Both Democrats & Republicans in California Take Aim at Prop 47
But Governor Gavin Newsom says Proposition 47 is untouchable

California governor outlines plan to curb retail theft
Gov. Gavin Newsom announced a package of bills that would address retail theft and burglary. According to the Public Policy Institute of California, rates of retail theft have increased in recent years, mostly in the state's largest counties. The Bay Area saw the largest increase in shoplifting.

The Governor's proposals would not amend Proposition 47, the 2017 ballot initiative that changed some nonviolent offenses to misdemeanors. He stated Prop. 47 does not need to be changed to address the current crisis. Cal Cities is part of a broad coalition advocating for changes to Prop. 47, including reducing repeat offenses without returning to the days of mass incarceration.

The proposals focus on the following issue areas:

• Organized retail theft. Proposes eliminating the sunset date for the organized retail crime statute. The law, which has been effectively used by California Highway Patrol and others in the Organized Retail Crime Task Force, is set to expire on Jan. 1, 2026.

• Resellers. Proposes new penalties for people engaged in retail theft to resell and those that resell the stolen property.

• Enforcement. Proposes changes to existing law to ensure police can arrest suspects of retail theft even if they didn't witness a crime in progress.

• Aggregation. Proposes clarifying that the penal code allows law enforcement to combine the value of multiple thefts - even across different victims - to reach the threshold for grand theft.

Many prominent Republican and Democratic lawmakers have put retail theft at the top of their legislative agenda this year. Some have even floated the idea of improving or revisiting Prop 47. calcities.org


Insurance Carriers Ditching Calif. Retailers as Theft Surges
California Businesses Lose Insurance as Crime Increases

Some California businesses may be losing their insurance policies over a rise in retail theft and other property crimes.

On Wednesday, California Governor Gavin Newsom met with community leaders from Oakland to discuss crime in the city and across the state. According to KRON-TV in San Francisco, the community leaders included Oakland Metropolitan Chamber of Commerce President Barbara Leslie, who warned of some small businesses in the city losing their insurance policies after experiencing several instances of retail theft or other property crime.

"Insurance was brought up as an opportunity to ask the governor to help with organizations and businesses that are losing their insurance because that is a really financial impact on small businesses that we need to address," she said.

According to the Public Policy Institute of California, in 2022, the state saw a 28.7 percent increase in commercial shoplifting from 2021 and 2020.

Newsom recently announced new plans to combat retail theft and other property crime in California by increasing criminal penalties and police response. Additionally, in December, Newsom's office said that the California Highway Patrol increased its response to organized retail theft by 310 percent throughout 2023. The number of arrests for retail theft also increased by 109 percent, Newsom's office said.
newsweek.com


Busting Self-Checkout Theft with AI?
New AI-powered checkout can guess your age and reduce theft

Diebold Nixdorf's new tech uses computer vision to detect theft, accidental scans, age, and products without barcodes

Checkout terminal manufacturer Diebold Nixdorf released new technology Thursday that uses artificial intelligence at its cashierless registers to reduce shrink, verify age for liquor sales, and speed up the process of buying products without barcodes.

The new tech uses computer vision to detect whether shoppers deliberately fail to scan an item, accidentally add an item without scanning, use false barcodes, or scan only one of several items.

Annemüller explained that the new tech also provides age verification for liquor sales. An algorithm estimates the age of the customer within 2½ years, and those estimated to be over the age of 27 are allowed to purchase the products without calling an employee. Those estimated to be under 27 require ID verification, he said.

Diebold Nixdorf's new checkout tech also can speed up checkout for produce purchases, using computer vision to determine the type of produce and number items.

Diebold said the three new functions aim "to prevent the most common sources of loss at self-service and traditional POS checkouts."

"We designed our new AI-powered offerings based on insights we've gained deploying millions of POS and thousands of self-checkouts across the major retailers we work with," said Matt Redwood, vice president of retail technology solutions at Diebold Nixdorf, in a statement. supermarketnews.com


OSHA Does Not Penalize Dollar General Store Where Racist Shooting Took Place
Dollar General reopens after OSHA probe of Jacksonville shooting. New security measures? Unclear
Dollar General reopened its store in the historic Black neighborhood of New Town this morning, four and a half months after a gunman killed three locals - 52-year-old Angela Carr, 29-year-old Jerrald Gallion and 19-year-old A.J. Laguerre Jr. - and himself on the property in August. The killing of Laguerre, an employee who was working when he got shot inside the store, prompted a nearly four-month probe of the store by OSHA.

The federal agency closed that investigation with no penalties against Dollar General on Dec. 20, OSHA spokeswoman Erika Ruthman told The Tributary in an email. As for new safety and security measures, the retailer that's racked up violations nationwide isn't saying much.

