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Moving Up

Kevin Valentine, the Vice President of Loss Prevention and Internal Audit for Sterling Jewelers Inc. has been named Vice President of Internal Audit and Risk Management for the parent company for Sterling Jewelers, Signet Jewelers Ltd. His new role will encompass the Internal Audit, Risk Management and Loss Prevention responsibilities for the US and UK operations. Signet is the largest specialty retail jeweler by sales in the US and UK. Signet’s US division operates 1,318 stores in all 50 states under the names of "Kay Jewelers," "Jared the Galleria of Jewelry" and a number of Regional brands. Signet’s UK division operates 535 stores under the names of "H.Samuel," "Ernest Jones," and "Leslie Davis."

Having joined Sterling Jewelers in 1984 Kevin has truly shown his sincere commitment to the development of the industry by being actively involved in a number of councils. Currently he serves on the Loss Prevention Foundation's Advisory Council and is Chairman of their Audit committee. He also serves on the LP Research Council's Advisory Council, the Certified Forensic Interviewer Advisory Board, is a former long term member of the National Retail Federations LP Advisory Council, and has been extremely involved in the Jeweler's Security Alliance organization as well. We should all aspire to Kevin’s level of professionalism.

Having worked directly with Kevin for four years at Lerner's Shops in the early 80's we can attest to his absolute commitment to delivering best in class service to his retailer and to his sincere desire to help develop this industry. Congratulations Kevin!

Mike Battles, CFI, PI
was promoted to Divisional Director of Loss Prevention For Stage Stores, Inc. Mike has spent the last 15 years with Stage Stores, and before his promotion he was a Regional Loss Prevention Manager. Before joining with Stage Stores in 1997, Mike was a Senior Loss Prevention Officer at JCPenney and a Store Detective at Eckerd. For the past seven years Mike has owned Central Texas Investigations, a full service Licensed Private Investigations Company. Congrats Mike!

John Brocar, CFE, CFI
was named Director of Fraud and Forensic Recovery Practice for Ryan. Before joining with Ryan, John was the Vice President, Fraud Risk Solutions for APEX Analytix and the Associate Managing Director, National Practice Leader - Loss Prevention for Kroll. John has held Manager positions at both Deloitte & Touche and ASI Security, Inc. Previously, John worked at Circuit City, Casual Corner, and The Children's Place; all as a Regional Manager. He got is start in Loss Prevention at Lord & Taylor, where he was a Loss Prevention Manager. Congrats John!

FBI reports - US companies have lost some $13 billion through economic espionage in the current fiscal year - and the problem is growing. As the FBI's economic espionage caseload is growing, so is the percentage of cases attributed to an insider threat, meaning that individuals currently (or formerly) trusted as employees and contractors are a growing part of the problem. (Source

The Retail Council of Canada reports - Stores are receiving "alarming calls" from individuals claiming to represent manufacturers of their "debit" terminals and being told they need to complete an "upgrade" that "will only take three minutes" over the phone
. The calls that members are reporting are concerning because these callers are suggesting that they represent the equipment manufacturer and will not identify the name of the company they represent. We have been advised that in most instances the manufacturers have no record of who is using their devices and never make call-outs for upgrades. Be on the look out. If they're trying this up north they'll do it in the States soon enough. (Source

click to watch videoSamsung's first North American retail store in Vancouver opened and it looks just like an Apple Store! Take a sneak peek tour. Samsung and Apple have been at wits end over their patent disputes with Apple’s claims that the Korean electronics manufacturer and now retailer has been inspired by Apple. Now Apple could add more fuel to that fire. Samsung opened its doors to its first ever North American retail store in Buraby’s Metropolis in Metrotown, Vancouver. From the video of Samsung’s director of channel sales offering a tour of the store, we can’t help but notice just how much of the store resembles Apple’s own stores. Of interesting note is that Microsoft's first store was designed by a consultant who had been one of the Apple store designers as well. Here's a sneak peek video of a tour of the Samsung store right before opening. (Source

Cross-border criminals make $870 billion a year: U.N
. Turnover of cross-border organized crime is about $870 billion a year, more than six times the total of official development aid, and stopping this "threat to peace" is one of the greatest global challenges, a U.N. agency said on Monday. The most lucrative businesses for criminals are drug trafficking and counterfeiting. (Source

