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November 11, 2011 SUBSCRIBE

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Next year will likely bring more than 5,000 store closings. And that’s not counting closings related to bankruptcies and liquidations. As the holiday shopping season draws near, the weaker retail chains will be facing their hour of reckoning, with their sales growth during the November/December period determining their ability to survive. So far in 2011, the retail real estate industry experienced fewer store closing announcements than during the same period in 2010. ICSC numbers show there have been 2,196 store closing announcements in the first three quarters of the year. The figure is less than half the 4,889 store closings announced in the first three quarters of last year. For the whole year 2010, U.S. retailers closed 5,572 stores. Here's the view over the last 10 years. (Source

Gartner is predicting that corporate spending across the world for a broad swath of security services will climb from about $35 billion today to $49 billion in three years, with the managed security services expected to jump most of all. North America is the largest market for security services overall and is expected to surpass $14.6 billion next year and grow to $19 billion in 2015. (Source

Aldi security guard in Chicago's South Side was fatally shot last night during an attempted robbery and a woman was wounded as well. The suspect got away. (Source

Corporate espionage, data theft and private cyber-attacks cost US companies and individual citizens hundreds of billions of dollars and the threat is growing. Andrew Brown is a leading expert on covert corporate intelligence/counterintelligence activity both in the United States and abroad. His new book, The Grey Line: Modern Corporate Espionage and Counterintelligence is the summation of vast international experience on these subjects. It covers in exacting detail how corporate spies operate, how they turn human sources within target companies, how modern hacking and cyber-intelligence is gathered and secured systems compromised. The author provides in-depth analysis of the rapidly growing field of corporate and industrial espionage and its impact on companies and individuals. (Source

Tablet PC's are becoming a prime target for online fraud with 23,000 listings for cloned tablets on any given day. MarkMonitor found listings by 766 sellers of counterfeit tablets, largely in the business-to-business marketplaces; 2,914 gray market sellers, all in the consumer marketplaces; and 4,301 sellers of cloned tablet PCs, which were evenly split between business-to-business and consumer marketplaces. The sellers of counterfeit tablets priced their tablets at an average of $300, which MarkMonitor says is about 50% less than the average retail price for the tablets reviewed in the study. (Source

Circle K Fights Crime on Facebook & Hopes surveillance videos will bring tips. On its Facebook page, Circle K posts surveillance pictures from crimes committed in their stores by shoplifters and robbers. If you recognize a picture of a suspect on the Facebook page, there are options on how give a tip anonymously -- including contacting Silent Witness. "With 800 million Facebook users across the country, and who knows how many here in Arizona, being able to use the community to stop crime and ID suspects -- what a great idea," said crime prevention consultant Rollie Trayte. Trayte is a former Circle K executive in loss prevention, and is now a loss prevention consultant. He thinks the idea is solid and will produce results. (Source

Angry Birds, game phenomenon, actually opens it's world-1st store in China because of the counterfeiting
. They're also actually creating products that are "pirate merchandise inspired". Talk about reacting to the competition they're reacting to the black market directly and they expect to do $100 million in the first year alone. They should be thanking the counterfeiters for inspiring them. WOW that's a retail industry first. (Source

77% of baby boomers over 55 worry about being a victim of online fraud and 46% say they don’t feel secure that merchants are protecting their safety and security when shopping online. 62% of consumers 18 to 25 years old are concerned about being falling prey to online criminals and 27% say they think online retailers aren’t adequately protecting their security. That’s why 50% of millennials (18 to 25) say they pay heed to an online retailer’s reputation before making a purchase. That compares to 41% of baby boomers. Despite their concerns only 35% of millennials have been the victim of an online fraud. That number jumps to 46% for baby boomers. (Source

In the face of a cyber attack, retailers should beat a hasty retreat Online retailers can learn a lesson from last week’s hacking attack against Adidas Group, security experts say: It’s better to shut down e-commerce sites right away and shore up protections rather than deny the problem, keep the sites up and risk more damage. The Adidas attack also serves as a reminder that retailers need to prepare for attacks, especially in the midst of the lucrative holiday shopping season. "Everyone in e-commerce should have an incident response plan in place," Quinn says. Schmidt adds that such a plan should detail how they plan to preserve evidence for law enforcement. (Source

How cybercriminals get through the back and front doors The holidays are always a robust time for hacking with the uptick in the use of credit cards. And retailers can expect to see more criminal attempts to crack their websites and network security systems. (Source

