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Doug Marker was promoted to VP Field Human Resources for Michael's. Doug has been with Michael's Stores since 2001, previously holding the title of VP Loss Prevention & Safety. In his new role, Doug will now report to the Senior VP of HR. Before joining with Michael's, Doug spent nine years at Gap, Inc, holding positions such as Regional Loss Prevention Manager, Director Loss Prevention, Senior Director Loss Prevention, and VP of Loss Prevention. At the start of his career, Doug held loss prevention positions with Carson Pirie Scott, Jordan Marsh, and J.C. Penney. Congrats Doug!
 

Two U.S. House Democrats investigating bribery allegations in Wal-Mart's Mexico affiliate said on Tuesday they have obtained new internal records that may point to evidence of tax evasion and money laundering. "We have obtained internal company documents, including internal audit reports, from other sources suggesting that Wal-Mart may have had compliance issues relating not only to bribery, but also to 'questionable financial behavior' including tax evasion and money laundering in Mexico," the lawmakers wrote in their letter to Wal-Mart Chief Executive Michael Duke. The company has said it is cooperating with the U.S. Department of Justice and the Securities and Exchange Commission as it conducts its own review. (Source reuters.com)

Manhattan District Attorney announces new cybercrime lab, which will centralize efforts to target crimes and criminals involving the use of technology
. The lab, to be housed in the district attorney’s office, will be staffed by about 50 current employees, including computer forensic staff members, specialized prosecutors, analysts and investigators. With 200 to 300 new identity theft cases each month and criminals increasingly utilizing technology such as skimming devices, the DA, who was himself a victim of ID theft, wants their office to stay ahead of the curve. (Source nytimes.com)

Some big-name retailers are teaming up together to form a new company to give customers another way to make purchases with their smartphones -"Merchant Customer Exchange" Wal-Mart, Best Buy, and Target are teaming up to develop a mobile application to integrate a variety of coupons, rebates, and loyalty programs. Other retailers included in Merchant Customer Exchange are 7-Eleven, Inc., Alon Brands, CVS, Darden Restaurants Inc., HMSHost, Hy-Vee Inc., Lowe's Cos., Publix Super Markets Inc., Sears Holdings Corp., Shell Oil Products US, and Sunoco Inc. The initial retailers that are part of the new company account for about $1 trillion in annual sales. More retailers are expected to be announced as new members in the coming months, the group said. (Source Associated Press)

RFID is suddenly garnering so much attention because it is a fundamental building block for omnichannel retailing
. Retailers want to enable the same terrific selling and promotional features on mobile devices and in physical stores that exist on the web today. However, to do so, they need to know exactly what inventory they have in which locations. As more and more department stores implement RFID, it goes from being a competitive advantage to a strategic imperative. (Source kurtsalmon.com)

Dots gets a new CEO-merchant from Wal-Mart and moves forward with their plan to hit 1,000 stores
. Lisa Rhodes the new CEO who led Walmart's U.S. apparel merchandising division, has been charged with leading Dots’ march toward 1,000 stores. They had been without a head merchant for some time. (Source retailingtoday.com)

Olympic Games Mall attracted 5.5 million visitors
. Australian group Westfield said the Games gave it "unprecedented exposure to a global audience" and left Stratford City and its other London centre in Shepherds Bush on target to attract 60 million shoppers this year, who are forecast to spend $2.8 billion. (Source reuters.com)

Bellingham, Washington Costco invaded by Canadians looking for bargains, some residents are not taking it well
. A busy Costco would not be concern to the tax base of a city, but some members of Costco just feel that the lines and sold out items are because of the Canadian push to save a little money. An angry resident started a Facebook page, "Bellingham Costco Needs a Special Time Just for Americans." (Source yahoo.com)

Study says higher wages reduced shrink
. The survey is making all the publications around the country ever since the National Retail Security Survey was releases earlier this summer. The study, "Can Wages Buy Honesty? The Relationship between Relative Wages and Employee Theft," looked at cash shortage and inventory shrinkage in relation to wages paid using datasets from the convenience store industry and found that not only do higher wages lead to a reduction in shrink, but they also promote social norms that discourage employees from stealing. (Source privateofficerbreakingnews.com)

Armored car heist with shots fired at Loves Truck Stop in Houston, TX
. The incident happened at around 8:30 a.m. Monday at Love's Truck Stop on North McCarty near the North Loop. Police say two men robbed the armored car during a delivery. The FBI says one robber assaulted an armored car messenger then grabbed a money bag and fired multiple shots. No one was hurt and the robbers got away. (Source go.com)