Largest antitrust settlement in U.S. history - Visa and MasterCard agree to pay retailers $7.25B to settle a long-running lawsuit for allegedly fixing fees
. As part of the settlement announced late Friday, stores from Rite Aid to Kroger will be allowed to charge customers more if they pay using a credit card. But at a time when shoppers increasingly are using credit and debit cards, merchants will face the dilemma of whether or not to charge shoppers extra, and how to do so without angering them. (Source

Puerto Rico Governor asking for help to fight crime and drug trafficking
. Puerto Rico's governor is meeting with U.S. officials, including Homeland Security Secretary Janet Napolitano, to discuss ways to better fight crime and drug trafficking across the Caribbean island. This may also be reflective in retail crime and support increased payroll for loss prevention. It's a difficult market to find the number of LP candidates needed to fill LP positions. (Source

The FBI's "Operation Card Shop" busts 3 more cybercriminal suspects last week in this 2 year-old operation with 27 suspects arrested In June 2010, the FBI launched in the criminal underground an online forum called Carder Profit. The marketplace attracted criminals who bought and sold credit card, debit card and bank account numbers; social security numbers and other personal identification information; hacking tools and "drop services. The FBI-built marketplace mimicked what's known in the criminal underground as a "carding forum." Cards among cybercriminals refer to stolen credit and debit card numbers and carders are people who buy and sell them. The stolen numbers are often used to buy merchandise online or to make fake cards that can be used in the real world. So far its produced 27 arrests. (Source

Supervalu suspends its dividend and will no longer provide investors with sales and earnings guidance and will reduce expenses. Here's a paragraph that tells the whole story about the supermarket industry and where its at. The best paragraph we've read in months. "The company is feeling the pinch from a variety of competitors. Among conventional grocers, Kroger (click here for special report on Kroger) remains on a role with eight, yes eight, consecutive years of identical-store sales growth. Meanwhile, while such value players as Dollar General (click here for special report on Dollar General) and Family Dollar continue to open and remodel stores at a blistering pace that contain large assortments of food and consumables. Walmart has regained its footing with core customers who are shopping its large stores more often and spending more per visit as evidenced by company resurgent same-store sales growth. And the company later this year is likely to announce an acceleration of its small format store expansion. Target too has become more of a force in the food world, as upwards of 1,000 of its conventional food stores have been converted to a concept called PFresh that features fresh food and groceries in just the past three years." And now Target and it's PFresh goes to Canada. How will that play out? (Source

The G4S Olympic embarrassment continues with a whistleblower talking about and sharing pictures of G4S training 3,300 teenagers to form ring of steel at Olympic venues searching spectators and bags. A whistleblower told the Mail: 'Some of the people on that course you would not hire to empty a dustbin. You are talking about really poorly educated, slovenly yobs." The whistleblower, who claimed to have significant military experience, revealed that during training one recruit failed to notice a 9mm pistol stuffed in a test spectator’s sock. He told Sky News: ‘During my employment I planted pretend IEDs, decommissioned weapons, knives and other large metallic objects on students and sent them through the metal detectors. They’re not being seen by X-ray staff and they’re not being picked up during physical searches, so the training is completely insufficient. Despite the incompetence, G4S was said to operate a ‘no fail’ policy, so all trainees are believed to have been cleared to work as security staff at the Olympic Park. (Source

Inmate sets up Rolex robbery from behind bars, using Craigslist to find his victim
. The seller never knew that his $14,000 watch he had posted was going to end with a gun and also losing his other Rolex watch off his wrist. The potential buyer had contacted him via cell phone from behind bars at the California Men’s prison in San Luis Obispo. The inmate, Jermaine Nelson contacted his friend outside the prison to meet with the seller and even gave him plans to get to Texas to unload one of the stolen Rolexes. The second watch was never recovered. Now the outside robber, Lamar Diante Cox, is behind bars. Nelson and Cox are charged with robbery and conspiracy to commit a crime. They are being held in lieu of $500,000 bail. (Source

