Legislation and IoT
The Dynamic Duo to Combat ORC
To effectively combat theft, and maintain a high-quality customer experience, retailers must take a new approach. This starts with leveraging advanced technology, and integrating legislative measures to strategically reclaim control over products, and mitigate ORC's impact on the bottom line and the customer experience.

Executing on Legal Frameworks to Understand ORC Importance

In recent years, we've seen an uptick in legislation introduced to raise awareness about the significant threat ORC poses to public safety and the economy. Most recently, efforts to pass the Organized Retail Crime Act have helped avoid further escalation across the industry. From a federal and local level, these laws aim to enhance coordination, improve data sharing, and strengthen penalties to deter organized retail crime before it occurs.

Recent adoption in California and New York exemplify these efforts. Both states have made substantial investments in order to proactively combat ORC, with New York even establishing a law enforcement taskforce dedicated to targeting organized retail theft cases. Legislation plays a crucial role in providing the necessary resources and framework to combat organized retail crime.

Placing IoT Technology at the Forefront

Organized retail crime demands swift and decisive action. By integrating IoT-enabled solutions that provide real-time tracking and monitoring throughout the supply chain, companies proactively identify when high-value products are impacted. This is why, by 2033, IoT investments in SCM are expecting to reach $41.8 billion to improve operational efficiency and predictive monitoring.

Inventory tracking is a major expectation for retailers. However, only 65% of inventory is accurately accounted for. Given the rise in incidents of crime and shoplifting, which have increased by 16% since 2019 according to the Council on Criminal Justice, accurate tracking becomes even more critical. Investments in technology play a pivotal role in enabling businesses to promptly respond to such incidents. This enhances their ability to recover stolen goods swiftly, minimize financial losses, and potentially deter future criminal activity, delivering the highest level of customer satisfaction.

IoT solutions offer enhanced supply chain visibility, and enable real-time alerts, combined with accurate prescriptive next actions. This allows for immediate intervention and improved inventory management, which is crucial in combating sophisticated criminal activities that target retail establishments.

Integrating Tech and Legislation for Long-Term Success: supplychainbrain.com


Complying With California's New Workplace Violence Law
Workplace violence prevention: How to formulate a plan

With increased legal protections for employees, employers should make a thorough plan to implement them.

Workplace safety remains a critical issue, impacting more than 1 million Americans each year. In response to the challenge that employees face, California enacted S.B. 553 last fall, mandating that employers with more than 10 employees in the state of California develop workplace violence prevention plans, along with other requirements, by July 1, 2024.

Key provisions of S.B. 553
 
The new law requires California employers to create a workplace violence plan that includes:

• Methods and protocols: Address unsafe or unhealthy conditions and work practices.
• Hazard recognition: Regularly scheduled inspections to quickly identify and rectify unsafe conditions and practices.
• Adherence to practices: Systems ensuring employees follow safe and healthy work practices
• Emergency response procedures: Effective procedures for responding to potential or actual workplace violence
• Program implementation: Identification of individuals responsible for program implementation.
• Training programs: Occupational health and safety training for employees.
• Communication system: Establishment of a communication system for occupational health and safety matters
• Incident logs: Definition of logs recording workplace violence incidents
• Post-incident response: Procedures for responding to and investigating incidents.

How to prepare your business

As the deadline approaches, organizations that employ California residents must consider several factors:

• Leadership: Larger organizations with dedicated security and risk management teams may lead these efforts, while smaller organizations may need external resources, such as consultants, to develop a plan.
 
• Training: Collaboration between security and risk teams, as well as human resources, is critical for defining and implementing training.

• Defining the role technology plays: Technology can streamline the gathering of information for post-incident response and investigation, integrating video, access control data, response notes and emergency communication logs to assist law enforcement.

• Implement incident and case management: Using technology to gather and present critical information efficiently can help organizations comply with the new laws.  securitymagazine.com

   RELATED: California's New Workplace Violence Prevention Mandate Takes Effect


LA's New Organized Retail Theft Task Force
Los Angeles County District Attorney Announces New Task Force to Combat Organized Retail Theft
The Los Angeles County District Attorney's Office has launched a new task force aimed at tackling the surge in organized retail theft across the county.

The task force, announced by District Attorney George Gascón, will focus on identifying and prosecuting individuals and groups involved in large-scale retail theft operations. "We are committed to ensuring the safety of our communities and protecting local businesses from these criminal activities," Gascón said in a statement.

The initiative will involve collaboration with local law enforcement agencies, retailers, and community organizations to gather intelligence and develop strategies to prevent and respond to retail theft incidents. The task force will also work to enhance the prosecution of offenders by utilizing advanced investigative techniques and leveraging technology.

According to the District Attorney's Office, organized retail theft has become a growing concern, with significant financial losses reported by businesses. The new task force aims to address this issue by targeting the criminal networks responsible for orchestrating these thefts.

