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November 12, 2012 SUBSCRIBE

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Jonathan Edmiston was named Director of Assets Protection for Home Depot. Jonathan also spent time at Toys "R" Us, holding the titles of Senior Director - Asset Protection and Director of Loss Prevention. Previously, Jonathan spent six years at Home Depot, holding titles such as Senior Director - Asset Protection, Director - Global Supply Chain - Asset Protection, and Director - Corporate Loss Prevention. Jonathan got his start in loss prevention at Caldor, where he spent seven years before moving on to Target. Jonathan attended the University of Massachusetts, Amherst, where he received his BA in Political Science/Legal Studies. He also attended the Western New England College School of Law, where he received his Juris Doctorate. Congrats Jonathan!

NYC law enforcement warns convicted felons on parole in blacked-out neighborhoods - We're Looking At You "We think some might be responsible for burglaries, and we want to make sure the other ones know we’re out there and looking to suppress any burglaries that are ongoing." The police reported a six percent rise in burglaries for the week of the storm in the city, against an overall drop in crime in general. There were 379 burglaries from Oct. 29, when the storm arrived, through the following Sunday; 22 more than last year. (Source nytimes.com)

Former employee alleges Waffle House CEO demanded sexual acts A former female employee has filed a police complaint alleging the CEO of Waffle House demanded she perform sexual acts on him in exchange for keeping her job. The woman told Atlanta police the alleged harassment by Joseph Rogers Jr. lasted for nearly 10 years, from 2003 through June of this year. (Source foxnews.com)

Zara's successes as a fashion retail is focused on quality and speed. Right down to the attachment of EAS tags, Zara is all about moving one of the most fashionable clothing lines in the world from the manufacturing site to your closet. Within eleven days the product can be manufactured, inspected, ironed and tagged, and in the hands of consumers around the world. (Source businessinsider.com)

H&M is the largest user of Organic Cotton in the world for the second year straight. The high demand of organic cotton has placed more emphasis on increasing technologies of 'Better Cotton' which is grown faster and uses less water to grow. H&M has committed to using only sustainable cotton by 2020. (Source theretailbulletin.com)

Stein Mart Inc. to restate financial results for last three years because of mistakes in how it accounted for mark-downs and store improvements. The company's merchandise accounting mistakes came about because it accounted for some markdowns as temporary discounts rather than permanent ones, affecting how it valued its unsold clothing. As a result, inventories were overstated by about $3 million through July 28, while the costs of sold merchandise were understated by the same amount. Stein Mart said that its accounting methods had understated write-downs the company took on the value of its stores by about $11 million from 2006 to 2009, and overstated rent expense by about $6 million. As a result, Stein Mart said it overstated its net assets by $5 million and its cumulative pretax earnings through July 28 by about seven cents per share. (Source Associated Press)

Shareholders kept in the dark on data breaches SEC has regulations, but there is plenty of room for interpretation. The U.S. Securities and Exchange Commission (SEC) requires companies to report to its shareholders any "material losses" from attacks, plus any information "a reasonable investor would consider important to an investment decision." The guidelines the SEC has on its website come with a disclaimer "This guidance is not a rule, regulation, or statement of the Securities and Exchange Commission." In other words, none of it is mandatory. If companies don't disclose, they risk shareholder lawsuits for "failing to protect sensitive business information or trade secrets. I think negligence cases based on the breach of fiduciary duty are the most likely." [The SEC should] set some specific ground rules, provide for a time period for internal assessment and establish thresholds of harm, and corresponding required disclosures actions based on those severity levels. (Source csoonline)