The case began as an inspection that's standard for any U.S. workplace when a worker dies on the job, and OSHA had "determined that this incident was an unforeseeable criminal act," she wrote. Then, the agency "received a referral concerning potential blocked aisles in the store that could have hampered employee's[sic] ability to evacuate timely" on Sept. 15, the same day The Tributary reported an analysis of security-cam footage during the shooting that suggested such a possibility.

"OSHA thoroughly investigated the allegation and determined that there was no evidence to suggest that there were blocked aisles or exit routes at the time of the shooting," Ruthman wrote. The case is one of hundreds of workplace investigations Dollar General has faced since 2017, with a slew of violations in other cases yielding the company more than $25 million in proposed fines and a label that OSHA rarely, if ever, slaps on a retailer: "Severe Violator."   jaxtrib.org


Unintended Consequences of 'Harsh Anti-Theft Measures'
Psychologist says as harsh anti-theft measures push customers to change shopping habits for good

A retail psychologist has warned that anti-theft measures could forever change the average customer's shopping habits.

Behavioral analyst Dr. Joshua Klapow said crime and criticism over anti-theft procedures have some retail chains moving their sales online. "It's a conundrum," said Dr. Klapow in an exclusive conversation with The U.S. Sun.

Dr. Klapow is one of the many experts who have been called by retail execs for advice on solutions to the anti-theft situation. As a behavioral analyst, he's able to study what motivates a consumer to make the decisions they make.

Based on his experience, Dr. Klapow said execs are still looking to strike a balance between protecting against retail shrink and catering to consumers.

To prevent crime and protect employees, Dr. Klapow said top retailers are lowering their inventory and asking more people to order online. This growing consumer phenomenon has left retailers relying more on online sales and do-it-yourself options like self-checkout. the-sun.com


'Shoplifters and Scammers: At War with the Law'
UK: Channel 5 private security documentary
The Channel 5 documentary series Shoplifters and Scammers: At War with the Law is showing more broadly the work of the private security industry, writes Mark Rowe.

A recent episode showed the deployable CCTV towers with loudspeakers made by WCCTV, whose UK sales director Shea Nugent and head of comms Daniel del Soldato described how the products work with infra-red light after dark. As they work off 4G wireless networks and are powered by a fuel cell, there isn't any cabling to pull to make the recording stop.

We did see how the Newton Abbot security men and women work by night, to pull apart trouble-makers in the small hours on the main drag outside the town's three main venues. There, and in retail, police were nowhere to be seen, which was odd given the sub-title of the documentaries. At no point did there appear to be any passing on of criminals to 'the law', for reasons not gone into beyond a mention that police are 'stretched'.

In other words, who's to say how often the thieves are caught and how often they are stealing or doing scam refunds successfully, often enough to make a living at it. And the police, courts and 'law and order' politicians either don't know that or aren't that bothered (or feel helpless?) if they do.

If you can't see episodes when scheduled, visit https://www.channel5.com/show/shoplifters-scammers-at-war-with-the-law.


Is Cold Weather the Best Crime Deterrent?
Too cold for crime? Wintry weather brings incident volume down
Winter weather helps curb crime even if it doesn't completely eliminate it. Memphis saw a 50% decrease in crime between Sunday, Jan. 14, and Tuesday, Jan. 16, from the same period in the week before. Criminal incidents were down 62% from the same three-day period in 2023.

There were 355 crimes reported Sunday-Tuesday, Jan. 14-16, compared to 704 reported Sunday-Tuesday, Jan. 7-9, and 943 Sunday-Tuesday, Jan. 14-16, 2023. There were 30 thefts from vehicles between Sunday and Tuesday of this week compared to 70 thefts from automobiles the same days a week before and 117 the year before.

There was one homicide during the wintry conditions thus far, the same number as the week before and fewer than the four that occurred during the same period last year. dailymemphian.com


Locking Up Sea Food Like It's High-End Jewelry
Costco allegedly locking up crabmeat like jewelry

A U.S. Costco store is allegedly displaying crab in the same way some retailers display high-end jewelry.

At a Costco store in King of Prussia, Pennsylvania, U.S.A., crabmeat is being stored behind a locked glass partition. Customers must first check out with a laminated paper containing a barcode and a photo of the crabmeat before they're given access to the seafood, according to Reddit user pretty_with_no_r who posted a photo of the display.

