Why empowering your frontline associates is the key to impacting ORC April 6 | 1:00 p.m. EST Join industry leaders and innovators, Wade Schillo (Walmart) and Bobby Haskins (Auror), as they discuss why empowering your frontline associates is the key to impacting ORC. From insights around ORC and retail safety to emerging solutions and real-world results, this conversation will be filled with personal experiences, case studies, and actionable tips. Topics Wade and Bobby will talk through: • Requirements to get quality intelligence from frontline teams • Aggregation and investigation building • Real-world stories and results • Plus live Q&A throughout At the end of the webinar, our sponsor, Auror, will award five LPF scholarships to attendees by random drawing. This webinar is presented by the Loss Prevention Foundation in partnership with Auror and qualifies for 1 continuing education unit (CEU) towards your LPC recertification or CFI recertification.

CNBC Does in Depth ORC Segment - MUST WATCH  (18:03)

CNBC: Why retailers like Home Depot, CVS and Walgreens are spending billions on anti-theft technology

According to the NRF, retail shrink, which refers to inventory loss due to theft, unknown loss and administrative error, reached $94.5 billion in 2021, a 4% increase from the year prior. While retailers and trade associations depict a "shoplifting epidemic," criminologists and civil rights advocates worry the story is more nuanced. They point out, among other things, that retail shrink is difficult to track, and of the data available, the methodology is inconsistent.  cnbc.com

Shoplifting Climbs as In-Store Shopping Returns

Retailers lock up goods, use facial recognition software to track repeat offenders

Retailers say theft is rising as more people shop in stores, cutting into profits that were already under pressure. 

“We definitely had an uptick since last year,” Macy’s Chief Executive Jeff Gennette told analysts earlier this month. “It’s an industrywide trend.”

Target said in November that it expected the problem, known in the industry as shrink, to reduce gross margins for the recently completed fiscal year by more than $600 million. TJX Co.’s and Macy’s Inc. also called out higher shrink rates in recent calls with analysts.

“Theft is growing at a faster rate than sales,” said Dean Rosenblum, a senior U.S. retail analyst at Bernstein Research. Mr. Rosenblum said theft is becoming a big enough problem that it’s starting to affect margins, which is why retailers are talking about it more frequently.

He added that a jump in organized retail crime in certain areas of the country is also a factor. “These are crime levels we haven’t seen before,” Mr. Gennette said

“Seven years ago, internal theft was the largest category of loss by retailers,” said David Johnston, the NRF’s vice president of asset protection and retail operations, referring to theft by employees. “Now, it’s external theft.”

Retailers are combating the problem by adding security guards and cameras to stores, locking up goods and making use of facial recognition software to help identify repeat offenders. wsj.com

 

U.S. Chamber of Commerce Rolls Out ORC Info & Data Center

Retail Crime Data Center

Highlighting the Serious Impact of Criminal Organizations on American Business and Society

Across the country, communities and businesses, both large and small, are facing a surge in theft and violent crime. This surge is due not to one-time shoplifters but to the rise in highly organized criminal groups—organized retail crime rings. 

The U.S. Chamber is committed working with federal, state, and local policymakers to address this serious issue.

At the federal level, the U.S. Chamber worked as part of a broad coalition to pass the INFORM Act, which takes the critical step of removing criminals’ access to  online marketplaces by requiring that high-volume third-party sellers disclose and verify their identity.  

Encourage states to pass laws defining organized retail theft as a separate offense and pushing local prosecutors to prosecute offenders to the fullest extent of the law.  

Encourage coordination among federal, state, and local law enforcement entities to bring these groups to justice. 

Read more:​ Organized Retail Crime 101

How does ORC Impact your State and What is Being Done?  uschamber.com

 

New Mexico Speeds ORC Bill Through to Gov for Signature With 1 Day Left in Session

Bill targeting ORC in New Mexico sent to governor

SANTA FE — Lawmakers granted final approval Thursday to a proposal intended to combat organized retail crime in New Mexico.

The Senate voted 38-0 in favor of an amended version of the proposal Thursday, and the House quickly agreed to the changes.

The legislation, House Bill 234, goes next to Gov. Michelle Lujan Grisham.

It creates the crimes of aggravated shoplifting and organized retail crime.

NM House approves ORC retail crime bill that could lead to stiffer sentences on 62-3 vote

SANTA FE — The House voted 62-3 to approve the bill late Wednesday.

In its current version, the legislation would create a new organized retail crime offense that could be charged in cases involving the theft of at least $2,500 in merchandise from one or more retailers over the course of a year.  It could also be applied to individuals who receive or possess such stolen merchandise, or to those involved in organizing retail theft rings. If convicted of organized retail crime, offenders could face up to nine years in prison.

In addition to the new crime, the bill would also allow prosecutors to combine multiple robberies committed within a 90-day period to be combined under a single criminal shoplifting charge, and would also clarify that robbery can involve making threats of violence while fleeing from the scene of a theft.

