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Thought Challenge

Checkpoint - Helping Retailers Gwo Profitably
Shoplifting and Fraud to Cost American Retailers $8.9 Billion
Over Christmas Holiday Season

Adds $98 to Each Family’s Shopping Bill

LONDON, UK, and THOROFARE, NJ -- Dec., 3, 2012 - Retailers in the U.S. are expected to lose $8.9 billion over the holiday season (mid-November through Christmas) as a result of shoplifting, dishonest employees and vendor or distribution losses, according to a new study released today by the Centre for Retail Research. The report, funded by an independent grant from Checkpoint Systems, suggests that the losses incurred by the retail industry over this period could add an extra $98 to each family’s shopping bill.

The report found that American retailers could lose $3.8 billion through shoplifting, $4.7 billion through employee theft, and $400 million through vendor and distribution losses.

Losses up 4 Percent From 2011

In total, the losses could represent a four percent increase over the same period last year. The primary contributors to retail crime are employee theft (53 percent) and shoplifting (42 percent).

Speaking about the results, Professor Joshua Bamfield, director of the Centre for Retail Research and author of the report, said: "The Christmas season is an especially attractive time for criminals. Thieves take advantage of busy stores to steal high-value, high-demand goods. As a result, retailers face a big threat from professional and semi-professional thieves, many of whom steal goods with the intention of re-selling them. Organized retail crime is a major concern for retailers – especially since the average amount stolen per incident is much higher than "normal" thefts."

10 Most Stolen Categories of Goods This Season

The 'Shoplifting for Christmas 2012' report also revealed the product categories most likely to be stolen over the Christmas period, which include 1) alcohol, 2) women's clothing and fashion accessories, 3) toys, 4) perfume and health &beauty gift packs, 5) electronic devices such as smartphones and tablet computers, toiletries for men, 6) DVD gift sets and game consoles, 7) food and Christmas decorations, 8) electrical goods including hardware/DIY, 9) watches and jewelry, and 10) chocolates and confectionery.

Per Levin, president and chief sales officer for Shrink Management & Merchandise Visibility Solutions for Checkpoint Systems, said: "During Christmas, consumers spend 60 percent more than in other months, and retailers need to ensure the merchandise is available on the shelves for consumers to buy. We know from Professor Bamfield’s past studies that there is a clear correlation between investments in preventive solutions and the rate of shoplifting. With the right solutions in store, it is possible to reduce the threat of further losses, increase merchandise availability and reap the maximum returns during holiday season."

CONTACT:
George Cohen (for Checkpoint)
GCC, Inc.
617-325-0011
george@gccpr.com
 

 


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Brown Shoe Company combines video with analytics What’s the difference between loss prevention and customer analytics? Not much, according to Jon Grander, vice president of asset and revenue management for Brown Shoe Company. "A lot of people have analytics. But when you combine them with human auditing or intervention, you can come up with some real solutions." Grander, whose company operates more than 1,300 Famous Footwear and Naturalizer stores in the United States and Canada and wholesales to retailers from Nordstrom to Walmart, is in the process of doing just that. The catalyst is Brown Shoe Company’s partnership with Prism Skylabs, whose system combines next-generation video surveillance with detailed customer analysis, enabling stores to track the path that customers take through their stores, what merchandise they’ve touched, where and for how long. (Source stores.org)

Return Fraud to Cost Retailers $2.9 Billion this Holiday Season with 4.6% of all returns fraudulent, according to NRF Survey According to NRF’s 2012 Return Fraud Survey, completed by loss prevention executives at 60 retail companies, the industry will lose an estimated $8.9 billion to return fraud this year, and $2.9 billion during the holiday season alone. Overall, retailers estimate 4.6% of holiday returns are fraudulent. (Source nrf.com)

