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Criminal activity this time of year "you have to magnify it by about three or four in the last quarter of the year," says Keith White, senior vice president of loss prevention at Gap Inc.    Shoplifters are just part of what companies watch for. Inside jobs by employees actually account for more retail crime. Less common, but dangerous, are organized gangs that target high-value items. They can cart off thousands of dollars in merchandise in less time than it takes to run a TV commercial. “Within 20 seconds, they’ll have half of that aisle cleared out of makeup, cosmetics, fragrances and out the door,” says Dan Reynolds, a vice president at Checkpoint. “So they’re pretty sophisticated. They’re fast.” It’s an ongoing conflict for retailers, particularly in this economy” says Lisa LaBruno, a former prosecutor who now works on loss prevention as a vice president with the advocacy group Retail Industry Leaders Association. “Every sale counts and every happy customer counts.” (Source

When Women Serve on Boards, Sustainability Performance Increases
A new study examining companies’ environmental, social and governance (ESG) performance found that companies with one or more women on their boards were significantly more likely to have improved sustainability practices. To measure corporate performance, the authors reviewed each organization’s ESG performance. ESG, a widely accepted measure of corporate sustainability among the investment community as indicators of risk management, opportunity recognition and strong leadership. “The voices of women are critical in advancing the goals of corporate shared value,” added U.S. Secretary of Agriculture Ann Veneman, who serves on the board of Nestle and also participated in the study. “Corporations build better societies if they have balanced boards.” (Source

Tesco reviewing options for slow-growing U.S. Fresh & Easy
Tesco launched the venture in 2007, and now has 200 stores in California, Arizona and Nevada. "management is prepared to take difficult decisions." "It is now clear that Fresh & Easy will not deliver acceptable shareholder returns on an appropriate timeframe in its current form," Clarke, Tesco CEO said. They eliminated the Dir of LP position this summer and half of the LP department earlier. (Source Associated Press)

Back on the expansion trail - Starbucks to open 1,500 cafes in the US in 5 years
During the recession they closed 10% of the U.S. stores and now with 11,100 U.S. cafes they're back on the move. Worldwide, the company says it will have more than 20,000 cafes by 2014, up from its current count of about 18,000. Much of that growth will come from China, which the company says will surpass Canada as its second-biggest market. Sales at new cafes are averaging about $1 million a year, for example, above the company's target of $900,000. It costs about $450,000 to build a new cafe. During the recession they also eliminated over 60% of the LP staff. (Source Associated Press)

Crippling strike at LA ports ends; deal reached
Clerical workers and longshoremen at the nation's largest port complex will return to work Wednesday, eight days after they walked out in a crippling strike that prevented shippers from delivering billions of dollars in cargo across the country. (Source Associated Press)

Tens of millions in Port security improvements held up by bureaucratic freeze since 09'    The money has been held up due to a provision that requires grant recipients to match 25 percent of the funding, according to Marcus Dunn, director of government relations for SIA. The mandate has been a barrier for cash-strapped ports, many of which are still suffering the effects of the recession. Grant applications have been approved for entry-gate improvements including video cameras and card readers, Dunn said, but much of the federal money has not been disbursed. Dunn said the problem is purely bureaucratic: No one is sure who has the authority to grant the waiver. (Source

New "Global Electronic Security Systems Industry" research report available from   This report analyzes the worldwide markets for Electronic Security Systems in US$ Million by the following Product Categories/Segments: Alarms, Electronic Access Control Systems, CCTV/Video Surveillance Equipment, and Others. The report provides separate comprehensive analytics for the US, Canada, Japan, Europe, Asia-Pacific, Latin America, and Rest of World. (Source

UPDATE - LAPD: Armenian theft ring going after cargo containers in LA County for millions    An organized group of thieves has stolen millions of dollars in expensive cargo in the Los Angeles area in 2012, and police are asking for the public’s help to stop what they call the “major theft ring.” Six suspects have been arrested for attempting to take cargo containers attached to semi-trucks in the region. It was determined that the suspects belong to an Armenian organized theft ring,” an LAPD news release said. “I’ve been working this stuff for 20 years and I haven’t seen it this bad,” Los Angeles Detective Marc Zavala. (Source

Northern Calif., Secret Service collects $55K in fake bills weekly & it'll spike before Christmas.     For some merchants, like Target or Best Buy, the fake $100 bills are just the cost of doing business. But for some small businesses, hoping holiday season sales will help balance a slow year, a few phony notes can ruin the bottom line. (Source

