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PayPal to be available at point of purchase at 7 million stores, deal with Discover Card network. Under the deal, unveiled on Wednesday, PayPal will issue payment cards to its more than 50 million active users in the United States next year. The cards will let PayPal users buy from merchants that already use Discover Network, a payment network with more than 7 million U.S. retail locations. (Source

Collective Brands shareholders approve sale of company. Collective Brands stockholders voted at a special meeting on Tuesday to approve the sale of the company for about $1.32 billion. Collective, who owns the Payless and Stride Rite shoe store banners, had announced in May that it accepted a purchase offer from a group that includes Wolverine Worldwide Inc., Blum Capital Partners and Golden Gate Capital. The transaction will split Payless and Collective’s brand development and licensing arm into separate companies. Wolverine, which owns Hush Puppy, will acquire the Performance + Lifestyle Group, which includes Sperry Top-Sider, Saucony, Stride Rite and Keds. Blum Capital and Golden Gate will jointly acquire Payless and Collective Licensing International. (Source

DSW on track to open 27 stores in second half. CEO Mike MacDonald told analysts that performance thus far is on track with annual earnings targets and that DSW is on track to open another 27 new stores over the next six months. Revenue rose 7.5% to $512.2 million, beating the $510.9 million expected by Wall Street. (Source

Kurt Schumacher has been promoted to SVP, National Field Operations for Advanced Auto Parts. Kurt will lead the company's nearly 3,500 Advance Auto Parts stores and Asset Protection. In addition, Advanced Auto Parts has promoted Joe Gonzalez to Area SVP. In his new role, Joe will report to Kurt.  (Source

Joseph Weber to Join Neiman Marcus Group as Chief Human Resources Officer, as Senior Vice President, and Chief Human Resources Officer. Mr. Weber will be responsible for all areas of Human Resources and Loss Prevention including associate relations, learning and development, recruitment, compensation, internal communications, and benefits. Mr. Weber joins Neiman Marcus from Bank of America Corporation, where he held various positions, most recently Head, Human Resources EMEA, Latin America and Canada. Prior to Bank of America, he was with Dell, Inc. and General Electric Company. (Source

Commercial Banking laws being tested, who is financially responsible for online fraud? Patco Construction. v. People's United Bank is now the federal case testing if a bank is truly responsible for large online fraudulent transactions, or is the bank and its security systems simply acting in good faith by honoring the transaction. Over seven days in May 2009, Ocean Bank, a southern Maine community bank, authorized six apparently fraudulent withdrawals, totaling $588,851.26, from an account held by Patco Construction Company, after the perpetrators correctly supplied Patco's customized answers to security questions. Although the bank's security system flagged each of these transactions as unusually "high-risk" because they were inconsistent with the timing, value, and geographic location of Patco's regular payment orders, the bank's security system did not notify its commercial customers of this information and allowed the payments to go through. Ocean Bank was able to block or recover $243,406.83, leaving a residual loss to Patco of $345,444.43. (Source

The British Retail Consortium's first e-crime study indicates retailers $325 million lost in 2011-12. Retailers have called on the Government and police to take e-crime more seriously as a new survey showed the problem costs UK firms $325m a year. The figure includes $122m in losses in 2011-12 from fraud itself, $175m due to legitimate business being rejected because of crime-prevention measures and $26m spent providing better security. The UK is seen as a world leader in online retailing - it has the biggest internet spend per-capita of any country and 11% of global internet retail sales. But many retailers lack confidence in the official response to e-crime, which is the biggest emerging threat to the retail sector, according to the British Retail Consortium. (Source

Canada retail sales unexpectedly fall on broad weakness. Canadian retail sales dropped unexpectedly in June, confirming a weaker trend in consumer spending that will likely trim overall growth in the second quarter and raises questions about the Bank of Canada's hawkish slant on monetary policy. Retail sales dropped 0.4 percent in June from May on broad-based weakness across sectors and across the country, and May numbers were also revised lower, Statistics Canada data showed on Wednesday. (Source

