Exacq expands its Enterprise solution with the EM-Series 500 from Johnson Controls
Johnson Controls is introducing a new edition to its recently launched exacqVision EM-Series, part of its Enterprise edition of video management solutions. The new EM-Series 500 can manage and monitor up to 500 exacqVision Enterprise recorders making it an ideal, cost-effective solution for installations in the retail, education and government markets. The EM-Series was designed to run the Enterprise Manager software and together offers a robust platform with a simplified approach to enterprise video management. johnsoncontrols.com

Axis Communications expands AXIS M30 Network Camera Series
Axis' new generation of ultra-compact, fixed mini domes are designed for discreet surveillance and improved business efficiency. The AXIS M30 Network Camera Series features support for intelligent analytics such as AXIS People Counter, AXIS Queue Monitor, and audio analytics for improved business efficiency. These ultra-compact, fixed mini domes are equipped with day/night functionality and Wide Dynamic Range (WDR) for more clarity in both dark and light areas in the scene. axis.com

Agilence Continues Commitment to Loss Prevention Industry by Becoming Newest Master Level Partner with Loss Prevention Foundation (LPF)
The Loss Prevention Foundation (LPF) announced that Agilence, Inc. has advanced its partnership to become the newest Master level partner. With their commitment to increase to the Master level Agilence is continuing to set an example to the industry regarding the importance of higher education. The Master level partnership secures numerous LPQ and LPC certification course scholarships, as well as complimentary LPF memberships that Agilence can distribute to loss prevention professionals. Headquartered in Greater Philadelphia, Agilence, Inc. is an industry leader in Operational Analytics and Reporting for retail, restaurant, and convenience organizations. yourlpf.org
 

Stores and Shoppers Agree: Self-Checkout Is Hard

Retailers Experiment with Video Technology to Battle Rise of Theft

'This is restorative justice,' says one shopper who steals at SCO

Walmart Inc., Target Corp. and other retailers are adding thousands of self-checkout machines to U.S. stores to save money on labor as they spend more to staff new services like online delivery. But self-checkouts come with new, sometimes costly challenges as retailers try to curb theft, cut wait times and keep customers happy.

Some retailers, including Walmart, have quietly disabled or removed the weight sensors used to deter thieves, because they trigger too many “wait for assistance” messages that annoy shoppers.

Now retailers hope cameras gathering data on products and shoppers can solve their self-checkout woes. They are replacing scales with video systems that some say are better at catching mis-scanned items and stopping transactions in progress only when it is necessary.

Theft jumps when customers are empowered to scan their own purchases, both at a shelf-checkout register or with a hand-held device as they shop, according to industry research.

Some theft is premeditated and often involves “ticket switching,” or using the bar code from an inexpensive item like Kool-Aid packets or votive candles to cover the real bar code of a more expensive item while scanning, industry executives said.

Then there are the more passive forms of thievery. Some happens when a shopper can’t find the bar code, gets frustrated and takes the item anyway. In other cases, “shoppers can stumble upon the opportunity” if they discover a retailer has turned off the weight-based security system or isn’t properly staffing the area, said an executive at a self-checkout manufacturer. “That is where you see an increase,” the executive said.

One shopper interviewed by WSJ who admitted to intentionally mis-scanning items reasons that self-checkouts are annoying for shoppers and that “this is restorative justice” because of his own views about these companies’ practices.

“Clients are looking for alternatives to weight-based security systems” and are turning to new technology, said David Wilkinson, senior vice president of NCR Retail, which is owned by NCR Corp. and makes the self-checkout devices in most Walmart stores. NCR recently started pitching clients its own version of video technology that is augmented by humans off-site watching 5-to 10-second clips of suspected mis-scans to help reduce false positives, Mr. Wilkinson said. wsj.com

U.S. charges China’s Huawei with racketeering and conspiracy
to steal U.S. trade secrets in new indictment
U.S. federal prosecutors have charged Chinese tech giant Huawei with racketeering and conspiracy to steal trade secrets, escalating a case that began last year.

The new charges accuse Huawei and its subsidiaries of a decades-long effort to steal intellectual property from six U.S. tech companies, including by offering Huawei employees bonuses for obtaining confidential information, the U.S. attorney for the Eastern District of New York said Thursday.