Serial Shoplifter-Professional thief Wanted in Columbus, Ohio    Police are trying to track down a woman, the number one professional shoplifter in Franklin County, wanted for shoplifting from several Stores. Samantha Brown is believed to have stolen merchandise from several central Ohio stores, including Lowes, Menards, Kroger, and Sears. Surveillance images show Brown pushing a baby in a shopping cart during at least one of the crimes. (Source

Could be record year for shoplifting in Franklin County, Ohio

The Prosecutor has seen a dramatic increase in shoplifting over the last year and they have over 250 suspects on their watch list of individuals who've been charged at least 10 times. Most are repeat offenders and this year only 27% have been first time offenders. (Source

Washington State Law Enforcement calling for more controls on liquor.    Liquor thefts have skyrocketed in Washington State since Initiative 1183 took effect in June, according to area law enforcement officials. Many stores weren’t constructed to “properly secure high-theft items such as spirits,” the Washington Association of Sheriffs and Police Chiefs says. “As a result, we believe significant amounts of spirits are being diverted from legitimate sales and unlawfully making their way into the community. This is resulting in increased access to alcohol by youth under 21 years of age, secondary unlawful sales of spirits, legitimate sales tax collection, and an increasing black market focused on theft and resale of spirits.” (Source

Driver in Stamford jewelry store robbery sentenced to 18 years.
The smash and grab occurred in November last year and yielded $600,000 in Rolex watches from the Ross Simons store in the Stamford Town Center. All four suspects were taken into custody. Juan Newman, 27, of Brooklyn, New York, had pleaded guilty in September to charges of first-degree robbery and first-degree larceny under an agreement for him to be sentenced to 18 years in prison and released after eight. (Source

UK thieves attempt to scrap an $800,000 sculpture for $75.
Two thieves, who stole an $800,000 Henry Moore sculpture and then sold it to a scrap dealer for $75, have been sentenced to 12 months in custody. Liam Hughes, 22, and Jason Parker, 19, hadn't even heard of the artist when they slipped into the gardens of the Henry Moore Foundation in Hertfordshire under the cover of darkness to steal the famous sculpture of a sundial. The pair hoped they might be able to get something for the scrap metal value of the bronze piece and took it to a scrap metal yard the next day. A few nights later the pair returned to the Foundation and stole an additional piece valued at $100,000. They sold that to a scrap dealer for $295. The scrap dealer thought it would make a nice gift for his mother, days later he saw the pieces featured on a crime show and contacted police. (Source

Magic Game Cards cause of three burglaries in Fresno.    Thieves have hit three stores, smashing out doors and windows to get to the stock on Magic Game Cards. The game cards can be valued at $1 to $1000 depending on its rarity; the cost to local businesses in damages has been in the tens of thousands. (Source

More than 12,000 pills stolen from Salina pharmacy.    Police say someone stole more than 12,000 pills of various pain medications from a Salina, Kansas pharmacy. Police say that the theft occurred at Jim's Pharmacy during a burglary early Monday. The medicine that was stolen was Diazepan, Oxycodone, Oxycontin, Fentanyl and Hydrocodone valued at over $16,000. Surveillance video shows a suspect wearing a camouflage coat and mask entering the store and stealing the pills and cash. The total loss was estimated at $18,167. (Source

AutoZone employee fired for getting his gun and stopping a robbery
An AutoZone worker who stopped an armed robbery by retrieving a weapon from his truck said he was fired by the company for violating their gun policy. McLean was left in a restroom while the gunman made the manager open the store safe. That’s when McLean, a 23-year-old Air Force veteran, bolted through a side door and ran to his truck. He returned through the front door holding a Glock 40 – pointed directly at the masked robber. The robber ran. (Source

Fayetteville, N.C., police probe Taco Bell robbery spree
Police are investigating four Taco Bell robberies in Fayetteville that may have been committed by the same man. (Source

Drunken Walmart shoplifter endangers his entire family by fleeing.    The shoplifter had $700 of merchandise, including a computer as he was exiting the store. Loss Prevention’s attempt to apprehend the suspect failed and the suspect dropped the merchandise and got into his car with his wife and three children. Loss Prevention pursued the suspect which lead to a chase through a neighborhood at high speeds, running stop signs, police finally stopped the suspect’s vehicle. (Source



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Outlet Malls are finally coming to Canada - The race is on
Three developers are bringing Outlet Malls to Canada on the fringes of Toronto and Montreal. Given that Canadian shoppers and snowbirds have been flocking to U.S. outlet malls for years, and have upped their visits with the rise of the loonie, the only question about the groundswell of domestic interest in this retail segment is: What took so long? Both Premium and Tanger, very successful developers in the U.S. have entered into agreements to develop the outlets. Something Canada hasn't seen yet. The winners of the sprint for sites and tenants will be resolved within the next two or three years, playing out against a backdrop of broad change in the Canadian retail scene. (Source

