The U.S. Crime Surge
The Retail Impact

Businesses & Lawmakers Continue to Respond to Tops Mass Shooting

FBI Warns of Rise in Retail Mass Shootings
If You Shop at Walmart or Kroger, the FBI Has a Major Warning for You

The agency reports on a concerning trend that's becoming increasingly common.

The FBI is reporting on new crime concerns around grocery stores.

According to data from the FBI, there has been a 100 percent increase in active shooter incidents since 2016, with 40 shootings occurring in the year of 2020 alone. Out of the 40 incidents, 24 happened in places of commerce, such as grocery stores. Between 2000 and 2017, the number of shootings at grocery stores averaged out to be less than one per year, but according to the FBI, there were two such shootings in 2018 and then six in 2020.

A majority of these attacks happen at specific retailers.

When looking closer at places of commerce, officials notice two nationwide companies that appear to be a common target: Walmart and Kroger. One of the largest grocery store shootings in the past few years took place in 2019, when a gunman opened fire on back-to-school shoppers at a Walmart in El Paso, Texas, killing 23 people and injuring another 23. That same year, a "disgruntled" former Walmart worker shot at people in a Southaven, Mississippi, store, killing two.

In 2021, there were two mass shootings at Kroger-owned grocery stores, according to The Washington Post. One occurred at a Kroger in a Memphis suburb, where one person was killed and more than a dozen were seriously injured. The other took place in Boulder, Colorado, at a King Soopers outlet—which is owned by Kroger—and 10 people were killed.

Both retailers responded to these incidents with policy changes.

According to CNBC, the two companies took a public stance against guns in 2019, asking shoppers not to openly carry guns in any of their stores. Kroger and Walmart said that even in states where "open carry" laws allow them to do so, customers should not bring guns into their stores unless authorized by law enforcement officers. Walmart also banned the sell of ammunition that can be used in military-style assault rifles that year, while Kroger had completely exited "the firearm and ammunition business" a year prior in 2018. bestlifeonline.com

Businesses Rush to Hire Security Guards After Tops Mass Shooting
NY security companies see increase in calls since Tops mass shooting
Security companies in Upstate New York are seeing an increase in calls since the mass shooting at a Buffalo Tops supermarket this past weekend. More businesses are looking into hiring security guards.

“There’s a renewed feeling of making sure that they're on top of everything,” said the president of C.O.P. Security, Jack Barton. “They're aware. Awareness is everything when it comes to security.”

The grocery store where a gunman opened fire on Saturday in Buffalo had an armed security guard on duty. Barton's company provides armed and unarmed guards to customers. One of those customers is a school in Greece. The guard there has been with the company for several years – working at various venues, and festivals.

“I think that you'll find that in most cases, presence, is probably 90 to 95% of a security officer’s job,” Barton said. “But there is that 5% action is needed or reaction.”

The security guard at the Tops store in Buffalo reacted. Aaron Salter is being hailed as a hero – he fired his weapon and hit the suspect. But Salter ended up becoming one of the 10 people killed in the mass shooting.

Since the incident, his security company and others are seeing an uptick in requests for armed guards. “I would expect all the companies around this area anyways are probably getting more calls.” Barton says, the armed guards with C.O.P. Security have the option of wearing protective vests.

“It's just a matter of making sure that you're on top of your game, if you will,” he said. “You’ve got to stay alert [and] stay vigilant. You never know. You never know what’s going to walk in, what’s going to set someone off.” spectrumlocalnews.com

Buffalo Shooting Fuels Passage of New Domestic Terror Law
House, Acting After Buffalo Rampage, Moves to Combat Domestic Terrorism
The House passed legislation on Wednesday aimed at bulking up the federal government’s efforts to combat domestic terrorism, acting over the opposition of Republicans days after a gunman motivated by white supremacist ideology killed 10 Black people in a Buffalo supermarket.

Lawmakers advanced the bipartisan legislation on a nearly party-line vote of 222 to 203 that reflected deep polarization about addressing white supremacy and other racially motivated extremism that is now considered the nation’s greatest internal threat.