Walmart Loss Prevention Associate attacked with a baseball bat
. The Loss Prevention Associate of Staunton, Virginia was attacked by a 17-year-old teen who was shopping with his grandmother. The teen, who is still being sought by police, was approached by the loss prevention associate in the Sporting Goods area of the store. The teen pulled a baseball bat from the display and struck the LP associate in the ribs, back, and hands. Possible felony charges may be pending. (Source

click to watch video

Gucci Palm Desert store robbed early Sunday morning
. Robbers entered the store through the back door prior to the store's opening. Several high end items were taken, but an exact total is still being determined. It is unclear from the report if any associates were present at the time; no one was reported as injured. (Source

Best Buy shooting in Tulsa linked to prior homicide
. Tulsa Police found the body of Scott DeWayne Norman, who was shot eight times, and a stray bullet killed a customer inside the store. Wes Brown, 58, was fatally shot inside the Best Buy on Saturday afternoon. He'd brought his 10-year-old daughter to buy a gift for her mother when they stopped to look at DVDs before leaving the store. Wes Brown was struck in the upper chest by an errant round as a gunman fired more than a dozen shots at Scott Dewayne Norman, 34, who was outside the store's entrance, police said. Norman suffered eight gunshot wounds and was believed to be targeted in connection with several gang-related homicides in recent years. Norman was also pronounced dead at St. Francis Hospital after the shooting. (Source

Man sees his shoplifting crime on Facebook, turns himself in
. Nineteen-year-old Peter Thompson may spend too much time on Facebook, or had a really guilty mind to be cruising the Facebook page of the Vermont State Police. Thompson saw the video of himself stealing a pair of boots from a Farm-Way Store. The store had given the video to the Vermont State Police. (Source

Quarterly Same Store Sales Results

Supervalu 1Q down 3.7% at traditional stores and down 3.4% at low-price Sav-A-Lot division

Last week's most popular news article --

click to watch video$25 million fake coupon bust and arrest of three women - the first case of its kind in the U.S. - talk about starting a business out of your home - this one tops them all! A widespread counterfeiting and forgery operation linked to a Phoenix home has led to the arrests of three women and the seizure of $25 million in fake coupons, Phoenix police said. The residents in the home were forging coupons that offer customers free or highly discounted items. Police confiscated $2 million worth of assets that included $240,000 in vehicles, 22 guns, a 40-foot speed boat and other assets. Officers also seized packing material and equipment used to process the coupons. A four year investigation led authorities to a web site selling the coupons for 50% off face value. They were bringing in the coupons from overseas and customers were getting free-item coupons. Police said the scope of the investigation and the economic impact - hundreds of millions of dollars in losses - goes beyond imagination. (Source

Thanks to Jerry Biggs, Director of ORC Division for Walgreens for submitting the above article to the D&D Daily.

8th Annual Impact Workshop. Join other retail executives interesed in LP research on ORC prevention, packaging innovation, video analytics, benefit denial, plus much more. LPRC: October 15-17, 2012. University of Florida Campus. Gainesville, FL


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Upcoming Articles

Gregg Smith, Director Loss Prevention -
The Children's Place - The First Year


LPNN: Your LP, Attention Vendors, Film and Broadcast Your Video on Your Channel. Upcoming episodes: 2012 IOBSE Event Coverage; Se-Kure Controls; Keith White, Sr. VP of LP, The Gap Stores.

Know about an event we should feature here?
Let us know.

National Food Service Advisory Council Conference. August 5 -8.

Disaster Recovery & Preparedness Committee (DRAP) Meeting. Chicago, IL - Sears Headquarters. August 17, 2012. Click here for more information.

11th Annual Virginia Retail Loss Prevention Conference - Virginia Beach, VA - Holiday Inn Hotel. September 6, 2012. Click here for more details.

Canada's Biggest Retail Loss Prevention Event. Mississauga, ON - International Centre. September 11-12. Click here for more information.

Watch for our article the day after each event!

CLEAR's 3rd Annual Training Conference, Dallas, TX. Sept. 18-20, 2012. Learn more here.

