Read the full press release here | Download the report here
 

The 2023 Optimistically Risky Retail Holiday Season Forecasts

By Tony D'Onofrio, President, Sensormatic

According to forecasts from eMarketer, overall USA retail spending this holiday season will increase 4.5% to over $1.3 trillion, with ecommerce accounting for almost 20% and contributing to 48.5% of incremental spending gains.

Last year, a survey by Google found that by mid-October, holiday shoppers globally had on average 21% of their holiday shopping complete. Retailers should expect the same early start to the shopping stampede this year.

According to Salesforce, 2023 online holiday sales will be flat to last year, reaching $1.19 trillion globally. Some interesting new trends are emerging this year that foreshadow more disruption ahead.

According to Salesforce, for 2023:

• Both generative and predictive artificial intelligence (AI) will influence $194 billion in global holiday shopping spend.

• 81% of shoppers report they have stopped purchasing from a brand or retailer after one bad return experience. For this holiday season, poor return experiences, policies and processes will mean that 21% of online orders are at risk of being lost.

• Those new services that expanded during pandemic are here to stay. In the 2022 shopping season Buy-On-Line-Pick-Up-In-Store (BOPIS) drove one in five online orders and that surged to over one in three orders after the shipping cutoff dates. For 2023, BOPIS will drive $28 billion in incremental global stores sales.

• Social media advertising will drive 10 times more online holiday shopping visits than traditional marketing.

• Resale products are growing faster that ever for the 2023 holiday season, 17% will be resold items, saving 32 billion pounds of waste from going into landfills.

Many of these trends will apply to instore sales as the retail industry continue to be disrupted by new innovative technologies.

Read the full article here
 

200+ Businesses Go On Strike After Oakland Missed ORC Funding Deadline
Oakland business "strike" against rampant crime set for Tuesday

Over 200 Oakland businesses are preparing to go on strike Tuesday in a call for better public safety.

Some will be closed all day and some from 10 a.m. to noon, according to Carl Chan, longtime local business advocate and former president of the Chinatown Business Association.

They are planning to gather for a public press conference outside of Le Cheval restaurant at 10 a.m. The 38-year-old family business announced last week it will be closing at the end of September because of a drop in business due to increased crime. Le Cheval will be joining the strike as well, owner Son Tran said.

"We need to get additional resources from the county sheriff, the California Highway Patrol, and the FBI," said Chan. He also called for the involvement of the Bureau of Alcohol Tobacco and Firearms.

"Crimes have gotten out of hand. All these repeat offenders keep targeting many businesses, but also people," said Chan.

The strike comes on the heels of criticism directed at city leaders for missing a grant deadline that would have provided millions in state funding to help combat organized retail theft, a problem contributing to the challenges faced by local businesses.

Businesses are calling for financial resources from the city, county and governor to offset their losses.

"Small businesses are the biggest employers of the city," said Chan. "We're creating jobs, paying business tax, sales tax, property tax, income tax. We're all paying for it. There should be resources supporting the business community."  cbsnews.com

   RELATED: Sharpening focus on crime, Oakland reverses cuts to violence prevention


AE Broke Leases & Closed 5 Stores Due to Rampant Violence at Northlake Mall
American Eagle calls Northlake Mall ‘reminiscent of warzone’ in counterclaim over lease
In the battle over a broken lease, clothing retailer American Eagle says Northlake Mall was “reminiscent of a warzone.”

After Northlake Mall filed lawsuits against five stores for breaking their leases, American Eagle is fighting back with a bold counterclaim against the mall’s operators.

Spinoso Real Estate Group, which operates the mall in north Charlotte, sued American Eagle and others in late July, alleging that the store vacated and abandoned the premises on April 29. The original lawsuit said American Eagle had a lease through Jan. 31, 2024.

American Eagle’s parent company, AE Outfitters Retail Co., responded with the counterclaim on Tuesday, saying that the lease permits the company to leave the store unattended “due to emergency events beyond tenant’s anticipation and control.”