"We will not tolerate the actions of those who seek to profit from stealing from our local businesses," Gascón added. "This task force is a critical step in our efforts to combat organized retail theft and hold offenders accountable." mtdemocrat.com


'If You Steal, We Prosecute'
Billboards helping fight retail theft in San Joaquin County
As theft continues to creep around San Joaquin County, officials are taking extra steps to help prevent it. The Greater Stockton Chamber of Commerce is spreading the word using billboards.

It created a program called Stockton Takes Action Against Retail Theft, also known as STAART, to rally people together and get more eyes on the thieves. STAART is teaming up with the district attorney's office and police department in order to put retail thieves behind bars.

Its mission is plastered all across the county, with the billboards reading, "Welcome to San Joaquin County. The community is watching, if you steal, we prosecute."

The manager of Foxy 23, a clothing store, Virginia Calderon, said she deals with theft in her store at least once a day. Calderon said she loses thousands of dollars from stolen items each month, but the customers keep her going.

Frank Ferral with the Greater Stockton Chamber of Commerce said the STAART program is here to help.

"Every police department is, you know, aren't fully staffed. So this is the business community being proactive to go out there and help our businesses, help our law enforcement agencies at the same time and help our community grow and thrive, not just survive," Ferral said. kcra.com


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Dollar General's $12M Safety Penalties Make More Headlines
OSHA Settles with Dollar General Requiring Corporate-wide Safety Investments

The company will pay $12 million in penalties and implement corporate-wide changes.

On July 11, OSHA announced it entered into a corporate-wide settlement with Dollar General and its retail subsidiaries to make significant workplace safety improvements in stores nationwide. The company had been hit with $15 million in fines, in 2023, as EHS reported.

"This agreement commits Dollar General to making worker safety a priority by implementing significant and systematic changes in its operations to improve accountability and compliance, and it gives Dollar General employees essential input on ensuring their own health and safety," said Assistant Secretary for Occupational Safety and Health Douglas L. Parker, in a statement. "These changes help give peace of mind to thousands of workers, knowing that they are not risking their safety in their workplaces and that they will come home healthy at the end of each day."

Dollar General agreed to pay $12 million in penalties and implement corporate-wide changes that make the safety of its employees a priority. These improvements include the following:

• Establishing and maintaining an expanded safety structure and a robust safety and health management system, including hiring additional safety managers.

• Significantly reducing inventory and increasing stocking efficiency to prevent blocked exits and unsafe material storage.

• Providing safety and health training to both leadership and non-managerial employees.

• Developing a safety and health committee and encouraging employee participation.

The agreement also requires Dollar General to ensure prompt abatement of any future violations related to blocked exits, access to fire extinguishers and electrical panels, and improper material storage at its stores during the agreement term.  ehstoday.com

Store Closures Fallout
Will Stop & Shop Be Able To Survive After Its Store Closures?
In May, Stop & Shop announced its plan to close an unspecified number of underperforming grocery stores in the Northeast to ensure the long-term health of the business. On July 12, Stop & Shop specified that it plans to shut down 32 underperforming locations in Connecticut, Massachusetts, New Jersey, New York, and Rhode Island, providing a list of the specific locations. They will close on or before Nov. 2, 2024, according to the company's press release.

Despite the closures, Stop & Shop remained committed to investing in store remodels and maintaining competitive prices. The company had already remodeled over 190 stores by the time of the announcement and emphasized its dedication to social responsibility initiatives, including supporting in-school food pantries and reducing waste.

The closures of Stop & Shop have spurned various reactions and social media posts. Many local communities are reeling from the news and concerned about the detrimental effects of store closures in their areas. retailwire.com
 

200 New Stores in 2024
Ace Hardware reaches 5,000 U.S. locations; plans 200 new stores for 2024
Ace Hardware has reached a milestone both in its total and year-to-date store counts.

The Oak Brook, Ill.-based hardware retailer, which is celebrating its 100th year in business this year, has opened its 100th new store opening for the calendar year, and also opened its 5,000th domestic location. Overall, Ace plans to open more than 200 new stores by the end of the year.

In the first six months, Ace Hardware activated 111 new stores - a record-breaking feat for the retailer. Last month, Ace activated its 100th new store for the year in Henderson, Nev. Another new store, Fixit Ace Hardware in Roswell, Ga., is also recognized as Ace's 5,000th domestic location. Globally, Ace has opened more than 900 new stores in the past five years, including 203 last year, while disbursing dividends of $357 million and providing a 35% return for Ace shareholders in 2023. chainstoreage.com


Store Managers Go All In On Digital
Survey: Store managers leveraging 'tried and true' channels to reach consumers
Email marketing, social media and text messaging continue to gain momentum as the most-used digital marketing tools by retailers.

