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December 11, 2012 SUBSCRIBE

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After fire, Wal-Mart vows to tighten source safeguards
Wal-Mart Vice President of Ethical Sourcing Rajan Kamalanathan said the company's current controls could only go so far in preventing a factory Wal-Mart did not approve of from making its clothes, as was the case here. "If a supplier or an agent chooses to subcontract without informing us, then that is a problem," Kamalanathan said. The building was not cleared to be used by any party manufacturing garments for the world's largest retailer. Wal-Mart says that in 2011 alone it audited over 9,000 factories globally to check whether its standards were being met. The lack of control down the supply chain represents a challenge not just for Wal-Mart, but for the industry overall, Kamalanathan added. We are actively thinking about how to better work with suppliers who work with agents," he said. "This is something we are talking about internally and across the industry." (Source

Seasonal hiring up 19% over last year with retailers adding 619,700 seasonal workers  If businesses bring on just 140,300 more workers in December, they’ll match the nearly 760,000 employees tacked on to payrolls during the three-month holiday hiring season in 2000 – a record high. Let's hope sales get better and the cost justifies the means. Or we're all in for a shock come the new year. And so far sales are soft with some reporting low teens down. Looks like someone told the consumer there were extra shopping days this year. They're getting smart and waiting for the retailers to panic. (Source

"Too big to indict?" HSBC to pay $1.92 billion to settle charges of money laundering  State and federal authorities decided against indicting HSBC in a money-laundering case over concerns that criminal charges could jeopardize one of the world’s largest banks and ultimately destabilize the global financial system. The bank, which is based in Britain, faces accusations that it transferred billions of dollars for nations like Iran and enabled Mexican drug cartels to move money illegally through its American subsidiaries. (Source

43% of U.S. adults go showrooming now and Best Buy is the #1 showroomed store in U.S.
 With Wal-Mart second, target third, Home Depot fourth, Lowe's fifth, and Barnes & Noble sixth. With 57% saying they end up buying online at Amazon after visiting a bricks-and-mortar store. (Source

BRC the British Retail Consortium - the UK's NRF - survey shows 20,000 retail employees were impacted by last summers riots in London & retail crime is up 31%  A third of the stores affected said their employees were exposed to physical violence and nearly 40 per cent reported verbal abuse. More than eight out of ten businesses said their staff were now afraid of future violence, including reprisals. Many of the looters were common criminals. Organized crime too, is having a serious impact on retailers as the overall annual cost of retail crime has risen 31 per cent to 1.4 billion pounds. British Retail Consortium Director General, Stephen Robertson, said: "The riots of last summer should have brought home to everyone that crime against shops is crime against communities. The victims include staff who are intimidated and traumatised and local people whose local services are disrupted, either temporarily or for ever." (Source

Nationwide Insurance security leak could expose 1.1M customers to ID theft
The breach occurred October 3 and has exposed the names, Social Security numbers, and other personal information of more than 98,000 Minnesotans to identity thieves. ON Monday, Nationwide said there has been no report of misuse of the information, which has affected 1.1 million customers. "This was a sophisticated attack," said Nationwide spokeswoman Elizabeth Giannetti. "We know it came from outside the U.S."  (Source

New Jersey moves to crack down on cargo theft
The Assembly Judiciary Committee approved bipartisan legislation today aimed at cracking down on cargo theft in New Jersey, where the crime is a serious and growing problem. Cargo theft increased 147% in New Jersey from 2009 to 2010. The bill would create specific provisions for theft of a cargo carrier including: Fines of $250,000 for a second-degree crime, $500,000 for a first-degree offense or five times the value of property seized – whichever is greater - Mandatory imprisonment of at least 120 days for a second offense, or 270 days for third or more offenses. Those terms would double if the crime involved a weapon. (Source

North Bergen Officer nearly run down by Cargo Thieves. 
Two men are in custody for attempting to steal a truck and trailer filled with t-shirts. As the North Bergen, New Jersey Police officer approached the suspects during the attempted break-in, the suspects jumped into a Nissan Pathfinder, slamming it into reverse and nearly hitting the officer. Horacio Llerena Martinez, 52, of Union City, and Carlos Toirac-Almira 34, are both now in custody facing charges of aggravated assault, eluding police, theft and possession of a weapon. (Source

Some just don't quit - Couple arrested a second time after re-opening counterfeit store - Urban Wear  Two Chickasaw County residents have been arrested for a second time in a year on charges of selling counterfeit clothing. Hood says the investigation was sparked after tipsters reported the pair had reopened their store and resumed selling counterfeit goods. Investigators seized about $275,000 in counterfeit clothing from the Okolona, Miss., store. (Source

