Brand Reputation Front-and-Center Starting the New Year at McD's
McD's Clamping Down on 'Macho Guys Club Culture' After Last CEO
No More Partying & Fraternizing Culture at McD's with New CEO
New CEO Chris Kempczinski puts fresh focus on workplace decorum after concerns about predecessor’s conduct.

McDonald’s new CEO is determined to make changes at the top to move the company away from a culture that tolerated partying and fraternizing between some senior managers and rank-and-file employees.

Chris Kempczinski, the new chief executive, is seeking to restore a more professional culture at McDonald’s after what some current and former employees described as an environment influenced by his predecessor’s late-night socializing with some executives and staffers at bars and flirtations with female employees.

“There is a cultural shift here now,” another person familiar with the new CEO’s plans said. “Some people perceived there was this macho, guys club. That has now progressed to a more open leadership under Chris.” This person and some others said Mr. Kempczinski, who was previously president of McDonald’s USA, wasn’t part of the executive group that did most of the late-night socializing.

McDonald’s board fired its former chief, Steve Easterbrook, 52 years old, in November after he acknowledged having a consensual relationship with an unnamed company staffer. Mr. Easterbrook apologized for conduct that he said violated company values and rules barring employees from dating direct or indirect reports.

Many U.S. companies are rethinking their stance on personal relationships in the workplace and reviewing efforts to combat harassment.

McDonald’s employees have fraternized at headquarters and at the burger giant’s frequent conventions and meetings for decades. Many of the thousands of employees, franchisees and vendors who have attended those events often drank heavily and socialized late into the night—sometimes with senior McDonald’s executives participating and sometimes not, according to many current and former employees.

As CEO, Mr. Easterbrook developed a reputation for flirting with female employees, according to some former and current employees. “There were a couple of women who talked to me about his flirting. It was enough for them to feel uncomfortable,” A formal complaint triggered an investigation in October, which resulted in the board voting on Oct. 31 to terminate Mr. Easterbrook because of a consensual relationship. wsj.com

Scan and Go & Fraudulent Attacks to Grow Exponentially in 2020
Two of CSA's Three 2020 Predictions Have Everything to do with LP
What will change in 2020 is retailers’ response to cyberfraud
Checkout is so 2019 - 2019 saw numerous rollouts of “frictionless” in-store experiences where customers scan and bag products, tap to pay, and then instantly confirm checkout with some type of mobile code verification. While this type of “scan and go” shopping offers much more convenience than waiting in line at the traditional checkout queue, more retailers in 2020 are going to ditch checkout entirely.

Securing customer trust - During 2019, the sheer volume of retail fraud attempts and cost of fraud exploded. There is no reason to think the frequency of and expenses resulting from fraudulent attacks on retail will not continue growing exponentially in 2020.

Criminals have a plethora of access points to gain unauthorized entry into retail networks and steal customer personal and financial data. What will change in 2020 is retailers’ response to cyberfraud. The industry will finally realize continuing with the status quo and crossing your fingers that the next big breach happens to your main competitor isn’t enough.

Look for mainstream adoption of security solutions and techniques such as using artificial intelligence to detect unusual customer behavior and/or network activity, biometric authentication, solutions that track code added to e-commerce sites in real time, in-depth security collaboration with third-party partners who have network access, and applications designed to detect intrusions after breaches occur. chainstoreage.com

Forbes Article on Retail Checkout Will Undergo Massive Changes Soon
Face Identity - Technology's Resolution to Checkouts Disappearing
Zelazny, who is an expert in biometrics and identity, points out that with every change in retail checkout technology there is increased risk. Every payment technology innovation going back to the creation of the credit card has had its own dark side including fraudsters, data breaches and sales of stolen data.

Zelazny observes that risks of fraud can get resolved with greater use of facial identity as a checkout technology. She explains that fraud risk is one thing when you’re a convenience store operator and the most you can lose is typically a sandwich and drink. But when the stakes get higher, as they do for department stores and other high-ticket retailers, using new technology carries big risks and facial identity can solve that.

Like the mobile wallet that needs other features to spur adoption, Zelazny believes facial identity will eventually appeal to consumers because it can make shopping much easier. And it’s not just the checkout factor —facial recognition allows seamless integration of benefits and loyalty programs into the payment systems — no more remembering to bring your card, or even your mobile device with you, your face lets them know what discounts are being stored for you. forbes.com
 

1st of Their Kind Safety Studies - Reports
Warehouse Robots Impact Serious Injuries

Serious Injuries Nearly Quadrupled After Robots
Studies Find Correlation Between Robots & Safety Problems
'As robots take over warehousing, workers pushed to adapt'
Doing your job side-by-side with robots isn’t easy. According to their makers, the machines should take on the most mundane and physically strenuous tasks. In reality, they’re also creating new forms of stress and strain in the form of injuries and the unease of working in close quarters with mobile half-ton devices that direct themselves.