Former Office Max employee admits throwing homemade firebombs at the Office Max store in Mobile, Alabama
. On May 18th the former employee went to the store to "pull a prank on a friend who worked at the store" and at about 6 p.m. threw two incendiary devices made out of spray paint cans at the front door which was locked at the time. The manager of the OfficeMax put out the fire with a fire extinguisher. Howell pleaded guilty to possession of an unregistered firearm as part of a deal in which an attempted arson charge — which carries a five-year mandatory-minimum prison term — will be dropped. (Source privateofficerbreakingnews.com)

Academy Sports Employee in Macon fires gun after catching burglary suspect in act
. Macon police say an Academy Sports store employee shot a man suspected of breaking into his car early Tuesday. Police say that, as the 27-year-old store employee left work around 1 a.m., he found 51-year-old Charles Stinson, Jr., inside his car in the parking lot. The two men got into a fight. According to the news release, when Stinson got out of the car, the employee grabbed his gun and shot the suspect. When officers arrived at the scene, Stinson had already been treated for a gunshot wound to the jaw at the Coliseum Northside Hospital and transferred to the Medical Center of Central Georgia. The employee has not be charged in the shooting, but when Stinson is released, police say he will be charged with entering the auto. (Source newscentralga.com)

Celebrity Chef Todd English’s ex busted at a NYC Sephora; two weeks ago she admitted to stealing $52,000 from Polo
. Erica Wang was apprehended at the Sephora store in Midtown with 41 items valued at over $1,100. Associates said she was stealing from every department and not very good at concealing it. On July 26, Wang was stopped at the Ralph Lauren Flagship store, admitting that she stole nearly $52,000 in merchandise, later also admitted to stealing an additional $42,000 while employed there. Wang’s attorney stated that she is suffering from emotional-psychological problems. (Source nypost.com)

Video: City Beats shoe store in southeast robbed
Washington DC’s City Beats shoe store robbery caught on camera
. Police in the District are trying to identify two suspects wanted in connection with the armed robbery of a shoe store on Aug. 9. Authorities say two suspects entered City Beats, located in the 3000 block of Martin Luther King, Jr. Avenue, SE, around 6:10 p.m. The pair announced they were robbing the store and displayed a handgun. The suspects were able to steal boxes of shoes as well as an undisclosed amount of money. (Source wjla.com)


Nebraska woman gets five years probation and a $25,000 fine for a counterfeit operation she ran for fouryears
. Deborah Pittman was sentenced Monday, leaving some to wonder if the penalty was stiff enough. Pittman was arrested by agents of Homeland Security which seized over 1000 counterfeit items and an additional 600 counterfeit labels. (Source wowt.com)

Brooklyn, N.Y., man hits Apple. Target, TJ Maxx, & others with over 900 fraudulent $100 American Express Travelers Checks
. Police on Long Island are accusing a Brooklyn man of passing over $90,000 in counterfeit traveler's checks in May at a number of retailers. They say he used over 900 fraudulent $100 American Express Traveler's Checks to purchase high-end items like iPads, iPods and gift cards at various retail stores throughout the county. (Source myfoxny.com)

Quarterly Same Store Sales Results

Target 2Q up 3.1% with sales up 3.5%
Home Depot 2Q U.S. stores up 2.6% with sales up 1.7%
Staples 2Q North American stores down 2% with European stores down 9% and total co. revenue down 6%
Citi Trends 2Q down 4% with revenue up 2%
Abercrombie & Fitch 2Q down 10% and total revenue up 4%
 

 


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Upcoming Articles



Coverage from the National Food Service Security Council's
33rd Annual Conference

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

"Transitioning to YOur New Job as an LP Director" by Mike Keenan, VP of LP for GAP North America. A Chapter From Retail Crime, Security, and Loss Prevention An Encyclopedic Reference

 


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.
 



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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.



New England ORC Symposium & Trade Show - September 20, 2012 Worcester, MA - DCU Center






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 www.wsorca.org


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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"Transitioning to Your New Job as an LP Director" b Mike Keenan, VP of LP, Gap North America


Over the next few weeks the Daily will be publishing Mike Keenan's chapter   “Transitioning to Your New Job as an LP Director” from the book Retail Crime, Security, and Loss Prevention, 1st Edition, An Encyclopedic Reference.

