CNN Continues Coverage of Nationwide ORC Epidemic
Shoplifting is surging across America with dangerous and costly consequences
Retailers have always been vulnerable to shoplifting. But the emergence of coordinated and organized robberies at high-value stores, even during shopping hours, has the industry on edge.

Chris Lowe an expert on retail crime and research scientist at the Loss Prevention Research Council, said retailers are very worried about the escalation in these organized group-led "smash-and-grab" robberies in multiple cities around the country.

"The anatomy of these attacks show they are more aggressive, dangerous and happening more frequently," said Lowe. "When I talk to retail loss prevention veterans, the best comparison they come up with is what crime was like in New York in the 1970s. But even then, it was more street robberies and not like retail theft as brazen as this."

As stores boost security measures to keep employees and shoppers safe, retailers have to contend with another consequence of organized theft: Its high cost to stores.

The surge in store-related theft is costly in other ways, too. Employee retention takes a hit when retail crimes spike.

"Think about retailers that are staffed predominantly by women, like cosmetics stores and high-end fashion," said Lowe. "Criminals target these stores because these are high-dollar items and they anticipate little pushback from the staff. But the fear makes it difficult to keep employees."

Best Buy's CEO Corie Barry said in November that the retailer has seen a jump in theft at its stores by gangs of thieves. Some of these incidents have involved weapons such as a gun or crowbar, she said.

"This is traumatizing for our associates and is unacceptable," Barry said during a call with analysts in November. "We are doing everything we can to try to create [an] as safe as possible environment."

Pandemic impact

Although organized shoplifting sprees were on the rise even before the pandemic, Lowe said that post-Covid lifestyle adjustments have made it easier for offenders to get away with the crime. cnn.com

Walgreens Shrink Rate Surges
Walgreens executives say the drugstore chain is losing 50% more money due to loss and theft

Walgreens has lost 50% more income to theft and damaged items in the last two years.

Roz Brewer, the chief executive of Walgreens Boots Alliance, said the company has a shrink rate, or the loss of inventory attributed to theft, fraud, and damage, at about 3.25%. The shrink rate had been a little over 2% 10 years ago, she added.

Brewer said the last two years have led to a 40% to 50% increase in shrink, due in large part to organized crime.

"This is not petty theft," Brewer said on a January 6 call with investors. "It's not somebody who can't afford to eat tomorrow. These are gangs that actually go in and empty our stores of beauty products. And it's a real issue."

Walgreens reported a net earnings from continuing operations of $2 billion in the 12 months ending August 31. With a shrink rate of 3.25%, the company's could have lost $65 million from its net earnings last year because of theft.

US retailers lost an estimated 1.62% of revenues to shrinkage in 2020, totalling an record $61.7 billion, according to the National Retail Federation.

Retailers said the growth of third-party e-commerce stores exacerbated retail crime. Two retail spokespeople told Insider's Áine Cain anonymous online merchants can make it easier for thieves to market their loot without drawing suspicion.

Twenty retailers, including Target, Best Buy, and Kroger, have asked Congress to pass legislation to curb illegal business activity by anonymous vendors online. markets.businessinsider.com

Proposition 47 Under Fire From Both Sides
Prop. 47 targeted by Dem, GOP lawmakers

A Democratic bill would reverse a key aspect of Prop 47 by reducing the felony threshold for petty theft and shoplifting, while a GOP one would overturn Prop. 47 altogether.

Little did California voters know, when they approved a 2014 ballot measure that reduced penalties for certain theft offenses, that their decision would still be making headlines in 2022.

On Tuesday, Democratic Assemblymember Rudy Salas of Bakersfield introduced a bill that, if passed by state lawmakers and a majority of voters, would reverse a key aspect of Prop. 47 by moving the felony threshold for petty theft and shoplifting from $950 back to $400.

Salas: “Enough is enough, we need to fight back against the criminals who are stealing from our communities. We have seen the unintended consequences of Prop. 47’s weakening of our theft laws and I believe California voters are ready to make their voices heard on this issue again.”