Counterfeiting ring hits 13 Chicago area Target stores. A south suburban Flossmoor man is facing a federal counterfeiting charge for allegedly making phony $50 and $20 bills nearly $20,000 of which were passed at 13 suburban Target stores to purchase iPads and other high-end electronics. Authorities began investigating July 14 after a Target loss-prevention supervisor contacted the U.S. Secret Service and said two women had passed counterfeit bills at several suburban Target stores, according to an affidavit filed with the complaint. (Source

Driving, running and swimming, the suspected shoplifter still got caught. Robert Prymus was charged with shoplifting from a Best Buy store in Collier County, Florida. Prymus was stopped by Loss Prevention, fled from their custody, drove his car into a ditch, refusing to stop he ran from police, and then swam in a canal only to be arrested as he exited the other side. All that being said, read this quote from the article... Witnesses at Best Buy told officers they saw Prymus enter the restroom and exit with a stuffed backpack. Loss Prevention had detained the suspect after allegedly catching Prymus on surveillance video stuffing his backpack with items that were later found in the restroom trash can. It was then that the suspect ran out the emergency exit. Hmmm. (Source

Four Academy Sports employees facing theft charges in Alexandria. Four associate now face Organized Retail theft charges for the theft of merchandise valued at $3500. (Source

Global reach of ORC... Hypermarts losing millions to shoplifting syndicates. Shoplifting is universal, in Malaysia increased organized retail crime has continued to develop and often times turning violent. Powdered milk tops the list of stolen items, along with tea, coffee and Milo packets, chocolates and toiletries. The theft of powdered milk is so rampant that some supermarkets have placed the items behind locked glass counters. One Hypermarket chain with 148 stores believes they are a target of ORC rings somewhere every day of the year. (Source

Ohio woman, 71, who bilked $60M from 900 investors in Ponzi scheme gets 9 years in prison. A northeast Ohio woman convicted of bilking $60 million from nearly 900 investors in a failed development project has been sentenced to nine years in prison after a long-running dispute over how much time she would serve behind bars. Joanne Schneider, 71, pleaded guilty Monday to 11 felony charges in a Ponzi scheme she ran with her husband, prosecutor’s spokeswoman Nicole DiSanto said Tuesday. DiSanto said the Lakewood woman will get credit for the 2 1/2 years she’s already served, reducing the time she has left to serve to 6 ½ years. The couple had proposed a multimillion-dollar retail and entertainment development in the Cleveland suburb of Parma Heights that was never built. (Source

Not your usual break in, thieves dig through four shops and cart away jewelry. Thieves in Malaysia took some time to get to a jewelry store vault, getting away with over $100,000 in merchandise. Cutting holes in three adjoining stores to finally get to the jewelry store, then cutting open the safe with a hole the size of a soccer ball. The suspects are still at large. (Source


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"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


Know about an event we should feature here?
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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

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

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

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

As you spend more time in your new role as LP Director, look for opportunities that can add value to your Department. Is your Department responsible for Safety? If not, is it something you could absorb into your organization? How about Crisis Management/Business Continuity Planning? These additional responsibilities expand your scope and make LP more global and valuable to the company.

You’ve heard it many times. "People are your most important asset." Well it’s true. Your people will make the difference. They will determine your success or failure. People who understand your vision and are committed to making it happen will ensure your success. People who do not understand your vision and/or don’t support it will ensure your failure. The time you spend in developing your people is worth every minute. "You are only as good as your weakest link." Another well used phrase but it is also true. Every person in your department represents you. What they do every day is a reflection on you. How do you want that reflection to look? If you want it to be good, you need to make the effort.

In conclusion, you are embarking on a journey. It takes time and effort to implement and maintain effective LP programs. It takes time and effort to put in place and develop an effective LP Department. Learn from the mistakes. Celebrate the successes. Enjoy the process.