8th Annual Impact Workshop. Join other retail executives interesed in LP research on ORC prevention, packaging innovation, video analytics, benefit denial, plus much more. LPRC: October 15-17, 2012. University of Florida Campus. Gainesville, FL

Washington State Organized Retail Crime Alliance Annual Training Conference. Burien, WA. October 18, 2012. To register visit

2012 Thought Challenge Awards Committee

Northern Michigan University, located in Michigan’s incredible Upper Peninsula, offers one of the only baccalaureate loss prevention management programs in the United States. It is offered completely online and accepts up to 92 transfer credits. An affordable investment into a dynamic and growing profession. Learn more here

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Trade Associations, Conferences & Series

2012 International Organization of Black Security Executives (IOBSE) Spring Conference

The Face of Loss Prevention - Bill Titus, VP Loss Prevention & Safety


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Bill Titus, VP Loss Prevention & Safety, Sears Holdings Corp., Part One  In this five part series, titled The Face of Loss Prevention - The Accidental Warrior, Bill Titus speaks about the evolution of loss prevention: the people, the processes and technologies, and the bad guys. This presentation was given at the International Organization of Black Security Executives (IOBSE) Spring Conference to current and future loss prevention professionals. Bill discusses how to go about choosing the right kind of career and company, and he compares public and private sector jobs, including salaries and job functions. Filmed April 2012. Stay tuned tomorrow for part two.

Season One Episode Release Dates

July 16 The Face of Loss Prevention - Bill Titus, VP Loss Prevention & Safety, Sears Holdings Corp.
July 23 IOBSE Founders Panel - George Logan and Oliver Wainwright


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"Crestsmile" nic - husband wife ORC team selling $70K to $140K a month online busted. "One of the largest fencing operations for shoplifted goods in Portland" according to Rick Whidden, Safeway's director of loss prevention - couple pleads not-guilty. They would meet shoplifters in parking lots in Portland and Vancouver to buy bags of stolen merchandise at half or less than half retail value. Then, they'd stash the goods in the trunk of their Lexus and return home to advertise them on eBay, usually within a day of purchase, investigators said. When the couple was arrested this spring, Clark County detectives seized over a quarter of a million dollars worth of stolen merchandise from their Vancouver home. One room in the home resembled a pharmacy, with the household products stacked in boxes and on shelves from floor to ceiling. The husband and wife aren't allowed to live with each other, and are restricted from Internet access as they await trial.  (Source

Identity theft ring identified operating in Central California The Madera County Sheriff’s office believes a stolen credit card used to rent a room in Oakhurst may be connected to an identity theft ring operating in Central California. The Sheriff’s Office believes there may be as many as half a dozen suspects connected to this case, one of whom is believed to be: 31-year-old Corey James Smith, (AKA Corey James Sahagian-Smith) of Fresno. So far detectives have uncovered more than two dozen victims – many of whom either live or work in Fresno County. If anyone has information about this case, they are urged to call either the Madera County Sheriff’s Office at 559-675-7770 or CrimeStoppers at 498-STOP. An anonymous tip to CrimeStoppers that leads to the apprehension of these suspects could be worth up to $1,000. (Source

Do you have an ORC case to share? Publishing it educates the LP & retail community which might fuel even more jobs and funding.
Share your ORC news and help the industry grow

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Thought Challenge

Submitted by Christopher Giunta
AP Operations Analyst
Ralph Lauren

Despite retail consumption being responsible for about two-thirds of America's GDP, we are far behind the curve of other business segments in developing concise and objective units of measurement. We need to set a higher standard for the term analysis in Loss Prevention. Too often we look to our experience to create KPI's and identify sources of shrink to determine our strategic mission. And, quite often, we mistakenly refer to aggregating data as analysis.

True analysis is based in statistics and must be elevated from the realm of descriptive statistics, such as percent change or averages, to relational and causal models. Relational statistics would include the Pearson's Product Movement Correlation or simply correlation, a phrase often misused and misunderstood in our industry. Have you ever heard some say, There is a direct correlation between? Truth is, direct correlations do not exist; they are either positive or negative. Those who understand the concept also know that with the correlation comes a probability of error the chance that the relationship between your variables is random and otherwise inconclusive.

However, the correlation itself is simply the first step. By elevating our analysis, we will begin to come closer to identifying cause and effect, which will result in the creation of meaningful KPI's and predictive analytics. This is where multivariate analysis comes into play, which essentially quantifies the impact one metric has on your problem, while simultaneously controlling and calculating the impact of several other metrics. What we are talking about here is equation building.