Security deficiencies = $1.7M verdict against Orlando Hilton Embassy Suites & SecurAmerica contract guard firm An Orange County jury ordered Hilton Embassy Suites and SecurAmerica to pay a combined $1.7 million dollars in restitution to Troy Anderson, shot in 2008 while parking his car at the Hilton Embassy Suites on Jamaican Court, near International Drive. The attorney's showed "security was present, but spent more time delivering bed items, towels, and bell carts to guests rather than patrolling the exterior of the hotel and serving as a deterrent to crime. The hotel provided a 'uniformed housekeeper,' not security. The guests deserve better." A crime scene investigator photographed and documented the scene and showed a critical floodlight intended to illuminate the area was not working the night of the incident. Court records reveal that jurors also learned that a similar strong-armed robbery had occurred in the parking lot of the Embassy Suites ten days prior. A "daily activity report" for September 26, 2008 introduced into evidence of the courts demonstrated the SecurAmerica guard was delivering "bell carts" and was responding to "guest requests" during the 25 minutes prior to the shooting rather than providing security of any kind, despite the fact this was a Friday night. The shooting occurred at approximately 11:15 p.m. (Source prweb.com)

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SquareUp.com and other smartphone apps helps employees steal easily The development of three new gadgets meant to aid business owners and their workers to process credit and debit cards on the go has unknowingly created more tools for the dishonest employee. Software and add on devices for Smartphones can now process electronic payments by simply scanning or swiping the barcode on the card. Once the user has set up an online account with their banking information, the funds, minus the standard processing fee is automatically transferred into their own bank account. The free credit card reader from SquareUp.com. comes with instructions on setting up the funds transfer and online account. There was no verifications, no questions and within minutes they're up and running. Another card reader found is a downloadable software program from the Internet. Again, there was no verification of business identity and within minutes users can be on-line and ready to scan some credit or debit card numbers. A website was also found advertising that customers can sign for their credit or debit card purchases directly on the mobile devices and have the receipt emailed to them with a copy of their signature's image. Merchants have the ability to process both card-not-present transactions and card-present transactions when used with our optional card reader. To thwart efforts by employees who might use any sort of card reading devices, you must have strict security procedures and operational policies in place including precise methods and locations of where card sales are to be processed and by whom, as well as a sales verification system. Cell phones should not be permitted to be carried by any employee during working hours, especially if their position deals with transacting sales or other forms of financial business where a card reader might be used. (Source privateofficerinternational.com)

"Massive" Active-Shooter public safety drill at the Glendale Galleria, CA. - Get your mall and police departments involved About 100 volunteers participated in a simulated shooting that included multiple gunmen who appeared heavily armed, "firing" inside the mall. The gunfire was actually blanks, and the exercise was conducted after the mall had closed. The first shooting re-enactment involved almost all the volunteers. Members of the Glendale, Burbank and Pasadena Police departments took part. The re-enactment, which took 10 months to plan and coordinate, was created by eight police agencies including the Glendale, Burbank, Pasadena and Alhambra departments, said Capt. Elliott Kase with the Alhambra Police Department. Editorial comment: This is the second one nationally in the last month and is something retailers and mall developers should really be focusing on and trying to persuade other departments throughout the nation to hold. (Source glendalenewspress.com)

Northwest Indiana mall evacuated after shot fired Saturday night The incident occurred at Southlake Mall in Hobart, Indiana. The semi automatic hand gun used jammed and prevented other shots. The shooting occurred, police say, with an argument about a basketball game that had been played earlier. One of the teens pulled a gun and fired a single bullet in the air. No one was hit by the bullet, which lodged in the floor above, and one teen, who was not arrested, suffered minor injuries in the fight. (Source go.com)



Eight Chinese men sentenced to prison for selling $2.88M worth of fake Converse shoes online through China's Taobao.com website The ring was well-organized. An express delivery worker told the newspaper they would deliver 10,000 packages from Xu in a month. With offices and a warehouse, the business ended when a customer found a new pair wore out too quickly and reported it to police. The two ring leaders were sentenced to six years in prison and the other six to two-and-a-half to four years in jail. (Source shanghaidialy.com)

US man charged for selling more than $1.2m in counterfeit Microsoft software online Bruce Alan Edward, 48, of Atlanta, Michigan, is accused of five counts of criminal copyright infringement and one count of mail fraud over the alleged resale of pirated software sourced from the far east. Edward allegedly made at least $140,000 through selling more than 2,500 copies of Microsoft programs between May 2008 and September 2010 before he was arrested. If convicted, Edward faces up to 45 years in prison and $1.5 million in fines. (Source theregister.co.uk)