Salas’ statement sharply contrasts with those from prominent Democrats including Gov. Gavin Newsom and Attorney General Rob Bonta, who have repeatedly emphasized that Prop. 47 has nothing to do with California’s surge in smash-and-grab robberies. But it could help Salas, who’s running for the U.S. House of Representatives seat currently held by Republican David Valadao, court GOP voters — many of whom blame Prop. 47 for the uptick in organized retail crime.

Indeed, a few hours after Salas unveiled his bill, a group of Republican state lawmakers — including Assemblymembers Kevin Kiley of Rocklin, James Gallagher of Yuba City and James Patterson of Fresno — introduced a proposal to repeal Prop. 47 altogether. calmatters.org

RELATED: California bill would reverse Prop 47 to crack down on rising retail theft


6,000 Murder Suspects & 84,000 Fugitives Arrested
U.S. Marshals Arrest More Than 6,000 Murder Suspects in 2021, Over 84,000 Fugitives Apprehended
The U.S. Marshals Service (USMS) released its 2021 statistics in a Department of Justice press release, published Monday, 3 January. From October 2020 through September 2021, USMS arrested more than 84,000 fugitives, including more than 10,000 sex offenders, 6,000 gang members, and 6,000 homicide suspects.

USMS has a varied mission. It provides law enforcement and protection for federal courts and judicial systems, apprehends and extradites federal fugitives, transports and houses prisoners, investigates cases involving missing children, enforces sex offender compliance laws, operates the federal witness protection program, and manages the sale of criminal assets seized as part of federal law enforcement.

Compared to the previous year, USMS arrested nearly 7,000 more fugitives—an 8.7 percent increase. However, in FY 2020, the marshals were able to clear four cases from their 15 Most Wanted list.

“The outstanding work this year by the U.S. Marshals Service exemplifies that the Department of Justice has no higher priority than keeping our communities safe,” said Deputy Attorney General Lisa O. Monaco. “At a time of unprecedented challenges posed by a global pandemic, the U.S. Marshals continue to deliver on their mission, tracking down and arresting more than 84,000 fugitives. The Department of Justice, through our law enforcement components like the U.S. Marshals Service, will continue to prioritize our efforts to reduce violent crime and keep our neighborhoods safe.” asisonline.org justice.gov

US: 61.2M Cases - 859.3K Dead - 42.2M Recovered
Worldwide: 308.1M Cases - 5.5M Dead - 259.6M Recovered

Former Senior Loss Prevention Executive
Know of any fallen LP exec? Let's remember & recognize.

Private Industry Security Guard Deaths: 338  
Law Enforcement Officer Deaths: 596
*Red indicates change in total deaths

Covid-19 Cases Reach Records in U.S.

Omicron is extending its reach across the country, pushing up hospitalizations as well as new infections

The seven-day average for new cases reached about 663,700 by Friday evening, according to Johns Hopkins University. Hospitalizations have been surging and are nearing record-high levels, federal data show.

The seven-day case average on Friday jumped more than 61,000 from the prior day, for example, because it no longer includes a depressed number from New Year’s Eve. Los Angeles County alone reported 43,000 new cases on Friday, the latest in a string of daily records.

In hard-hit New York City there are signs the pace of the case surge may at least be easing. wsj.com

Omicron and the Week America Is Calling In Sick

An estimated 5 million Americans could be stuck at home because of Covid-19, leaving many businesses short-handed

The first full week of 2022 was supposed to signal a return to work after the winter holidays. Instead, America called in sick. Employers have been hit by a global wave of Covid-19 illnesses and people missing work because they or their family or co-workers have been exposed to the fast-spreading Omicron variant. School closings and child-care issues are also keeping some workers at home

The recent surge in employee absences is the latest strain on public and private sectors already worn down by the pandemic, supply chain snarls, labor shortages and rising prices. Many employees are reporting mild symptoms as a result of Covid-19, employers say, but must still miss multiple days of work, leaving employers to grapple daily with the question of who will be in and who can’t make it.

