank card fraud from people who were still in possession of their bank cards. An investigation has determined that debit machines were compromised at several Red Deer businesses, allowing thieves to steal bank card information when victims entered their bank card PIN (personal identification number) to pay for purchases. (Source albertapolicereport.ca)
Sarnia, Ontario police arrest 3 men for 2 drug store robberies on Dec. 6 

Retail Fast Facts: November 2013

Highlights:

Total monthly retail sales changed by 1.7 per cent over the comparable month last year.
Total sales excluding food, automotive and gasoline changed by 1.3 per cent over the comparable month last year. Read more (Source retailcouncil.org)
 

Big Data
Sponsored by Verint

The Future of Big Data for Retail - using statistical deviations to spot loss in real-time  The retail industry is always looking for new tools to reduce shrinkage. Big Data solutions are already making huge advances in correlating POS data with video analytics to identify and reduce various forms of employee malfeasance at the cash register. There are many other problems in retail settings that require more subtle analysis across even larger data sets. Electronics retailers, for example, routinely lock up high-value goods in access-controlled cages to restrict who can handle these items and when. Biometric readers can increase the certainty of who has accessed the cage, and video cameras can provide visual verification. But in a busy store, let alone an entire chain, that represents mountains of data to sift through, and store managers are usually too busy serving customers to sort through all that data in a timely manner. Enter Big Data. It is possible to analyze access to inventory and POS sales data to scan for meaningful correlations in real time. As a baseline, for example, there should be a statistical relationship between the number of times the high-value storage is accessed, and the number of high-value sales actually rung up at the register. A large organization could further normalize this data on a per-store basis by time of day, by specials and sales, and so forth. With that statistical baseline in place, any deviations spotted in real time could be flagged for local or corporate loss prevention review. (Source securitymagazine.com)

Big Data Security, Privacy Concerns Remain Unanswered  Approaches to storing, managing, analyzing and mining Big Data are new, introducing security and privacy challenges within these processes. Big Data transmits and processes an individual's personally identifiable information (PII) as part of a mass of data - millions to trillions of entries - flowing swiftly through new junctions, each with its own vulnerabilities. De-identification masks PII, separating information that identifies someone from the rest of his or her data. While this process might protect people's privacy, re-identification science, which pieces PII back together, reattaching it to the individual, thwarts deidentification approaches that would protect Big Data - making it unrealistic to believe that deidentification can really maintain the security and privacy of personal information in Big Data scenarios. (Source cio.com)

3 out of 4 believe big-data-driven capabilities are required to execute competitive Omni-channel strategies  “Retailers are developing new capabilities on both the supply and demand side of the business using big data,” said Bill Bishop, chief architect of Brick Meets Click and the lead author of the study, "How the Game is Changing: Big Data in Retail." “More and more companies are establishing the business case for big data and beginning to measure the benefits.” Among the key findings from the new report: • More than 70 percent believe that competitive advantage will come from faster decision-making enabled by predictive analysis. • Personalizing offers is the biggest opportunity to connect more effectively with customers. • More than half of current projects focus on optimizing delivery of customer messages and generating shopper insights. • Inventory optimization and supplier collaboration are the most important opportunities on the supply side. • Lack of organizational readiness remains the biggest barrier to taking advantage of big data opportunities. (Source progressivegrocer.com)

 

Retail Crime News
Sponsored by Sony

Chilling surveillance released of Miami Walgreens robbery before police shooting deaths of two suspects and three officers shoot - Were the officers hit by friendly fire? A must watch!  City of Miami Police have released new video footage of a chilling scene at a Walgreens before a police officer was shot and two suspects were killed, following a police-involved shooting. And, tonight, there are some tough questions for officers after the shootout. The surveillance camera footage released Thursday morning offers our first look at the terrifying start of a criminal's dangerous day that ended with his death. After holding up Walgreens clerk Daihana Lugo at gunpoint, in the pre-dawn hours of Tuesday morning, police said, Adrian Montesano, went on to shoot Miami-Dade Police Officer Saul Rodriguez before fleeing the scene in Rodriguez' police cruiser. Rodriguez remains hospitalized at Jackson Memorial Hospital, Thursday morning. (Source wsvn.com)

Bojangles restaurants in Pickens County, N.C, hit with skimmers - investigation ongoing  "Card numbers were being utilized throughout the United States and in some cases internationally," Pickens County Sheriff's Office spokesman Chuck James said. The claims began after some Bojangles restaurants in western North Carolina and possibly some in Pickens County experienced the same problem. Bojangles confirmed credit card information may have been compromised at locations in Hendersonville and Waynesville, NC, in Pickens, SC, and Newport, TN. "We are actively working to ensure we have all the facts in this case," a statement from Bojangles said. (Source foxcarolina.com)