Activists Fear $2 Billion worth of Zimbabwe Diamonds stolen will fund political campaign. A lack of transparency in the sale of diamonds remains a major problem in Zimbabwe and activists fear diamond revenues may be used to fund the campaign of President Robert Mugabe's party in an election due to take place early next year. In 2009 an international ban was imposed on the sale of Zimbabwe’s diamonds. That came as a result of allegations that some mines were controlled by the military and that funds were diverted to Mugabe's ZANU-PF. Last year that decision was reversed and a diamond watchdog body, the Kimberley Process, gave Zimbabwe the green light to sell its diamonds on the international market. (Source telegraph.co.uk)

Wichita, Kansas JC Penney loss prevention agent stabbed in Towne East parking lot. A loss prevention agent was stabbed during an altercation with suspected shoplifters Saturday. It happened around 6:30 p.m. in the Towne East parking lot outside of J.C. Penney's. Wichita Police Sgt. Bart Brunscheen said two loss prevention employees confronted a man and a woman in their late 30s in the parking lot. A struggle began and the male suspect pulled out a knife. One of the loss prevention agents went to get backup from security patrolling the lot. The suspect stabbed the other loss prevention agent in the chest. Brunscheen said the victim was taken by EMS to the hospital in critical condition, however, he is now stable and was able to talk to detectives. Police took the suspect into custody. (Source kansas.com)


Three Walmart associates terminated after smashing iPads video goes viral. Three Associates at a Walmart in Kentucky decided to film the destruction of store merchandise in the stockroom. Walmart said they have seen the video of the associate damaging merchandise and it made them 'wince'. All three associates have been terminated. (Source businessinsider.com)




FYI - Night deposit drops overflowing in some NY - Long Island impacted areas
.
With some banks closed with no power in the impacted areas, it's been reported that a number of bank deposit drop boxes are overflowing with deposit bags.

Quarterly Same Store Sales Results

J.C. Penney down 26.1% with total sales down 26.8% and a net loss of $123M (Source internetretailer.com)



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No Match, no flame; a Vodka bottle and sunlight ignite a Liquor Store Fire in Minnesota. Something out of the ordinary occurred and thanks to video surveillance, the store manager has the tape to show his insurance company. As the sunlight hit the bottles of vodka, the vodka acted as a magnifying glass and set the cardboard display on fire, sending a 12 foot fire ball into the ceiling. (Source livescience.com)


 

 


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2011 Survey of Occupational Injuries and Illnesses reports nearly three million nonfatal workplace injuries and illnesses. Conducted by the U.S. Bureau of Labor Statistics, the survey found an incident rate of 3.5 cases per 100 equivalent full-time workers. The rate reported was unchanged for the first time in a decade. (Source bls.gov)

Perelman School of Medicine at the University of Pennsylvania finds that error reporting improves perceptions of safety and may reduce incidents
. "The way an organization reports the workflow process is a key factor to determining safety and quality. Since the process for investigating errors can be associated with perceptions of safety, questions are often raised about these methods," said Amit Maity, MD, PhD, associate professor of Radiation Oncology. (Source upenn.edu)

Preventing fatalities is a numbers game
. Every day, nearly 13 people die as a result of workplace incidents. Some people even say that since 1995, serious injuries/fatalities have either remained the same or risen. At the recent Fatality Prevention Forum 2012, members studied both the causes of fatalities in the workplace and how to prevent them. (Source ehstoday.com)
 