The vote came as the Buffalo massacre has shone a spotlight on how racist conspiracy theories such as the one that motivated the shooter have increasingly drifted into Republican politics and right-wing media, where prominent voices, including some members of Congress, have subtly echoed or overtly embraced them. Only one Republican, Representative Adam Kinzinger of Illinois, voted for the bill.

The measure would establish three new offices — one each in the F.B.I., the Justice Department and the Department of Homeland Security — to monitor, investigate and prosecute domestic terrorism. It would require biannual reports assessing the domestic terrorism threat posed by white supremacists, with a particular focus on combating “white supremacist and neo-Nazi infiltration of the uniformed services.”

Yet it would stop short of creating new federal powers to crack down on domestic terrorism; it would not create new criminal offenses or new lists of designated domestic terrorist groups, nor would it give law enforcement additional investigative powers.

Proponents said that in a Congress that has long been paralyzed on legislation to combat gun violence, the bill was the best they could to address the root causes of the racist shooting rampage in Buffalo. nytimes.com

'Inadequate Laws' Fueling America's Mass Shooting Surge?
What Do Most Mass Shooters Have in Common? They Bought Their Guns Legally.
From 1966 to 2019, 77 percent of mass shooters obtained the weapons they used in their crimes through legal purchases, according to a comprehensive survey of law enforcement data, academic papers and news accounts compiled by the National Institute of Justice, the research wing of the Justice Department.

While mass shootings, defined by many experts as episodes involving four or more fatalities, represent a relatively small percentage of overall gun crimes, they have risen drastically in recent years, with at least eight of the 20 deadliest mass shootings in U.S. history taking place since 2014.

That a majority of these criminals have made their gateway purchases though legal means reflects the profound inadequacy of local, state and federal statutes to detect or deter mass shooters, say law enforcement officials, researchers and the families of people they killed.

“The reality in this country right now, is that anyone who wants to cause harm to themselves, or do someone else harm, can easily acquire the means to do so — legally,” said Fred Guttenberg, whose 14-year-old daughter, Jaime, was killed in the school shooting in Parkland, Fla., in 2018. nytimes.com

Accused gunman in Tops mass shooting indicted by grand jury

How some Tops shoppers found safety in store's break room during shooting

911 Dispatcher May Be Fired Over Handling of Buffalo Shooting Call

See the D&D Daily's initial Buffalo shooting coverage here

 
The Great Debate: How to Solve America's Retail Crime Surge

California's New Retail Crime Campaign Makes the News
New campaign launched Wednesday aimed at combating retail theft

One grocery chain says their 47 stores are hit by thieves 1,400 times per week.

The group, Californians Against Retail and Residential Theft (CARRT), said they plan on meeting with lawmakers to educate them on the impacts of a proposition they say is in part to blame for the rise in crime.

At a time when minority business owners were disproportionately impacted by the pandemic, these organizations are saying the rise in retail crime is rubbing salt on the wound.

Superior Grocers said its 47 stores in California get hit at least 200 times a day. That’s 1,400 hundred times a week. They played some of the surveillance videos during the press conference where you can see people casually walking out of stores with carts full of goods.

They believe Prop 47 is in part to blame. That’s the proposition voters passed to make anything that criminals steal valued at less than $950 a misdemeanor instead of a felony. The legislature has already blocked bills that aim to repeal or modify it this session.

While CARRT as a group said they won’t pick a political position, they believe law enforcement is not given the tools needed, and part of the solution lies within district attorney’s offices as well.

"I think some of this can go back to upcoming elections as well," said David Kusa of the Automotive Service Councils of California. "We do have a number of district attorneys in some larger cities that have absolutely refused to prosecute these crimes. We have to be more aware of what we're voting for so changes can be made there specifically."