Amazon now has more than 200,000 robotic vehicles it calls “drives” that are moving goods through its delivery-fulfillment centers around the U.S. That’s double the number it had last year and up from 15,000 units in 2014. Its rivals have taken notice, and many are adding their own robots in a race to speed up productivity and bring down costs.

But while fears that robots will replace human workers haven’t come to fruition, there are growing concerns that keeping up with the pace of the latest artificial intelligence technology is taking a toll on human workers’ health, safety and morale.

It’s not that workers aren’t getting trained on how to work with robots safely. “The problem is it becomes very difficult to do so when the productivity standards are set so high,” she said.

Tye Brady, Amazon Robotics’ chief technologist, said worker safety remains the top priority and ergonomic design is engineered into the systems at the beginning of the design stage. Gutelius, the University of Illinois researcher, said that the aspiration for symphonic human-machine operations is not always working out in practice.

Gutelius co-authored a report published this fall that found new warehouse technology could contribute to wage stagnation, higher turnover and poorer quality work experiences because of the way AI software can monitor and micro-manage workers’ behaviors.

A recent journalistic investigation of injury rates at Amazon warehouses from The Center for Investigative Reporting’s Reveal found that robotic warehouses reported more injuries than those without.

Reveal looked at records from 28 Amazon warehouses in 16 states and found that the overall rate of serious injuries was more than double the warehousing industry average. Amazon has countered it’s misleading to compare its rate with rivals because of the company’s “aggressive stance on recording injuries no matter how big or small.”

The Reveal report also found a correlation between robots and safety problems, such as in Tracy, California, where the serious injury rate nearly quadrupled in the four years after robots were introduced. apnews.com
 

Louis Vuitton to close Hong Kong luxury store hit by violent protests
Does It Have Domino Effect?
Retail sales have also plummeted, with brands such as Moncler, Gucci and Salvatore Ferragamo reporting sales declines of up to 45 per cent in Hong Kong during the third quarter that ended on September 30. LVMH reported a 25 per cent decline in its Hong Kong sales in the same period.

As a minority of protesters have turned more violent and anti-China sentiment has increased – with Mandarin Chinese speakers physically attacked and China-linked businesses repeatedly vandalized – Chinese visitors have been shunning Hong Kong. With Chinese tourists down 56%.

It is too early to say whether the decision by the largest luxury brand in the world to close a prime Hong Kong store will have a domino effect, triggering more prominent store closures in the city’s luxury retail sector in 2020. scmp.com

Welcome to 2020: Likely To Be Another Challenging Year for Retail
More Closures & Bankruptcies
The early read on the holiday season has been positive even with the abbreviated shopping calendar, with Bloomberg reporting that Super Saturday (December 21, the last Saturday before Christmas) was the biggest shopping day in US history, despite a 9.7% year over year decline in store traffic, according to Sensormatic Solutions ShopperTrak.

The shortened calendar likely drove more consumers to shop online. Mastercard SpendingPulse reported that total US retail sales from November 1 through Christmas Eve increased 3.4% year over year, while online sales jumped 18.8% and in-store sales grew a paltry 1.2%. Digital accounted for a record 14.6% share of total sales.

Retailers will soon begin taking stock of holiday performance and finalizing plans for 2020. We expect a new crop of store-closure announcements as companies assess holiday performance and make tough decisions about leases and return on investment for specific store locations. And with several large retailers facing steep financial challenges, we may see further bankruptcy announcements.

Consumers want e-commerce, buy online, pick up in store (BOPIS) services and speedy free delivery, and retailers are working to meet these expectations. With established store footprints digital natives could never hope to match, traditional retailers that can successfully reinvent themselves as multichannel retailers stand to prosper amid the ongoing challenges. coresight.com

Retailers Had a Happy Holiday Season - Now Comes the Hangover
Returns Up 20% Over 2018
Holiday spending on apparel rose 1 percent from a year earlier, though online sales jumped 17 percent, according to Mastercard's SpendingPulse survey

Returns of holiday gifts could reach as high as $95 billion, which would be a 20 percent rise over 2018, according to B-Stock Solutions

Nordstrom and Kohl's are among the retailers accepting returns from some rivals as a way to drive store traffic

The return surge is a boon for resale sites, which can see a spike in traffic as users attempt to earn some cash from their unwanted gifts. businessoffashion.com