J.C. Penney Co.'s new CEO Ron Johnson, formerly retail chief at Apple, is recruiting former Apple Exec's over to Penney's and is looking to transform Penney into America's favorite Store. Hiring their former CFO and using Apple's former Chief Talent Officer to build his team. This is going to be very interesting to watch long term. (Source

30 hours after Barnes & Noble unveiled the successor to the Nook Color, the Nook Tablet, at a press event in New York City Monday Amazon announces their Kindle series will be in more than 16,000 retail locations beginning Nov. 15th. What a battle! (Source

Starbucks Corp plans to start a chain of juice bars starting next year, venturing into territory staked out by Jamba Inc, in its biggest-ever expansion beyond coffee. The first juice bars will open on the U.S. West Coast around the middle of next year, but the company would not say how many were planned. To our knowledge they still have not filled a VP of LP role that they eliminated earlier this year. (Source

Nordstrom 3Q reports same store sales up 7.9% with net sales up 14%
Dillard's 3Q reports same store sales up 5% and revenue up 3%


Sponsorship Opportunity for LAAROCCA

The Los Angeles Area Organized Retail Crimes Association (LAAORCA) will be having their 3rd Annual 1-Day ORC Conference on Thursday February 16, 2012, at the Los Angeles Convention Center. LAAORCA's first conference was held in February of 2010 with 650 attendees; this year LAAORCA had approximately 900 attend its second conference.  For this upcoming conference, LAAORCA is anticipating over 1,200 attendees and will be adding a golf tournament the day before the conference due to overwhelming success from last week’s Holiday Golf Classic and requests from conference attendees.  Anyone interested in becoming a sponsor or would like more information, please visit





Doug Marker
Vice President
LP, Risk and Audit
Michael Stores, Inc.

Stephen O'Keefe
Loss Prevention and
Risk Management
Wal-Mart Canada

Coming in November

Kelly Gorman
Vice President LP

LP Program Spotlight
eBay's PROACT Team

Dec. 1 deadline
is coming!

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National Retail Federation
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The Full Spectrum of LP

April 22-25, 2012
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Dallas, TX












Watch for our article the day after each event!

Los Angeles Area
ORC Association

3rd Annual
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Thurs, Nov 16, 2012
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XXRichard C. Hollinger, PhD















































eBay Asset Protection Support Federal Investigation into Stolen Goods

eBay Global Asset Protection investigators assisted Federal law enforcement agents with reports of military personal selling stolen equipment leads to jail sentence for sailor. The former sailor who sold $170K of stolen military equipment, including night vision equipment the military considers highly sensitive, was sentenced to 30 months in federal prison. He stole about 280 items over the course of a year while stationed at Coronado Naval Amphibious Base. The suspect, a gunner’s mate petty officer first class, served in the Navy for 11 years. The gear is highly sought after by enemies — and even allies — because of its superior technology and the tactical advantage it can give to troops. Selling the gear represented “an incredible breach of trust,” Assistant US Attorney John Parmley said.
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D&D Daily Canadian Push

Jen Drake, Director of Resource Protection, West 49 Inc. On –

                                   We are a bilingual nation!

Speaking of packaging and labeling, we are a bilingual nation! French and English are the official languages of Canada. This means US retailers coming to Canada will have to be aware of the minimum Federal labeling requirements. If you have plans to set up shop in Quebec be aware that there are additional Provincial requirements imposed for bilingual labeling, signage, POS receipts, advertising & promotional materials, etc.


With higher sales taxes (in the double-digit range) and 20% higher retail labor costs in Canada the price gap between U.S. and Canada may never go away. Bank of Canada Governor Mark Carney made that prediction, saying even with efforts to create a uniform North American market with identical tariffs and regulations won't fully close the gap. (Source

Music retailer HMV Canada is still holding on but closing their flagship store and another in Vancouver. With paring down to 116 stores, selling it's UK division to Hilco UK earlier this year HMV is hanging on with expanding into the digital world, offering more than 10 million MP3 tracks for download and an 800,000-member customer rewards program. That retail model is under attack. The rise of digital options has taken a toll on the overall sales of CDs, with 30 per cent of music consumers in Canada now choosing to shop online. In the United States and United Kingdom, the decline in physical entertainment sales is closer to 50 per cent. They wiped out the senior LP position earlier this year as well and how long they'll be around is the real question, at least from the physical locations are concerned. (Source