American Eagle claims that “rampant violence at Northlake Mall” and a new chaperone policy for teen shoppers “constitute such emergency events.”

AE says in the lawsuit that Spinoso promised to lease them space in a shopping center “in accordance with the standards of first-class shopping centers.”

“Instead, Spinoso allowed the shopping center - Northlake Mall - to deteriorate into an atmosphere reminiscent of a warzone, replete with violent criminals, multiple shootings, terrorized tenants and customers, and diminished business.”

The lawsuit claims the Apple store moved out of the mall after three shootings at Northlake Mall. yahoo.com


Car Theft Rates Skyrocketing - Further Slowing Retail Crime Responses
U.S. Cities Have Staggering Problem of Kia & Hyundai Thefts. This Data Shows It.
Thefts of easy-to-steal Kias and Hyundais are a scourge on American cities. Detailed data from ten cities obtained by Motherboard tells part of the story.

Chicago used to have about 850 cars stolen per month. Now, it consistently has more than 2,000, an average of 86 cars stolen every single day. Denver rarely had more than 800 stolen cars in a month before 2021. Now it usually has more than 1,000. Atlanta usually had less than 250 per month before 2022. This year, it has doubled.

The thefts are centered around two car brands: Kia and Hyundai. The companies sold more than nine million cars over the course of a decade without basic anti-theft technology that makes them trivially simple to steal.

Stolen car rates are not up by 10 percent, or 20 percent, or even 50 percent. In many cities, they are up hundreds of percentage points, Motherboard has found. Rates of stolen Kias and Hyundais in particular are up thousands of percentage points.

Equipped with only a screwdriver and a USB cord and watching one or two tutorials, pretty much anyone can steal a Kia or Hyundai without an immobilizer. vice.com


Theft 'Epidemic' Across the Pond
Shoplifting 'epidemic' hits major European city as stores offer to equip staff with bodycams

One local storeowner called the situation 'out of control'

Major retail chains in the United Kingdom have grown so concerned about increased shoplifting they have provided employees with body cameras to deter crime.

"Recently, we’ve had a massive increase in the cases of shoplifting," Benedict Selvaratnam, owner of the Fresh Market in Court in London's Croydon, told Fox News Digital. "Where it used to be three to five incidents in the week, now we’re suffering from anywhere to three to 10 a day. It’s very much out of control."

Fashion chain Primark joined supermarket chains Tesco and Sainsbury’s in supplying employees with body cameras and adding security guards and CCTV cameras and systems.

The increased measures occur as businesses like Target, Foot Locker and Dick’s Sporting Goods all warned that their profits have been under pressure from loss of inventory due to thefts. Department store chain John Lewis said earlier this month shoplifting had reached "epidemic" levels in Britain. foxnews.com


'Dangerous' & Illegal NYC Vendors
Brooklyn Bridge has become ‘disgusting flea market’ for illegal NYC vendors
The tourist-jammed Brooklyn Bridge has become a “disgusting, mile-long souvenir shop and flea market” due to illegal vendors who clog up the famous walkway, residents rage.

There is a city proposal to ban all vendors to “enhance pedestrian safety” and “ease overcrowding on the elevated pedestrian walkways.” Area residents are fed up.

“It is totally disgusting. The bridge used to be a great place to walk over. Not anymore because of all the vendors,” wrote John Fratta on Nextdoor. “Only the City of New York can screw up a nice feature for us residents. I no longer go there.”

Manhattan resident Katie Raffa griped that the bridge is “INSANE. So dangerous. The walkway is already wayyyy too narrow for how many people are on the bridge. Moving the bike lane was a positive, now it’s just a flea market.” nypost.com


'Connect with Congress': Lawmaker Discusses ORC
NRF Connect with Congress Program
Join us on Wednesday, Sept. 27, at 4 p.m. ET for NRF’s RetailPAC Direct new virtual program, “Connect with Congress.” This virtual conversation will convene retail professionals with Representative Susie Lee, D-Nev., for an engaging discussion on the threat of organized retail crime.