Do you remember that equation from back in high school algebra class, Y=mx+b? It was last period, as you were struggling to remain conscious, and the teacher kept talking about slope and the intercept and the axis. It's a little something like that old thing. Let's stop sacrificing calculated conclusions for convenience. We must realize that our experience in itself is subjective, but math is not. Though our interpretation of the results will cater to our individual biases, this is completely understandable and expected. However, with the foundation of our thought processes elevated, we can begin to uncover the true causes of shrink and tailor our resources toward much more effective, cost reduction strategies.

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Dept Mgr Store LP & Safety Lowe's California, MD Lowe's
Dept Mgr Store LP & Safety Lowe's Martinsburg, WV Lowe's
Dept Mgr Store LP & Safety Lowe's Monroeville, PA Lowe's
Anti-Fraud Manager Walmart Bentonville, AR Walmart
Asset Protection Mgr Home Depot Brooklyn, NY Home Depot
Loss Prevention Mgr Macy's Bloomington, IL Macy's
Loss Prevention Mgr Macy's Coral Springs, FL Macy's
Loss Prevention Mgr Macy's Paramus, NJ Macy's
Loss Prevention Mgr Loehmann's White Plains, NY Monster
Regional LP Mgr PetSmart Reno, NV Monster
LP/Risk Mgmt/Safety Mgr Ashley Furniture New Braunfels, TX Monster
Asset Protection Mgr Saks Fifth Avenue Greenwich, CT Monster
District LP Mgr Kroger Richmond, VA Kroger
District LP Mgr Walgreens Lubbock, TX Walgreens
District LP Mgr Sears Wichita Falls, TX Sears Holdings Corp.
District LP Mgr Sears Houston, TX Sears Holdings Corp.
Loss Prevention Mgr Sears Cupertino, CA Sears Holdings Corp.
Loss Prevention Mgr Sears Union Gap, WA Sears Holdings Corp.
Loss Prevention Mgr Sears Montgomery, AL Sears Holdings Corp.
Loss Prevention Mgr Sears Indianapolis, IN Sears Holdings Corp.
Loss Prevention Mgr Sears Hampton, VA Sears Holdings Corp.
Loss Prevention Mgr Sears Parkville, MD Sears Holdings Corp.
Loss Prevention Mgr Sears Marlborough, MA Sears Holdings Corp.
Loss Prevention Mgr Sears Auburn, MA Sears Holdings Corp.
Loss Prevention Mgr Sears Amherst, NY Sears Holdings Corp.
Loss Prevention Mgr Kmart Homewood, IL Sears Holdings Corp.
Loss Prevention Mgr Kmart Chesapeake, VA Sears Holdings Corp.
Loss Prevention Mgr Kmart Clinton, MD Sears Holdings Corp.
Loss Prevention Mgr Kmart Oakland Park, FL Sears Holdings Corp.
Loss Prevention Mgr Kmart Round Lake Beach, IL Sears Holdings Corp.
Regional LP Mgr Abercrombie & Fitch Dusseldorf, Germany Abercrombie & Fitch
Executive Team Leader - AP Target Easton, PA Target
Executive Team Leader - AP Target Harrisburg, PA Target
Loss Prevention Mgr Big Lots Canada Brantford, ON, Canada Workopolis
Area LP Mgr Ross Stores Houston, TX Ross Stores

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Kevin Valentine has been named Vice President of Internal Audit and Risk Management for the parent company for Sterling Jewelers, Signet Jewelers Ltd.
Mike Battles, CFI, PI
was promoted to Divisional Director of Loss Prevention For Stage Stores, Inc.
John Brocar, CFE, CFI was named Director of Fraud and Forensic Recovery Practice for Ryan.
Pankaj Aneja was named Manager - Loss Prevention for The Body Shop - India Market.
David Furr has been named Regional Loss Prevention Manager at Bed Bath & Beyond.