RCMP warn shoppers about counterfeit goods    Manitoba RCMP say they have seized $500,000 in counterfeit goods so far this year, up $200,000 from last year. Police say criminals involved in intellectual property crime — copyright piracy and trademark counterfeiting — range from organized crime groups to small-scale retailers who sell small quantities of counterfeit goods to supplement their income. "Many people are also unaware that buying these cheap knock-offs could mean they are inadvertently supporting organized crime or other types of criminality," the RCMP release stated. (Source

Black Friday, Cyber Monday spending spikes up in Canada with the two shopping days becoming a mainstay.    The specialty retail category saw the largest increase, 15%, in dollars spend on Black Friday. Within that category, radios, televisions and stereos were the most popular choices with spending up 22%. Clothing sales rose 13% compared to the day last year. Apparel sales led the way on Cyber Monday, with spending growth up 77%, followed by specialty retail, with 45% growth. And online shoe sales skyrocketed 112% compared to 2011. (Source

Retail industry is Canada’s productivity "bright spot": report
Retailers can give themselves a pat on the back this week. According to a recent report from Deloitte, the industry has become the "illuminating bright spot, and the most significant contributor to narrowing the gap in productivity growth [in Canada] since 2000." The number of U.S. retailers jumped by 28 percentage points between 1985 and 2002, forcing Canadian companies to invest in technology, improve their supply chain and training programs, revamp their stores and adopt global best practices. Retail’s impressive numbers are a result of a lack of government protection and the constant threat of going under, according to co-author of the Deloitte report Bill Currie. Sounds like retailers in the U.S. as well.

Windsor, On., police increase presence at Devonshire Mall for holidays
In Windsor, police say they're prepared to give local retailers what they need in an effort to stop shoplifting. (Source

Seaway Mall security called into question after child abduction
Mall security training and procedures being called into question following an attempted abduction at the Seaway Mall in Welland, Canada Sunday. The father turned over the man to Zeller’s management who escorted him out to the parking lot after he had stopped the man from pulling his five year-old son away from his mother. Police later caught up with and arrested a suspect. Mall Security Expert David Hyde says while it's unusual, this incident does show it can happen. He says the majority of mall security are very well trained and professional with protocol in place to deal with these situations. Hyde says the discussion of replacing mall security with police is a long running discussion, but comes down to limited recourses. (Source


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Featured Episode

The Big Box & Specialty Store ORC Leaders
Part 2

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 three.




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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

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Dallas police shut down 80 fencing operators in the city
Last year the Dallas Police Department started the “Organized Retail Theft Initiative” and as part of it Mayor Robert Sherwin said officials have been discussing the problem of theft with business owners. “During these meetings with the retailers we found very interesting information, they all started talking about organized retail theft,” Sherwin said. Dallas police authorities are focusing on shutting down the large fencing operations and thus ‘starving’ the market. “If you can’t sell it, you can’t convert it to money, [then] you’re not gonna steal it,” Sherwin said. (Source

Multi-state identity theft & counterfeit check gang busted in Baton Rouge, La.    Louisiana State Police took four suspects into custody after executing a search warrant at the home of a LSU Hospital Systems billing department employee. The group had used information obtained from the billing department of LSU Hospital to make counterfeit checks and identifications and go shopping in Louisiana, Mississippi, Alabama and Florida. Nearly 400 victims were identified in at least 12 states, according to state police. (Source


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Thought Challenge

Derek Rodner
VP, Product Strategy
Agilence, Inc.

Big Data is considered an IT buzzword by many Loss Prevention (LP) experts; however, this is more than a fad and it’s time for LP and security experts to listen up! In the four years since the term Big Data was originally adopted within the IT community, the number of data sources has exploded, now including smart phones, social media posts, web interactions and much more. Each and every day an estimated 2.5 quintillion (that is 17 zeroes after 2.5) bytes of data are created, and nearly 90 percent of the world’s data has been created in the past two years, according to IBM. As a result, experts predict that by 2015, the global market for Big Data technology and services will swell to $16.9-billion, from just $3.2-billion in 2010. So, what does that mean for retail LP? A lot!

Within the next two years, 30 percent of retailers will run out of storage capacity, according to The Edgell Knowledge Networks, and while nearly 80 percent are aware of the Retail Big Data concept, less than half understand the implications it has on their business. One immediate implication is clear, if retailers continue to ignore this issue they will be overrun by it.