 

What’s next for Charlotte's Northlake Mall after Apple store’s hasty exit and trio of shootings

Northlake Mall took another hit recently with Apple store’s abrupt closing that was preceded by a trio of shootings at the financially troubled complex.

On March 1, the Apple store closed in the middle of the day after 12 years at Northlake, the day after the latest of three shootings in three months on the property.

And some of the north Charlotte mall’s other retailers are ready to follow Apple out the door.

Northlake officials said they would begin rolling out safety measures in partnership with CMPD, including having an increased police presence. The mall had not yet released details of the changes.  charlotteobserver.com

 

 

NY Bail ‘reform’ increased crime — and misleading studies don’t prove otherwise

A new report from John Jay College of Criminal Justice’s Data Collaborative for Justice screams the headline that recidivism rates have dropped thanks to New York’s 2020 bail-reform laws.

Claiming to compare apples to apples, DCJ measured people arrested pre-reform in New York City who had bail set (“2019 group”) to people arrested for the same types of crimes post-reform for whom bail could no longer be set (“2020 group”).

Among the successes?

“Only” 43.8% of the people released under the new bail laws got re-arrested within two years of their initial arrest, compared with 50% of people who had bail set under the old law.

But this triumph is entirely undercut by larger realities.

First reality: The drastic drop in total arrests in 2020 and 2021.

This drop — not bail reform’s effects — caused the lower re-arrest rates for defendants released on bail.

Dramatically, New York City arrests fell from 214,000 in 2019 to 140,000 in 2020, rising slightly to 155,000 in 2021.

The 2020 and 2021 declines were due in large measure to COVID, even as crime went up.

Yet in 2022, despite 55,000 more reported crimes than in 2019, there were still 24,000 fewer arrests

Second reality: As DCJ acknowledges in its report, the data available to them only included prosecuted re-arrests in their recidivism rates.

But because prosecutors declined to prosecute a far higher percentage of arrests in 2020 and 2021 than in 2019, the tallied re-arrests for the “2020 group” will be artificially lower.

Further, in 2019 most misdemeanor and nonviolent-felony defendants were brought directly to court to be arraigned and thus would be considered prosecuted for statistical purposes.

The final reality: Clearance rates (how often the NYPD resolves crimes) are substantially down from 2019.

The lower re-arrest rates post-reform reflect changes in policing and prosecution, and COVID, not some miraculous drop in actual crime due to bail reform.  nypost.com

 

San Francisco Struggling Over PD Budget & Taming the Tenderloin

Pushback over S.F. Mayor Breed’s police spending heats up as supervisor lobbies for $10M for alternatives in Tenderloin

Supervisor Dean Preston has unveiled a proposal to pump $10M into non-police interventions for drug dealing and public safety in the Tenderloin, a pushback against Mayor London Breed’s campaign for police overtime spending.

Preston will not vote for Breed’s budget supplemental next week. Seven supervisors have said they will support it, but some have been critical of the $27.6 million she wants for police, saying they need to rein in spending. Three supervisors have not disclosed their vote yet. The spending needs eight votes to pass. 

Preston instead is introducing a $10M emergency budget supplemental for more community ambassadors, small business grants for security, and a street level intervention team to deter and offer alternatives to drug dealing in the Tenderloin.

Breed’s last month said that the police supplemental is needed to keep the same officer staffing levels on the street through the end of the fiscal year. The department projects it will overspend its overtime budget this year by three times — up to $81 million out of a $714 million total budget — to maintain staffing as the department fails to fill vacant officer positions and run special initiatives including deterring retail theft in Union Square over the holidays and drug dealing in the Tenderloin currently. 

Breed and her allies say that alternatives such as ambassadors can only do so much to address violence and drug dealing, and that more police are needed.  sfchronicle.com

 

 

NRF's David Johnston on Needing a Shift in Mindset on Returns

Are Retailers Getting Returns Under Control?

A study finds 69% of retailers treat returns as a cost of doing business, with only 19% having a strategic returns program in place.

The study from Incisiv found most retailers lack clearly defined metrics to measure their returns performance. Retailers are also failing to leverage tech solutions that could reduce returns, such as providing feedback on attributes like size and fit or improving customer satisfaction with the returns process, by enabling shoppers to schedule return pickup or track return/refund status.

On a more positive read, Insider Intelligence sees growth in returns moderating on the heels of spikes in 2020 and 2021 that resulted from pandemic-fueled online shopping and liberal return policies. Online return rates are seen sliding to 19.3% of sales last year from 21.7% in 2021, then 18.2% this year and 14.7% by 2026.

The National Retail Federation’s “2022 Consumer Returns in the Retail Industry” report found online return rates decreased over the last year and are now on par with in-store return rates. NRF’s study, however, still found overall return rates at retail remained sharply elevated in 2022 compared to 2020 due to quick rollouts of omnichannel practices such as BORIS and BOPIS, as well as return fraud.

In a recent blog entry, David Johnston, NRF’s VP, asset protection and retail operations, suggested collecting data to understand why returns are happening, collaborating with vendors, studying how returns impact sustainability efforts and exploring stricter return policies.