Even if the legislature does pass something on Prop 47, it will still need to go back down to the voters. Politicians who are against changing Prop 47 are not blind to the retail theft making headlines. Some argue there needs to be more of a focus on getting to the root cause of why these criminals are committing the crimes: Poverty, homelessness, you name it. cbs8.com

'Shoplifting on Steroids'
Organized retail theft not a victimless crime
It could be called shoplifting on steroids. Known as “Organized Retail Crime,” it’s growing at a fast rate nationwide. Locally too, law enforcement is handling these cases.

Sheriff Furlong says organized retail crime is on the rise here and nationwide. It costs the industry $7,000,000 dollars for every #1 billion sold. The merchandise is often turned over to the internet where it can be sold at a fraction of the cost.

The crime is anything but victimless says the industry. Besides the economic loss, there are also safety concerns as well as the psychological impact such a crime can have on a customer or worker should the incident take a turn for the worse.

That’s why Sheriff Furlong says in “retail crime” no one should take matters into their own hands as the incident is underway. “Every case is a potential for turning into disaster right there on the spot,” says Sheriff Furlong.

He says, instead, to take mental or physical notes, a description of the suspects, cars, and note which way they were headed. If you happen to see merchandise that’s too good to be true for the price on the internet, it could be stolen. Sheriff Furlong says let law enforcement know.

The sooner officers are made aware of the crime, Sheriff Furlong says the better chance they have of solving it. kolotv.com

More Police & Prosecutions to Solve Crime Surge?
San Francisco mayor calls for more policing, prosecutions as chamber survey highlights angst over public safety
San Francisco Mayor London Breed said the city needs more police and prosecutions for wrong-doing, speaking at the chamber’s annual CityBeat breakfast as a poll highlighted voters’ concerns over public safety issues.

There was a dramatic increase in respondents describing crime and public safety as a major issue — 55% said it was in 2022, up from 46% in 2021 and 26% in 2020. Breed told her chamber audience that San Francisco has about 1,719 police officers, down 277 from 2019 and 463 short of what a city of San Francisco’s size needs.

In addition to providing homeless services, assistance to those with mental health or drug abuse problems and supporting police-reform efforts, Breed said, “We also need arrests by the police as well as prosecution accountability for those selling drugs in our neighborhoods.”

San Francisco residents said they plan to act on their concerns, with 45% of those surveyed saying they’re likely to leave the city over the next few years, and with 25% listing crime as the primary reason for wanting to leave. That’s up from 15% in 2021 and just 8% in 2020 citing crime as the key reason to move out of San Francisco.

So it’s not surprising that the CityBeat poll also found two-thirds of respondents said they plan to vote for a recall of San Francisco District Attorney Chesa Boudin in the June 7 election. Boudin is under fire for what critics say is a de-emphasis on prosecutions. bizjournals.com

Security company proposes K9 teams to help protect Chicago streets

Baltimore city officers to spend more time on patrol, less on 'minor' crimes

 

COVID Update

583.2M Vaccinations Given

US: 84.7M Cases - 1M Dead - 81.4M Recovered
Worldwide: 526M Cases - 6.2M Dead - 495.8M Recovered

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

Private Industry Security Guard Deaths: 358  
Law Enforcement Officer Deaths: 771
*Red indicates change in total deaths

100K COVID Cases a Day Ahead of Memorial Day Weekend
Top Biden health officials sound warning on rising coronavirus infections
Top Biden administration officials warned Wednesday that one-third of Americans live in communities experiencing rising levels of coronavirus cases and hospitalizations and urged them to resume taking personal protection measures, including wearing masks.

The increase in new infections — nearing 100,000 a day — comes as the nation heads into Memorial Day weekend with its large gatherings and travel. That case count is almost certainly an undercount, officials said, given the widespread use of at-home tests for which results are often not reported to health officials.

Rochelle Walensky, director of the Centers for Disease Control and Prevention, strongly encouraged those living in communities designated yellow or orange, indicating they have large numbers of new infections and hospitalizations, to consider wearing masks in indoor public spaces and taking other steps to protect themselves. washingtonpost.com

COVID's Long-Term Impact on the Workplace
How the Workplace is Changing in the Pandemic Era

A study by Littler looks at how issues such as regulations, office locations and pandemic policies will affect the workplace.

