NRF PROTECT 2023

TalkLP's Wrap Up at NRF PROTECT Day 2

Watch what happened at NRF PROTECT 2023 Day 2 in this recap from host Amber Bradley and TalkLPnews!

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NRF PROTECT 2023 Keynote Spotlight
The art of taking a second look

NRF PROTECT: Retail security professionals refresh their visual intelligence skills

NRF PROTECT got off to an insightful start with a keynote address by attorney, internationalist, crime fighter and art historian Amy Herman, who gave her audience what might be described as a close look at the need to see clearly.

Herman makes her living by working with people whose job requires them to notice things; particularly to notice things that have changed, and things that shouldn’t be there. Among her clients are the New York Police Department, the FBI, the State Department, NATO and various branches of the U.S. armed forces, along with surgeons, private investigators, and — in this case — security professionals in the retail industry.

To further illustrate the need to notice, Herman divided the audience into groups of two, asking one member of each pair to describe a given image to their partner. The partner would listen, eyes closed, and then was tested on their ability to recognize what had been described to them.

Results weren’t successful, because, she said, people aren’t good at prioritizing what’s important in an image. Pointing out a distinctive aspect of one image — a sliver of unexposed area in the corner — she said very few describers ever mentioned it. Of those that did, the majority were members of the military’s special forces.

“I asked them why and how they got it,” she said, “and they told me they were trained specifically to make use of every bit of information they had.”

Bringing the lesson home, she pointed out that “Organized retail crime is changing all the time. You have to keep being able to recognize it.”

The world is full of potential wrongdoers busily figuring out ways of disguising themselves, she noted. “You need to change your perspective before things change.”  nrf.com


2023 Event Recap: Get all the NRF PROTECT 2023 highlights here
Keep checking back here for blog posts, show imagery, video highlights and media coverage from NRF PROTECT 2023 in Dallas, Texas

NRF PROTECT: 5 tips for cybersecurity resiliency from CISA’s Nitin Natarajan
 

The Complicated Reality of Shoplifting in America
'Could it be that shoplifting hasn’t increased, but more brazen incidents have?'

What can be done about shoplifting — and how bad is it, actually?

Confusion reigns as stores scramble to keep employees — and merchandise — safe.

Shoplifting is on the rise… or is it?

In retail, shrinkage refers to loss of inventory, whether that’s due to theft, human error, or damage. Per the National Retail Federation’s annual survey, retailers saw an average shrink rate of 1.4% in 2021, accounting for $94.5B in losses. But shrink has consistently hit ~1.4% for the last 10+ years, per CNN.

Yet retailers cited a 26.5% increase, on average, in organized retail crime (pro shoplifters who steal to resell); 80% claimed an increase in violent or aggressive incidents.

Also interesting: In San Francisco’s central district, larceny theft was up 88% in 2021 — compared to 2020, when stores closed for months. Compared to 2019, larceny theft was down, per The Atlantic’s Amanda Mull, who tried unsuccessfully to coax more specific data from retailers.

So, essentially, the numbers are hard to parse. Could it be that shoplifting hasn’t increased, but more brazen incidents — those more prone to go viral — have?

What can be done?

Confronting shoplifters can be dangerous, even deadly. Last week, the California state senate passed a bill that would stop retailers from asking staff to confront shoplifters, in line with Lululemon’s prioritization of employee safety.

Retailers are instead turning to tech, including: AI that monitors checkouts for barcode switching or other irregularities; Self-service cases that customers unlock with personal info; RFID tags, which track specific items; and Robots. thehustle.co


Will Other Retailers Follow Walgreens' Lead in Battling Theft?
Can theft be eliminated by completely changing the shopping experience?

Walgreens Takes Major Step to Solve Walmart, Target’s Big Problem

The pharmacy chain is trying something unique but it might be going a few steps too far.

Walgreens has launched a prototype store that changes the shopping experience in order to eliminate theft. This new store has only two aisles of "essentials" that shoppers can put into their carts, according to a report from CWB Chicago.

All the other merchandise in the store is locked up with customers using kiosks to order what they need. Walgreens has framed this via signs encouraging people to let the store's employees shop for them. In addition, shelves in the store are only about five feet high, making it easier for customers to see the merchandise (and easier for store employees to keep tabs on the customers).

Is Walgreens' Solution Too Extreme?

Walgreens has essentially created a digital experience that you have in person. It's easy to see how the company could integrate app-based ordering and advance ordering in addition to the kiosks, but this might be taking things too far in order to prevent theft.

"Walgreens’ new store concept will reduce theft and divert shoppers to e-commerce, especially for intimate items. Other chains will likely monitor Walgreens’ results before imitating this concept. Manual picking by store staff may reduce shoplifting, as well as productivity and morale," B2B Content Strategist Lisa Goller commented on Retailwire.