The fresh disruption to the global labor market at the start of the third pandemic year is both familiar and foreign. In the U.S., the seven-day average of daily cases reported surpassed 500,000 for the first time since the 2020 pandemic declaration. Omicron infections are resulting in fewer hospitalizations than earlier variants but the volume of people testing positive or exposed is taking its toll on workplaces—which are already stretched by the tight U.S. labor market.

More than five million Americans could be stuck at home isolating over the coming days, according to Andrew Hunter, senior U.S. economist at Capital Economics. Though the economic effects of the latest Covid-19 surge could be temporary, he wrote in a report Wednesday it could “deal a significant hit to the economy over the next month or two.” wsj.com

COVID Testing Site Security
Milwaukee police, security at COVID testing sites after altercation
The Milwaukee Police Department and security companies are providing COVID-19 test site security after reports of some altercations and line cutting. "Be kind" is the simple two-word plea from the Milwaukee Health Department amid high demand for testing.

But not everyone is keeping others in mind at the busy testing sites. The Milwaukee Health Department said people have tried to cut in line and even caused altercations with staff and others waiting for a test.

The health department is heightening security, with police on scene at community testing sites.

"I know there have been some threats of violence, so again, we have stepped up our security, and the Milwaukee Police Department has been tremendous partners assisting at all three sites," said Johnson.

If someone cuts in line or causes an altercation, they’ll be asked to go to the end of the line or leave. Before the holiday season, pharmacy workers tested about 200 people per day. Now, the average is at roughly 2,500 – and some people in line are losing their patience.

"With the long lines, we’ve had a lot of disruption from people that are impatient, trying to cut the line, and that has led us to hire a private security company," Kaloti said.

Security guards manage the traffic and additional staff members are just a few ways the pharmacy is handling the demand. Employees are working longer hours, and the pharmacy is now open 24/7 to help with wait times during the day. fox6now.com

COVID Staffing Shortage Crushes Restaurants
Lattes go missing, drive-thrus slow as Omicron hits U.S. restaurants
Starbucks customers arriving to claim their mobile drink orders have found cafes shut, and delivery drivers are waiting longer to pick up some McDonald's Big Macs. Service at U.S. restaurants has slowed as Omicron, the latest COVID-19 variant, sickens workers and scares off others, leaving many businesses without enough staff.

Starbucks Corp customers complained on Twitter last week about temporary closures and reduced hours at locations around the country, including in Pennsylvania, Ohio, Georgia, California, New Jersey, Florida and New York.

In Knoxville, Tennessee, one DoorDash Inc driver said he has been waiting up to 30 minutes in drive-thru lines at fast-food chains since early December. He said chains including McDonald's Corp, Yum Brands Inc's Taco Bell, and Chick-fil-A began putting up signs last month warning of longer wait times for customers and drivers picking up mobile orders because of labor shortages.

Starbucks spokesman Reggie Borges said some of its roughly 9,000 U.S. cafes have adjusted hours and operating levels throughout the pandemic. Some locations, including all 20 in Buffalo, New York, are carry out only, he said.

McDonald's said in a statement it was monitoring the impact of COVID-19 variants closely and was continuing to serve customers with approximately 99% of its U.S. restaurants open throughout the pandemic. A Chick-fil-A spokesperson said the chicken chain is experiencing business challenges due to Omicron, but 99% of their restaurants are still open. reuters.com

COVID Regulatory Update
Cal/OSHA Extends and Changes COVID ETS

Employers must exclude employees who had contact with a positive individual.

Employers in California are now subject to an extension to April 14 of the California Division of Occupational Safety and Health (Cal/OSHA) COVID-19 Emergency Temporary Standards (ETS), which also has been subject to a number of changes employers need to be aware of.

The California standards possess significance that reaches far beyond the state’s borders because so many American businesses are either based there or have employees located in the state. Attorneys urge affected employers to re-examine their workplace COVID-19 safety policies and revise their policies as required by the readopted ETS, to ensure compliance.

The facemask guidance remains mostly the same as in the original rule, but cloth face coverings must now pass the “light test.” To qualify as a face covering a cloth face covering may not let light pass through it when held up to a light source, note attorneys Sean Paisan and Sierra Vierra of the Jackson Lewis law firm. In addition, both vaccinated and unvaccinated employees now must wear face coverings during screening.

