America's #2 Retailer - Kroger's Asset Protection Efforts
Continue to Impact Shrink 5th Quarter in a row

With nearly 2,800 stores in 35 states under two dozen banners
& annual sales of more than $115.3 billion,
Kroger today ranks as one of the world's largest retailers

Kroger's New Investment On 1st VP of AP Role in April 2017
Paying Off - Here's the Proof
Kroger CFO, Mike Schlotman, Calls Out & Recognizes Continuous Shrink Improvement In 5 Consecutive Quarterly Results Calls
Quarterly & Full Year Results Conference Call Transcripts With Shareholders & Media

Dec. 6th Press Release: Gross margin was 21.6% of sales for the third quarter. Excluding fuel and the LIFO charge, gross margin decreased 91 basis points from the same period last year but was higher than the 2018 second quarter. Kroger's shrink rate continued to improve during the third quarter. The gross margin rate reflects the timing and size of price investments compared to a year ago, rising transportation costs, and the growth of the specialty pharmacy business.

Shrink improvement and waste has been a major focus at Kroger. Which is why they staffed a Vice President level position, Mike Lamb in April 2017. Their first ever VP level AP executive in their long history.

With undergoing a massive effort to standardize the AP effort in over twenty banners the organization is reaping the rewards of improved performance. The whole story of which is being published on the Daily shortly.

For more on the quarterly results history see the Daily's article - Kroger's AP Efforts Paying Off posted 9/24/18. kroger.com
 

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Huawei CFO Arrested in Canada for Extradition to the U.S.
Washington officials have expressed spying concerns over the Chinese company's tech
China demands release of CFO, who is the daughter of Huawei's founder

A top executive and daughter of the founder of the Chinese tech giant Huawei was arrested on Saturday in Canada at the request of the United States, in a move likely to escalate tensions between the two countries at a delicate moment.

The arrest of Meng Wanzhou, the chief financial officer, unfolded on the same night that President Trump and President Xi Jinping of China dined together in Buenos Aires and agreed to a 90-day trade truce. The two countries are set to begin tense negotiations in hopes of ending a trade war that has been pummeling both economies.

China says her detention is possibly a rights abuse. "We have made solemn representations to Canada and the US, demanding that both parties immediately clarify the reasons for the detention, and immediately release the detainee to protect the person's legal rights."

A Canadian law-enforcement source with knowledge of the arrest said the United States is alleging Ms. Meng tried to evade the American embargo against Iran, but provided no further details. Since at least 2016, U.S. authorities have been reviewing Huawei's alleged shipping of U.S.-origin products to Iran and other countries in violation of U.S. export and sanctions laws.

Huawei, the second-largest maker of telecoms equipment, and China's ZTE, have been under scrutiny by the U.S. government for a number of years over suspicions that their equipment can be used to spy on Americans. nytimes.com bbc.com theglobeandmail.com

ALL-TAG Opens a New Subsidiary Location in Mexico City, Mexico
ALL-TAG, a manufacturer of U.S. made RF EAS Labels, supplier of AM and RF Anti-theft Security Tags, Security Labels, and other loss prevention products recently launched a new subsidiary in Mexico City, Mexico.

"We're thrilled about this expansion," commented ALL-TAG's CEO, Stuart Seidel. "This is yet another strategically located facility that allows all retailers in Mexico to receive orders in a timely and cost-efficient manner."

The office is filled with the personnel necessary to provide the exceptional support and customer service ALL-TAG customers around the world have come to expect. The warehouse is fully stocked with everything from AM and RF Labels, to hard tags and other loss prevention solutions that are ready for immediate shipment. prweb.com

HS Brands Global Expands European Reach with Acquisition of Mystery Review, Netherlands
HS Brands Global, a leading provider of Customer Experience Evaluations, Mystery Shops, Loss Prevention, and Franchise Assurance services, announced today the acquisition of Mystery Review located in Hilversum, Netherlands. As part of the acquisition, Carlo van den Berg, was named Director of European Client Services and will continue in his former responsibilities of overseeing the Hilversum day-to-day operations as well as business development all over Europe. digitaljournal.com

In Case You Missed It:
The Surprising Global Forward March of Facial Recognition

By Tony D'Onofrio, Global Retail Influencer

Originally published as a four-part series, this is the long-read version consolidating the latest research of the global forward march of facial recognition technologies. From Apple normalizing its acceptance, to disruption in the retail / security / healthcare industries, to the emergence of China as the FaceID innovation laboratory, and the ever-growing new global applications, we stare into your auspicious Internet of Things (IoT) future. Read more here.

