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December 15, 2011 SUBSCRIBE

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Loss Prevention & Safety Recruiters Since 1983

C.L.E.A.R. hacked by "Anonymous" on behalf of "Occupy"  The CLEAR website was breached this past Sunday at 11:35 pm and the hacker "Lutz" posted all the information, basically from business cards, including a coded version of passwords onto numerous sites. No financial information was obtained. CLEAR responded appropriately and quickly to all members and is working with the FBI and secret Service on this case. It was only a matter of time before they hit closer to home so to speak in this industry. The issue is who'll be next?

The NRF upgrades it's Holiday Sales forecast from 2.8% to 3.8% It's still below last year's 5.2% increase but above the last ten year average of 2.6%. The figures in the NRF report exclude automotive dealers, gas stations and restaurants which the Department of Commerce includes in their retail quotes. The improved forecast comes two days after the government released retail sales gains of 4.5% compared with the same year-ago period. The trade group also cited that its recent consumer poll showing the average American has completed less of their holiday shopping. (Source Associated Press)

"Green Monday" generates $1.13 billion in online sales Marketers refer to the second Monday of December as Green Monday and it's one of the top sales days for e-retailers. Sales on the first Monday in December (Dec. 5) edged out Green Monday for second place for the first time. Cyber Monday generated the most single-day sales for the third year in a row. (Source

Michael Kors, fashion designer and retailer, raises $944M in their IPO which means you're going to be seeing lots of their stores in the future. Their Dir of LP is starting to build their LP program and truly has as exciting challenge in front of him with this growth. (Source Associated Press)

"This is going to be a record year for returns" with return rates increasing and have stayed high since the "Great Recession" For every dollar stores take in this holiday season, they'll have to give back 9.9 cents in returns, up from 9.8 last year. In better economic times, it's about 7 cents. Stores and manufacturers are expected to spend $17 billion reboxing, repairing, restocking and reselling electronics this year, up 21% from four years ago. It adds up to lost dollars for stores, which have to eat as much as 12% of the cost for returned clothes and 50% for returned electronics. (Source Associated Press)

Police catch hatchet attacker of Fred Meyer Loss Prevention associate Detectives received an anonymous tip Wednesday about Adrian Kramer's location and caught him shortly thereafter. The shoplifter was caught shoplifting at the Fred Meyer just before noon Monday when Kramer grabbed a small hatchet and swung, lopping off the lower part of the head of the loss prevention officer's left ear. (Source

Typosquatters Target Christmas Shoppers Beware of "typosquatters," who prey on cack-handed typists that misspell domain and website names and end up on pages that look like the real thing but are in fact fraudsters stealing your credit card info and you'll never see that package in the mail. Websense noticed that cyber criminals were registering huge numbers of fake website domains in preparation for the Christmas shopping spree and have discovered over 2,000 typosquatted domains already. Typosquatting also puts company confidential data at risk as many employees shop from work computers at lunchtime. (Source

viaForensics says research points to Google Wallet fails security needs and could be used in a social engineering attack. The problem with it, viaForensics says, is that the app stores too much unencrypted data bad guys could use in a social engineering attack against the user. (Source

Gangs across the U.S. are using social media to recruit, intimidate and brag Law enforcement across the nation are seeing gangs in particular begin to use social media sites such as Twitter and Facebook to organize their activities and recruit new members. The FBI warns in its 2011 National Gang Threat Assessment report that gang violence expanded over the past two years and that the increase in communication technology ó smartphones and social media ó is partly to blame. "I think itís the new reality. Itís the new reality for every person with the Internet and this different social media. I donít think itís going to be a flash," said Lt. Gordon Howey, who heads Metro policeís gang unit. I donít ever see it going away."

2 ex-SF health inspectors charged with accepting bribes in exchange for passing hundreds of restaurants on food safety exams. The restaurants range from well-known chains to popular eateries offering ethnic fare. The scheme surfaced after a restaurant employee told the city's public health department in late 2008, officials said, leading to a probe by the city attorney's office. They both face 8 years in prison and $10,000 in fines if convicted. (Source Associated Press)

Shoplifting crimes up in part of Metro-Richmond, Virginia. Richmond area retailers are seeing an increase during the past month in shoplifters compared to this same time last year. (Source

Pier 1 Q3 reports same store sales up 7% with revenue up 8%
Rite Aid Q3 reports same store sales up 2% with revenue up 2% and a reported loss of $54.5M





Doug Marker
Vice President
LP, Risk and Audit
Michael Stores, Inc.