Three arrested on retail grand theft charges in Ocala, Fla., after hitting multiple stores 

Trio sought for ID theft, credit card fraud in Greater Houston area hitting stores

San Pablo, CA woman suspected in $19,000 makeup heist from MAC Cosmetics store in Berkeley  The footage shows a Honda registered to Hale driving into the parking lot before a rock was used to smash the front door and steal the $19,000 in merchandise, according to court records. Boxes of makeup were later found during an authorized search of Hale's San Pablo home on Nov. 26. A day planner with more than 100 identity theft profiles with names, birth dates, driver's license numbers and social security cards were found in the home as well as items stolen in car and residential burglaries and one gram of methamphetamine, according to court records. (Source mercurynews.com)

Florida Investigators looking into whether suspected Jared jewelry store burglars are tied to other crimes  The Jared jewelry store on Glades Road in Boca Raton is back open a day after burglars got inside. Alarms attracted police to the scene at 3 a.m. Tuesday. Boca Raton officers say a car carrying three suspects was stopped leaving the scene. "Ski masks were found with just the eyes cut out, sheet metal cutters and a battery operated grinder that would be consistent with cutting metal of a roof to get through," said Boca Raton police. Police sources say they are being investigated for crimes in North Carolina and South Carolina. (Source wptv.com)

Jackson Township, Ohio Police charge woman with felony after theft attempt from Sears at Belden Village Mall 

Waterville, OH Police looking for a Kmart Toy Thief; $450 of merchandise recovered

Lowe's security guard makes startling discovery

Safeway Shoplifter in Spokane, WA Bites Loss Prevention Officer

Joliet, IL Currency Exchange Worker Stole Nearly $14,000

Duluth woman convicted of identity theft sought by police; felony warrant for her arrest, violation of probation for identity theft and check forgery

Alleged mother-daughter shoplifting team arrested at Dilliard's in Georgia

Cleveland Man's 73rd arrest was for taking a TV at Walmart 

Rayne, LA police arrest man for felony theft; $7000 in bad checks  Rayne police arrested Billy J. Thibodeaux on three counts of felony theft on Wednesday. Chief Carroll Stelly advised that a local business took three checks for merchandise valued at over $7,000. The checks were written on a closed bank account. Therefore, Thibodeaux committed a theft by fraud of the merchandise. (Source rayne.pd.wordpress.com)

Employee admits stealing $29,000 worth of rugs from a store in Louisville, KY
A man who worked for a Louisville rug store is accused of stealing nearly $29,000 worth of rugs in October. Police said Casey A. Ramser, 26, stole at least five rugs from Khazai Oriental Rug Gallery at 9800 Shelbyville Road on October 21.Ramser's employer confronted Ramser on December 1 about suspicions that he was taking rugs. According to an arrest report, Ramser admitted stealing the rugs in a written, signed statement. All of the rugs were returned to the store. (Source kpho.com)


 

Robberies & Burglaries

Jewelry store robbery suspect in custody after Orlando chase
Woman says 'sorry' while robbing Walgreens pharmacy of 1,000 painkillers in Mooresville, N.C.
Suspects sought in CVS armed robbery on Thanksgiving in D.C.
Bat used in string of armed robberies in Bow, Goffstown, Manchester, NH
Restaurant robbery attempt foiled by quick-thinking worker
Five suspects involved in smash and grab in Houston
Deputies release picture of female suspect in smash-and-grab in Orange Park, Fla.
Dollar General – Armed Robbery - Toledo, OH – no injuries
Dollar Tree – Armed Robbery - Westfield, MA – no injuries reported
Game Exchange – Armed Robbery - Shreveport, LA – suspect armed w/ an AR-15 rifle
Radio Shack – Burglary – Tom’s River, NJ – 2 suspect smashed out front door
Sports ’N More – Armed Robbery – Foley, AL – possibly tied to Dollar General robbery on Dec. 1st
City Thrift Store – Armed Robbery – Overland Park, KS – suspects hit 2 thrift stores and Burger King
La Grange, IL Police seek two in jewelry store robbery

 

ORC News
Sponsored by Protection 1

Ukrainian “criminal pioneer” sentenced to 18 years for US cybercrimes - worldwide dealer & leader of stolen credit card info  A Ukrainian national referred to by the US Department of Justice (DOJ) as “one of the world’s most prolific cybercriminals” and by prosecutors as a “criminal pioneer” was sentenced by a US federal court Thursday to 18 years in prison in connection with his role in co-founding a website that operated as a marketplace for stolen financial data, hacking, and money laundering. According to a DOJ press release, defendant Roman Vega pleaded guilty in 2009 to conspiracies to commit money laundering and access device fraud. "Vega helped create one of the largest and most sophisticated credit card fraud sites in the cybercrime underworld – a distinction that has earned him the substantial sentence he received today.” (Source rapsinews.com)