A year of danger for NYPD officers as 12 cops were shot in 2012
The number of officers shot this year alone has eclipsed the nine total cops hit by bullets between 2008 and 2011. Their wounds came in a year when adversarial shootings — which occur when an officer engages in a gunfight with an assailant shooting at the cop — doubled from last year’s record low of nine to 18 in 2012, NYPD stats show. (Source

Portland, Maine woman wins $123K in Zales discrimination suit.  A Portland woman who sued a Zales jewelry store in South Portland, claiming she was denied service because of her race, was awarded more than $120,000 Monday, the woman's law firm said. RyiSHisa Morris, who is African-American and Native American, was trying to return an item she had bought at Piercing Pagoda (division of Zale) in the Maine Mall on March 17, 2010, according to the lawsuit. The clerk became belligerent with Morris and told her, "I've had enough with your kind," the lawsuit says. Morris called customer service when the clerk denied her return, and the clerk called for mall security. While she was on the phone with customer service, Morris was approached by three security officers, according to the complaint filed on Dec. 29, 2011. (Source

Motive unknown in Jack in the Box standoff in Sacramento, suspect killed by SWAT.  As police continued their investigation into the incident, one detail remained elusive: why Xang Khang ignored an opportunity to clean out the registers and flee before police arrived. Instead, it was the gunman who ended up dead after Sacramento police SWAT members ended a nerve-wracking, three-hour standoff in which 26-year-old Xang Khang terrorized two Jack in the Box employees. (Source

San Antonio, TX Police are looking for Goodwill robber with a painted face.
Authorities were searching for a man with a painted face on Tuesday morning following a robbery at a Goodwill store on the city's southwest side. San Antonio police called its SWAT unit to the Goodwill in the 2400 block of SW Military Drive just before 8 a.m. They had the area surrounded but could not immediately find the suspect. The man had walked into the store with a gun and robbed three employees before running away, no one was injured. (Source

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An unsuccessful attempt at another Gold Coast burglary in Chicago.  Ikram Fashion on Huron and State was the latest target believed to hit by four teens who were unsuccessful at gaining entry to the store before police arrived. Ikran Fashion in the past was the favorite store of First Lady Michelle Obama. (Source

Armed robbery of a Don Quixote Grocery Store in Waipahu, Hawaii.  Police are searching for suspects who robbed a Don Quixote in Waipahu on Monday night at around 10:30 p.m. The suspects in the robbery, who are in their twenties, pulled a gun on security officers who were on duty. The suspects got away with an unknown amount of merchandise. (Source

Shots fired at an Auto Zone in Fort Smith, Arkansas. A man was found shot in an Auto Zone parking lot in Fort Smith Monday evening.  Police say 28-year-old Sherron Zanders was found in the passenger seat of black Cadillac with multiple gunshot wounds just before 5 p.m. "Officers have made contact with witnesses," said Cpl. Patricia Sullivan. "At this point it's still preliminary, and we are trying to track down some of the leads." Police say they are not sure where the shooting took place and no arrests have been made. Zanders was taken to a local hospital with life-threatening injuries. The suspect is considered armed and dangerous. (Source

Man attempting to sell jewels says he was not connected to the robbery of a Vermont Jewelry store.  Michael Ulrich has denied any involvement in the theft of $6000 of merchandise, gold and silver from the Ornament Design store in Jeffersonville, Vermont. Police have charged Ulrich and believe that he may be connected to other thefts in the area. (Source

Bail set at $50,000 for Lewiston, Maine Tim Horton’s Robbery. Nathan Parker, 22, is being changed with felony robbery of the Tim Horton’s store in Lewiston, Maine. Parker purchased a few items then passed the cashier a note demanding money. After getting a small amount of cash, Parker ran from the store and lead police on an hour long foot chase around the city. Police later caught up to Parker and he was arrested, no one was injured in the event. (Source

Texas Police still looking for a burglary suspect who stole squad car while handcuffed. Police arrested 41-year-old Darren Porter on Friday on suspicion of breaking in to an antiques shop in White Settlement near Fort Worth, Texas. Porter left alone in a squad car managed to roll down a window, open the car door and drive off with the vehicle, leaving police still scrambling to find him three days later. Dash cam video from another vehicle caught 41-year-old Darren Porter getting out of the backseat of a car. Squad cars are supposed to have the window switches in the back of the car disabled, but not this one, Lt. J.P. Bevering said Monday morning. Porter was able to roll down the window, reach out and open the door. Dash cam video shows him climbing into the driver's seat and taking off. The car was found abandoned at a nearby apartment complex. Porter remained at large Monday. (Source