Black Friday deals aren't always the lowest prices with leading retailers promoting higher prices than previously advertised on toys and consumer electronics In other findings, overall, promotional trade spend for Black Friday was down 15% for 2012 compared with 2011, with many retailers strategically shifting their focus to social and mobile. A substantial growth in mobile applications from both retailers and third parties tries to bring some clarity, but inaccurate data and tedious functionality frustrate the consumer resulting in lost opportunities. With social media, the conversation can easily lose focus and the intended message becomes unclear. (Source retailingtoday.com)

Labor Dispute at Key US Cargo Ports Turns One Week Old. Negotiations to end a strike at the biggest cargo port complex in the United States continued Monday, as the dispute enters its second week. Unionized clerical workers at the Los Angeles and Long Beach ports in California walked off the job last Tuesday, claiming that shippers who operate out of the twin ports want to outsource jobs overseas. The group that represents the shippers and terminal operators say they merely want the right to hire the people they need. The Los Angeles and Long Beach ports account for nearly 40 percent of all imports shipped to the U.S., averaging $1 billion a day. The 800 clerical workers have been joined by about 10,000 unionized dockworkers who have refused to cross the picket lines to load and unload cargo. Hundreds of truck drivers who haul goods to and from the ports have also been idled by the dispute. (Source latimes.com)

CDC says US flu season starts early, could be bad - Dec. 2-8 is National Influenza Vaccination Week Flu season in the U.S. is off to its earliest start in nearly a decade - and it could be a bad one. "It looks like it's shaping up to be a bad flu season, but only time will tell," said Dr. Thomas Frieden, director of the Centers for Disease Control and Prevention. My advice is: Get the vaccine now," said Dr. James Steinberg, an Emory University infectious diseases specialist in Atlanta. Have you prepared and is your team getting shots? Annually the flu costs retailers billions on lost time, productivity, and sales. Get proactive and get a shot. (Source Associated Press)

Text Message Gift Card Scam is Back for the Holidays The gift card text message scam is back with a vengeance this holiday shopping season. You receive a text message. When you open it, you are surprised by a message informing you that you've won a Best Buy gift card (or Target, Wal-Mart or other major retailer). You just need to go to a website and enter a PIN, and the card is yours. The text's URL leads to a website that has the company's colors and logo. It looks authentic with the company's name as the site's sub-domain (example: www.bestbuy.scamwebsite.com). The texts are just a way to collect personal information for shady advertisers. Forward the texts to 7726 (SPAM on most keypads). This will alert your cellphone carrier to block future texts from those numbers. (Source tv20detroit.com)

Stealing millions of dollars in cash and merchandise this two man crew robbery spree was convicted and now both face life sentences in prison McKnight and his “team” stole millions of dollars in cash and merchandise and did brazen heists at jewelry stores and other businesses, including at the Fashion Valley mall and Barona Casino & Resort. San Diego prosecutors said McKnight, 35, and his friend Robert Chavira, 41, pulled off five smash-and-grab robberies in San Diego, Santa Clara, Orange and Riverside counties starting in August 2011. Targeting mostly high-end jewelry stores, the robbers got away with dozens of diamond rings and Rolex watches. Finally DNA from blood drops where one of them cut themselves help convict them. One of their crew is still at large. McKnight faces a potential sentence of more than 150 years in prison. Chavira, who has two strikes on his record, could be sentenced to more than 530 years to life. (Source nctimes.com)


Police Find No Bomb at Dakota Square Mall After a search, Minot, North Dakota Police say that no bombs or other threats were found at Dakota Square mall last night. The mall was evacuated Wednesday after a reported bomb threat was called in just before 6:00 pm. As a precaution, the whole mall was evacuated. A SWAT team and K9 units were called in. The mall will be open for business today. (Source minotdailynews.com)



Follow up to armed robbery at American Apparel in Chicago reported on the Daily a few weeks ago- Two suspects in custody "Second person charged in Gold Coast attempt to run over cop " Prosecutors have charged a second man in November's Gold Coast robbery of an American Apparel store and getaway that resulted in a Chicago police officer nearly being run-over. The officer managed to get out of the way of their getaway car. Shots were fired and nobody was hurt. (Source go.com) Thanks to Blue Montez, Dir of LP for American Apparel for providing this update.