Click here to read what's been published

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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Seven arrested for Organized Retail Crime from Louisiana Co-op.
The Louisiana Department of Agriculture and Forestry (LDAF) Livestock Brand Commission and the Tangipahoa Parish Sheriff's Office have arrested seven people in connection with organized retail theft. Authorities estimate the thefts amounted to approximately $150,000. Three of the people arrested were employees of the Kentwood Co-Op, one was a relative of one of the employees and the rest were individuals who were allegedly buying stolen merchandise from the employees. (Source

Theft Ring busted in North Las Vegas, recruited children. Two Convenience store workers, without the owner’s knowledge, recruited area children to steal high end electronics and computers, selling them for a quick profit. The young suspects are believed to be connected to shoplifting and home invasions to acquire goods they could sell to Daniel Malaver and Jose Gonzalez at the AM PM convenience store. The two suspects face charges connected with buying and possessing stolen property. This is the second theft ring to be busted recently. (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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Thought Challenge

A Fresh Rotation
Finding a compromise between freshness, sales, and losses.

Submitted by Adam Smith, CFE, CFI
Senior Regional Asset Protection Manager
Winn Dixie Stores

A busy customer just selected a product from one of your shelves. The customer quickly made their purchase and hurried home to be with their family. Everything about the product looked well – the package didn’t seem damaged and the store associates were friendly. However, in this case, we can only hope this customer is planning to use the product immediately, because it has an expiration date of today.

In some cases, the customer may notice the expired product before it is consumed. Other times, the customer may consume the product without ever checking the expiration date. At any rate, this sale has the potential of a negative experience for the customer.

While this scenario may result in a negative experience, the store did not do anything wrong. Laws and policies allow the sale of product up to the expiration date. Moreover, many products are safe to consume several days after their expiration or sale by date. However, many customers will not use them. A customer-focused organization will seek to reduce negative experiences for their customers regardless of whether the practice is in-line with regulations.

The first step is to understand the implications of reducing the amount of days up to the expiration of products available to customers.

The Close Date

The purpose of leaving close-dated product on the shelf is to sell it. However, this begs the question of how many units could be sold. Put another way, what stands to be gained by leaving the product on the shelf until its expiration? Yogurt is a good test case since it has a relatively short shelf life. The average case of yogurt contains 12 units with an average shelf life of 28 days. Therefore, any yogurt selling 3 or more units per week will not be affected by expiration dates, as long as orders are placed appropriately.

Only varieties selling 2 or less units per week will be affected by the expirations date. Sales of two per week would leave four to expire and sales of one per week would leave eight units to expire. Under normal operations, these expired units would be available for sale up to the very last day.

Taking it a step further, we can see that there are very few sales to gain in the last few days of the product’s life. Since slow sales are the reason that the product is available to expire, these products will generate very few sales in the final days of shelf life. A product selling two units per week represents the worst-case scenario, since selling any more would not cause expiration. In this scenario, a product selling two units per week will average only one sale up to four days before expiration. Therefore, leaving the product on the shelf up to the sell by date will sell only one unit. The figure below illustrates that the optimum point to pull close dated product is four days before expiration.

By pulling the close-dated product four days prior to expiration, hardly any sales are sacrificed and a negative customer experience is adverted. The reality is that slow-moving products are destined to be pulled at some point, and pulling them a few days early does not significantly increase the amount of discards.

Taking Up Space

Slow moving products may be offered by a store to grow a product line or promote variety. At the same time, these products are destined to expire. In some cases, very few units will sell. Some slow moving products do nothing more than take up space on a shelf.

Since retailers generally avoid empty spaces on their shelves, leaving slow movers on the shelf may be serving a purpose. In extreme cases, a negative customer experience would never occur because of the lack of sales in a slow moving product. Pulling these products early will result in increased losses with very little upside.

In the example of a case of yogurt with twelve units, pulling the product four days early represents 14% of the products shelf life. Therefore, we could expect losses on this product to increase by 14%. However, this example would be a worst-case scenario since it assumes just-in-time delivery of new product.