Three 13-year-old boys arrested for armed robbery in Madison, Wisconsin.
The boys attempted to steal candy and condoms from a Walgreens when the manager confronted them, telling them they didn’t need to get in trouble over the thefts. When the boys left, they set off the security alarm and the manager followed them into the parking lot, where at least two of the boys pulled out knives and one of the boys shouted “Don’t you call the (expletive) police.” The boys were arrested and three steak knives, 7-inches, 5 ½ inches, and 4 ½ inches, were found. (Source

Allentown, PA shoplifter threatens to 'cut head off' of loss prevention officer
Vincent Bynum was stopped by loss prevention officer Jason Forte on Friday for stealing $13.31 worth of groceries. Bynum allegedly punched and kicked Forte before saying "I'm going to cut your head off" and "I'm going to shoot you in the face." The suspect also allegedly threatened to return with friends, saying "I'm coming back here; you ain't going to see me coming."  (Source

Shoplifter suing Store Owner for $100,000 for shooting him in the face over a bottle of vodka.  Bryson Adrian Dewberry is seeking at least $100,000 for pain and suffering two years after he was wounded in the jaw by a bullet fired by Chang Ho Yi, the owner of Austin Bluffs Plaza Liquor, 4150 Austin Bluffs Parkway. According to a lawsuit filed in early October, Yi witnessed the theft on Oct. 25, 2010, and pursued Dewberry out of his store with a loaded .357 revolver, which fired as Dewberry was in the backseat of a getaway car. The bullet hit Dewberry in the torso before it passed through his jaw and exited through a cheek. The same projectile hit a 17-year-old passenger in the leg. Dewberry’s lawsuit alleges that Yi behaved “negligently and recklessly” in brandishing a gun at a shoplifter who posed no physical threat. Colorado law permits residents to use deadly force in self-defense, but offers no such protections in defense of property. Yi and his company, Yi Enterprises Inc., are the sole defendants. (Source

Quarterly Same Store Sales Results

Dollar General 3Q up 4% with sales up 10.3%
Toys R Us 3Q down 4.1% with total sales down 3.4%



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It is with great sadness that the Daily notes the passing of three members of the LP community.

Harold Kane passed away last Sunday at the age of 91. Harold was a longtime member of the International Association of Financial Crimes Investigators (IAFCI), joining in 1976. He was a past President of the Easter Chapter and was highly regarded by all those who knew him.

Harlan Rhan passed away last Sunday. Harlan was a member of the IOBSE and spent the last 13 years working in the LP department at Kohl's. Previously, he had been the captain for hose Co. #5 of the Freeport NY Fire Dept., as well as president of the state champion Freeport Fire Dept.

Marshall Munroe, VP with Verint Systems, passed away yesterday morning. Marshall had previously worked with Checkpoint, Kalatel/GE, and Pelco. Most recently, he was the VP of Stretegic Alliances for the Americas at Verint. Calling hours and funeral information will be available soon.

Our thoughts and prayers are with these three gentlemen's families and friends.


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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

Fencing Operation busted in San Francisco and it could be a part of a bigger ring   San Francisco police announced that last month more than half a million dollars worth of property and $32,000 in cash were recovered when they busted up a fencing operation and arrested three people. Investigators also say they believe this is just a part of a much larger fencing operation and the investigation is continuing. An inventory tallied a total of more than a thousand items, almost entirely electronics, including laptops, cell phones, hard drives, and accessories that were recovered in the residence, as well as at storage facilities, inside vehicles, and at other locations. The arrest and prosecution of these defendants will deal a strong blow to the marketplace of stolen property. "The San Francisco Police Department did a phenomenal job in investigating this case,” said District Attorney George Gascon. (Source

Canadian ring busted with 30,700 stolen payment card numbers and at least a dozen stolen POS devices  Toronto police said a five-man gang arrested in September had tens of thousands of stolen card numbers on PCs and USB thumb-drives, along with at least a dozen stolen POS devices. This gang was allegedly modifying several different models of PIN pads, then swapping them for legitimate PIN pads on retailers’ counters. That means they were doing it at multiple retailers, and doing it easily enough that they believed an assembly-line approach made sense. (Source