Stephen O'Keefe
Loss Prevention and
Risk Management
Wal-Mart Canada

Coming in December

Kelly Gorman
Vice President LP

LP Program Spotlight
eBay's PROACT Team



Richard C. Hollinger, PhD



Know about an event we should feature here?
Let us know.

National Retail Federation
2011 ORC Survey

Executive Summary
Full Report 

National Retail Federation
Effective Crowd Management Guidelines

Education Awareness on Personal Safety
Full Report

Return Fraud Survey
Full Report

Watch for our article the day after each event!

Los Angeles Area
ORC Association

3rd Annual
2012 Conference

February 16, 2012
LA Convention Center

Asset Protection Conference

March 11-14, 2012
Hyatt Regency
New Orleans, LA














ORC teams formed in Las Vegas - Metro cops on hunt for shoplifting gangs Las Vegas's South Central Area Command rolls out a new undercover initiative the Retail Apprehension and Prevention team, or RAP for short. Plainclothes officers work in teams, blending in as customers while scouring stores for the crime rings. The RAP team, Metroís first planned effort to combat organized retail theft, has arrested 11 people and recovered nearly $12,000 of stolen merchandise since its debut shortly before Thanksgiving. The undercover operation formed after Las Vegas retailers told police organized theft was becoming a bigger problem ó a point the National Retail Federation solidified with its 2011 Organized Retail Crime Survey. The retail trade association cited Las Vegas for the first time in its list of top 10 metropolitan areas affected by organized retail crime. (Source

Fairfax County, Virginia, Police Retail Anti-Theft Teams (RATT) on the hunt  Teams of Fairfax County officers are working in shopping malls and retail businesses in both uniformed and plain-clothes capacities. They are targeting all shoplifters but particularly the "professionals" that distract store employees while associates across the store attempt to conceal and steal merchandise. (Source

Knoxville Area Law Enforcement Retail Theft (ALERT Task Force) team racks up arrests Thirty-seven arrests have been reported since a new Knox County Sheriff's Office task force beefed up holiday season patrols at area shopping centers and malls. Knox County Sheriff Jimmy "J.J." Jones formed the task force to monitor major shopping areas to help combat theft, car burglaries, car thefts, shoplifters and other criminal activities prevalent during the holiday season. The task force will be monitoring major shopping areas until after the holidays. (Source

Accidental pocket dialed 911 call gave police the whole story and even their location after stealing DVD's and computer games.  Two men couldn't stop talking after hitting a Target store and trying to decide where to sell their stolen DVD's and games. One of the men had accidentally hit 911 on his cell and the police listener recorded the play by play and even had the police meet them at the store they were going to sell their loot. Both men were dumbfounded by how police knew exactly where they would be, not knowing one of them had pocket dialed 911 on his cellphone when they got into the SUV after the theft. When the pair pulled into a parking lot near the Video X-Change, they noticed a couple of squad cars. The next thing they knew, several officers, a couple with guns drawn, were yelling, "Police! Show your hands!" (Source

Do you have an ORC case to share? Publishing it educates the LP & retail community which might fuel even more jobs and funding.
Share your ORC news and help the industry grow


Job Opening




Manager, Business Continuity Winn-Dixie Jacksonville, FL Winn-Dixie

Corp LPM of Analytics & Exception Reporting



Downing & Downing

Director of Loss Prevention



Downing & Downing

National Account Sales Mgr


Chicago, IL

Downing & Downing

Asset Protection Manager

The Home Depot

Phoenix, AZ

The Home Depot

Asset Protection Manager The Home Depot Metro Northern NJ The Home Depot
Asset Protection Manager The Home Depot Sacramento, CA The Home Depot
Asset Protection Manager The Home Depot Salem, OR The Home Depot
Regional LP Director Confidential Los Angeles, CA Downing & Downing


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

Job Opening




District LP Mgr Big Lots Orange County, CA Big Lots
District LP Mgr Sears Seattle, WA Sears Holdings Corp.
Loss Prevention Mgr Kmart Baltimore, MD Sears Holdings Corp.
Loss Prevention Mgr Sears Memphis, TN Sears Holdings Corp.
Asset Protection Mgr The Home Depot Overland, MO The Home Depot
Asset Protection Mgr The Home Depot Detroit, MI The Home Depot
Loss Prevention Mgr Macy's Bozeman, MT Macy's
Loss Prevention Mgr Macy's Lihue, HI Macy's
Asset Protection Mgr Sam's G2 Sacramento, CA Walmart
District LP Mgr Dick's Sporting Goods Deptford, NJ Dick's Sporting Goods
Retail LP Mgr Herberger's Roseville, MN The Bon Ton Stores, Inc.


