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Two months of retail sales increases after three months of declines according to NRF. With July up 1.2% and June up 0.8% there are positive signs, but will it hold up in the 4th quarter? Everyone is concerned and jobs have slowed and in Canada retail jobs have actually been lost even with the Canadian Push. Retail America isn't acting like they're feeling very positive; actually quite the opposite. The LP job market has tightened up extremely in what normally is the push before the 4Q holiday season. (Source

With both Michaels and Pep Boys promoting their senior LP executives this month what happens to those two senior roles?

Best Buy's former founder says - he isn't going away - to the Board of Directors in his attempt to take BB private
. He had expressed an interest in buying Best Buy for $8.16B to $8.84B but the board wants the names of the private equity partners and he wants access to financial info. Sources told Reuters that several private equity firms were "sitting on the fence," citing the lack of a tangible plan by Schulze and doubts about his ability to pull off the deal. He owns 1/5 of the company and said he's willing to reinvest potentially all of his stake. The unsolicited proposal comes as the company Schulze founded in 1966 struggles to compete with online and discount rivals and to reduce its own unwieldy size. (Source

International Supply Chain Protection Organization Formed

ISCPO logoRecently a group of Loss Prevention and Security professionals came together, representing different companies in the global marketplace. This effort was intended to explore options for a new professional organization that touched all major business segments worldwide to include Distribution, Risk Management, Legal, Logistics, Manufacturing and Law Enforcement. The International Supply Chain Protection Organization (ISCPO) mission is to promote a global, collaborative effort of networking for Security and Loss Prevention professionals. The organization’s membership supports a wide-variety of business entities, whose main commonality is using the global supply chain for transportation of goods and services. The ISCPO welcomes your participation, feedback and suggestions and hope the organization’s development will truly be cross-functional in serving the needs of Loss Prevention and Security professionals that span numerous business segments in the supply chain.

Glenn Master, Chairman of the ISCPO and Director LP for Newgistics, would like to give special thanks to the individuals that participated in this endeavor to help make it a reality:

Rod Fulenwider – Vice Chairman (General Manager for D & L Protective Services)
Aaron Henderson – Distribution Sector (Director of LP for Penske)
Byron Smith – Risk Management/Legal Sector (Corporate Mgr of Supply Chain for 7-11)
Gunther Hoock – Logistics/Manufacturing Sector (Director of Security & LP for Horizon Lines)
Joe Matthews – Retail Sector (VP of LP for Academy Sports)

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Two counterfeit high-end designer Bottega Veneta hand bags slip thru a T J Maxx Philadelphia store and get sold
. After purchasing the two $950 hand bags that normally are sold for $2,000 each the customer found after close inspection at home that they were counterfeit. T.J. Maxx then agreed to investigate and examine the bags, and they also concluded that the bags purchased by Tramutola were not authentic Bottega Veneta bags. T.J. Maxx believes that the original bags were purchased from their store by someone who kept the originals and then returned cheap counterfeit versions — like those sold by street vendors. The fake bags then likely went undetected and entered the store’s merchandise flow. T.J. Maxx added in a statement, "Unfortunately, retailers, and in this case, an innocent customer, sometimes fall victim to fraudulent return activity. We are taking swift action to tighten our return procedures to prevent this situation from occurring again." (Source

Business Crime Index in UK shows 3% increase in crimes against businesses and 16% increase in top ten postcode areas over the last year
. With 74% of this being theft it also showed a 6% increase in the average value stolen hitting just under $6,280. The number of thefts involving force or violence has also increased by around 6%. Douglas Barnett, Head of Customer Risk Management, from AXA says: "In a continued period of recession it is no surprise to see business crime levels rising, however what is most alarming for business owners is the increase in levels of violence associated with theft. This, coupled with the increase in value of the average theft suggests a more "determined" than "opportunistic" thief is emerging during hard financial times." (Source

$18M worth - 20K pairs Of counterfeit Christian Louboutin shoes seized from Chinese shipment at Long Beach Port
. The seizure of 20,457 pairs of high-end counterfeit shoes was made Tuesday, and had an "estimated manufacturer’s suggested retail price" of $18 million, according to Jaime Ruiz of U.S. Customs and Border Protection. (Source

Norway woman busted for shoplifting a 42" TV after walking out of the store with it between her legs
. The woman was able to carry the widescreen television clasped between her thighs to a nearby bus stop. She and her companion were Romanians and she told them she had 'very strong thigh muscles. The thwarted theft is the strangest in Scandinavia in nearly a decade. In Sweden in 2005 a gang of dwarves were busted after it was discovered they were loaded on to long-distance buses in holdalls only to emerge in mid-journey to steal from suitcases before zipping themselves back in their hiding places. (Source