Criminal crew - ORC gang targets Seattle-area Microsoft stores
Seattle Police are looking for a group of individuals who police said have robbed Bellevue and Seattle Microsoft stores multiple times. Calling the group an “organized retail theft group” that has taken nearly $5,000 worth of goods from the Microsoft stores. The group suspected of robbing the stores includes six female suspects and one male suspect. They are between the ages of 20 and 45 and frequently enter the stores wearing heavy coats. (Source

Ross Store in Tulsa, Oklahoma busts five for Grand Larceny following a high speed chase.  Five women suspected of shoplifting lead police on a high speed-chase that started in Broken Arrow and ended in Tulsa. Employees at a Ross Dress For Less near 101st Street and Elm Place told police that five women had stolen $1,500 worth of merchandise around 10 p.m. Monday. Officers spotted the suspects' silver car about three miles away, but the suspects refused to stop for police, leading to a high-speed chase that ended in Tulsa. Police say they found stolen merchandise from the Broken Arrow store and from Woodland Hills Mall. (Source


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Thought Challenge

Thought Challenge Review

Lance Storm
by Lance Storm
Director of Loss Prevention, Styles for Less

as published on April 27, 2012

Reducing shrink is not about writing the best shrink reduction programs, or writing the best policies or employing the best ORC investigators. It's not really about how well you do at inventory time as a derivative of sales, which is essentially just the end product of all your efforts. It's not about constructing the best LP Program around, or employing the best interviewers. Sure, those are all good traits of a successful LP department, but they don't guarantee success. Success comes when you are able to change culture. If you believe you can change the culture within an entire organization, then you can move mountains.

Changing culture isn't easy, and it takes a tremendous amount of creativity and patience, but it is the essential driving force of any successfully executed plan. Creativity is hard to learn, unless you pour your absolute heart and soul into whatever it is that you want to achieve. If you live by the mantra, "Anything worth doing, is done with Passion and Happiness," creativity will flow and culture will change. Reducing shrink, you'll find, isn't the only success you will gain.

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

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Dept Mgr Store LP & Safety Lowe's Bristol, VA Lowe's
Market AP Mgr Walmart Hamilton, OH Walmart
Market AP Mgr Walmart Parker, CO Walmart
Market AP Mgr Walmart Montrose, CO Walmart
LP Investigations Mgr RadioShack Atlanta, GA Monster
District LP Mgr Dick's Sporting Goods Deptford, NJ Monster
District LP Mgr Dick's Sporting Goods Tulsa, OK Dick's Sporting Goods
District LP Mgr Banana Republic New York, NY The Gap
District LP Mgr Big Lots Washington, DC Big Lots
Area LP Mgr dd's Pleasanton, CA Ross Stores
Loss Prevention Mgr Century 21 Dept Store New York, NY Century 21 Dept Store
District LP Mgr Sears Indianapolis, IN Sears Holdings Corp.
Loss Prevention Mgr Kmart Albuquerque, NM Sears Holdings Corp.
Loss Prevention Mgr Kmart Warner Robins, GA Sears Holdings Corp.
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.
LP Mgr (In Training) Sears
Pleasanton, CA Sears Holdings Corp.

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Top 5 Skills Every Leader Must Have The world is changing. It's becoming a more complex place. This may have always been the case, but the rate of change appears to be accelerating. Given that's the case, then what are the real capabilities that people need to distinguish themselves? (The new age)

8 Beliefs That Make You More Resilient Most people live lives of quiet desperation because they focus on things that they cannot control: outside events, stuff that happened in the past and what other people are thinking. As a result, they fail to focus on what they CAN control: their own beliefs, attitude, emotions and behavior. (Make you stronger)

6 Ways to Spread the Holiday Spirit The holidays are a great excuse to boost company spirit, and remind employees that time spent with their "office family" doesn't have to be all work and no play. Sure there's the big holiday party. But you can also sprinkle some fun, inexpensive things to do around the office. (A more festive mood)

The Workplace Holiday Party: Should I Stay or Should I Go? IYou know it's coming. You see the flier in the break room, you get the email, or maybe you find the announcement in your paycheck. Either way, the workplace holiday party is quickly approaching. For some employees, that internal struggle builds inside while you ask yourself "Do I want to go or not?" (Good question)

"What I don’t like about office Christmas parties is looking for a job the next day."
— Phyllis Diller

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No matter what you do, there's always two sides in every stadium, both supported by their beliefs, convictions and opinions and both equally opposed in their desire to win. While winning is everyone's objective, how you play the game is in actuality more important. Regardless of how the other side plays, one must always remember that afterwards regardless of the win or loss everyone respects the one who played like a professional and gave it their best.

Just a Thought,

Gus Downing

Gus Downing

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