Employers Split on COVID-19 Vaccine Mandates

Though employers’ approaches to vaccine mandates have evolved since last year – 41% of respondents now say they are mandating vaccination or requiring regular testing, compared to 21% in Littler’s August 2021 survey – the survey data suggests that most businesses’ policies are set at this point in the pandemic.

Only 1% are planning mandatory vaccination policies that haven’t been implemented yet, and only 2% remain unsure of their plans. The largest share (56%) said they will not implement such a policy unless required by law.

An Uphill Battle: Reopening Offices Amid a Competitive Talent Market

Nearly 70% of respondents said they had already instituted a formal return-to-office policy as of the end of March (54%) or would do so between April and August (13%). Nearly all respondents (97%) are already offering or considering expanding flexibility and remote work options to help attract and retain employees – with 47% doing so to a great extent. “We are at a pivotal moment in the world of work.

Workplace Regulation Expected to Impact Employer Operations

More than 60% of respondents anticipate a moderate or significant impact on their businesses from enforcement efforts and compliance requirements associated with OSHA (76%), state and local agencies (73%), the Department of Labor (65%) and the Equal Employment Opportunity Commission (63%). ehstoday.com

Reinstating Employee Mask Mandate at Apple Stores
Apple Reinstating Employee Mask Mandate at Approximately 100 U.S. Stores
Apple retail employees at around 100 stores will need to go back to wearing a mask while working, according to Bloomberg's Mark Gurman. Apple is mandating masks for employees again due to a rising number of COVID cases across the United States.

Customers who visit an Apple Store are not required to wear a mask at this time, but Apple is continuing to recommend masks for all ‌Apple Store‌ visitors.

Apple has been shifting its operating policies throughout the pandemic to keep in line with local regulations and to mitigate risk for employees and customers in areas where COVID is spiking. Apple stopped requiring masks in March when COVID levels were lower, and masks still aren't required for employees in all locations.

In addition to requiring masks for retail employees at some locations, Apple today told corporate employees that they must go back to wearing masks when in common areas. Apple is also maintaining its two day in-office work week for corporate employees for the time being, and will delay going to a three-day work week. macrumors.com

How Often Can You Be Infected With the Coronavirus?

 

Aldi's Former Div. Dir of Real Estate Indicted for $554K in Kickbacks
Former ALDI Executive and Local Contractor Indicted for Bid Fraud
East St. Louis, Ill. – On Tuesday, May 17, 2022, a federal grand jury in East St. Louis returned a nine- count indictment charging a former Aldi executive and a local general contractor with federal fraud offenses relating to the construction of Aldi grocery stores throughout Southern Illinois and Missouri. Former Aldi Regional Director of Real Estate, Louis Ross, 62, of Florissant, Missouri.

Ross served as the Director of Real Estate for Aldi’s O’Fallon, Missouri, Division, which encompasses the area. According to court documents, Schniers, through C. Juengel, provided general contracting services to Aldi in connection with the construction and renovation of Aldi stores in the O’Fallon, Missouri, Division.

The indictment alleges that Ross and Schniers submitted fictitious bids in the names of other regional construction companies that were higher than C. Juengel’s bids.

According to the indictment, C. Juengel was awarded twelve contracts for general contractor services between March 2016 and May 2017, as a result of the fraud - valued at over $21 million dollars. Because of the lack of competition in the bidding process, Aldi allegedly overpaid for the construction and renovation of stores in the O’Fallon, Missouri, Division.

Schniers paid Ross monthly kickbacks in exchange for the receipt of the Aldi contracts. Over a four-year period, Ross allegedly received $554,000 in kickbacks. In addition, the indictment alleges that Ross also received thousands of dollars in kickbacks from another individual for the exclusive right to serve as the civil engineer on all Aldi new construction and renovation projects in the O’Fallon, Missouri, Division.