Thought Challenge Month in Review Today we are posting two Thought Challenges, as they appeared, in a countdown to our Awards Committee's selection of the "Top 3". Read well and make sure you vote on the last day!

Just a thought

By Eric Pidgeon, CFI
Senior Manager Corporate Loss Prevention  for Tween Brands, Inc.

September 2, 2011

Do you ever get that butterfly feeling before interviewing an associate for a company loss? Of course, we all do! That's the natural feeling that relates us to everyone else in the world. It doesn't matter how many interviews we have conducted in our career. No matter how skilled you are, preparation is key. Each interview is as important as the first one you conduct. A curious mind, a simple rationalization, and most importantly Ė confidence in YOU will lead to a successful interview.

No Means Yes, Find A Way

By Keith Johnson
Regional Loss Prevention Manager for Gabriel Brothers/Rugged Wearhouse, Inc.

September 6, 2011

In this day and age of doing more with less, Loss Prevention Executives must learn how to work smarter, not harder. Limited resources, reduced capital expenditures, growing overheads, shrinking margins and lower payroll budgets sometimes pose what seems like an insurmountable hurdle to overcome. When your Director submits his annual budget to the V.P. of Finance only to have it cut and sent back, you wonder how you will accomplish your goals.

Several executives have told me in the past when times were tough, "No means yes, find a way." There are three principles to live by every day that can help you do more with less.

First, there is Time Management. An L.P. Executive must understand the how to manage his or her time effectively. There are only so many hours in the day and most people spend 7-8 of those sleeping. You must learn how to prioritize tasks, eliminate time robbers and how to handle interruptions throughout the day. If you can accomplish this, you can be more productive.

Second, there is People Management. This principle starts with having the right people in the right place at the right time. People who are properly trained and who can work independently with little supervision and limited direction and who also understand the importance of Time Management.

Third, there is Workload Management. You must be able to delegate responsibilities and tasks to others and trust that they will get the job done. You must follow up to ensure that the tasks are getting done and you must convey a sense of urgency to the players without sacrificing the quality of the work being done.

If you can master these three principles you can accomplish more, feel more productive, do more with less and still have time for that all important work-life balance that we all strive for. Just a thought.



Director of Resource Protection for West 49 Inc.

West 49 Inc. is a leading Canadian multi-banner specialty retailer of apparel, footwear, accessories and equipment related to skateboarding, snowboarding and surfing, as well as the music industry. West 49 Inc. is the Canadian retail division of Billabong International Ltd, and operates under the banners of West 49, Billabong, Amnesia, Arsenic, and D-Tox.

Her scope of responsibility includes all store locations, distribution centers and support center. She was Chair of Retail Council of Canadaís 2011 Loss Prevention Conference.

Vector Views: Tell us how you first got started in the LP industry.

Drake: Before I crossed over to LP, I worked on the operations side of retail, in the field. I started out working for The Hudsonís Bay Company, and was lucky enough to work every level within the store, from sales to gift registry, to merchandising and cash office. When I got into the management tier, I was working for The Gap. I experienced multiple store volumes in different cities. In my seven years there, I received some of the best management skills training and experience of my retail career.

When I was recruited over to Roots Canada, I worked at the highest volume store in the chain in downtown Toronto. I dealt with a lot of return fraud by organized crime groups, as well as local gangs and drug addicts trying to rip us off each day. This gave me a ton of experience picking up on behavioral clues of shoplifters and making recovery statements to prevent loss. Since the environment was so volatile, I spent a lot of time training employees on theft prevention. This is also where I got most of my experience detecting and dealing with employee dishonesty. At Roots, my career came to a crossroads; I was given a choice to either move up the ranks of Operations, or cross over to LP. I saw more opportunity to make a difference for the company in LP, and spent the next five years working with a great mentor; Patrick Jandard. With Patrick, I learned how to build an LP department from the ground up and how to develop an LP program that was both strategic and sustainable. I took over the LP department when he moved on to become Continental Security Manager at H&M (Hennes & Mauritz Inc.).

Vector Views: Hobbies, interests and pet peeves?

Drake: Iím not sure if Iíd call it a hobby so much as a temporary addiction. I really wasnít much of a gamer until I started playing a little online fantasy game called "World of Warcraft" (WoW) by Blizzard Entertainment back in 2005. I enjoyed it so much that I stopped watching television, which was great considering thatís about the same time as reality TV really started taking over, so I really didnít miss much over the last six years. I even met a wonderful guy named Mark, from Massachusetts, playing WoW. After being friends online for two years, he flew to Toronto to take me out to dinner and weíve been together ever since. We got married in May this year. (Thank you Blizzard!) I have to say, we donít spend much time playing video games these days, but we still enjoy the occasional escape raiding dungeons and killing monsters.