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Home improvement retailer CEO that fought off Lowe's takeover - Rona's most outspoken top executive resigns - Will talks open up with Lowe's again? The president of Canada's largest network of home-improvement retailers stepped down Friday as top executive at Rona Inc., amid tumbling net profit. Dutton's departure comes just months after the Canadian home improvement chain fended off a takeover attempt by U.S. rival Lowe's, which was rebuffed not only by the Rona board but also Quebec provincial politicians. One of Rona's largest shareholders said the board should reopen discussions with rival Lowe's following the sudden departure of its long-time chief executive. It currently has nearly 30,000 employees and 830 locations under its banner, giving Rona a bigger reach in Canada than Home Depot or Lowe's, the top home improvement retailers in the United States. This executive was also one of the most vocal retail leaders in Canada about the American invasion. (Source Associated Press)

Wireless cell phone industry moves to stop smartphone, tablet theft The Canadian Wireless Telecommunications Association, an industry group representing carriers, announced a plan on Thursday to make it more difficult for criminals to reactivate stolen devices, such as smartphones and tablet computers. At the crux of that strategy is a push by carriers to "blacklist" stolen gadgets, a move that would reduce the incentive for theft. By Sept. 30, 2013, carriers will make it standard practice to verify whether a device's International Mobile Equipment Identity number is listed as stolen in Canada and internationally before it is cleared for activation. (Source theglobeandmail.com)

Do employers have a right to spy on workers in Canada? Despite the existence of privacy legislation, privacy-based regulatory bodies, privacy principles and even privacy-based torts (wrongful acts that lead to damages) there is still no clear "right" to privacy for many workers. It is generally not illegal in Canada to hire a private investigator to spy on an employee who says he or she is too sick to work. As a group of employees at a large Toronto law firm recently discovered, the absence of stronger privacy laws means there is no easy way to prevent their employer from installing machines that force them to swipe their fingers to get in and out of their workplace. Using cameras in the workplace: If there is a problem with theft or security and the camera is trained on a specific location, it is not illegal. Employers retain the right to monitor their staff in some situations, but only if this is done in good faith and where there is a reasonable belief that an offence is being committed. This past January, the Ontario Court of Appeal opened the door to privacy-based rights slightly by recognizing that individuals can sue one another – and by extension, their employer – for an invasion of privacy. The flip side of the Ontario court’s ruling is that spying or snooping on employees suspected of stealing, cheating, lying, defrauding or malingering is still legal – and this routinely occurs in many different ways at work. Although the rules are slowly changing, an employee’s personal privacy is still more of an expectation at work, rather than a right. (Source theglobeandmail.com)

Corporate espionage versus competitive intelligence The difference between competitive intelligence and corporate espionage would seem obvious: one is legally getting the information you need to run your business competitively while the other is creeping around and raking through your competitor’s garbage. But it turns out that neither competitive intelligence nor the ethics surrounding the topic are taught much at business schools, according to academics familiar with the topic. Only three Canadian business schools teaching courses in competitive intelligence, whereas competitive intelligence has been taught at U.S. universities since the 1990s. (Source theglobeandmail.com)

 

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Make Black Friday a Green Friday with the Mini Patriot FamilyCharleston, WV Police Department uncovers $10,000 in retail theft with LeadsOnline & Cabela's LP team's help Investigating a shoplifting report filed on October 5 by the local Cabela’s loss prevention team, Charleston police uncovered organized retail theft amounting to $10,000 in loss for local retailers. "We chose to release images to the media,” Detective Tipton said. “We received a number of calls identifying the suspects as Melissa and Gerald Thompson, a husband and wife from Clay County, West Virginia." He turned to LeadsOnline, the nation’s largest online investigations system that allows law enforcement to search secondhand stores, pawn shops and scrap metal recyclers across all 50 states to locate stolen property. He said the online database returned numerous results uncovering the couple’s activity dating back to August 2012. Working closely with Cabela’s loss prevention team, Detective Tipton said they were able to gather additional surveillance from each incident dating back to August 30, 2012. Upon interviewing the suspects, Detective Tipton said they confessed to the crimes and admitted to stealing the merchandise to feed their drug habits. Melissa Thompson has been incarcerated since she was arrested because she was in violation of her parole. Gerald Thompson posted bail shortly after being arrested. The case is still under investigation and Detective Tipton said he believes the couple may have targeted other local retailers. (Source prweb.com)