Kelptomaniac, "recovering shoplifter" turned counselor says at least 50% of shoplifters are addicted Roughly 10 percent of our population, or 30 million Americans, are thought to have a problem with shoplifting, Shulman said. "Of that 10 percent, at least half are considered addicted to it. Once they cross over that line and get something for nothing, you can get hooked," Shulman said. "You’re drawn to it like a moth to a flame." Perpetrators are not necessarily common street thieves, they can be professional working people — with an addiction. Terry Shulman, theft addiction therapist and former shoplifter said in a recent radio talk show in Detroit. (Source cbslocal.com)

One Suspect in the Murder of a Party City Manager turns himself in: both suspects in custody. Yesterday Joshua Archie 21, with the support of his family, turned himself in to police in Ridgeland, Mississippi (near Jackson). Archie and his accomplice Unda Ward, shot and killed 68 year old Robert Adams, the Manager on Duty at the Party City in Ridgeland back in October. Adams was gunned down as he attempted to stop an armed robbery of the store at closing time. Archie and Ward are now facing capital murder charges. (Source wjtv.com)


Piggly Wiggly in Baton Rouge robbed at gunpoint. No one was injured as the lone gunman robbed the Piggly Wiggly at 7:30 monday morning. Investigators said the suspect is between 35 and 40 years old. He was armed with a handgun and left the store driving a pickup truck. It was unclear how much money was stolen. (Source wafb.com)





Police dash cam shows kidnapped Convenience Store employee released from the trunk of a car. The car the suspects were driving in had expired plates, Louisville Police pulled the car over, inside were three suspects. As a second officer arrived, sounds could be heard coming from the trunk, inside they found kidnapped Circle K employee Sean Bloemer. Bloemer had been kidnapped during the Circle K robbery, the three suspects were charged with complicity to kidnapping and robbery, police interviews show all three have a different version of what happened. (Source ksee24.com)


Two Smash and Grab Suspects who hit several Arkansas Walmart’s finally behind bars. Daniel Robinson and Tyrone Bernard the suspects believed to have hit 4 Walmart iPad/ iPod displays have finally been taken into custody. Osceola Police said that Robinson and Bernard turned themselves in, warrants had been issued and the media coverage in the area certainly helped. (Source kait8.com)

There are 9 senior Loss Prevention positions available in the U.S. market. Which is a little high for this period. But a number of them are for next year's budget.


Quarterly Same Store Sales Results

AutoZone Q1 up 0.2% with sales up 3%
Big Lots Q3 down 4.6% with sales down 1.9%

 

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LPNN - Loss Prevention News Network


Featured Episode

The Big Box & Specialty Store ORC Leaders
Part 1




Learn how these retailers are addressing ORC -
the fastest growing crime.

 


In this five part series LPNN talks with Joe LaRocca, senior retail partner and former senior advisor of Asset Protection for the NRF, Scott Sanford - the Director, Investigations & Training - Loss Prevention for Barnes & Noble and one of the founders of the ORC Solutions - ORC Workbench - the fastest and most successful online organized retail crime detection and prevention tools, Denny Dansak - Kroger's Corporate Manager, ORC, Nelson Harrah - The Gap's Director of Organized Retail Crime, and Deb Lussier - Home Depot's Senior Manager of Central Investigations. In this series you'll learn exactly how these retailers are addressing Organized Retail Crime and how they've built their models. They discuss what they look for in staffing ORC positions and how they measure the effectiveness of their program. This is a great opportunity to see exactly how four major retailers have responded to the ORC problems facing the nation. Stay tuned tomorrow for part two.