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9 Dumb Ways to Ruin a Meeting The next time you're in a meeting, mentally add up the hourly rates of everyone in the room. Then factor in what you could be doing instead. Makes you wonder why you ever have meetings, doesn't it? Still, sometimes you do need to meet -- so when you do, don't ruin it by making any of these mistakes.  (Don't "think out loud")

Climbing the Corporate Ladder When You're Shy and Introverted It's hard enough to find a job when you're shy, but it can seem just as hard to become a team player within a group of strangers you've just met and position yourself to move up into management. Here's how you can overcome being just shy of a promotion.  (Three tips to follow)

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"You're not a candidate for the position"

Part 2 - Be careful what you wish for - A chance to interview for your boss' job

It's been a tough couple of months. You've put in hours that your family is noticing. You've touched, reviewed, and rethought every aspect, every team member, and every program of the entire LP effort. You've pushed your relationships to the max and you've spent virtually every waking moment trying to figure out how to rebirth and refine a program that's been working for years. Or at least in your eyes it has been. And that's been one of the hardest feats. To step away from a program that you've been a critical part of and create a new one that actually takes it to the next level. You've studied the company mission statement and goals, you know the culture and management philosophy and you've incorporated it in everything you've created. You've researched, benchmarked, studied, authored, and chaired committee reviews in pursuit of your new direction.

Your team is questioning you, with some on board and some teetering on the verge of challenging you, and a few may have done so. But yet you've kept them united and you've convinced them this new path - this new effort - will bring better results. And now your wish comes true and you have an interview. You haven't pushed the executives or HR for the interview, you haven't politicked it, and you haven't broadcast it. You've just quietly, very intentionally, and with only a few serious but casual conversations with the executive it reports to, shown them the beginnings of a new path, a new direction and they've watched you and listened while you've become that new leader - and you've started creating that new fresh approach that every organization looks for when they have a chance to. It's human nature to gravitate to new and fresh the very minute the opportunity to do so presents itself. And now you have that opportunity you've fought for and in your own mind deserve. The chance to interview for your boss' job. There's only one wall left and it's the biggest one of all. It's called "Perception."

Perception is reality and changing the perception will change reality. You already started changing it when you started the process of rebirthing - reinventing the LP program, you just didn't realize it. But now it's more personal. We're talking about changing their individual perceptions of you professionally and quite frankly personally as well, based on one-on-one interviews. Up close and personal. You knew their perception of you a couple of months ago when they said you're not a candidate, so you already know they viewed you as part of the old. Now your job, your mission, is to show them, is to communicate to them that you realize this is a unique opportunity for the organization and that you can orchestrate and deliver that fresh new approach that ultimately will deliver improved results. Bring up the text book fact that senior management change offers an opportunity to revitalize, re-energize, and re-motivate teams and organizations. Then share your vision of where you think the team and the effort should go and more importantly how it's going to get there. You've got to be able to show, discuss, and debate the merits of the new revitalized direction you believe best fits the organization. From the 35,000 foot level down to the minute detail. And while it's impossible to redefine an entire program in such a short time frame, it is possible to draw the blueprint, begin the process, and communicate the direction. The issue is that it has to fit within the vision the senior management team has for the organization and for the team as well, and you have to be able to show them that you can draw the line between the old and the new.

Drawing the line between the old and the new and starting fresh, which is the absolute objective of all external executives, is probably the most difficult task of all for the internal executive, especially one that's been labeled "not a candidate." As it is certainly one of the major questions and concerns for senior management in that it forces you to immediately evaluate and resolve the weaknesses and inefficiencies that exist in every program and in every team quickly and cost effectively. And given human nature, senior management needs to be reassured that your team will be absolutely committed to increasing performance and improving results in every facet of the business and that every program and team member will be held accountable to those standards. Countering this concern further, developing formal Individual Development Programs* (IDP's) for each executive on your team, a program that goes well beyond the typical review process, is a wise investment and response and shows your team that you're willing to invest in their career development. It also separates the personal from the professional and gives both parties the tools needed to facilitate improvement and change.

Overcoming or changing perceptions is not an easy task and quite frankly most are only successful when indeed they change jobs and join new companies. But this is a topic that books are written about and today we just got started. Stay tuned for this series when we take the next step and talk more about "perception: the game of changing" - can anyone really do it? Part three next Monday!

Just a thought,
Gus Downing

Gus Downing

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* There are outside Human Resource companies that specialize in the development and management of Individual Development Programs. Your HR department should be able to provide you with more information.

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