Ontario, Cailf., identity theft victim - whose card was never stolen - helps police bust ID scanning thief hitting retailers A victim of identity theft turned amateur sleuth in Ontario and helped catch the suspect who was using her debit card information to pay for his gas. The thief stole tens of thousands in merchandise. The victim got the investigation going by asking one of the gas stations to check their security video on the date in question. “I had to call my bank and get the time and then she went through the film and she had him on video. At that same time.” She then turned the video over to police. Officials say the 46-year-old Luna was arrested after they discovered a wide array of incriminating equipment found in his home. The equipment included a credit card encoding machine, blank magnetic cards and a computer to create fake cards. When he was arrested, Mills reports Luna also had $30,000 in cash in his home. The victim’s card was not stolen, so how was Luna able to get the numbers? The theft victim told Mills, "The police officer said they scan you or scan your purse or scan your wallet and that’s how they get it. Because I had my card with me." (Source cbslocal.com)

Follett Higher Education Loss Prevention busts three at George Washington University stealing over $150,000 of text books. Three men have been convicted of stealing textbooks from the George Washington University Bookstore and selling them online. Forty-two-year-old Hao Nguyen of Falls Church, Va., and 21-year-old Darrell Coleman and 22-year-old Kiry McCullum, both of Washington were convicted Thursday. They will be sentenced Jan. 18. According to the government's evidence, Coleman and McCullum were seasonal employees at the bookstore, where they unloaded textbooks and stocked them on shelves. Security video showed them taking books from the shelves and taking them to the loading dock. Prosecutors say the two passed the books to Nguyen, who sold them online. The bookstore lost about $200,000 in textbooks. (Source gwhatchet.com)

3,000 cases of Enfamil formula stolen from the manufacture’s truck in Michigan. Mead Johnson, the makers of Enfamil, had a trailer staged in a drop lot in Grand Rapids, Michigan, the value of the missing product is estimated at over $250,000. The product was believed to have been stolen sometime last week, missing are 1,600 cases of Enfamil Premium powder, 340 cases of Enfamil Premium concentrate liquid, 864 cases of Enfamil Gentlease powder and 288 cases apiece of Enfamil Prosobee and Enfamil AR Lipil powder. Mead Johnson is corporately based in Zeeland, Michigan. (Source securingindustry.com)
 

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Vendor Spotlight



Black Friday Loss Prevention Tips


Black Friday is a retailer’s dream, the biggest shopping day for many retailers often catapulting them into the black for the year. But is it really a dream? Not for the folks in loss prevention, for them it’s a nightmare. Often the retail industry focuses on the massive sales increase during black Friday and the weeks that follow, but there is a dark side to all of this. Along with the sales increase, shrink increases as well, everything from sweethearting and void fraud to procedural errors. Some of these issues can be prevented by properly training employees; however when a queue reaches 20 people and a clerk speeds up to shorten the line they may make mistakes, they are only human after all. The other issues – sweethearting, shoplifting, etc. – are not resolved by proper training. Below are a few Black Friday loss prevention tips for the big day and the weeks that follow.

1) Properly train all employees. As mentioned above, properly training an employee will help reduce much of the loss from procedural error during the shopping season. You also need to train your managers and supervisors on how to perform in store training. This way when a mistake is noticed, the clerk can be approached and trained quickly on site to prevent further mistakes. Also hold a refresher course for full time employees. They may have plenty of experience on what to do, but the holiday shopping season is a whole new beast.

2) Know what to look for. This could probably fall under training, but is more focused towards the LP employees. Train yourself to locate red flags and know how to react when you spot one. An employee who makes one mistake may appear to be a red flag, but if they only have the one mistake then it is simply that, a mistake. On the other hand, if an employee makes the same mistake multiple times a day, it may not be a mistake and you need to take action before the loss is significant.