“Returns should not be viewed as a total loss,” wrote Mr. Johnston. “A shift in mindset can present opportunities to decrease return rates and loss by leveraging data, increasing communication with manufacturers and thinking about sustainability.”    retailwire.com

 

NLRB To Pursue Vigorous Investigation & Prosecution Of Unfair Labor Practices
Employee Surveillance Under Scrutiny

Regulators Target Employer Monitoring

Two federal agencies have agreed to share information related to employers' improper use of surveillance, monitoring and data collection technology.

The National Labor Relations Board (NLRB) and the Consumer Financial Protection Bureau (CFPB) will work together to protect workers from surveillance by their employers that could be used to intimidate workers or invade their privacy. Regulators have grown increasingly interested in workplace technology, focusing on issues like AI's potential for discrimination and the use of employer monitoring and data collection technologies.

"Employers' practices and use of artificial intelligence tools can chill workers from exercising their labor rights," said NLRB General Counsel Jennifer Abruzzo.

"In recent years, many employers have increased their use of employee monitoring technology as a means to promote more efficient operations, particularly in light of the pandemic-induced shift to remote or hybrid working arrangements," said John Klinker, an attorney in the Chicago office of Locke Lord. "However, with its rise in popularity, employee-monitoring technology has come under scrutiny, as evidenced by an enforcement initiative recently announced by the NLRB."

Abruzzo expressed concern that employers could use employee-monitoring technology to interfere with workers' ability to engage in protected conduct under the NLRA.  Abruzzo also wrote that employers' surveillance tools such as photography and screen- and voice-recording devices could be used to track employees outside of working hours.

"The NLRB may pursue vigorous investigation and prosecution of unfair labor practice cases involving employee-monitoring technology," he said.  shrm.org

 

Here Comes 250 New OSHA Enforcement FTE's
Staffing those jobs could be difficult

Biden’s FY 2024 budget looks to increase OSHA enforcement

The White House is seeking a 17% funding increase for OSHA under the Department of Labor’s fiscal year 2024 budget request.

Requesting approximately $738.7 million for the agency, an increase of more than $106.3 million from FY 2023.

The administration wants to add 432 full-time equivalent employees, including 250 “to rebuild and strengthen OSHA’s enforcement program.” The 250 new enforcement FTEs would include 142 OSHA inspectors.  safetyandhealthmagazine.com

 

Kroger / Albertsons Potential Merger Heating Up

FTC turns to competition about Kroger / Albertsons merger

Government agency wants to know everything about how the deal could change the market landscape

Nothing like a little talking behind the back to get the rumor mill churning, but according to the Federal Trade Commission the inquiry is a necessary one in the investigation of the Kroger / Albertsons merger. The FTC is reaching out to the competition and asking questions … and anything goes. 

According to a Wall Street Journal report, the FTC wants to know how retailers and wholesalers think about how the merger would change the grocery landscape. The regulatory agency is asking questions that involve product sourcing and pricing, online operations details, store labor dynamics, how the “own brands” program at Kroger and Albertsons work, and how shopper data is used.  supermarketnews.com

 

Citing Corporate Greed of the C-Suite & Private Equity Firms Are The Real Motives

Massive coalition out to stop Kroger / Albertsons deal

A coalition of 100 organizations representing diverse interests from around the country have joined forces in the “Stop the Merger” campaign, a national and state-level effort to oppose the proposed $25 billion merger of grocery store chain giants Kroger and Albertsons. The announcement was made March 14. 

The coalition is announcing the launch of its website (www.NoGroceryMerger.com), which includes facts and research about the proposed merger’s negative impact, stories from community members, workers, and others, as well as tools for organizations and individuals to take action and communicate their opposition to the Federal Trade Commission (FTC).

The coalition of over 100 organizations has written numerous letters to the FTC and state attorney generals, held meetings with federal and state elected officials and regulators, held press conferences and virtual town halls, attended public events on the merger hosted by government officials, and participated in various local community activities opposing the merger.  All this activity has helped reveal growing evidence that shows the real motives for the proposed merger: Corporate greed at the hands of C-Suite executives and the private equity firms that are significant owners of their stock.   supermarketnews.com

 

Be Careful What You Open from Recruiters on LinkedIn
Confirm their identity first and visit their org's websites

North Korean Hackers Find Value in LinkedIn
Group Lures Victims Into Opening Phishing Payload Disguised as Job-Related Info

Business social media platform LinkedIn continues to pay dividends for North Korean hackers, including one group historically concentrated on South Korean targets that has expanded into pursuing security researchers and media industry workers in the West.

A Pyongyang group tracked by Google threat intelligence unit Mandiant as UNC2970 masquerades as recruiters on LinkedIn in a bid to entice victims into opening a phishing payload disguised as a job description or skills assessment.   careersinfosecurity.com

 

Five Below to open 200 Stores in 2023

Eight regional powerhouses dominating their markets

54% of CFOs Have Positive Outlook Despite Economy

BJ’s Rolls Out AI-Driven Robot to Stores Across Its Footprint