Bear spray accident at Amazon warehouse shines light on safety record
Two dozen workers hospitalized following incident in Robbinsville, NJ
Internet giant Amazon was urged by a worker advocacy group weeks ago to give workplace safety urgent attention. The National Council for Occupational Safety and Health said seven workers nationwide have died in accidents at Amazon warehouses since 2013, tamping down praise the company received for raising its minimum wage to $15 an hour.

"A pay increase is worth a lot more if you come home in one piece at the end of your shift," said Marcy Goldstein Gelb, the group's co-executive director.

At least two dozen workers at Amazon's Robbinsville, New Jersey, plant were hospitalized Wednesday, officials said, after a can of bear repellent fell off a shelf, putting a fresh spotlight on the internet company's safety record. usatoday.com

Holiday Returns "A Ticking Time Bomb"
Half of the apparel sold at the holidays is about to be returned
All that spending is making for a lot of returns. In a report emailed to Retail Dive, business-to-business marketplace B-Stock revealed that 11% to 13% of holiday purchases are returned, that 20% of all returns take place at the holidays and that it costs twice as much to process an online return as it does to sell it, though it should be noted that B-Stock is a solutions provider for returned inventory.

Historically, retailers tend to list 60% more inventory in their first quarters versus their fourths, with the highest volumes coming in February and March. This year between $90 billion and $95 billion in holiday merchandise will be returned, and, with e-commerce holiday sales expected to reach $123 billion, online holiday returns will spike to $36.9 billion.

And a lot of that will be clothes, with "women's trendy apparel" topping B-Stock's list of most returned merchandise from Q4 sales. The category on Black Friday this year saw the biggest increase in orders year over year, a whopping 450%.

Nearly a third (32%) of U.S. shoppers say they'll abandon an online purchase without an offer of free returns, and that's the third major reason (after delivery options/charges) for online shoppers abandoning a purchase, according to omnichannel retail management firm Brightpearl's latest 'Fast & Frictionless' report. More than a quarter (28%) do so if they can't find information about a returns policy, according to the report. Things get worse if you include actual purchases, Brightpearl found: 71% of U.S. consumers say if they had a poor shopping experience related to returns, (pre-or-post purchase), they're unlikely to ever shop with the same brand again. retaildive.com
 

Announcing November's LPC and LPQ professionals!

The Loss Prevention Foundation would like to recognize and congratulate the following individuals who successfully completed all of the requirements set forth by the board of directors to be LPQualified (LPQ) and/or LPCertified (LPC):
 

● Jackie Chapman, LPC - Walmart ● Jonathan Kobayashi, LPC - Amazon.com ● Faiz Malik, LPC - Amazon.com ● Rodney Maynard, LPC - Lowe's ● Samuel Miller, LPC - Lowe's ● Trevor Mohs, LPC - Amazon.com ● Zackary Mongosa, LPC - Amazon.com ● David Mosser, LPC - Amazon.com ● Shelley Orf, LPC - Sears Holdings Corp. ● Patrick Patton, LPC - Lowe's

● Micah Sheffield, LPC ● Desi Touchet, LPC - Wal-Mart ● Spencer Von Behren, LPC - Amazon.com ● Meggan Eckard, LPQ - Goodwill Industries of Seattle ● Skylar Hall, LPQ - University of Indianapolis ● Shiva Shankari Krishnammal Ganesan, LPQ - Sears ● Jeff Maksimowicz, LPQ - Lowe's ● Yevgeniy Mayba, LPQ - Festival Foods ● Scott Pocius, LPQ - Zugress Security Services ● Rick Snook, LPQ - Axis Communications, Inc.

DOJ Continues to Validate Violent Crimes Spiking in U.S. at Project Safe Neighborhoods National Conference
Deputy Attorney General Rod J. Rosenstein Delivers Remarks

Violent crime rates fell in the early 1990s and declined for more than two decades. Some people started to take it for granted. Maybe they started to believe that progress was inevitable. They did not realize that effective law enforcement is essential to reducing crime, and effective law enforcement requires coordination, and it requires political support.