Employers must still exclude employees who test positive for COVID-19 until return-to-work requirements are met. Also excluded are employees who had close contact with a positive individual unless they are fully vaccinated and asymptomatic. These employees can remain in the workplace, but they now must wear a face covering and practice social distancing for 14 days. ehstoday.com

Biden, in Shift, Prepares Americans to See Covid-19 as Part of Life

Before Omicron surge, president said in July the nation was ‘closer than ever to declaring our independence from a deadly virus’

The recalibration of Mr. Biden’s message comes as the country braces for another round of disruptions wrought by the pandemic. A growing number of schools temporarily have returned to virtual instruction and many businesses are strained by staffing shortages, in both cases due to infections triggered by the highly transmissible Omicron variant. Thursday marked the 12th straight day of more than 1,000 flight cancellations, and many states warned that ongoing testing shortages will make it harder to return people to work and school. wsj.com

Pace of Daily Infections Nearly Doubled in Past Week - Surpassing 2 Million Cases a Day

New York reports over 90,000 COVID cases to break another state record
More than half, or 47,591, of the positive cases were detected in New York City, where the Omicron surge has hit hard.

Staffs of MD hospitals, stressed & sickened with COVID, know ‘cavalry’ isn’t coming
Governor sends in National Guard

New York COVID hospitalization numbers are rising fastest among kids

Jury Trials Halted Almost Nationwide due to Omicron

Walmart cuts paid leave in half for employees who have COVID-19

Trade Show News

Reputational Conundrum

Western Hemisphere’s Biggest Toy Trade Show - Biggest Retailers Pull Out
Toy Fair loses major retailers over Omicron fears — but still slated for Javits Center
The Western Hemisphere’s biggest trade show for toys is the latest victim of the Omicron virus, with some of the biggest retail buyers – including Walmart, Target and Amazon – pulling out of the in-person event, On the Money has learned.

They join Hasbro, Jazwares and MGA Entertainment among others in ditching plans to attend the fair, still set to take place at the Javits Center in Manhattan from Feb. 19-22. Others, including Tonka Truck maker Basic Fun, are on the fence about attending, sources say.

“It’s a fluid situation,” said one toymaker, Albert Maslaton, chief operating officer of Brooklyn Lollipops, who’s booked to attend, but said he’d rather not go — and is trying to get his money back.

The show was canceled in 2021 for the first time in 117 years, but this year’s show is set to go on — and organizer The Toy Association pointed out that biggies Lego and Mattel are still attending.

“There is still a strong core,” TIA spokeswoman, Adrienne Appell told On the Money. “It is fluid, but more driven by rumor mill.” Amazon, she added, is registered to attend. But industry insiders tell On the Money Amazon reps have told them they will not be there. nypost.com

CES 2022 may be down over 50% from 2020’s 170,000 in-person attendees
Tech notes from Day 1 of CES 2022

In-person conference returns to Las Vegas with a multitude of groundbreaking technologies

CES 2022 may be down over 50% from 2020’s 170,000 in-person attendees, but the Consumer Technology Association (CTA) partnered with CLEAR and created an efficient badge pickup, ID and vaccination verification process. Nevada has also been struggling to keep up with Covid-19 testing demand, up from 100 collections per day to 1,500 per day post-New-Year’s, but the CTA indeed achieved a milestone: Every in-person CES 2022 attendee is receiving an Abbott Labs BinaxNOW Covid-19 Antigen Double Self-Test Kit, authorized by FDA under an Emergency Use Authorization (EUA).

The aisles are wider and there are fewer of the larger exhibitors, but there was no shortage of leap-forward technology leveraging artificial intelligence, using new robotics platforms and helping to identify potential threats. Health and safety solutions were also in abundance, adding to Covid-19 mitigation strategies with new autonomous vacuums and small office and bus air circulation systems claiming to kill the virus. securityinfowatch.com

Bottom Line - Be Responsible - Get Vaccinated & Wear Your Mask
What a bumpy CES means for brands and live events in 2022
A rocky CES has become a warning sign for the live events circuit, indicating that not everyone is ready for a return to in-person conferences.