Canadian retailers have less competition and are less productive than U.S. retailers. The top four retailers in Canada control 28% of the market, with the top four in the U.S. having just 12%. Canadian retailers also employ more staff than do American retailers. Productivity has lagged that of the U.S. “Canada is underserved relative to the U.S. market,” Bank of Canada Governor Mark Carney said to the Canadian Senate, noting Canada has 14 square feet of mall space per person while the U.S. has 23 square feet per person. That won't be for long - give it 5 years and that number will disappear. Then we'll be facing an entirely new set of issues. (Source

The Canadian Press doesn't pick up the ORC cases like the U.S. Press or at least it seems that way and two senior LP executives in Canada agree. What's the reason is anyone's guess but the fact is they're making busts just like their U.S. counterparts it's just that the Press isn't picking it up.

Canada’s new polymer bank notes are coming. Are you ready? The new polymer notes have leading-edge security features that are both easy to check and hard to counterfeit. Order your free, postage-paid information kit to learn more. Contact the RCC about free training seminars. (Source


Do you have a Canadian ORC case to share? Publishing it educates the U.S. LP & retail community which might fuel even more jobs and funding.


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Kroger's ORC target receives 8 years, 9 month jail term for fuel thefts (Atlanta, GA) Leo Stevens, the main target of an ORC fuel theft investigation in Atlanta, Georgia, was sentenced in federal court on Wednesday to 8 years and 9 months incarceration for the repeated thefts of fuel from The Kroger Co. fuel centers in Atlanta and the metropolitan area. Stevens purchased pickup trucks and customized the beds so bladders could be installed in the beds which could contain several hundred gallons of fuel. The fuel was purchased with fraudulent credit cards and the stolen fuel sold to businesses. Stevens was indicted by the U.S. Secret Service after a 6 month investigation initiated by Kroger ORC team in Atlanta who partnered with the U.S. Secret Service, Atlanta Field Office, and the Georgia Department of Transportation.

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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Wal-Mart Atlanta, GA Wal-Mart

Corp LPM of Analytics & Exception Reporting



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District Loss Prevention Mgr

Sears Holdings Corp.

Honolulu, HI

Sears Holdings Corp.

Director of Loss Prevention



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National Account Sales Mgr


Chicago, IL

Downing & Downing

Asset Protection Manager

The Home Depot

Phoenix, AZ

The Home Depot

Asset Protection Manager The Home Depot Metro Northern NJ The Home Depot
Asset Protection Manager The Home Depot Sacramento, CA The Home Depot
Asset Protection Manager The Home Depot Salem, OR The Home Depot
Corporate Inv. & Training Mgr Confidential Ohio Downing & Downing
Director of Loss Prevention Confidential California Downing & Downing
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Loss Prevention Mgr Macy's St. Peters, MO Macy's
Loss Prevention Mgr Sears Winston Salem, NC Sears Holdings Corp
Loss Prevention Mgr Sears Richmond, VA Sears Holdings Corp
Loss Prevention Mgr Sears Virginia Beach, VA Sears Holdings Corp
Loss Prevention Mgr Kmart Fairfield, CA Sears Holdings Corp
Loss Prevention Mgr Sears Brunswick, GA Sears Holdings Corp
Store LP and Safety Mgr Lowe's Strongsville, OH Lowe's
Store LP and Safety Mgr Lowe's Santee, CA Lowe's
Store LP and Safety Mgr Lowe's Goose Creek, SC Lowe's
Site Safety Mgr Phoenix. AZ


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How to Change Your Organization’s Culture Changing an entrenched culture is the toughest task you will face. To do so, you must win the hearts and minds of the people you work with, and that takes both cunning and persuasion. In their book “Blue Ocean Strategy,” W. Chan Kim and Renee Mauborgne cite four hurdles that face a manager trying to institute broad change in an organization. (Change)

How to Motivate Workers in Tough Times When times are tough, and everybody at work is nervous, managers must help employees stay engaged, focused and motivated. A memo won’t suffice. No team-building exercise or pat on the back can completely restore workplace confidence. But here are a few ways to help maintain productivity. (Reducing Stress)

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With the ever increasing role technology is playing in our world and booming m-commerce and e-commerce business the profile of the future LP executive will change dramatically over the next decade. Getting in front of it might be a wise path as it will actually continue to increase. Taking classes, reading books, getting involved is the key. Mastering technology in so far as the benefit it delivers and the exposure it represents should be an objective in your career development.

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Gus Downing

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