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Dollar General Associate is run down in the parking lot by shoplifter’s car
. The suspects loaded a cart load of merchandise into their car and where apparently ready to drive away when a Dollar General associate approached the car. The suspects put the car in reverse and backed into her, sticking her in the legs. The associate is now recovering, the suspects are at large. (Source

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HH Gregg store in Hialeah hit in overnight burglary
. Thieves used a car to smash out the front doors of the store then ran inside stealing phones, laptops and other electronic items; the total valued has yet to be determined. This robbery comes after two other stores in the same area were burglarized. In April, a Best Buy store was robbed and the ABC Jewelry store was the latest victim. (Source

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Orange County Sheriff’s Department investigates a hidden camera found in a Gap dressing room
. The Gap store is working with police to find out who installed a small camera which was found concealed in a wooden frame used for advertisements. A Gap employee found the camera on Saturday in the unisex dressing room. Police are now investigating if the thumb-drive-sized camera contained any images. (Source

Aberdeen woman faces $20,000 in restitution, $14,000 to Walmart
. Walmart lead the list of retailers that Macy Condry will be paying back. Others were Running for $4324, Herberger’s for $2,930 and many others. Condry pleaded guilty to grand theft and petty theft, her boyfriend was also charged. The two were responsible for the theft of everything from clothing to electronics and even a desk. (Source

Walmart apprehension ends with drug trafficking charges in Athens, Georgia
. The 39-year-old female shoplifter was very upset upon being detained, probably to the point where something just didn’t feel right to responding police. The suspect was being charged with the theft of sunglasses, earrings and a watch and was begging to pay for the stolen items. Upon arrival of police, the suspect lost all control and had to be picked up off the floor. Upon a pat down search, officers noticed a concealed item in her pants. Being uncooperative, she was transported to the county jail. Deputies found Crystal meth and empty bags used for distribution. (Source

Quarterly Same Store Sales Results

Limited 2Q up 8% with sales at $2.4B vs. $2.46 LY
Dollar Tree 2Q up 4.5% with sales up 10.5%
Wal-Mart 2Q U.S. stores up 2.2% with total sales up 4.5%


Cap Index

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Upcoming Articles

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


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.

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

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

2012 Thought Challenge Awards Committee

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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

Cash control is an important part of any LP program. Review the existing procedures – “follow the money.” What are the controls in the cash office? Are all cash office personnel background screened? Is the physical security of the cash office (locks, safe, camera coverage, etc.) adequate? How are the basic funds for each register drawer set up? How are they transported to the sales floor? What are the controls at the registers? How is change handled? How are cash pick ups done? Who counts the daily sales and creates the deposits? Who verifies the deposits? Are the deposits taken to the bank by sales personnel or are they picked up by an armored carrier service? Are there controls in place to make sure that the deposits arrive at the bank? If a deposit does not make it to the bank or there are discrepancies with the deposits that are identified by the bank, how is it communicated and to who? The answers to these questions will enable you to identify the effectiveness of your company’s cash control procedures.

Timely notification of cash register over and/or shorts to LP is essential. Determine how stores communicate register shortages to LP for investigation. Make sure that LP is notified as quickly as possible. Once notified, how do the LP personnel keep track of the shortages by store? Cash shortage investigations should always be a high priority for your LP personnel. Employees who steal cash are usually stealing in other ways, too.

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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Two men steal 500 canaries from Florida breeder to sell to Miami area pet stores. Someone broke into the home of an 87-year-old canary breeder in Kendall, Florida and the next day two men were attempting to sell the birds to at least three local pet stores. Detectives recovered 150 of the stolen birds from one pet store, but the two suspects and the 350 missing birds have flown the coop. The birds are valued at $12,500. (Source

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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On July 31 the Daily published the following article which has generated comments from our readers.

Age old study resurfaces; Does paying higher wages decrease employee theft? According to a study conducted by University of Illinois and University of Southern California professors it does, "the reduction in theft that comes from a boost in wages would cover nearly 40 percent of the cost of paying employees more." According to the National Employment Law Project, the retail industry has the third largest share of low-wage workers in the country. Illustrating this point, more than 50 percent of New York City retail workers make less than $10 an hour, according to a report from the Retail Action Project. Please feel free to incorporate this study in your next WZ interview. (Source

Comments from Phil Tiffany

No simple answer to this one in my opinion. Our company is fortunate to have very low loss rates (employee or otherwise) so my opinion is based solely on my experience. First, throwing more money at a problem is rarely the answer; especially long term. The raise or elevated starting salary you give me today is simply my new standard of living in 3 months and I'm ready for another raise. Building a culture that minimizes a persons ability to rationalize theft (respect, involvement, work environment etc.), systems that reduce the opportunity for theft and a hiring / review process that eliminates those predisposed to rationalizing poor behaviors in general all contribute to a reduction in loss. Finally, the company response to ANY loss will set the tone. If a company tends to accept some losses as a 'cost of doing business', I believe you have stepped out on that slippery slope that will enable the weak to justify crimes of opportunity.