Still, that doesn’t mean brands should abandon appearances in 2022; they just need to plan better.

Brands that had pulled out of attending CES in Las Vegas, like LG Electronics, still have plans to send people to the Kitchen and Bath Industry Show in Orlando in February.

The omicron wave of COVID-19 forced many companies to pull staff from attending CES. Major electronics companies, including LG, Lenovo, Panasonic, Google and Microsoft, withdrew at the last minute, leaving open spaces in typically packed convention center halls. Usually about 170,000 people show up to CES, which last year had to host an online-only show because of the pandemic. Consumer Technology Association organizers anticipated a far smaller headcount this year. Official numbers will be released after the show, but by all accounts lines in Las Vegas were shorter, hotel lobbies less packed, and shuttles easier to board.

Despite the troubles, CES was also a harbinger of how events could carry on, with attendees walking around fully masked and vaccinated, and organizers handing out personal COVID-19 testing kits. Even if only tens of thousands, and not hundreds, made it to Las Vegas, that would still make CES one of the larger in-person trade shows since the start of the pandemic

“These events can happen in a responsible way, and CES was the same,” said Roxy Fata, chief operating officer of Infinite Objects, an NFT electronics display maker. “People were masked. They were very diligent with protocols. It was very organized.” adage.com

Fashion Industry Reputational Conundrum - Global Perspective
Should Brands Cancel Fashion Shows?

Omicron has thrown a wrench in Fashion Month, leaving brands to weigh their options for handling an increasingly familiar conundrum.

Once again, fashion month is here, with menswear and haute couture shows scheduled to kick off next week and continue throughout January. And, once again, the new season has coincided with a surge in coronavirus infections across Europe and the US, leaving the industry to grapple with whether it’s safe enough, or worth it, to carry on.

Governments in Italy and France have given the Camera Nazionale della Moda Italiana in Milan and the Fédération de la Haute Couture et de la Mode (FHCM) in Paris the green light to go ahead with in-person shows, providing they comply with national coronavirus regulations, such as reduced guest capacity, social distancing, mask-wearing and requirements for up-to-date vaccine passports for attendees. The British Fashion Council (BFC) announced in December it would not stage men’s fashion week in January due to Covid-19 uncertainties, but the body is still planning for in-person events for the women’s shows in February, as is the Council of Fashion Designers of America (CFDA) in New York.

In practice, it’s being left up to individual brands to make the call on whether to go ahead with fashion week plans or not.

Some brands have already made the decision to cancel, move or scale down fashion week plans. Ann Demeulemeester, which was due to stage an event during menswear trade show Pitti Uomo in Florence next week, has postponed the show until June. Giorgio Armani pulled two menswear shows and its couture show from the January line-up in Milan and Paris. Brunello Cucinelli decided to shelve its Pitti Uomo plans, while still going ahead with a planned presentation during men’s fashion week in Milan. Meanwhile, the charity fashion dinner hosted by the FHCM and Sidaction that traditionally closes Haute Couture Week in January has been postponed to July.

Should more follow their lead?

The decision raises a financial and reputational conundrum. Shows can be valuable, but they are costly, and right now brands need to decide whether they are comfortable with the risks posed by rising infection rates. businessoffashion.com

Multitasking Robots - In-Store Data Acquisition Platforms
Cleaning Robots Just Got Smarter
Brain Corp, an AI and robotics tech firm, has created a new data capture accessory that can be added to autonomous floor scrubbers from Tennant Company. The accessory-equipped robots are rolling out (literally and figuratively) early this year.

By fitting Tennant’s robotic scrubbers with Brain Corp.’s Inventory Scan, retailers can simultaneously clean their stores and collect details on their inventory. They can use reports generated from the system to leverage insights for greater pricing accuracy, planogram compliance and other data-based efforts. With this two-for-one technology, grocers can accomplish floor cleaning and data-gathering tasks in one fell swoop, a bonus in the current climate of labor shortages, ongoing virus surges and price sensitivities.