Vector Views: Anything you have done within your current or previous positions that had or is having a significant impact on retail LP?

Drake: The most impactful thing Iíve done during my time at West49 was to approach shrink and LP initiatives in a way that got other departments pushing for the same results.

The best three examples of this approach are perpetual on-hand accuracy, business analytics and exception reporting.

Iíd been sharing detailed shrink results with the senior executive team for three years. I shared the trend and very clear reduction strategies. I wasnít feeling a true passion or drive from the business to improve the results until I shared the shrink information along with an analysis of perpetual on-hand accuracy. I was able to show that we had a 30% displacement of goods. This meant that three out of every ten units were not where we thought they were. I demonstrated the impact of this; the displacement meant that we were incorrectly allocating to stores for 30% of our units, we were unable to rely on our replenishment model to maximize sales (sizes, color, SKU) and minimize markdowns. We were incorrectly tracking sell through; compromising visibility for merchants/buyers at the style level, which impacts their ability to influence a better buy.

For us, correcting this problem represented a minimum of 2% GM gain for our business. This got everyoneís attention and it was a revolutionary year for me. All departments and cross-functional groups came to the table to make a difference with me. After a year of examining process, updating controls, audits and communication, we did it. We cut the displacement down to 9% displacement within the first year and we are pushing for results below 5% this year. This was the same year we achieved our lowest shrink result in over seven years, a result which was 36% lower than the reported average for the menís and womenís apparel segments.

Gaining capital investment for LP technology is a challenge. When I wanted support for a DVR project, I got the traction I needed when I built a plan that strategically supported other areas of the business (Operations, Marketing, Advertising, Merchandising and Planning) with valuable business analytics. Traffic counting and dwell time are of tremendous value to these groups. This is exciting for me since Iíll be offering support to build top line sales, which I donít often have an opportunity to do in LP. Iím very excited about this project. Iíve already shared a lot of information about this initiative in the May issue of LP Magazine and I look forward to sharing our ROI achievement with my colleagues in LP.

Another type of LP technology Iíve wanted to deploy is exception reporting. Basically this gives us speed to case. Today we dig through a data dump of POS information looking for criminal or dishonest activity. With exception reporting, investigative reports pull the exceptions to the forefront and eliminate the initial leg work of identifying an issue. When building the business case for exception reporting, I included an overview of the benefits which compliance reports would bring to the business. We have a loyalty program, gift card program, an employee purchase program, and operate with multiple promotional campaigns (GWP, Discount/ Deal combos and Employee Spiffs/Incentives). With so many opportunities to sweetheart a deal or discount, itís critical to offer exception reporting that focuses on protecting our companyís gross margin. Now that I have support, Iím looking forward to getting this initiative under way.

For more on Jen Drake's Interview with Vector tune in tomorrow.

Share Your Thoughts

Maurice Kirksey was named Regional Loss Prevention Manager of Central Parking Systems.
Marland Harvey was named Regional Loss Prevention Manager of Central Parking Systems.
Tammy Cunningham was named Regional Loss Prevention Manager of Limited Brands.

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How to Give and Receive Criticism Constructive criticism goes far beyond the crass insults so prevalent in today's media. We live in an age where the line between criticism and nastiness has blurred. How we give and receive criticism speaks volumes about our character.  (Don't be a Simon Cowell)

Why the World Still Needs Bosses
A tyrant of a boss is not an effective leader in any work environment, but there are several situations where managers need to use their formal authority. Because employee's intelligence, knowledge, judgment, creativity, and passion can only be given, not compelled, saying "Do it now because I'm in charge!" isn't likely to elicit people's full commitment.  (Leading the right way)

Think Virtual Meetings are Hard? You're Right With teleconferencing, Skype, and global conference calls, technology has wrought a sea of change in the way people hold meetings. That can be great, not least because it saves companies millions in traveling costs. The downside, however, is how to come across effectively in a virtual gathering (Making the right impression)

What Great Companies Know About Culture
Great leaders know they should invest in their people. Those companies who are committed to a strong workplace culture tend to perform well. Here are four things some of the top companies in the global workplace ranking do.  (It's all about culture)


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What one writes, reads, clicks on, fills out, develops, downloads, views, and listens to on the internet becomes part of a permanent record, leaves a trail, and opens up the gates for everyone. In today's world, far away is now sitting next to you and if they're sitting next to you, what are they seeing? Caution rules the day.

Just a thought,
Gus Downing

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