 
 



 

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Downing & Downing Annual Dinner Party and Event. LPNN will be recording - live audience. Monday, Jan 14th at Maloney & Porcelli's. Guest Speaker Tatiana Sandino, Harvard Business School. Co-author of the study "Can Wages Buy Honesty? The Relationship Between Relative Wages and Employee Theft". Rich Mellor, VPLP for the NRF will be introducing this year's Honoree, Joe LaRocca. Honoring Joe LaRocca, VP & Senior Advior of LP, RetaiLPartners and former VP of LP for the NRF for his leadership and dedication to the advancement of the LP profession. Be on the lookout for your invitation. More announcements coming! Co-sponsors: Agilence, Axis Communications, Axonify, Bass Security, InstaKey Security Systems, LPI, Se-Kure Controls, WG

ORC News - Sponsored by Universal Survellience Systems


More on the ORC activity in Pittsburgh - getting hit by multiple ORC gangs A group of middle-aged men ripping off stores up and down the East Coast, including here in Pittsburgh. And another group hit the Ross Park Mall Louis Vuitton store late last week. Five of them grabbed a bunch of very expensive purses and took off. Police believe they did the same thing in Virginia, North Carolina and Maryland. Another group hit the Best Buy store on McKnight Road a few months ago. Officials say they grabbed GPS devices and high-end calculators. They are working stores around the country, too. The transient aspect of the organized thieves makes them tough to catch. It’s also tough to work with the vendors. In the case at Louis Vuitton, they did not want to release the entire video of the thieves, fearing it would create copycats. In the case at Best Buy, they waited two months to release the video. Police believe in all likelihood the suspects, who know what they are doing, are long gone. (Source cbslocal.com)


Five member ORC gang busted in St Louis hitting Sports Authority, Dillard's, and Von Maur stores Busted on Nov. 19th the five were stealing clothes and give them to an unidentified man who would sell the clothes on the street and give them their portion of the profits. Hitting Mid Rivers Mall they were charged with felony stealing, strong armed robbery, assault on a law enforcement officer, assault and property damage after thefts at the Von Maur store in the Meadows in Lake Saint Louis. (Source patch.com)


Hat thieves hit Lord & Taylor in Palisades Mall in New Jersey. Charles Moye and Emanuel Acheampong were arrested and charged with grand larceny Sunday evening for stealing 45 hats valued at nearly $2000. The suspects were able to get a way from the store, but were apprehended later by police at a nearby Dunkin Donuts. (Source patch.com)

More on London's West-end $1.6M high-speed motorcycle smash-and-grab ORC gang. This young crew would steal high-speed motorcycles and race through London, smashing and grabbing high-end merchandise from exclusive retailers. A teenage couple actually trained their friends and wore specific outfits which helped police finally apprehend them. After the thefts, they'd lead police on high-speed chases in London. They got away with over $1.6 million during their spree. Conducting over 50 robberies last year, they mostly stole handbags and computer equipment. The gang would arrive on the scene on up to four stolen motorbikes with two people on each, often using the bikes to smash stores’ windows. They armed themselves with sledgehammers and crowbars for some raids, while other times they claimed to be carrying knives and one passer-by was warned off with a handgun. However, after hitting a high-end designer connected to the Royal family, police launched an undercover operation that paid off. The ironic thing is that when they finally raided the home of the ringleader, they found his girlfriend had made him a cake decorated with a motorcycle bandit and purses. The ring leader was found guilty yesterday of two counts of robbery and cleared of three. Some of the crew pleaded guilty. Along with the exclusive retailers, they hit an Apple store as well and here's some pictures and a great video of that heist. (Source dailymail.co.uk)

Do you have an ORC case to share? Publishing it educates the LP & retail community
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Thought Challenge


Submissions for the 2012 Thought Challenge are still being accepted through Dec. 31

The review process begins tomorrow, but don't worry, there's still time to get your Thought Challenge in! Currently there have been 49 submissions and tomorrow we will begin republishing each one. Which one is your favorite?

An Awards Committee of 10 senior LP & safety leaders in North America, this year chaired by Jim O’Connor, VP LP for Bed Bath & Beyond, will select the top three Thought Challenges. The first place winner will receive $5,000 or an all expense paid trip to either the NRF or RILA LP Show 2013 and one paid class at Northern Michigan University. The second place winner will receive $2,500 or an all expense paid trip to either the NRF or RILA LP Show 2013, and the third place winner will receive $1,000.
 