That's according to the latest Retail Sentiment survey by retail real estate management firm Levin Management Corp., which found that the percentages of respondents using those tools are the highest in survey history, reflecting notable jumps over the respective three-year trailing averages. (The survey polls retail store managers in Levin's 125-property, more than 16 million-square-foot leasing and management portfolio.)

Nearly all (83.0%) respondents report using e-mail marketing, compared to a trailing three-year average of 77.5%, and 80.3% use social media, compared to a trailing three-year average of 73.9%. Also, 64.6% say they use text messaging for marketing purposes, compared to a trailing three-year average of 53.4%. chainstoreage.com


Retail sales up 3.3% in June as consumers respond to deals
In June, retail sales in the segments covered by Retail Dive rose 3.3% year over year, with e-commerce spiking 4.8%, according to numbers released Tuesday by the U.S. Department of Commerce.

While not a blockbuster month for retail, the results beat most expectations, analysts said. That shows that consumers continue to be resilient despite inflation and high interest rates, according to Bankrate Senior Industry Analyst Ted Rossman.

The National Retail Federation, which now uses credit card data rather than the government's numbers, found a similar 3.07% year-over-year growth in retail sales excluding restaurants, auto sales and fuel. retaildive.com


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In Case You Missed It
Retail & Hospitality ISAC Announces New Critical Provider Program

Google Cloud Security, Microsoft, Palo Alto Networks, and Akamai partner with RH-ISAC.

Vienna, VA (June 20, 2024) - The Retail & Hospitality Information Sharing and Analysis Center (RH-ISAC) announces their new critical provider program in partnership with Google Cloud Security, Microsoft, Palo Alto Networks, and Akamai as tier three associate members. These companies will be supporting RH-ISAC, its board of directors, and Core Membership as strategic partners dedicated to developing cybersecurity maturity in retail, hospitality, travel, and consumer-facing industries.

This executive partnership is based on identified and mutually negotiated advisory activities that directly support the RH-ISAC community through working groups, joint research initiatives, collaboration with the RH-ISAC cyber threat intelligence team, threat briefings, critical advisories, and bulletins, as well as marketing activities such as promotion of webinars, events, and research reports pertinent to retail and commercial services industries.

"Our new critical provider program and partnership with these prominent organizations will propel the ISAC and its members forward," said Suzie Squier, president of RH-ISAC. "The knowledge gained from being part of this community is invaluable and constantly growing."

Each partner will have a few different roles with the RH-ISAC. For example, Google Cloud Security will be focused on providing training and education at in-person events and collaborating with the RH-ISAC CTI team on malicious reporting activity, SEO issues, investigations, and threat analysis. rhisac.org


Another Retailer Breached
Rite Aid confirms cybersecurity breach

The drugstore retailer stated that customer's social security numbers, financial information and patient information was not impacted.

Rite Aid on Monday confirmed that last month it experienced a security breach wherein customer data was acquired.

On June 6 an unknown third party impersonated a company employee and gained access to its internal systems, according to a company press release. The drugstore retailer detected the incident within 12 hours, launched an investigation and determined that the outside party acquired data regarding the purchase or attempted purchase of specific products. Data accessed included customer names, addresses, date of birth and driver's license or other form of government-issued ID presented between June 6, 2017 and July 30, 2018.

Social security numbers, financial information and patient information was not impacted, per the company. Rite Aid did not answer Retail Dive's questions regarding the number of people impacted. However, the company said that it is finalizing its investigation. "We take our obligation to safeguard personal information very seriously, and this incident has been a top priority. Together with our third-party cybersecurity partner experts, we have restored our systems and are fully operational," a company spokesperson said in an emailed statement.

Rite Aid reported the breach to law enforcement and federal and state regulators. The drugstore company is mailing letters to customers that were affected and has set up a phone line to answer questions. retaildive.com


Backdoor Tech Leaks to China?
Microsoft's Partnership With Middle East AI Firm Under Scrutiny

The US government worries that Group 42 Holdings, an AI firm based in the United Arab Emirates, could become a backdoor for technology leaks to China.

A much-trumpeted deal between Microsoft and Group 42 in the Middle East and Africa could be quashed due to geopolitical concerns, as US policymakers raise questions about Group 42's relationship with China, highlighting challenges US companies face in forging business ties in the region.

Despite assurances from Group 42 that it is cutting all military and intelligence ties with the China, US officials continue to voice their misgivings.

For US companies, the volatile geopolitical atmosphere is all part of dealing with security in the modern world, says Tal Mandel Bar, product manager at DoControl, a provider of automated software-as-a-service (SaaS) security.

"For companies like Microsoft, Google, and Cisco, geopolitics definitely complicates their expansion plans in Africa," he says. "They have to navigate a complex web of national security concerns, data privacy issues, and competing interests. It's a tricky balancing act." darkreading.com


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