Book authors Chuck Sennewald & John Christman
Published and released February 20, 2008.
Imprinted by Butterworth-Heinemann
ISBN: 9780123705297


 "Transitioning to Your New Job as an LP Director"

by Mike Keenan, CPP, CFI
Vice President of Loss Prevention
GAP North America


If you don’t have an effective store audit program or don’t have one at all, how do you get started? Create a Task Force that includes loss prevention executives and store line senior management. By including store management in this process, there will be more of a sense of ownership and the audit will have more credibility. Develop an audit that addresses shortage control in all areas of store operations. This does not normally include creating new polices and procedures but just selecting those that will make a difference in reducing shortage. The contents of an LP Audit should include, Cash Office, Receiving, Point of Sale (POS), Physical Security, EAS Tagging compliance (if applicable), and anything else that impacts shortage. As a side benefit, this process can result in strengthening controls in almost all existing store procedures because when the Task Force reviews each procedure they will usually find ways to improve them.

To ensure that the new audit works effectively, make sure you “field test” it. This enables you to identify problem questions and correct them before you roll out the entire program.

Once finalized, the revised procedures and new audit forms should be provided to all stores. Stores should be given some time to “ramp up” before the new audits are scheduled to begin.

One way to ensure auditing consistency is to create a Loss Prevention Auditor’s Manual which contains detailed explanations of what the auditor should be reviewing for every question on the audit. This manual will ensure that all auditors review the same areas in exactly the same way. The completed Manual should also be provided to every store so that they also know every question and the audit instructions. Communicating this information to the stores will eliminate many of the challenges when points are not awarded.

To help stores pass their audits which is, of course, the goal of the program, stores should be required to complete daily or weekly checklists. These checklists are a tool to ensure daily attention to the policies and procedures that are reviewed on the audit. Checklists can be created directly from the audit. Many times stores will break the audit into sections and use them as checklists.

Another component of an audit program that gets results is a random and unannounced audit schedule. The only way to get a true picture of what is really happening in a store is to show up when the store doesn’t expect you. Another benefit of a random and unannounced audit schedule is that all stores will operate more consistently on a daily basis in expectation of receiving an audit.

Audits must be conducted often enough to allow “course correction” during the year. Many companies take once a year inventories. It is the consistent execution of shortage control policies and procedures that provide the positive end of year results. One formula that works well is a quarterly audit in all stores and a monthly audit in high shortage stores. Of course your program must fit your company’s structure and budget. Timely reporting of audits is also important. As soon as an audit is completed, the results should be communicated to the store and the District Manager. After that, audit scores should be tracked along with all of the other company performance measurements and be included in annual performance evaluations.

Continued tomorrow -- click here to read what's been published so far


Mike Keenan is currently the Vice President of Loss Prevention for GAP North America. His prior experience includes sixteen years with Macy’s West where he started as an LP Manager and worked his way to Vice President of Loss Prevention. He then held similar LP positions with Ross Stores, Longs Drugs and Mervyns. He started his career with the Federal Bureau of Investigation. Mike has a Bachelor’s Degree in Criminal Justice from California State University, Sacramento. He has served on the NRF LP Advisory Council and was the Chairperson in 2001 and 2002. He is a licensed Private Investigator in the State of California. In addition, he taught Retail and Corporate Loss Prevention classes at Golden Gate University in San Francisco, California.
 

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Coalitions, Cooperation, Congress Are Key in Battle Against ORC

Picture: Denny DansakPicture: Karl LanghorstShoplifting and ORC are two very different crimes. A person may steal bread to feed a hungry family. A coordinated group steals items that can be turned into cash that typically funds other criminal activity.

If there has been an increase in ORC arrests, it is because retailers and law enforcement are doing a better job of recognizing it, said Karl Langhorst, director of loss prevention for The Kroger Co.

Understanding the difference is an important first step not only for store personnel, but also law enforcement and state and federal legislators.

"It is not shoplifting. That’s what we need to drive home," Langhorst said. "Many of these crimes are what we call 'gateway crimes,' because ORC leads to financing for other criminal activity, be it narcotics, distribution, prostitution, gun running, those types of things."

Picture: Kroger LPKroger had no director of loss prevention until Langhorst was hired in 2008. In fact, there really was no formal corporate program, and no specialized ORC investigators. Langhorst, whose background includes loss prevention for Safeway’s Texas division, was charged with establishing the program for Kroger’s 2,500-store, 18-division grocery company. Here's a great look at ORC and the Kroger ORC program. Its worth the read! (Source theshelbyreport.com)
 

Do you have an ORC case to share? Publishing it educates the LP & retail community which might fuel even more jobs and funding.
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Thought Challenge

Picture: Francis Clark



Submitted by Francis Clark
VP Business Development
Profitect


My challenge to the LP Professionals is to FIRST, change your Title. Become Asset Protection. The change of name increases your scope of responsibility and contribution to your company. Both important. Too many people think of LP as the 'cop' in the organization and while that still remains a function it shouldn't be the focus.