So they were surprised when the downward trend suddenly reversed in 2014. From 2014 to 2016, nationwide violent crime increased by 7 percent, and murders spiked by 21 percent. There was an 11 percent increase in the murder rate in 2015 alone - the largest annual increase since 1968.

The upward trend was especially pronounced in big cities. In 2016, the murder rate rose in 22 of the 34 largest cities.

Drug abuse also soared, and drug overdose death rates skyrocketed to record numbers. Meanwhile, the federal government shifted away from the cooperative PSN model. Federal agencies prosecuted fewer violent criminals and drug dealers, and the federal government's relationships with state and local law enforcement agencies deteriorated.

The most important people here are the men and women who work on the front lines to reduce violent crime. Whether you are a prosecutor or a law enforcement officer; a researcher, prevention specialist, or community leader, we all share a common goal: to make our communities safer. 

We created the National Public Safety Partnership, enhancing federal support of law enforcement in 17 cities. The Department awarded more than $5 million in grants to ensure that cities have the necessary technology and equipment to fight violent crime. We awarded more than $31 million in grants to support Regional Information Sharing Systems, and the Technology Support Center, which empowers law enforcement agencies nationwide with information to achieve crime priorities. justice.gov

Justice Department Settles Immigration-Related Discrimination Claim Against Mrs. Fields Cookies
The Department's independent investigation concluded that, from at least March 21, 2016, to March 20, 2017, Mrs. Fields required lawful permanent residents to provide specific documentation issued by the Department of Homeland Security to prove their work authorization, while not imposing this requirement on U.S. citizens. justice.gov

Educate Entry-Level Workers on Workplace Ethics
"Whether you're hiring recent high school or college graduates or other entry-level workers, make time to teach them what they may not have learned in school: the ethical rules of the road in business."

Far too many young adults enter the workforce without these lessons, only to find themselves on the sharp end of the investigation spear and terminated for cause-not realizing why until it is too late.

Raise expectations by heightening awareness early on and engaging your earlier-career workers in all matters relating to career management and workplace ethics. Teach them life lessons when they join your organization-arguably their first encounter with a full-time job and the sometimes-harsh realities of the workplace.

"More important, steer them clear of mistaken assumptions that may land them in hot water for failing to understand that school and workplace expectations can differ significantly," Nasby said. shrm.org

4 Holiday-Party Considerations for Limiting Employer Liability
Potential problems at social gatherings include bullying, sexual harassment and other misconduct, as well as accidents and injuries.

"It's important to make expectations clear from the start," said Nathan Baker, an attorney with Barnes & Thornburg in Indianapolis. "Think about the message, and make sure it's positive."

The leadership team should set the example for the rest of the staff, Baker noted. Furthermore, leaders should encourage workers to report any incidents as soon as they happen so that the employer can play an active role in any resolution, he said.

"Involve your folks," Baker said. "Maybe your employees would rather get a $100 gift card and have a pizza party. Or maybe they'd rather donate the money to a food bank and spend time volunteering." Employee engagement is the key, and there's no single solution, he said. What works for one organization may not work for another. shrm.org

VP Loss Prevention for Fred's Inc in Dallas, TX
The Vice President Loss Prevention is responsible for providing direction, development and leadership to Loss Prevention, Safety, Security and Audit teams for corporate, distribution centers and the field. These teams directly impact enterprise shortage control, security awareness, and program compliance for all Fred's retail locations. The Vice President manages multiple Security, Loss Prevention and Safety programs and initiatives for stores and in our corporate offices. fredsinc.com

Fred's, Inc. operates approximately 600 general merchandise and pharmacy stores, including 13 franchised locations, and three specialty pharmacy-only locations. With unique store formats and strategies that combine the best elements of a value-focused retailer with a healthcare-focused drug store. fredsinc.com

Tips for Managing Employees in the Event of a Natural Disaster

Lampert's Hedge Fund Makes Bid for Sears Stores and Assets

Wells Fargo Firing Dozens of Regional Managers in Retail-Bank Cleanup

NYPD to Deploy 14 Drones

Quarterly Results
Kroger Q3 identical sales up 1.6%, total sales down 0.3%