3) Reward those who do well. Often in loss prevention we focus on the negative. This may be our jobs, but it does not mean we can’t look at the bright side. If you have employees who are performing well and have minimal mistakes or issues, reward them. This will only drive them to perform better and push others to perform as well.

4) Integrate with Agilence. Our retail intelligence solutions collect data from all inputs in the store, including video. Our software is able recognize red flags that may cause shrink, and will notify you immediate when it does. Our analyst team keeps an eye on the video so you don’t have to. This way you are free to focus on the first three tips to ensure that your store has the best holiday margin possible.

5) Use AdCheck. AdCheck is one the many features inside of Retail 20/20. Every retailer runs some type of promotion on Black Friday, and this feature makes sure that promotion is run properly. It analyzes every transaction that is part of the promotion to check for inconsistencies and training issues. It reports these back during the promotion so that the problem can be solved instead of costing you money.

There are many things a retailer can do to prepare for Black Friday. These preparations are more effective when you have Agilence solution providing you with data in real time. You shouldn’t have to use old data to stop shrink, use real data to prevent it in the first place.

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Director - Loss Prevention Vans Cypress, Ca Vans
Dept Mgr Store LP & Safety Lowe's Nashville, TN Lowe's
Dept Mgr Store LP & Safety Lowe's Southfield, MI Lowe's
Dept Mgr Store LP & Safety Lowe's Alexandria, LA Lowe's
LP Specialist F/T - Bilingual Lowe's Mesa, AZ Lowe's
Regional LP Mgr Forever 21 New York, NY Forever 21
Regional LP Mgr Forever 21 Chicago, IL Forever 21
Loss Prevention Mgr Rite Aid Providence, RI Rite Aid
Asset Protection Mgr Advance Auto Parts Indianapolis, IN Advance Auto Parts
Retail LP Mgr Bergner's Bloomington, IL The Bon-Ton Stores, Inc.
Loss Prevention Mgr Sears West Jordan, UT Sears Holdings Corp.
Loss Prevention Mgr Sears Durham, NC Sears Holdings Corp.
Loss Prevention Mgr Sears Columbus, OH Sears Holdings Corp.
Loss Prevention Mgr Sears Merritt Island, FL Sears Holdings Corp.
Loss Prevention Mgr Kmart Warner Robins, GA Sears Holdings Corp.
Loss Prevention Mgr Kmart Memphis, TN Sears Holdings Corp.
LP Mgr (In Training) Sears Pleasanton, CA Sears Holdings Corp.
Loss Prevention Mgr Macy's Santa Clara, CA
 
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How to Come Back Strong After You Bomb an Interview It's a cruel truth that when we want to come across at our most capable and confident, those are exactly the times when it's hardest to do so. Take job interviews for example. The more we want the position, the more difficult to hit just the right notes of confidence and enthusiasm to actually win it. (Win it)

Beware of Red Flags from an Interviewer Although a candidate may be extremely focused on their own behavior and speech, it is just as necessary to pay attention to what the interviewer discloses through conversation or body language throughout an interview. When advance information from insiders isn't possible, the following are some things to pay attention to and their potential causes. (Be more successful)
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The Skills Most Leaders Don't Have For too long, we've thought of "hard skills" and "soft skills" as mutually exclusive. Hard skills are supposed to provide the value, and soft skills supposed to be subordinate, inferior, and all about feelings. In reality, there is nothing "soft" about the skills needed. True leadership involves both hard skills and harder skills. (Don't trip up)

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Progress or moving forward has as much to do with which way you're facing as anything else. If you stay focused on facing your customer and not your internal team then you might find success is a little closer than you think. This goes for the vendor and for the retailer, as we all have customers to serve both internally and externally. And while it's impossible to always stay facing them the mere thought of it will bring you back a little faster if you just remember that your ultimate success is driven by your customers whether its individual stores or companies. Much too often we all tend to get lost in the politics of our inner group and use it as a means of avoiding having to accomplish difficult tasks. But all you've got to remember is to turn around and face the customer and then you'll be back on track getting things done and moving forward.

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Gus Downing

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