Huawei and two of its U.S. subsidiaries violated the Racketeer Influenced and Corrupt Organizations Act, or RICO, through their actions, prosecutors said. The alleged theft helped Huawei illegally obtain technology relating to Internet routers and antennas, giving the company an unfair competitive advantage, prosecutors said. washingtonpost.com

Apple store workers should be paid for time waiting to be searched, court rules
California law requires Apple Inc. to pay its workers for being searched before they leave retail stores, the California Supreme Court decided unanimously Thursday. A group of Apple workers filed a class-action lawsuit against the tech giant, charging they were required to submit to searches before leaving the stores but were not compensated for the time those searches required. The U.S. 9th Circuit Court of Appeals, where the case is now pending, asked the California Supreme Court to clarify whether state law requires compensation.

In a decision written by Chief Justice Tani Cantil-Sakauye, the court said an industrial wage order defines hours worked as “the time during which an employee is subject to the control of an employer, and includes all the time the employee is suffered or permitted to work, whether or not required to do so.” latimes.com
 

#MeToo - Sex Scandals Hit Retail Industry

Fashion executive Peter Nygard accused of sexually assaulting young girls

Over decades, he allegedly drugged & raped girls as young as 15

Ten women filed a class-action lawsuit in New York on Thursday against fashion retailer Peter Nygard, alleging sexual assaults that played out over decades and saw the now 77-year-old executive drug and rape girls as young as 15.

Mr. Nygard, the Winnipeg-based owner of an eponymous 170-store women’s clothing chain, is alleged to have lured women to his Nygard Cay vacation compound in the Bahamas and his homes under the pretense of interviewing for modelling contracts or inviting them to fashion industry events, known as “pamper parties.” The lawsuit alleges Mr. Nygard would then “use alcohol, drugs, force, fraud and/or other forms of coercion" to commit unwanted sex acts, including sodomy and insisting the women defecate and urinate on him.

The lawsuit alleges that if women resisted his overtures, Mr. Nygard had bartenders at his Mayan-themed vacation home spike their drinks with drugs such as Rohypnol, known as the “date-rape drug.” The filing, made in United States District Court for the Southern District of New York, states that Mr. Nygard bribed Bahamian politicians and police officers to hide his actions. The filing asks the Manhattan court to prohibit Mr. Nygard from engaging in unlawful acts, and for “damages in an amount to be determined at trial.”

Mr. Nygard’s Winnipeg-based lawyer, Jay Prober, said on Thursday the allegations were “completely false, without foundation and vigorously denied.” theglobeandmail.com

Victoria’s Secret Added New Safety Measures. Models Say It’s Not Enough

The lingerie chain finds itself at the center of the fashion industry’s reckoning

In the spring of last year, Victoria’s Secret imposed official rules to protect its lingerie models for the first time in its four-decade history. The Harvey Weinstein scandal was at that point almost two years old, and the MeToo movement that would follow was fostering something of a cultural rejection of the underwear maker's dated vision of female beauty, accelerating the 75% collapse in the stock price of its parent company L Brands Inc. from a 2015 peak. Management could no longer afford to turn a blind eye to the perils its models faced on the job — being alone with photographers or executives who wielded power over their careers, feeling pressure to bare more of their bodies or participate in private photo shoots.

This month, the New York Times published an investigation of working conditions at Victoria’s Secret, including fresh allegations that former L Brands Chief Marketing Officer Ed Razek had harassed women and that Wexner had ignored complaints about them. Razek denied the allegations, and Wexner didn’t comment to the Times. L Brands is in talks to sell Victoria’s Secret, and Wexner is considering stepping aside as CEO. bloomberg.com

The L Brands Empire - A Bygone Era: Read more of our coverage on L Brands here
 

Coronavirus Update

The Rippling Effect of Coronavirus Across Retail

Steps Retailers Can Take to Mitigate Supple Chain Disruption

For retailers and business partners alike, the coronavirus is more than just a health concern; it’s an existing threat to the world’s global economic system. That’s because Wuhan stands as ground zero for high-tech manufacturing industries like automobile, technology, chemical, life science, health care, and retail. And to emphasize just how important the region is to global trade, check these facts: Wuhan’s contributing GDP reached $213 billion in 2018, and to date, more than half of the Fortune 500 businesses have operations in the area, including Apple, Starbucks, and Costco Wholesale.