"Costco requiring customers to access high-dollar crabmeat from a cashier is a practical solution to theft. The alternative is to discontinue selling high-dollar crabmeat altogether," Anderson said. seafoodsource.com


San Francisco mass shooting: Five wounded, one fatally, in Tenderloin

Advocates launch national mass shooter prevention hotline

Cities Across the Country Trying to Block Dollar Store Openings
Around 60 communities have attempted to restrict the growth with proactive measures such as limiting their locations or outright banning them

RetailWire: Should Dollar Stores Be Banned in North America?
Across America, many communities are starting to question the impact of dollar stores. Criticisms range from providing low-quality, unhealthy food options to actively blocking the establishment of stores with more nutritious offerings. These stores, abundant across the country, have also raised safety concerns with reported instances of rodent infestations as well as robberies and other crimes.

Despite these criticisms, dollar stores continue to thrive. With an estimated 249 million Americans living within 5 miles of one, they're almost as commonplace as McDonald's. The two largest chains, Dollar General and Dollar Tree, own a total of 35,000 stores, generating $37.8 billion and $28.3 billion in revenue, respectively, in 2022.

Starting in 2018, a wave of action began to surge across the United States as towns and cities started pushing back against the rapid proliferation of dollar stores. Around 60 communities - including Tulsa in Oklahoma, Kansas City in Missouri, and Mesquite in Texas - have attempted to restrict the growth with proactive measures such as limiting their locations or outright banning them. They've been using zoning bylaws as their weapon of choice, voting to put temporary or permanent restrictions on dollar stores in their areas.

A recent victory came from a community in Louisiana. They managed to halt a dollar store development via a court ruling. The judge in the case ruled that green-lighting the project would be detrimental to the health, safety, and welfare of the residents. This prompted other major cities like Detroit and Chicago to start establishing their own prohibitions.

Furthermore, a community in Stonecrest, Georgia, became the first U.S. city to completely outlaw these stores in an effort to attract more grocery supermarkets. In another development, residents in Michigan and Nebraska raised their voices against the construction of new Dollar General stores in their neighborhoods.   retailwire.com


2,350 Macy's Layoffs - 13% of Corporate Staff
Macy's to Cut About 2,350 Jobs, Close Five Stores

Department-store chain eliminates corporate jobs as it seeks to automate and move some roles offshore

Macy's plans to lay off about 13% of its corporate staff and close five stores in a bid to trim costs and redirect spending to improve the shopping experience for customers.

The job cuts total roughly 2,350 positions, or 3.5% of Macy's overall workforce excluding seasonal hires, according to a memo sent to employees Thursday afternoon and people familiar with the situation.

Macy's plans to add more automation to its supply chain and is outsourcing some roles, according to the memo, which didn't specify which jobs. It's also reducing management layers to speed decision-making.

The company will be investing in areas that impact consumers, such as adding more visual display managers to enhance the look of stores and upgrading digital functions to make online shopping more seamless, one of the people said.  wsj.com  retaildive.com
 

Calif. Population Dropped 75,000 in 2023
5 charts that explain the California Exodus
After three straight years of population decline, the California exodus may be slowing. But its impacts - from falling tax revenue to a loss of skilled workers - are still leaving their mark on the Golden State.

Fed up with high housing costs and other quality-of-life issues, and untethered from the office by remote work, California residents left in droves during the pandemic. Increased deaths and a steep drop in international migration due to COVID-19 restrictions also contributed to a population decline.

The state population shrank by more than 75,000 residents to just under 39 million people in 2023, a 0.2% dip from the year before, according to recently released census data. The decline was less than the 0.3% annual slide in 2022 and the 0.9% drop in 2021. Over the three years, the state's population fell by 1.4%, or more than 538,000 residents.

In 2021, fleeing California residents took billions of dollars in personal income to other states, according to a Bay Area News Group analysis of the latest available IRS data. On a net basis, the Golden State lost $5.6 billion in residents' taxable income to Texas alone. California also lost $4.4 billion to Nevada, $3.5 billion to Florida and $2.6 billion to Arizona. In total, the state lost $29 billion to other parts of the country. mercurynews.com
 

What's Fueling San Francisco's Retail Exodus?
Are Commercial Landlords and Ridiculous Rents to Blame for SF's Retail and Restaurant Troubles?
Landlords expecting that another boom time is just around the corner, ignoring the fact that retail has been struggling since before the pandemic and that restaurants are struggling to stay afloat across the city, may shoulder much of the blame for the impossible economics of managing small businesses in SF.

It's a favorite refrain of business owners in SF to complain about "the city" not doing enough for them, and "the city" being hostile to small business for various reasons from red tape to policing. But what's more hostile to small businesses than charging unrealistic rent that will likely mean they'll have to close unless they're wildly successful in their first year?  sfist.com


More Companies Decide Silence Is Golden When Going Green
Heightened regulation, industry requirements and increased scrutiny are main reasons given by companies for going silent on green goals

The future of retail is the intersection of digitalization and sustainability

What Alfred Hitchcock can teach us about designing a great retail experience

AI was a Dominant Topic at NRF Big Show
NRF 2024: AI isn't plumbing, but it's universal
Everyone who attended this year's NRF conference went in fully aware that artificial intelligence (AI), especially innovative models such as generative AI, would be a major component of every exhibit booth, educational session, and conversation.