CEO Eugene Izhikevich: “We are actively taking BrainOS-powered robots from primarily task-oriented machines to in-store data acquisition platforms. This delivers critical insights and adds significant ROI for retailers.” progressivegrocer.com

Hyundai Buys Boston Dynamics - Robotics Provider
Hyundai Mobility - Becoming Global Robotic Solutions Provider
Called the Mobile Eccentric Droid (MobED), Hyundai has brought a high-tech robotic, locomotive platform that can maneuver around and over obstacles in all sorts of environments with a top speed of 18 mph, similar to an electric scooter. At 26 inches in length and 23 inches wide, with four-wheel independent suspension and ‘Eccentric Wheel’ drive, the 100-pound MobED maintains stability even if it’s on an incline or uneven roads.

Hyundai has created a platform of PnD (Plug & Drive) robotics under the new concept “Mobility of Things” (MOT), which aims to provide mobility to any element, like surveillance and occupancy sensors or Covid-19 cleaning devices in public spaces. other markets requiring extraordinary safety measures. Just as Ghost Robotics originated from University of Pennsylvania’s Pennovation Lab, Boston Dynamics, founded in 1992, came out of the MIT Leg Lab. In July. Hyundai Motor Group acquired controlling interest in Boston Dynamics valued at $1.1 billion, clearly signaling its intention to become a global robotic solutions provider.

In July, we reported on Ghost Robotics incredibly agile “Q-UGV Dog,” at ISC West 2021, that currently is being used at nuclear waste disposal sites and in other markets requiring extraordinary safety measures. Just as Ghost Robotics originated from University of Pennsylvania’s Pennovation Lab, Boston Dynamics, founded in 1992, came out of the MIT Leg Lab. In July. Hyundai Motor Group acquired controlling interest in Boston Dynamics valued at $1.1 billion, clearly signaling its intention to become a global robotic solutions provider. securityinfowatch.com

Business Continuity Concerns Long Term
Study Forecasts Greater Hurricane Risk in Northeastern U.S.

New research indicates that storms once limited mostly to tropical regions will affect broader swath of the globe

But a new study suggests that as the planet warms, the storms will become more common in mid-latitude regions—between 30 and 60 degrees latitude in both hemispheres—that include New York City and Boston as well as Beijing, Tokyo and other large cities in eastern Asia and Australia.

An expanding hurricane range means more people as well as homes and businesses may be at risk in coastal areas, said Jim Kossin, a former National Oceanic and Atmospheric Administration scientist who wasn’t involved in the new research.

Last year, New York City Emergency Management updated the city’s coastal-storm plan. Boston is expanding efforts to prepare for a potentially wet and stormy future.

“With hurricanes, we don’t know how and when, but we already know where our low-lying areas are,” she said. “We know enough to act.” wsj.com

One-third of workers would take a pay cut to never dress for work again. Here’s how retailers are responding
After two years of living through the pandemic—spending long periods working in sweatpants from the comfort of the couch—the way we dress appears to have changed significantly, perhaps even permanently. Brands, retailers, and analysts have found that consumers are ditching suits, silk blouses, and other formal workwear, opting instead for clothes that look professional but feel like the loungewear they’ve grown accustomed to wearing. fastcompany.com

Friday Jan 14th U.S. Census Bureau Publishes Retail Sales Data for Dec.

Bosch Wins CES 2022 Innovation Award With New eBike - For Your Mobile Security Guard To Enhance Facility Security

Macy’s to close six namesake stores, one Bloomingdale’s outlets in Q1

Bed Bath & Beyond is closing 34 stores in 2022. Here’s a map of locations

Ground beef sold at Walmart, Kroger, Albertsons recalled for possible E. coli contamination


Quarterly Results

Costco December comp's up 14.5%, net sales up 16.2%

Walgreens Q1 U.S. retail comp's up 10.6%, Boots UK retail up 16.3%, sales up 7.8%

Bed Bath & Beyond Q3 comp's down 7%, net sales down 28%