The coronavirus and its lingering uncertainties have led to an overall disruption in global supply chains and world-wide economies. But there are steps organizations can take to mitigate impact:

1. Consider geographic diversification in sourcing and manufacturing
This is the obvious first-step solution, since it automatically removes China from the supply chain equation, allowing other non-affected parties in different geographical locations to keep supply chain operations running smoothly. Incidentally, many retailers have already started diversifying their sourcing and manufacturing operations on account of the existing trade war between the U.S. and China and China’s shifting footprint in global politics. Still, despite the seemingly straightforwardness of this solution, it’s a risky move that involves a lot of time and even more investment. Plus, retailers should be aware of the varying compliance regulations and production capabilities per region.

2. Monitor risk in real-time with a digitized supply chain
Retailers can adopt retail software platforms that monitor, track, and manage potential supply chain disruptions in real-time. With these multi-enterprise solutions, each and every supply chain stakeholder can connect seamlessly on a single platform, allowing instantaneous communication on any threat to a well-managed supply chain (i.e., new developments around city and government lockdowns of industrial areas and potential transportation interruptions.). More importantly, these stakeholders have 100% visibility into all supply chain operations, giving them leeway to make alternative business decisions and restorative actions.

3. Perform a cost-benefit analysis to mitigate damage to margins
Supply chain risk is inevitable, so retail organizations should consider using cost analysis tools to better assess ROI amid disruptive events, like the coronavirus outbreak. These costing tools allow retailers to easily forecast, prepare for, and mitigate potential financial risk. chainstoreage.com

Chinatowns throughout North America Impacted by Coronavirus
Restaurants in Oakland and San Francisco Chinatowns say their business has been slashed by 50 percent or more, a decrease caused by the one-two punch of novel coronavirus panic and a precipitous drop in tourism from China. It’s a problem that’s hitting Chinese restaurants across the country, Eater’s national site reports, with business decreases of 50 to 70 percent in New York’s Manhattan, Queens, and Brooklyn Chinatowns. Similar drops have been reported in Chinese restaurants in Boston and Houston. eater.com

Coronavirus death toll mounts in China as U.S. braces for long fight, more cases

Coronavirus Fallout Top-of-Mind Among Retailers, Vendors at Vegas Shows
 

Amazon and Jeff Bezos getting the 'Frontline' treatment
An upcoming episode of PBS’ acclaimed investigative journalism series “Frontline” will put Jeff Bezos under the harsh glare of the spotlight and examine how Amazon is reshaping commerce, work and technology.

On Tuesday, Feb. 18 at 9 p.m. Est, PBS local stations will broadcast “Amazon Empire: The Rise and Reign of Jeff Bezos,” which investigates how Bezos built a business empire that is “unprecedented in the history of American capitalism,” according to PBS. The two-hour documentary will look at Amazon’s ascent and ask tough questions about the consequences, added PBS.

Part of “Amazon Empire” will focus on working conditions in the company’s expansive fulfillment network. “Frontline” speaks with former employees at the Amazon centers who describe intense working conditions, and who say they struggled to keep up with the rate at which Amazon expected them to pick and pack items. chainstoreage.com

Shopping under the influence

Chardonnay in the shoe department: Retailers are increasingly serving alcohol to woo shoppers, vying to create an experience they can’t get online

Across the country, shopping centers, malls and major chains like Nordstrom, Crate & Barrel, Whole Foods and Giant are increasingly allowing — even encouraging — customers to imbibe while they browse. It’s the latest attempt by stores to offer shoppers an experience they can’t get online, like in-store climbing walls and designer trunk shows but with a much bigger reach: Retailers say customers tend to stay longer and spend more freely when they’re drinking.

“I don’t know why it took us so long to put drinking and shoes together, but it’s a great combination,” chief executive Erik Nordstrom said at the National Retail Federation’s annual conference last month. “Customers at the bar, drinking — it helps sell things." washingtonpost.com

Ross Dress for Less partners with Salvation Army Boys and Girls Club
Ross Stores and The Salvation Army Boys and Girls Club have partnered through a four-week program called "Help Local Kids Learn," running through the end of February. "We are proud to support the Boys & Girls Clubs of America during our annual campaign in February," said Gary Cribb, executive vice president, store operations and loss prevention from Ross Stores. "We invite our Ross customers to join us in donating to the clubs and helping youth develop the skills they need to have a bright future." hubcityspokes.com

Watch Lowe's CEO and former LP exec Marvin Ellison
Slap the Bass

"My CEO is cooler than yours.....Lowe's Companies, Inc., Marvin Ellison slapping the bass, EVP of Supply Chain Don Frieson so smooth the drums, SVP Geoff Sease strumming the guitar, Reg Henderson playing the keys and RVPs Joel Cogdell and Tim Daley on the vocals. #lowes #loweslife #lovewhereyouwork"
- Robert Daugherty, VP of Talent Acquisition, Lowe's
linkedin.com