AI is accepted and assumed - but it isn't routine

In my previous column, I wondered aloud whether NRF 2024 would reveal AI to be the new, shiny thing, or plumbing? The answer I found is it is both, and neither.

AI itself is not new. It has been a widely accepted tool in retail technology for 30 years or more. However, leading-edge AI models based on concepts such as machine learning, advanced computer vision and next-generation predictive capabilities are still new and rapidly evolving (even on a month-to-month basis). So it's premature to call the new generation of AI technology "plumbing."

At the same time, next-generation AI is showing up in solutions being used in every area of the enterprise. Generative AI is enabling supply chain planners and frontline associates, as well as shoppers, to ask questions in conversational language and get concise, informative answers.

Advanced computer vision helps retailers track store activity and performance in real time, and machine learning-based predictive analytics can aid retailers anticipate and quickly react to global supply chain shocks that seem to pop up more frequently than ever.

Everyone understands the importance of AI

Survey after survey has shown that the industry also uniformly sees the value of next-generation AI, and my conversations at the show with both retailers and technology providers confirm that fact. I did not encounter a single doubter, and that's a first.

AI obtains the value from what's already there: chainstoreage.com


Tools & Guardrails for AI
Mastercard Aims to Limit AI Bias, Cyber Risk

AI fraud-prevention tools must respect consumer privacy, the payments company's chief privacy officer says

With the rise of easy-to-use artificial intelligence, companies are looking to balance the pressure to churn out innovative new products against the cybersecurity and privacy risks that come with adopting the technology.

Caroline Louveaux, chief privacy officer and data responsibility officer for Mastercard, said AI advancements, along with tougher regulations in the U.S. and elsewhere, mean that she is working more closely than ever before with the company's cybersecurity team. The payments company has created an AI governance council with representatives from business lines, security, technology, human resources and other groups.

Based in Brussels, Louveaux has had a ringside seat on European Union regulatory proceedings for coming AI legislation. The EU is setting out detailed rules that outlaw certain applications, such as untargeted scraping of online images for facial recognition, and require transparency so consumers understand how their data could be used. Several U.S. states have passed or proposed rules on AI.

In one technology project designed to protect data, Mastercard is experimenting with homomorphic encryption-a method that allows companies to perform computations on encrypted data-to share intelligence data about financial crimes with regulators in Singapore, the U.S. and the U.K. The company is testing how to use the technology without violating privacy laws in an experiment overseen by Singaporean regulators. wsj.com


'Not Much Has Changed': Ransomware Remains Top of Mind
Ransomware prevention a focus for storage stewards in 2024

In 2024, generative AI and machine learning, along with employee education, are important tools to prevent the spread of ransomware throughout the enterprise.

Ransomware's ongoing threat to enterprise data will remain top of mind for IT teams in 2024, a continuation of a similar trend seen throughout last year, including for storage admins looking to remain vigilant against attacks.

Analyst and vendor surveys found that IT departments are struggling against tight budgets, massive data sprawls and increasingly sophisticated attacks, which make predicting ransomware's impact difficult.

Many enterprises are now working under the assumption that they could become compromised, according to storage and data protection analysts. Organizations are looking to preempt attacks through greater cybervigilance of data storage and backups, including the use of generative AI (GenAI) and machine learning, along with increased user education.

These are repeats of concerns and potential solutions about ransomware from last year, said Christophe Bertrand, an analyst at TechTarget's Enterprise Strategy Group (ESG). Enterprises behind on their cybersecurity practices likely also lag in recovery capabilities as the line between security and backup continues to blur.

"Guess what, not much has changed," he said. "A year later and we're still in the same pretty unhappy situation. While the problem may be better understood, it's not being solved." techtarget.com


Cybersecurity Budgeting Process Outdated?
Opinion: Your Cybersecurity Budget Is a Horse's Rear End

Don't let old saws hold you back. It's time to revisit your budget with revolutionary future needs front of mind.

When you extrapolate the budget process, inevitably the current budget is based on the previous year's budget, which is based on the prior budget, which is based on the prior budget and so on. The current budget may therefore be fundamentally based on a budget from more than a decade ago.

It is also likely that the budget a decade ago was poorly equipped to handle the challenges at the time, and while the budget was evolutionary, arguably the technology increases have been revolutionary. This is much in the same way that technology has advanced, but large segments of transportation are still based on the average size of a horse's butt. darkreading.com


Experts Ponder Effectiveness of Official Warnings of Cyber Scams

Cloud security predictions for 2024