ORC trio steals thousands of dollars worth of merchandise from Palais Royal stores in Houston  The company’s loss prevention department said the suspects first stole $1,002 worth of merchandise from the store in the 10900 block of Westheimer. They then traveled to the West Oaks Mall location and stole another $1000 worth of merchandise. In all, they stole one pair of boots, 20 clothing sets, 18 shirts, two fragrance sets and four jackets from the stores. Loss prevention compared footage from both stores and said the suspects were the same. They also said it appears they always work in groups. Dale Franklin, Mary McClendon and Diane Austin were charged with organized retail theft. (Source khou.com)

Seven Super Target Employees arrested for alleged theft ring in Hesperia, CA Seven employees of SuperTarget were arrested at work following an internal investigation into the ongoing theft of several thousands of dollars worth of merchandise. The investigation began in October when Asset Protection staff at SuperTarget “discovered a multiemployee theft conspiracy while conducting an investigation on an unrelated incident," the release said.  (Source vvdailypress.com)

Oswego, IL Police investigating a report of over $700 worth of baby formula stolen

“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.

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Vendor Spotlight
 




Comprehensive video management portfolio to help retailers prevent loss, protect assets and improve business performance

The retail industry faces tough challenges ranging from a highly competitive, commoditized market to organized crime and shrinkage. Verint’s powerful Nextiva video management portfolio provides retailers with an increased level of visibility and associated metrics in a store and across the retail chain. The robust suite of Nextiva video applications includes award-winning IP video management software, video business intelligence applications, encoders and decoders, IP cameras, intelligent NVRs, physical security management software and industry-leading business system interfaces.

Solutions to Enhance the Retail Experience


The Nextiva advanced video portfolio goes beyond loss prevention. We understand that security solutions and business intelligence must serve a variety of purposes: from increasing sales and securing assets to improving workforce productivity and customer satisfaction. See why 4 of the top 10 U.S.-based retailers leverage Verint’s proven solutions.
 






 
Infrastructure Protection
As a retailer, you have valuable inventory, customers, personnel and facilities to protect. The Nextiva portfolio features powerful video analytics modules to help retailers ensure entire operations are protected. With sophisticated features such as object left behind, retailers can monitor loading docks and store perimeters, as well as identify unauthorized entrance or blockage of fire doors - rapidly detecting potentially threatening situations and adhering to safety regulations.




 
Loss Prevention & Asset Protection
Retailers need to understand all facets influencing their operations. Information like point-of-sale data can play a major role in that analysis. Leveraging the Nextiva portfolio, users can link recorded video with internal POS systems to understand data and quickly recall details for investigative purposes. Verint also offers powerful third party integrations such as EAS and RFID sensor data capture – integrating associated video based on location of the alarm.





 
People Counting & Surveillance View
Designed with superior technology, Nextiva integrates with surveillance cameras to capture precise details and deliver clear images with resistance to external lighting elements such as sun and shadows. In addition, Nextiva’s Surveillance View allows retailers to gain more insight to live and recorded video. Most video counting systems only capture a top view, however with Surveillance View, retailers can extract front view images and create a stored album for future usage and investigative purposes.




 
Queue Management
Without sufficient staff and products, retailers face dissatisfied customers and lost sales. At the same time, overstaffing increases operational costs. The Nextiva portfolio provides a queue management application to ensure a pleasant experience for customers. Using standard IP cameras at entrances and checkout lanes, the queue management application accurately collects and reports the number of people in the queue.



 
Store Performance
Understanding how and why shoppers choose the products they do is paramount to a retailers’ success. With Nextiva, store managers can measure the number of shoppers in an end-cap, aisle, department, or in the store at any given time. Armed with this data, retailers can identify in-store traffic patterns to improve store layout and drive shopper conversion.




 
Customer Experience Management
Revealing the true customer experience takes more than just traditional point-of-sale data analysis. Nextiva allows retailers to quickly search for customer behaviors and patterns: when customers shopped, where they shopped, and how long they dwelled. These insights can dramatically enhance operational decisions for in-store marketing, product placement, advertising and staffing.

Dashboards are often used to provide a range of information, such as queue length, wait time, and shopper conversion. Leveraging this insight, retailers can plan staff schedules according to actual and predictive customer volumes, ensuring a superior customer experience and greater overall sales.

Learn more here.

 

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