Rep. Lee will also discuss prominent topics such as swipe fee reform, retail tax credits, the 2024 election and how she is addressing the ongoing epidemic of ORC through her support of the Combating Organized Retail Crime Act.

Sign up today through NRF’s RetailPAC Direct program by contributing $30 to Rep. Lee's Campaign!


One Month Away!
Fight Retail Crime Day 2023
We are only one month away from Fight Retail Crime Day! The surge in organized retail crime is significantly impacting consumers, retailers, workers and the communities they serve. In response to this crucial issue, NRF has designated Oct. 26 as Fight Retail Crime Day — an annual event that mobilizes the entire retail business community to advocate for effective solutions in combating this problem.

Learn more about 'Fight Retail Crime Day' here


Editorial: AI could help with retail theft. But at what cost?

S.F. to ramp up clearing homeless encampments after new court guidance

Gap Abruptly Closes Embarcadero Center Banana Republic store in downtown San Francisco

Robots Replacing Human Security Guards Amid Worker Shortage
As ADT’s Ed Bacco told the Financial Times (FT) in a report Sunday (Sept. 24), androids can help the security industry deal with its ongoing problem of high turnover.

“We wanted to have more consistency in our guards, and so when I came over to ADT I saw an opportunity to introduce something to the market,” said Bacco, who has also worked at Amazon and for the U.S. Department of Homeland Security.

The report said that the Security Industry Association, the international trade group, believes a labor shortage is a longtime factor hampering growth within the industry. In Great Britain, that country’s security trade association projects there will be a shortfall of more than 60,000 security officers this year.

According to the FT, ADT Commercial has invested in robotics firm 1X, and is testing 10 of its humanoid robots at its monitoring center and some customer locations. For example, one robot is based at ADT’s monitoring center in Dallas, where it searches for signs of disturbance or intrusion and alerts a human guard equipped with a VR headset if it detects trouble. Continue Reading

   Learn more about ADT's EvoGuard in the Vendor Spotlight column below


Refinements in Body-Worn Cameras
There’s been continued uptick in the use of body-worn cameras, by law enforcement and in new emerging markets that leverage the technology for safety, accountability and operational management and control.

In law enforcement, body-worn cameras provide a record of encounters and evidence and may curb violence simply by their presence. Increased use in law enforcement has created research and piqued interest in the product category by other vertical markets, including retail, healthcare, education, airports, parking enforcement and utilities.

As camera technology has improved, refinements have migrated to body-worn cameras. The most significant advancements in body-worn cameras are open platform solutions, automatic activation and live streaming.

A significant advancement has been remote activation of live-streaming capabilities from a real time crime center (RTCC).

“With the addition of high-resolution sensors for capturing quality images, GPS data to get coordinates (location) of the wearer, privacy mode, infrared for low light images and quick charging, body-worn cameras provide extensions of video technology to multiple use cases.

Body-worn cameras can also be sold as a service, adds Axis’ Jussaume. “If the end user asks for cloud storage, there is the potential for recurring monthly revenue (RMR) there. But the most needed service is maintaining body-worn camera hardware. These systems are not like typical security cameras, which are mounted to the ceiling and not touched for years. They are used and handled every day and utilize battery technology. Developing and maintaining a solid hardware maintenance program with your end user will ensure they have the best user experience. sdmmag.com


Holiday spending to increase 3.7%: Mastercard
Spending is expected to increase 6.7% year-over-year for e-commerce purchases and 2.9% from the previous year for in-store sales, according to the report.

Electronics sales are projected to grow 6% from last year, with the next biggest increase being for restaurant spending (5.4%) and groceries (3.9%). Apparel purchases, however, are only expected to rise by 1%, and jewelry spending could dip by 0.3%.  paymentsdive.com


J.C. Penney Q2 sales, profits slide
Still, margins expanded, inventory is down, store traffic is up and the department store remains in the black.

J.C. Penney’s Q2 net sales fell 10% year over year to $1.6 billion. Including credit card revenue, (down 11% to $71 million), total revenue in the period fell 10% to $1.68 billion. Digital sales as a percentage of total sales rose an unspecified amount.