Today's retail companies have TOO FEW PEOPLE focused on PROFIT which is the fuel that drives your company's engine. Too many LP departments are STILL CONSIDERED EXPENSE DEPARTMENTS and are in the first line of 'redundancies' when the economy turns a bit soft. Get out of that cycle and become a profit generating department and be able to prove it.

NEXT, change what you do. I see so many filled sessions of how to deal with the 'active shooter' but NEVER see sessions where someone from LP or AP is reviewing their company's Annual Report or 10K and illustrating how their department is contributing to their company's success. Wouldn't that be an interesting educational session? Yes, we have to be aware of the negative aspects of our jobs and the increasing violence (apparently) in Retail but PROFIT is still what drives our companies.

THEN, find out how to be indispensable to your CEO, COO and CFO from a PROFIT GENERATION perspective. Find ways to show that contribution on a quarterly and annual basis in real business terms. I recall a well-regarded VP of LP in the NY City area a number of years ago that measured his performance on 500 apprehensions (minimum) per month. I had recently left Retail and joined the 'vendor dark side' and this gentlemen 'took me under his wing to tell me all about LP'. While I appreciated his efforts and insights it appeared to me, a Store Operations guy, that hitting or exceeding 500 apprehensions per month wasn't solving the problem. And if he really solved the problem, his precious benchmark for performance would be actually declining. But he was caught in the old LP trap and couldn't get out. That company no longer exist, by the way.

I firmly believe that the area of the business that has more to contribute to PROFIT than any other is Asset Protection. That requires CHANGE and the COURAGE to get into the business with both feet. I am proud to say that there are DOZENS of your peers who have already made this change and are solidly contributing to their company's daily PROFIT PERFORMANCE and are growing in respect within their companies as a result.

FINALLY, you be one of them! Retail is going through tough times and a perfect time for those with the ability and courage to step up to the challenge.
 

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Doug Marker was promoted to VP Field Human Resources for Michael's.
Jason Cody
was named Regional Loss Prevention Manager for Tilly's.
Braden Diaz
was named Zone Asset Protection Specialist for 7-Eleven.
 

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9 Ways to Get Over Your Feedback Fears Why is feedback so powerful and essential to our success? We often fail to see in ourselves what is perfectly obvious to others. The following is a set of 9 steps that any individual can take to learn how to accept and effectively implement feedback. (Treat it like a present)

The 5 Unwritten Rules That Will Kill Your Business It goes without saying that as business leaders we enforce rules that “go without saying.” You know what I'm talking about—those unwritten rules like “The customer is always right” and “Hire only A players.” These apparently obvious business success rules aren’t necessarily written in corporate guidelines or HR manuals, but they obviously work. Or at least that's what we thought. (These might surprise you)
 
The No. 1 Killer of Meetings -- And What You Can Do About It "That was dreadful. Not only was I bored, everyone else was bored too. Disengaged. I'm terrible at facilitating these kinds of meetings. But they're so important. I've got to get better at it. I need to find a better way." If you've ever felt this way, you need to read this article.  (The best meetings don't go near it)

Why Every Manager Should Watch HBO's 'Hard Knocks' Hard Knocks is only nominally about the action on a football field. It’s a show about powerful people running a high-speed, lucrative business -- and all the hiring, firing, arguing, disciplining, high-fiving, and team-building that comes with the territory. Sure, it may be about a professional football team, but the situations and lessons learned may seem very familiar.  ("Hike!")

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"I can't" - From the retailers prospective

What a phrase. We've heard it or said it so many times that we tend to minimize it or even accept it when we hear it or say it. The problem is that it sends such a negative message that it can leave a permanent impression on whomever hears it. To use that phrase in any situation draws boundaries and limitations that restricts growth and in actuality impedes relationships that are so critical to maintain and develop in the retail environment. The phrase itself feeds exclusion and increases the divide that many already complain exist between LP and Operations. And while it may be at times the honest response, one must remember that it's the message it sends they remember in six months and do you want them to really remember you can't?

So the next time you're tempted to say "I can't" think about how you can and find a way to add value in that situation itself. Because quite frankly every time you say that phrase you risk hurting a relationship and diminishing your creditability.

Just a Thought,
Gus Downing

Gus Downing

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