NRF: January retail sales grew 2.7% over last year

Amy Poehler Invented Galentine's Day, Now Retailers Are Seizing On It

Iconic Vancouver Retailer ‘Leone’ Downsizes Store Amid Unprecedented Luxury Retail Competition


Quarterly Results
Canadian Tire Q4 comp's up 4.8%, revenue up 4.5%
 

In observance of President's Day,
the D&D Daily will not be publishing
on Monday, Feb. 17
 

Judge temporarily blocks Microsoft's $10-Billion Pentagon cloud contract after Amazon suit
A federal judge Thursday ordered a temporary block on the JEDI cloud contract, which was awarded to Microsoft, in response to a suit filed by Amazon.

The Joint Enterprise Defense Infrastructure, or JEDI, cloud computing contract is intended to modernize the Pentagon’s IT operations. The contract could be worth up to $10 billion for services rendered over as many as 10 years. Microsoft was awarded the contract on Oct. 25. cnbc.com

US Sen. Gillibrand Announces Legislation to Create a Data Protection Agency
The Data Protection Act (DPA) would create a consumer watchdog to give Americans control and protection of their data, promote a competitive digital marketplace, and prepare the U.S. for the digital age.

Introduced by U.S. Kirsten Gillibrand, the DPA will have the authority and resources to effectively enforce data protection rules - created either by itself or congress - and would be equipped with a broad range of enforcement tools, including civil penalties, injunctive relief, and equitable remedies. The DPA would promote data protection and privacy innovation across public and private sectors, developing and providing resources such as Privacy Enhancing Technologies (PETs) that minimize or even eliminate the collection of personal data. The U.S. is one of the only democracies, and the only member of the Organization for Economic Co-operation and Development (OECD), without a federal data protection agency, says a press release. securtitymagazine.com

Ohio man charged for laundering $300 million through Bitcoin 'mixer'
American law enforcement just illustrated how important cryptocurrency has become in the criminal world. Federal agents have charged Ohio resident Larry Harmon for allegedly running a darknet-based Bitcoin "mixer" that laundered the equivalent of roughly $300 million for drug dealers and other crooks. Helix, as it was called while it ran between 2014 and 2017, reportedly let customers pay to send Bitcoin in a way that hid the true source. It operated with "brazenness," the IRS' Don Fort said. Helix supposedly partnered with AlphaBay to serve the darknet black market's customers, and advertised Helix on the Grams search engine (which Harmon apparently ran) as a way to hide deals from police. engadget.com

3rd-Party Breaches - and the Number of Records Exposed - Spiked in 2019
In a recent analysis of data pertaining to security breaches in 2019, Risk Based Security uncovered a sharp increase in incidents involving companies handling sensitive data for business partners and other clients. The total number of such third-party breaches hit 368 in 2019, up from 328 in 2018 and 273 in 2017 — a 35% increase in two years.

In addition, the number of records exposed in these breaches skyrocketed 273% last year, from just over 1.7 billion in 2018 to 4.8 billion in 2019. On average, some 13 million records were exposed in each third-party breach in 2019, making it easily the worst year ever on record, according to the analysis. Data exposed in these breaches ran the gamut, including names, addresses, dates of birth, Social Security Numbers, credit card numbers, email addresses, and financial data. darkreading.com

Cybercriminals Swap Phishing for Credential Abuse, Vuln Exploits
Phishing attacks are growing less popular as cybercriminals learn they don't need to manipulate targets to gain access to their accounts. Instead they are breaking in with stolen credentials and known vulnerabilities, both of which are more difficult for enterprise victims to detect.

This trend is one of many highlighted in IBM's "X-Force Threat Intelligence Index 2020," which aims to provide an overview of the threat landscape to security pros often caught in the weeds of day-to-day alerts.

Phishing made up 31% of attacks in 2019, a notable drop from about half of attacks the year prior, according to the report. Exploits of known vulnerabilities came in second, spiking from 8% in 2018 to 30% in 2019. In third place were incidents using stolen credentials, a technique close behind at 29% of attacks. darkreading.com

Average tenure of a CISO is just 26 months due to high stress and burnout

Mac threats are growing faster than their Windows counterparts