But, while this solution may be too extreme, the retailer may learn some lessons that help it find the right mix for its stores.

"That said, it is better than the approach of locking things away and having to call staff over to retrieve items. I guess it also beats having a store close completely. I have every sympathy for retailers suffering the impact of theft, but inconveniencing honest customers isn’t really the answer," he added. thestreet.com

RELATED: Will Walgreens’ New Anti-Theft Store Stop Stealing?


Another Crime Closure in Seattle
Rite Aid closes store in Seattle amid continued crime and violence

The retailer is simultaneously shuttering a location in Oregon for unspecified reasons

Another Rite Aid store is closing in Seattle as the retailer grapples with the city’s continued high crime rate and other factors.

Seattle-based Bartell Drugs, which is owned by Rite Aid, will close its location at 15th and Market, in an area north of downtown Seattle, on June 8, according to a report by media company Post Millennial.

Back in 2019, Bartell announced it would not be opening any more stores in Seattle due to theft and assaults on employees. Data on Seattle.gov indicates the violent crime rate in the city reached a 15-year high in 2022.

Kathi Lentzsch, CEO of Bartell, said at that time that its Seattle stores were having issues with repeat offenders, and that several staff members had ended up in the hospital due to injuries sustained during incidents within the stores. A few months later, Bartell’s flagship store in downtown Seattle was permanently taken out of service due to issues connected to crime.

In 2022, a third store closed in the city’s Chinatown/International District. A reason was not provided, but at the time there were several reports of crime in the area. supermarketnews.com


Another Retailer Wages War on Theft
Virginia ABC takes steps to address shoplifting, employee theft
Virginia Alcoholic Beverage Control is taking steps to address theft from its stores — both shoplifting and theft by employees — though ABC said loss of inventory, or retail shrink, remains low. ABC operates 339 retail stores, as well as a distribution center.

To address distribution center and retail store shrink, ABC is instituting more frequent inventory checks, additional audits of stores and developing better ways to categorize shrink sources.

While ABC’s shrink numbers are low compared to the overall retail market, Kane said they are working to deter and detect theft at local stores. “We’ve got a great relationship with local law enforcement,” said Kane. “Staff are trained to gather usable suspect information and leads to help those local officers in their investigations.”

To further deter theft at retail stores, it will minimize how many high-theft products are placed on shelves, move products for maximum visibility by staff and add additional in-store staff. It will also add more in-store cameras.

Kane said ABC has budgeted for two loss prevention staffers who will focus on establishing a loss prevention strategy, developing processes, and initiating continuous monitoring activities, to improve loss prevention.

To address employee theft, it is reviewing internal inventory processes and increasing store audits, which fell during the COVID-19 pandemic. It has also identified a point-of-sale system vulnerability.

A review of 1,100 transactions at 134 stores found suspected theft at seven stores. Three employees at one store were charged and ordered to pay restitution, with six stores still under investigation. wtop.com


Police Officer LOD Shootings Up 40% YTD Over 2020
FOP Reports Year-to-Date Increases in Shootings of Officers
In its monthly update, the FOP reports that 166 officers were shot in the line of duty (LOD) through May. That total is not only a 15% year-to-date increase from last year, but also a 30% year-to-date increase from 2021 and a 40% year-to-date increase in 2020.

Of those officers shot this year, 21 have been killed, which is comparable to the same time last year. Through the first five months of 2022, 20 officers were fatally shot in the line of duty.

The FOP's report continued to highlight the problem of ambush-style attacks on law enforcement officers. So far this year, 54 officers have been shot in 47 of ambush attacks, 9 were killed.

In the first five months of 2022, 42 officers were shot in 27 ambush-style attacks. Of those shot, six were killed. officer.com


"Greater Minneapolis Violent Crime Initiative," began Monday
Dozens of officers get marching orders as part of 'Operation Safe Summer' in Minneapolis
The officers learned when and where they will focus their attention as the warm days and nights set in.

Crime hot spots in Minneapolis will be saturated with law enforcement at specific times under an initiative detailed Wednesday ahead of the warm summer days and nights ahead.

The officers learned when they will saturate targeted areas of the city — in uniform and undercover — with the focus on crime hot spots on the North Side, downtown and along and near E. Lake Street.

The operation, subtitled the "Greater Minneapolis Violent Crime Initiative," began Monday and is being deployed on specific dates during specific times through the end of August — though they were not publicly detailed.

A presentation of Police Department crime data comparing the first six months of 2023 with the same period last year showed 33% fewer homicides and 37% fewer gunshot victims. At the same time, gun seizures are up 18%. startribune.com


WA State Law Now Supersedes Seattle's
Seattle City Council narrowly rejects drug prosecution bill
In a 5-4 vote Tuesday, the Seattle City Council rejected a bill that would have given the city attorney the authority to prosecute drug possession and public drug use cases, following nearly three hours of public comment.