This can present a dilemma for slow moving product. Few retailers would mind sacrificing the sale of one unit to avoid negative customer experiences; however, a 14% increase in losses could give pause.

However, the issue does not have to be entirely black and white. Retailers could carefully monitor slow moving products, removing them as needed. Additionally, suppliers should have some amount of accountability relating to the increased losses needed to rotate products early.


The close-date issue may seem to be a choice between freshness and losses, but there is some room for compromise. In order for a compromise, the retailer needs to be up-front with their customers about products with close-dates. Retailers will want to avoid instances in which customers purchase products assumed to be fresh, but discover a close-date after the purchase.

This can be done by reducing the price of a product when it is four days from expiration. Reducing close-dated products is a practice that has been around for a long time, but the intention is usually to avoid losses. However, this practice also alerts customers to close-dated products. Some customers may avoid the products, but others may purchase them to take advantage of savings. In either case, the retailer is being honest about the freshness of the product.

Unfortunately, reducing close-dated products is not without flaws. There may be times in which a customer intends to pay full-price for a product, but decides to take advantage of a reduced close-dated product. This could result in unintended down selling. Moreover, diverting full-price sales could exacerbate the losses of a slow-moving product. Unfortunately, it would be very difficult to fully understand how many times this happens, and how much it affects the losses of a product.

The Bottom Line

Whether it’s taking losses earlier or reducing close-dated products, being up-front with customers about the freshness of products is important. Any company dealing with perishable goods should have a strategy in place to avoid the bait-and-switch feeling a customer gets when they unknowingly purchase a close-dated product.

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Vendor Spotlight

Axis Launches First-Ever IP Camera that Features Both
Dynamic Capture WDR and Lightfinder Technologies

AXIS P3384 Fixed Domes leverage two of the latest in imaging technologies for outstanding performance across a wide range of demanding lighting conditions

CHELMSFORD, Mass. – August 21, 2012 – Axis Communications, the world leader in network video, today introduces AXIS P3384-V/-VE Fixed Dome Network Cameras, which feature its two latest imaging technologies in the same camera for the first time: wide dynamic range (WDR) with ‘dynamic capture’ for environments with strong variations in light and Lightfinder technology to produce color video even in the lowest of light.

Any surveillance camera can be configured to produce excellent video in perfect lighting conditions. In the real world, however, the intensity, quality and direction of natural and artificial light often fluctuates throughout the day, challenging the camera to produce quality video in a variety of difficult lighting conditions – like low light, direct light, through shadows and while fighting reflections. Cameras that are ideal for one lighting situation often perform poorly in another.

AXIS P3384 Network Cameras, available in vandal-resistant indoor and outdoor-ready models, allow the user to select between two enhanced imaging modes during installation to combat specific lighting scenarios. The camera can be configured to either utilize WDR with dynamic capture to compensate for intense backlight or variable lighting conditions, or enable Lightfinder to overcome low light and capture color details when typical day/night cameras would switch to black and white. This imaging flexibility makes AXIS P3384 ideal for all types of surveillance applications, including at airports, train stations, hospitals, government buildings, banks, retail stores and for city surveillance.

“When it comes to difficult lighting scenarios in surveillance, some cameras are fantastic in low light, while others are great when sun shines directly at the lens,” said Fredrik Nilsson, general manager, Axis Communications, Inc. “Unfortunately, this meant users often had to choose between, say, low light performance or exceptional WDR and select the camera that worked best for the lighting scenario they deemed more important. That changes with the introduction of AXIS P3384.”

Axis first introduced dynamic capture WDR in AXIS Q1604 Network Cameras, which uses advanced image processing to ensure that no part of the video is too dark or too bright. This creates video with clarity and sharpness in challenging and variable lighting scenarios, such as when the sun backlights the area by shining directly toward the lens or when intense contrast creates shadows in the scene. These are common challenges when monitoring entranceways, buildings with large windows, tunnel passages and cities where the skyline creates a variety of shadows (video showcasing WDR with dynamic capture).