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Featured Job Alerts - Sponsored by Alpha High Theft Solutions


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Origination
 

Asset Protection Director Macy's Secaucus, NJ Macy's
Dir of Loss Prevention Confidential Northern Midwest Downing & Downing
AP Specialist Winn-Dixie Columbia, SC Winn-Dixie
Regional LP Mgr Aritzia New York City Linkedin
Regional LP Mgr Tilly's Arizona Tilly's

National Account Mgr

Confidential

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Mgr LP Operations Confidential New York, NY Downing & Downing

Dir of Asset Protection

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Downing & Downing

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Downing & Downing

Mgr LP Systems

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Dir of Loss Prevention

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National Acct Sales Mgr

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Downing & Downing

 

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Today's Daily Job Postings from the Net - Appearing Today Only
 

Job Opening

Company

Location

Origination

Loss Prevention Mgr Macy's Arlington, VA Macy's
Loss Prevention Mgr Macy's New York, NY Macy's
Dept Mgr Store LP & Safety Lowe's Camden, SC Lowe's
Dept Mgr Store LP & Safety Lowe's Greer, SC Lowe's
Dept Mgr Store LP & Safety Lowe's Louisville, KY Lowe's
Loss Prevention Mgr Flextronics Milpitas, CA Flextronics
LP Mgr, Distribution Center Best Buy Dublin, GA Best Buy
Area LP Mgr in Training Ross Stores San Jose, CA Ross Stores
District LP Mgr TJMaxx Dallas, TX The TJX Companies, Inc.
District LP Mgr TJMaxx Chattanooga, TN The TJX Companies, Inc.
District LP Mgr TJMaxx Summerville, SC The TJX Companies, Inc.
District LP Mgr Marshalls Carolina, PR The TJX Companies, Inc.
District LP Mgr Marshalls Denver, CO The TJX Companies, Inc.
District LP Mgr Marshalls Dallas, TX The TJX Companies, Inc.
District LP Mgr Marshalls Towson, MD The TJX Companies, Inc.
Sr LP Investigations Analyst Walgreens Deerfield, IL Walgreens
 

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4 Powerful Words Employees Need to Hear There are lots of ways to make a positive impact on your staff. But the best involves four words. These four simple words, used correctly and with the right intent, can make a powerful impact on your business, your life, and other people. (Here's how)

Do Less, Achieve More: The Beauty of Effective Delegation As a leader or manager, you need to focus only on the items that add the most value to your organization. In general, these are the things that you, and only you, are capable of doing. You should delegate the rest. (Your top 20%)

6 Simple Rituals to Reach Your Potential Every Day Becoming and staying productive isn't about hard-to-follow programs or logging your every move in an app. It's about self-care. Here are some daily to-dos to get you started and help you perform at your highest. (Implement right away!)

Respect, Not Friendship, Is What a Manager Needs While this may seem basic and intuitive, the fact is, in a close working relationship there's a natural tendency for friendship to develop between manager and employee. This can easily compromise a person's ability to manage a situation. (Stay objective)

"Every employee rises to the level of his own incompetence."
- The Peter Principle

 

Share your thoughts.

3VR - video surveillance, video intelligence

The importance of staying focused and positive in your job search can’t be over emphasized. Even when you’re networking keep it positive and never network without asking for another contact name at the companies you’re looking at; operators, human resource executives, other loss prevention executives, anyone that is in a management position with the companies you’re interested in joining. We'd also suggest visiting some stores and trying to meet the loss prevention team and finding out more about their LP efforts, structure, management individuals, and just plain getting to know that company's LP culture and never leave without leaving a copy of your resume. Every successful marketing campaign has a grass roots methodology and getting into some stores is just that. If done correctly, I assure you the multi unit LP executives will find out who you are and respect you for doing it.

Just a Thought,
Gus Downing

Gus Downing

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