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Dept Mgr Store LP & Safety Lowe's Garner, NC Lowe's
Dept Mgr Store LP & Safety Lowe's Espanola, NM Lowe's
Dept Mgr Store LP & Safety Lowe's Billings, MT Lowe's
Dept Mgr Store LP & Safety Lowe's Mobile, AL Lowe's
Asset Protection Mgr Sam's G2 Laurel, MD Walmart
AP Manager in Training Walmart Broomfield, CO Walmart
AP Manager in Training Walmart Corpus Christi, TX Walmart
Loss Prevention Mgr Macy's Miami, FL Macy's
Loss Prevention Mgr Macy's Huntington Station, NY Macy's
Loss Prevention Mgr Macy's Sacramento, CA Macy's
Loss Prevention Mgr SOS Security Inc. Los Angeles, CA Monster
Distribution Center LP Mgr Bob's Discount Furniture Aberdeen, MD Bob's Discount Furniture
District LP Mgr Sears Houston, TX Sears Holdings Corp.
Loss Prevention Mgr Sears Cupertino, CA Sears Holdings Corp.
Loss Prevention Mgr Kmart Covina, CA Sears Holdings Corp.
Regional LP Mgr Victoria's Secret Philadelphia, PA Limited Brands
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Jesse Charo was named Regional Loss Prevention Manager for Rent-A-Center.
Rudy Bravo, CFE
was named Regional Loss Prevention Manager for Anna's Linens.

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The Seven Deadly Sins of Management We all know bad managers -- be they ambitious and aggressive, doing whatever it takes to move up the corporate ladder, or the opposite: managers thrust into their position without the skill or the will to do the job properly. We have known what "good management" looks like for decades, and enormous sums have been spent on programs to help managers manage better. And yet the problem endures. (Try the opposite approach)

Are You Sure You're Not a Bad Boss? Conjure up the term "bad boss" and what comes to mind? Scenes of red-faced people berating subordinates in public. Smarmy souls taking credit for other people's work or saying one thing and doing another. Cutting remarks. Yelling. Feel free to continue -- we're sure you can. (10 fatal flaws)
Why Do You Yell at Your Employees? The Wall Street Journal recently ran an article titled "When the Boss Is a Screamer," focusing on leadership styles and their effectiveness. According to the article, the growing trend is toward a "softer, calmer" approach to communicating with employees to get them to do what we want.  (Six ways to not get worked up)

4 Ways to Eliminate Office Politics Although it may not be politically correct to say so, there's nothing wrong with office politics. Politics are a natural outgrowth of any organization. You simply can't escape the fact that your business is made up of people, all of whom have different backgrounds, experiences, and opinions. But you can create an environment that benefits from differing opinions and a little creative tension.  (Preventing turf wars)

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Building Relationships outside of the LP world

As creatures of habit we all tend to stay within our own comfort zones and our own groups. It's a normal tendency and a continuation from our high school days of staying in our clicks. And while it appears to be the safe thing to do that too can offer some real challenges as we progress and expand that group to include the industry as a whole later in our careers. A subject worth more discussion in another Tip column that may prove to be eye opening for some given this writer's experience.

Building relationships with executives outside of the LP world can be one of the most important keys to your success both in your current job and for your long term career development. And while everyone agrees about its value very few actually focus and invest time on it because it literally requires you to get out of your comfort zone and expand your internal and external networks and take a risk. In your current job it can be as easy as going to lunch or preferably dinner with store managers, DM's, RVP's, and corporate executives and investing your time with these executives and getting to know them as executives and as individuals. A key to that interaction is to make it about them and not about you. Use the conversation to learn about their opinions and priorities and make sure you can add intellectual value beyond your LP profession. Show them that you're a student of retail that just happens to be a subject matter expert in loss prevention. Try to approach it as a learning experience and where ever you can add value and don't be afraid to debate an issue. Quit frankly, if it's done correctly, you'll gain more respect and be remembered longer because you had the courage and maturity to initiate a healthy debate. Remember, however, that before one of these dinners it might be wise to go online and do a little research on your current company and you may even want to research the companies the executives you're having dinner with came from in their previous jobs just to make sure you have all the information you need to truly have a great conversation. Being a good conversationalist goes a long way and it requires energy and time but the rewards long term are well worth it. Remember you only have one chance to make a great first impression and these meetings are all about making a great first impression. And by the way always send a follow up thank you email the next day and keep it short.

Just a Thought,
Gus Downing

Gus Downing

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