Lightfinder was first launched in AXIS Q1602 Network Cameras, making it the most light sensitive camera on the market that could produce color video down to 0.05 lux (video showcasing Lightfinder technology). This color-at-night technology, which greatly aids in identification, is the result of an ideal combination of lens, image sensor and in-camera chip technology to reduce noise and motion blur in low light, and was later added to AXIS P33 Series cameras announced earlier this year.

This is the first time that both WDR with dynamic capture and Lightfinder are options in the same IP camera to handle all difficult lighting scenarios.

In addition, AXIS P3384-V/-VE cameras with a P-iris lens provide HDTV 720p/1.3MP resolution based on a 1/3" image sensor inside an IK10 vandal-resistant housing. Like all AXIS P33 Series cameras, they have a modular design with easy installation capabilities, including remote zoom and a pixel counter to ensure that the angle of view is optimized with the required pixel resolution. Remote focus is included to eliminate manual focusing at the camera.

AXIS P3384 cameras also feature audio support, input/output (I/O) ports for the connection of external devices, and an SD/SDHC card slot for internal storage. Support for standard, environment-friendly Power over Ethernet requires only one network cable to carry both power and data, and the weatherproof, outdoor-ready models can operate in extreme temperatures from -40 °F to 131°F. Also, the highly efficient H.264 Main Profile option can reduce bandwidth and storage needs up to 20 percent.

AXIS P3384-V and AXIS P3384-VE fixed domes are supported by the Axis Application Development Partner Program, the industry’s largest base of video management software, as well as AXIS Camera Station. The cameras include support for AXIS Camera Application Platform for software developers to create 3rd party intelligent applications to run inside the camera itself and feature high processing power for enhanced performance of video analytics applications. AXIS Video Hosting System enables these cameras to integrate into a hosted video solution and ONVIF support is included for easy camera system integration.

The cameras are expected to be available in Q3 2012 through Axis’ standard channels at the suggested retail prices of $999 for AXIS P3384-V and $1159 for AXIS P3384-VE.

Matt Flanagan
fama PR, Inc.

Domenic Locapo
Axis Communications Inc.

Axis Communications

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12 Things Good Bosses Believe What makes a boss great? In 2010 Robert Sutton wrote this article based on his research. He avoids giving any advice that isn't rooted in real proof of efficacy and he passes along the techniques and behaviors that are grounded in sound research. The article may be a couple years old, but the advice is still sound and something every leader should take the time to read. (Evidence-based)

How to Be Assertive (Without Losing Yourself) Conventional wisdom says that assertive people get ahead. They tell people what they think, request the resources they need, ask for raises, and don't take no for an answer. So what are non-assertive people supposed to do if their company's culture rewards these actions? If you're shy or reserved, don't fret. You can ask for what you need and get what you want. (Still be yourself)
The Delicate Art of Being Perfectly Assertive This article is a follow up to Robert Sutton's article "12 Things Good Bosses Believe." In this article, he delves into each of the 12 things, focusing mostly on the fourth belief: "One of the most important, and most difficult, parts of my job is to strike the delicate balance between being too assertive and not assertive enough." (To stay on the tightrope)

How to Build Confidence Very few people succeed in business without a degree of confidence. Yet everyone, from young people in their first real jobs to seasoned leaders in the upper ranks of organizations, have moments -- or days, months, or even years -- when they are unsure of their ability to tackle challenges. No one is immune to these bouts of insecurity at work, but you don't have to hold you back.  (What the experts say)

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Self-reflection is something many avoid or refuse to allow it to creep up and point to exactly what you need to look at. Hidden behind rationalizations, self reflection in actuality can be an eye opening experience. Popping up when you least expect it but most notably late at night when you're staring at the ceiling with no other outside interferences lending you license to deny it. Self-reflection is the one person you should make it a point to face. It just might make a difference tomorrow.

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