J.C. Penney is embarking on a billion-dollar turnaround at a tough time for retail, especially department stores.

A dramatic turnaround is needed, in part because J.C. Penney’s woes aren’t entirely the result of outside forces, according to Global Data Managing Director Neil Saunders. “Market conditions are certainly tough, but JCPenney’s performance is way worse than peers and shows it is falling behind.”  retaildive.com


Apple Is Giving Out Smaller Raises to Retail Employees in Post-Pandemic Slowdown

• Company’s latest retail pay increases average about 4% - last year was 8% to 10%

In the US, most Apple salespeople are now getting paid minimum $22 to $30 an hour, while AppleCare roles can bring in slightly more. The Cupertino, California-based company also issues restricted stock units annually to both categories of employee. In most cases, those packages topped out at around $2,000 this year. The iPhone maker issued bonuses for some workers as well. bloomberg.com


5 takeaways from Groceryshop 2023
The annual event focused on practical solutions designed to address key priorities for retailers, including reducing shrink, improving checkout technology and cutting through the digital clut

NRF Foundation Announces The List of People Shaping Retail’s Future 2024

88% of Boards Have No Cybersecurity Expert as Director
Boards Still Lack Cybersecurity Expertise

Just 12% of S&P 500 companies have board directors with relevant cyber credentials, new study says

Few board directors at the most prominent U.S.-listed companies have direct experience with cybersecurity, presenting a challenge for how executives handle cyberattacks.

An analysis of board composition in companies in the S&P 500 index found that 88% have no cybersecurity expert as a director. Only seven companies had a current or former chief information security officer on their board, the research found, and in two cases, that was the same person.

“This lack of momentum in the boardroom continues to startle me,” said Dave DeWalt, founder and chief executive at venture-capital firm NightDragon, who also sits on the boards of Delta Air Lines and software company Five9. NightDragon and the Diligent Institute, the research and think-tank arm of executive software developer Diligent, conducted the study, published Thursday.

Cyber expertise was broadly defined as people who currently work or formerly worked in CISO roles; those who held senior technology positions, but not necessarily cyber roles; and those who had technology experience without having held senior positions.

About 52% of companies had a board director with some technology experience adjacent to cybersecurity. This includes people who sit on the boards of cyber companies or have an affiliation with a cybersecurity-related professional organization.

Cyber credentials on the board are now crucial for good governance, said Emily Heath, a general partner at VC firm Cyberstarts. Heath, a former security chief at United Airlines and tech provider DocuSign, sits on the boards of cyber companies Wiz and Gen Digital.

Directors, in their oversight role, are responsible for ensuring risks are properly managed, including cyber risk, Heath said. “You have to have that cyber knowledge and expertise to know what questions to ask,” she said. wsj.com


Cybersecurity Planning Already Underway for 2024 Super Bowl
NFL, CISA Look to Intercept Cyber Threats to Super Bowl LVIII

The league is working with more than 100 partners to workshop responses to a host of hypothetical cyberattacks on the upcoming Big Game in Las Vegas.

Looking to juice up its defense, the league worked with the Cybersecurity and Infrastructure Security Agency (CISA) and Super Bowl LVIII stakeholders during a tabletop exercise that CISA said was meant "to explore, assess, and enhance cybersecurity response capabilities, plans, and procedures" ahead of the big game on Feb. 11, 2024, at Allegiant Stadium in Las Vegas.

The four-hour tabletop exercise brought together more than 100 partners from the NFL, stadium, and government at all levels, according to the announcement on Sept. 21. During the exercise, participants discussed a hypothetical scenario that included phishing, ransomware, a data breach, and a potential insider threat — all with cascading impacts on physical systems.

"This was a safe, low-stress setting to identify any gaps in those plans and ensure we all have a shared understanding of roles and responsibilities. In short, this exercise will help ensure we're ready for any challenges that come our way on game day," said Steve Harris, CISA's deputy executive assistant director for infrastructure security.