Senior LP & AP Jobs Market

SVP, Chief Safety and Risk Officer for Allied Universal in Conshohocken, PA., or Santa Ana, CA
We are North America’s leading security services provider with over 200,000 phenomenal employees. Allied Universal Security Services, the largest security services company in North America, is currently seeking a SVP/ Chief Safety and Risk Officer. We are considering candidates to work out of our HQW Office in Santa Ana, CA as well as HQE Office in Conshohocken, PA. The CSRO will lead a team charged with developing, implementing and overseeing execution of a comprehensive enterprise safety strategy, management and the company’s insurance program while identifying, measuring and mitigating operational risk. The leader will report to the EVP/ General Counsel and lead the corporate level oversight for the Safety and Risk Program for a 230,000 employee, $7.5B+ dynamic, growing company. aus.com

Director, Asset Protection (SE) for Home Depot, Atlanta, GA - Divisional Position
Responsible for the design and execution of all programs within the AHS organization relating to safety, environmental compliance and loss prevention. This will include driving company programs designed to reduce accidental losses to customers, associates and property, comply with applicable regulatory requirements, theft and fraud detection and shrink reduction. The Director will focus on maximizing the performance of the AHS Operations team to meet performance and company goals. Reporting to: Divisional President, dotted line to VP of Asset Protection

The Home Depot, America’s home improvement retail leader, helps customers and Associates build success every day – and not just in our 2,200+ retail stores. homedepot.com

Dir. Loss Prevention for Dollar General in Goodlettsville, TN. - Divisional Position
Provides strategic loss prevention management for a division of 2,000+ stores with sales volumes totaling +/- $4B. Maximizes profits by developing and executing programs to reduce and prevent the loss of company inventory/assets and managing Regional Loss Prevention Managers within an assigned geographical area.

Dollar General (NYSE: DG) is a Fortune 200 company with more than 16,000 retail locations in 44 states, 16 distribution centers and 135,000 employees that embody our mission of Serving Others each and every day. ssc-dollargeneral.icims.com

Senior LP Job Postings Removed from Website:

• Director of Loss Prevention - Bi-Mart - Eugene, OR
• Dir. Risk & Analysis - Genesco - Nashville, TN
• Dir. Loss Prevention - Lovesac - Stamford, CT
• Dir. Internal Audit - Michaels - Irving, TX
• Dir. of Asset Protection - MobileLink/Cricket Wireless - Sugarland, TX

 

NYC's New Crime Wave
Robbing 24 Food Deliverers $2k e-bikes - Delivery Workers Have 'Bulls-eye on their backs'

FTC Public Workshop Jan 9, 2020 in DC
Non-Competes in the Workplace: Examining Antitrust and Consumer Protection Issues

74% of C-Stores Saw Comp's Increase in 2019 Driven by Better-For-You (BFY) Items

CFO.com's Total Cost to Perform the Finance Function: Metric of the Month

SEC Planning to Loosen Auditor Independence Rules

Hudson's Bay Co (Saks Fifth & Hudson's Bay) Goes Private

Yum Brands acquires Habit Burger for $375M

Senior Jobs

Dir. Information Security for Focus Brands in Atlanta, GA
The Director, Information Security is responsible for establishing, implementing, monitoring and enforcing a corporate-wide information security management program to help ensure that information assets are protected.

As a leading developer of iconic food-service brands around the globe. We are the franchisor and operator of over 4,500 ice cream shops, bakeries, restaurants, and cafés in the United States, the District of Columbia, Puerto Rico, and 60 foreign countries under the brand names Carvel®, Cinnabon®, Schlotzsky’s®, Moe’s Southwest Grill®, Auntie Anne’s®, McAlister’s Deli®, and Seattle’s Best Coffee® on certain military bases and in certain international markets. focusbrands.com

3rd Party Provided: Dir. Corporate Security for Recorded Future in Boston
Reporting to the Chief Security Officer, this position is responsible for establishing and maintaining the information security program across the enterprise to ensure information assets and associated technology, applications, systems infrastructure, and processes are adequately protected. As the Director of Corporate Security, you will play a crucial role in setting the strategy and technical direction to ensure that our data and applications throughout the SAAS & employee environments remain secure. greenhouse.io

With more than 1 billion intelligence cards at your fingertips, we give security teams the information they need to exponentially amplify the power of their security programs. Whether you’re in a SOC, managing a vulnerability management team, or responding to incidents, we provide critical data that amplifies and accelerates your work. recordedfuture.com
 

AI Explosion Brewing in the Cloud for 2020

New and improved FTC data security orders:
Better guidance for companies, better protection for consumers