Beyond the amount of data, the types, sources and implications of the data are key to understanding and managing this growing stream of information. While there are two main types of data - structured and unstructured - there is a seemingly endless list of data sources. The number of data points continues to grow as data capture technology continues to advance, but the true power of Big Data comes in the insights.

Big Data can be a game changer for LP and security. Each and every data stream, whether it be structured or unstructured, provides a unique glimpse into the security and efficiency of an organization. From dwell time to the T-log, each and every data point is a piece in a larger puzzle. Armed with this information, LP experts can make calculated decisions based on tangible facts in order to cut shrink maximize profit.

With that being said, I think it’s time for Big Data to stop being categorized as a buzzword and begin its reign as a top retail tool. What better way to accomplish that than by formalizing this definition for the industry:

       Retail Big Data (n.) – is the collection of all data and video in a single place, available in real-time.

What could you do if you had all of that information available at your fingertips?
Assuming you don’t currently have this – since only two percent of retailers do – it’s imperative that you get involved in your organization’s process to develop and drive a Big Data solution. Big Data has the potential to drastically impact LP, so you need to get yourself a seat at the table. What role are you playing in the Big Data equation?

The Thought Challenge Review 2012 begins Dec. 1st. It's not too late to submit yours! December 31st deadline.

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Vendor Spotlight

Axonify - Retail Datasheet

The Challenges of Training in Retail

The failure of learning transfer in retail organizations costs millions of dollars a year. Why?

-  Average employee turnover is 50% resulting in a constant need for training;

-  Employees don’t remember, or
operationalize today what they learned when they were hired;

-  Safety claims, OSHA fines and lost workdays due to injury result in massive annual loss;

-  Awareness campaigns related to shrink are ineffective causing American retailers to lose over $35B a year;

-  Typical employee training isn’t fun,effective or reinforced.

Put Axonify to work - we'll address these issues and more, and save you millions.

  Here's HOW and WHY Axonify works

Bite-Sized Reinforcement
Associates receive personalized training every day in the form of 2-3 targeted questions via computer, smartphone, laptop, POS or web-enabled time clock. Demonstrated knowledge gaps result in engaging, short training bursts. Questions are repeated over time to reinforce concepts and retention is measured every time. It takes less than a minute a day.

Gamified Learning
Axonify uses game mechanics to deliver questions in interesting, fun and effective ways. Games have been proven to not only increase employee participation in training, but accelerate their learning. Tell us what fits with your culture and employee demographic. With Axonify, you can customize training games and include specific rewards to motivate associates. When training is fun, employees want to learn.

Personalized Knowledge Map
No other e-learning solution offers a truly personalized experience allowing each employee to follow their own\ path. Axonify continually analyzes what every associate remembers, or not. For example, if Mark continually answers questions about back training incorrectly, Axonify repeats questions on this subject until he demonstrates knowledge retention. If Jennifer knows quite a bit about customer service, Axonify advances her to more in-depth training on the subject.

Analytics & Reporting
Axonify is the only solution that lets you tie training activities to specific outcomes. Let us correlate participation levels and question success by person, location, job title – you name it – to what you’re trying to achieve. Are you looking to mitigate an OSHA claim? Do you have an employee theft problem in one store? Let us tie measurable levels of awareness to the specific issue that you’re trying to address.

Axonify’s Retail Success Rate to Date:
Increased knowledge retention from 48% to 98% after just 5 iterations of questions
Reduced inventory shrink across the organization by over 50%
Saved $8.5M in insurance claims, lawsuits and OSHA fines over 2.5 years

To find out more about how Axonify can increase employee awareness and save you millions, visit

Peggy Nitsche

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Change Your Ways? 3 Things You Must Do First There's an old saying that a leopard can't change its spots. It means that people can't change their inner nature. Since it comes from the bible and is still around to this day, this bit of conventional wisdom has clearly stood the test of time. The only problem is that it isn't true. (Not even close)

Three Woefully Outdated Bits of Career Advice You Must Avoid, If You Want to be Successful If you ad a nickel for every time you heard one of these three bits of career advice, you'd have a lot of nickels. Unfortunately, you probably wouldn't have a job. You know what the three are, so let's deal with the problem with each. (A new approach)

What Your Employees Won't Tell You (But Wish You Knew) Chances are, your employees aren't going to come up to you one day and give you a piece of their mind. This could be for many reasons -- maybe they don't feel comfortable, maybe your work doesn't have a culture of transparency, or maybe they value their jobs. (Just a few reasons)

5 Habits of Highly Effective Communicators It's no secret that good leaders are also good communicators. And the best leaders have learned that effective communication is as much about authenticity as the words they speak and write. Indeed, communication and leadership are inextricably tied. (Clear, credible and authentic)

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