The legislation would have adopted into the city’s criminal code the state’s recent law criminalizing possession and making public use of drugs a gross misdemeanor, giving the city attorney the ability to prosecute those arrests. Without adopting the bill, Seattle police will still be able to make arrests under the new state law, but prosecutions will fall to the King County prosecutor. seattletimes.com


U.S. Congress ORC Bill's Update: H.R.895 Combating ORC Act of 2023 Picks Up 5 New Co-Sponsors Yesterday

Now with 27 Co-Sponsors - 14 Democrats & 13 Republicans. New: D-MN-2, D-WA-6, D-NJ-5, D-IN-1, D-MD-6. Is your U.S. Representative supporting the bill? Check the list here.

It seems like the co-sponsors are indeed from those areas most impacted by ORC.

Meanwhile, there hasn't been any activity on the Senate Bill S.139 and S.140 since they were read twice on 1/30/23 and referred to the Committee on Homeland Security and Governmental Affairs and the Committee on the Judiciary, respectively.


Training Grocery Store Employees on How to Respond to Active Shooters
The Retail Learning Institute/IGA Coca-Cola Institute, in collaboration with Rouses Markets and the Thibodeaux, Louisiana Police Department, has launched an essential online course aimed at equipping grocery store employees with the necessary knowledge to respond effectively to active shooter incidents. Available in both English and Spanish, this concise 5-minute course provides a comprehensive how-to video that emphasizes the “Run, Hide, Defend” approach. progressivegrocer.com


Retailers telling employees to look the other way during theft

Allen, Texas mall shooting victim talks story of survival, recovery

RetailTech: Leading-Edge Loss Prevention
Tackling Theft and Fraud Through RFID, Video Surveillance and More
Retail theft is on the rise, and it is time for companies to take action to minimize losses and protect their bottom lines. How can retailers tackle theft, fraud and other shrink risks and alleviate customers’ concerns about shopping in their stores?

Coresight Research Analysis identifies five key technologies that can drive benefits for retailers in preventing loss:

• Item tags, such as RFID (radio-frequency identification) tags, can provide retailers with essential data on what was taken, when and via which exit. These data can be analyzed to determine if the theft was internal or external, find shoplifting patterns, predict future theft and update the retailer’s inventory view.

• Computer video footage complements the data from RFID tags, noting the time and date of the theft and providing an image of the perpetrator, so that repeat visits can be saved to build a felony larceny case. Video analytics can also keep associates and customers safe, identifying mob formation, threating behavior and loitering, both inside the store and in the parking lot, in addition to monitoring inventory.

• Current self-checkout terminals contain several sensors and measures to reduce theft and fraud, including a downward-facing camera, an item scanner/front-facing camera and a scale in the bagging area.

• The capabilities of AI (artificial intelligence) extend beyond item tags and video, with AI-driven prescriptive analytics platforms continuously monitoring POS (point-of-sale) and inventory data for anomalies, which could indicate theft, fraud and waste, as well as missed revenue opportunities or noncompliance with store policies.

• Early versions of generative AI, such as AI-powered chatbots, have already demonstrated their ability to find relationships among data and communicate them in human language, and the technology promises to find new applications in finding theft and fraud. Generative AI could also find new ways to reconfigure stores to keep assets, employees and customers safe.

What We Think: The criminal mind is constantly looking for new opportunities to receive ill-gotten gains, and unfortunately, retailers need to remain vigilant and implement new means of thwarting them. Fortunately, there are several technologies that can help retailers reduce the risk of shrink or at least identify theft and fraud where it is not possible to prevent or stop it. We expect retailers to use mature technologies such as RFID as well as emerging technologies such as generative AI to find and implement loss-prevention measures. coresight.com


Dollar General's OSHA Safety Violations Continue to Pile Up
$21M+ in penalties after 240+ inspections since 2017 - with no end in sight

OSHA cites Dollar General store days after shareholders call for safety audit
The U.S. Department of Labor’s Occupational Safety and Health Administration has cited a Dollar General store in Lamesa, Texas, for blocked exit routes and walkways and unsafely stacked merchandise, resulting in fire hazards, according to a Monday news release. The agency proposed $294,646 in penalties following its inspection, which took place in December.

The DOL’s release struck a frustrated tone, calling attention to Dollar General’s allegedly repeated failure to address safety issues at its stores in recent years. It noted the more than 240 inspections that have taken place at Dollar General Corp. and Dolgencorp LLC locations, and the total proposed penalties of more than $21 million.

While the company has grown rapidly, announcing plans to open nearly 1,000 new stores in fiscal year 2023, it has increasingly attracted OSHA’s ire for safety violations. Last year, the agency added Dollar General to its Severe Violator Enforcement Program, which negatively recognizes employers “that have demonstrated indifference to their OSH Act obligations by committing willful, repeated, or failure-to-abate violations.”