The Super Bowl, like the World Cup, is one of the most-watched sporting events globally, and a successful cyberattack disruption would be a major coup for any cybercrime group. In other words, these types of events are the white whales of the target sea.

George McGregor, vice president at Approov, noted that the cyber-threat surface for sports continues to expand as well, as smart stadiums and ever-more-digital infrastructure to support fan and team operations proliferate. darkreading.com


Hands-on threat simulations
Empower cybersecurity teams to confidently combat threats
Security processes are increasingly automated which has led some businesses to deprioritize developing their security teams’ defense skills. While antivirus and non-human generated threat detections efficiently identify vulnerabilities, they cannot detect every single threat.

With the rising number of cyber-attacks, organizations must make sure they are ready to defend themselves. That means equipping cybersecurity teams with sufficient skills to identify and effectively stop an attack in its tracks. Worryingly, only 17% of tech workers are completely confident in their cybersecurity skills, while 21% have no confidence at all. Given that 74% of data breaches are caused by human error, it is crucial that upskilling practices are in place.

One of the best ways to develop the necessary skills is through hands-on learning which allows employees to practice in a low-risk environment and better understand the methods used by cyber-attackers. This kind of experience is vital for security teams to be able to anticipate threats and capably protect the business. helpnetsecurity.com


Wawa’s $10.7M data breach lawsuit against Mastercard thrown out

How companies can take control of their cybersecurity

San Francisco, CA: 3 arrested for $100K retail theft from businesses across Bay Area
Three suspects were arrested in connection to a series of organized retail thefts of businesses across the Bay Area, the San Francisco Police Department announced on social media Friday. Authorities neither specified when the arrests were made nor where the victim businesses were located. A suspect vehicle linked to the grand theft was discovered by police. A dark-colored Kia contained some of the stolen merchandise, according to SFPD. In a picture posted by SFPD (view below), the Kia was located at McAllister and Jones Street in the city’s Tenderloin neighborhood. In a separate incident, SFPD arrested an additional four suspects this week from an unrelated robbery. Three of those suspects are minors, and over $5,000 worth of stolen merchandise was recovered, SFPD said. The department was able to recover thousands of dollars worth of merchandise from both incidents.  kron4.com


Florence, AL: Police charge 2 in $50,000 stolen credit card shopping spree
Two people face multiple charges after Florence Police say they used a stolen credit card to make more than $50,000 in purchases. Kathryn Crawford and Nicholas Lenz used the card at businesses in Florence, Muscle Shoals and Decatur, police said. The card was taken from a business in the 100 block of Heathrow Drive. Crawford was charged with 17 counts of fraudulent use of a credit card and one count of theft of property. She’s being held in the Lauderdale County Jail on a $47,000 bond, police said Monday. Lenz was charged with 28 counts of fraudulent use of a credit card and one count of theft of property. He’s being held in the Lauderdale County Jail on a $53,000 bond, police said.  waaytv.com


Lancaster, PA: Woman charged in $12,000 worth of retail theft from Lancaster Ulta Beauty
A warrant for a Lancaster County woman stemming from over $12,000 worth of retail theft from an Ulta Beauty of Fruitville Pike was closed Monday, Sept. 25, after the suspect appeared in court for a hearing in the case. Authorities allege that Quetesha Laray Payne, age 34, was involved in several retail theft rings responsible for thousands of dollars worth of stolen merchandise across central Pennsylvania. On May 2nd, the victim reported that five suspects entered the store, concealed $7,732 worth of merchandise, and then left without paying—with the five reportedly fleeing the scene in the same vehicle. Only a week later, two of the suspects were seen returning to the very same Fruitville Pike Ulta before making off with another $5,388 in store inventory. Additionally, information obtained by authorities were able to identify Payne and several other co-conspirators as suspects in more organized retail thefts throughout Central Pennsylvania as well.  local21news.com


Newark, NJ: Suspect Wanted for $11,000 Smash-and-Grab Theft at Newark Ironbound Jewelry Store