Court June 10, both facing 20 years on each count.  justice.gov

What Retail Labor Shortage?
Walmart & Amazon aren't seeing a labor shortage — they've had too many workers, and now it's taking a financial toll

Walmart said it was overstaffed during the most recent quarter, and Amazon faced the same issue in its warehouses

Throughout the past several months, businesses across the US shared a common problem: not enough employees. But in the first few months of 2022, two of the nation's largest retailers experienced a new staffing problem, one that impacted their quarterly financials.

Walmart CEO Doug McMillon said during the company's quarterly earnings call Tuesday that the company experienced "weeks of overstaffing" during the first quarter of fiscal year 2023, primarily due to the pandemic.

Walmart had hired extra associates at the end of 2021 to cover for staff that was out on COVID leave, but when Omicron cases declined the first half of the quarter, employees came back to work sooner than expected.

The overstaffing issue was resolved during the quarter, primarily through attrition, McMillon said. Still, several weeks of overstaffing at the retail giant meant several weeks of wage pressure, which ate into profits for the quarter: Walmart reported that profit declined 24.8% from last year and announced Tuesday that it would cut its profit guidance for the full year.

Of course, high wage costs weren't the only culprit in Walmart's less-than-stellar quarter — McMillon said inventory levels are elevated and container, storage, and fuels prices are up, all of which contributed to Walmart's profit miss. businessinsider.com

New Biometric Checkout Tool
Mastercard to launch biometric checkout tool for retailers
Following other fintech companies and retailers experimenting with biometrics, Mastercard announced Tuesday that it is introducing a biometric checkout program. The card issuer is working with NEC, Aurus, PaybyFace, PopID and Fujitsu Limited to deploy the tool internationally, maintain its safety standards and protect the data collected.

Consumers will be able to review their bill and smile into a camera or wave their hand over a reader to pay. Mastercard is first piloting the program in Brazil and plans to test out the feature in the Middle East and Asia, per the announcement.

The program outlines standards for financial institutions and tech companies to follow to secure the data and keep customer information private. The participants in the program can offer consumers biometric checkout services either online or in-store through the merchant or an identity provider app.

Mastercard is pitching this new program as a more hygienic, secure payment method for merchants. The service also allows for loyalty program integrations and personalized product recommendations for consumers, per the company announcement. retaildive.com

How Can These Be Applied to Retail LP?
The Seven-Pronged Investigations Checklist
Inspired by Gawande's book, I reflected on my former career as an employment law attorney, in which I conducted numerous workplace investigations and litigated many botched ones. I asked myself, "Based on these experiences, what most often went wrong and what would have prevented disaster?" The following seven-step checklist represents the results of this reflection:

1. Presume to investigate.
2. Set the stage.
3. Protect the people and the process.
4. Perform "EAP interviews."
5. Don't cut corners.
6. Properly convey supportable findings.
7. Remember the post-investigation checkup.

I recommend you keep this checklist at the ready. Perhaps create a simple document listing the seven prongs. When trouble next arises, you'll have it handy.  shrm.org
 
Register Now!
IAFCI Annual Spotlight on Fraud Conference
The International Association of Financial Crimes Investigators (IAFCI) Connecticut Chapter annual Spotlight on Fraud Conference is set for June 9-10, 2022 at Mohegan Sun Casino Uncasville, CT. This is a great opportunity to hear about some recent financial crime trends and how to address and prevent them.

Not only retail crime but also cryptocurrency, social media investigations and many more presentations. This is also a great opportunity to network with various branches of federal, state and local law enforcement and the financial investigators industry. Come and hear some awesome presentations.

Conference Agenda | Registration Information

Albertsons rolls out AI-powered carts in select stores

Amazon expands contactless payment at more Whole Foods stores

2 top Kohl’s executives to depart as the retailer gets closer to a sale

Under Armour CEO Patrik Frisk to step down
 

Quarterly Results

VF Corp Q4 sales up 9%, FY22 sales up 28%
   North Face up 24%
   Vans flat

Foot Locker Q1 comp's down 1.9%, sales up 1%

Ross Stores Q1 comp's down 7%, sales down 4%