OSHA’s most recent citation comes just a week after Dollar General shareholders voted to request an independent, third-party worker safety and well-being audit and report, according to a filing with the U.S. Securities and Exchange Commission. Domini US Impact Equity Fund, the lead filer of the safety resolution, cited OSHA’s penalties and status as a severe violator in its supporting statement.

Before the vote, in response to the proposal, Dollar General’s Board of Directors recommended shareholders vote against the resolution, arguing that it already had a comprehensive and regularly reviewed safety program, conducts safety checks, has a “culture of safety” and solicits feedback from employees. The response did not address OSHA’s citations or the company’s severe violator status. hrdive.com

RELATED: Dollar General Inspections in AL & FL Yield 8 Violations, $1M Penalties


Progressives’ criminal justice reforms are creating more ‘food deserts’
For over a decade, there’s been a national discussion about “food deserts,” usually defined as low-income neighborhoods with little or no access to retail stores that offer fresh and nutritious food options. Progress had been made in reducing the problem, until progressive district attorneys and other city officials began imposing their criminal justice reforms. Thanks to them, food deserts are increasing once again.

It’s become a regular part of the news cycle. Major retail chains, many of which are grocery stores, announce they are closing their doors, primarily in inner-city and low-income areas.

Which cities are seeing the exodus? The bastions of progressivism: San Francisco, Portland, Philadelphia, Chicago, Atlanta, Washington D.C. and Seattle, just to name some of the most notable cases.

While there were several reasons food deserts emerged in the past, there is one primary reason they are reemerging today: Record levels of unchecked theft and crime that make stores not just unprofitable, but unsafe for employees and customers.

And just so no one is confused about who is to blame for all of the crime, the Daily Mail adds, “Progressive district attorneys in cities like Chicago, New York, Portland and California have also been blamed for effectively legalizing shoplifting with either not prosecuting thefts under $950, or letting criminals off with a slap on the wrist.”

So progressive city DAs announce they will not prosecute shoplifters for stealing less than $950 — though no one actually seems to be checking to see that the thieves don’t go over their shoplifting limit — and crime explodes. Who knew?!

Progressives will whine about the closures and blame “greedy retailers” and “racist policies” for the departures. But their own soft-on-crime policies are the primary reason food deserts are growing again. Until residents finally vote these scoundrels out of office, they can expect to see more crime and less fresh food.

Merrill Matthews is a resident scholar with the Institute for Policy Innovation in Dallas, Texas. thehill.com
 

Retail Brands Feeling the Pain as Pride Backlash Rages On
What might be next for Target, Bud and others caught in anti-Pride backlash

Even before Pride month was underway, it seems as if it was open season on companies celebrating the LGBTQ community.

One by one, companies have come under an expanding attack. Anheuser-Busch, Target, Kohl’s and VF Corp.’s North Face brand have all felt the vitriol of this latest push from the right. And the list keeps growing. These companies have been branded as “woke capitalists” — and worse — as critics urged boycotts of these companies’ products. Bud Light came into the crosshairs after it struck a partnership with trans influencer Dylan Mulvaney, while North Face received backlash for an ad featuring drag queen Pattie Gonia. Target and Kohl’s have been criticized for Pride-themed clothing.

While it’s too early to say how successful these efforts will be in lowering sales at the companies recently drawn into this attack, damage has been done to the stocks already. And some on Wall Street expect that to continue with analysts recently downgrading Target’s and Anheuser-Bush’s ratings, citing in part the ongoing controversy.

“The main reason boycotts generally are effective is because they threaten the reputation of the company by putting the company in a negative media spotlight, and companies don’t want to have negative attention of any kind drawn to them,” said Brayden King, a professor of management and organizations, who has studied how boycotts impact company stock prices, in an interview.

“They often concede to boycotter’s demands, not because they feel that there’s sales pressure on them, but rather because they don’t want to continue to be a target of negative media attention,” he said.

King’s research found that the stock of a company will fall about 1% each day of national print media coverage. But once the issue falls out of the daily news cycle, the stock generally recovers. cnbc.com


Retail jobs in the US grew by 11,600 in May
In May, the US retail trade sector added 11,600 jobs in May, up from the 10,000 added in April, when adjusted for seasonal changes. May’s report reflects improvement compared to a year ago when the retail trade sector experienced a loss of 51,400 jobs.

Survey: Consumers Prefer Traditional Grocery Stores
67% of respondents currently buy groceries from traditional grocery stores. Behind that channel, 41% of those surveyed said they shop for groceries at mass retailers, while 30% visit dollar stores/discount stores, 21% order from online shopping websites and 15% venture to specialty stores.