America's #2 Retailer - Kroger 's AP Efforts Paying Off
Appoints 1st VP AP, April 2017

With nearly 2,800 stores in 35 states under two dozen banners & annual sales
of more than $115.3 billion, Kroger today ranks as one of the world’s largest retailers

Kroger's New Investment On 1st VP of AP Role in April 2017
Paying Off - Here's the Proof
Kroger CFO, Mike Schlotman, Calls Out & Recognizes Continuous Shrink Improvement In Last 3 Quarterly Results Calls
Quarterly & Full Year Results Conference Call Transcripts With Shareholders & Media

March 8, 2018 - Fourth Quarter and Fiscal 2017 Results Prepared Remarks: "We are also pleased that shrink continued its steady improvement throughout the year with good results in the fourth quarter."

June 21,2018 - Q1 2018 Earnings Release Prepared Remarks: "A big focus continues to be on store productivity and waste. Our teams controlled shrink well in the first quarter. As we’ve said before, we won’t leave a penny on the table as we seek to reinvest savings to grow our business."

Sept. 13, 2018 - Q2 2018 Earnings Release Prepared Remarks: "Looking at gross margin, we were pleased to see that our shrink rate continued to improve during the second quarter."

Shrink improvement and waste has been a major focus at Kroger. Which is why they staffed a Vice President level position, Mike Lamb in April 2017. Their first ever VP level AP executive in their long history.

Prior to that they had two Director level executives splitting responsibilities. With one, the Dir. of LP position, also being Kroger's first ever Dir. of LP role they staffed in Jan. 2008.

With one Dir. covering shrink in a shortage control and merchandise protection type function and the other covering Loss Prevention with an emphasis on security, front end shortages (rolled out first EBR program) , store audits, standardizing field job functions, and managing Kroger's in-house central station alarm operations.

The new Vice President role combined the two corporate functions in one position and started standardizing, refining, and broadening the AP processes throughout the company.

With the twenty two banners operating totally independently in a decentralized organization this made the standardization efforts even more difficult to accomplishment.

However they've been very successful in redefining the AP functions, increasing the impact, and gaining company wide support.

With the comments being made over the last three quarterly and full year conference calls by the CFO, they're seeing some significant and continuous shrink improvement, which is obviously a reflection of the new corporate leadership, new structure, and the entire AP team's efforts throughout all of the divisions. It's great to see a new officer level position in the AP community having such an impact.  ir.korger.com

Rarely Seen Recognition of the LP/AP Efforts Mentioned in Financial Results Conference Calls
Share Yours with the LP/AP Community - Great For All of the LP/AP Teams & Retail Industry to See
We don't see it often but when we do it deserves to be called out to the industry and to the LP/AP Teams across America. As it's a strong positive reflection for the entire industry and establishes a goal for every team throughout retail.  And obviously it's great to acknowledge all the work and efforts the Kroger AP team and leadership team has made.

So if your department is complimented and recognized in your company's financial results/transcripts let us know and we'll share it with the community. As it reflects on the entire industry. Just a thought. -Gus Downing

California continues risky experiments with public safety
California's most damaging creation, Senate Bill 10, ends bail in California
Instead of cash bail, criminal courts will conduct “risk assessments” to determine whether an offender should be held until trial or released back into the community. This experimental bail system jeopardizes the safety of our neighborhoods, making it even easier for criminals to evade justice.

How will this new process work? Would every arraignment become a trial where experts have to testify and who would pay for it? Why would anyone appear in court if there is no cash bail? No one knows — not even supporters.

Proponents say that most nonviolent misdemeanor offenders will be back on the street within 12 hours. The rest? Their fate will be determined by a computer algorithm created by each court.

Contained in a vacuum, California might be able to withstand the criminal onslaught during the experimental fine-tuning stage of this new bail algorithm. But, this isn’t the only ongoing public safety experiment in California. Under Assembly Bill 1810, convicted criminals with any type of mental disorder can wipe the slate clean after completing a two-year diversion program.

Residents of Garden Grove recently witnessed a brazen snatch-and-grab job at a Garden Grove cell phone store — in broad daylight. Criminals are thumbing their noses as they think they can get away with crimes such as petty theft here in California, thanks to state politicians.

Law-abiding citizens must speak up and make our voices heard. Thankfully, in California we are able to have a direct check on this out of control behavior through the initiative and referen-dum process

For starters, support the Reducing Crime and Keeping California Safe Act. Scheduled to be on the November 2020 ballot. the initiative would reign in some of the damage done by Prop. 47, Prop. 57 and AB109. This common-sense proposal would reclassify current “non-violent” crimes like rape of an unconscious person, trafficking of a child for sex, assault of a peace officer, felony domestic violence and other similar charges just as violent, making perpetrators ineligible for early release after committing these heinous acts. Other components of the initiative will fix problems with DNA collection, serial theft, parole violations and other issues caused by Sacramento’s ill-conceived attack on our criminal justice system. presstelegram.com

Former Rite Aid Vice President & Atlanta Business Owners
Charged In 22 year - $5.7 Million Vendor Kick-Back Scheme
James W. Pilsner, age 60, of Harrisburg, Pennsylvania, was charged in a criminal information filed on September 20, 2018, with one count of wire fraud and one count of federal income tax evasion. The criminal information alleges that Pilsner, a former Vice President for Advertising for Rite Aid, engaged in a kick-back scheme with Larry Nuckols and Vance Taylor, the owners of Nuvision, Inc., an Atlanta, Georgia based company, between 1995 and August of 2017.

Pilsner entered into an agreement with Nuckols and Taylor whereby Pilsner would approve Nuvision’s invoices, some of which were false and inflated, for payment. In exchange, Nuckols and Taylor would “kick-back” a significant portion of Rite Aid’s payments to Pilsner.

The criminal information alleges that between 2001 and August of 2017, Rite Aid paid Nuvision approximately $45.3 million dollars. Pilsner allegedly received no less than $5,124,862 in kick-backs over that time period, with another $634,300 paid to other Rite Aid employees designated by Pilsner.

Larry D. Nuckols, age 69 of Valdosta, Georgia, is also charged in the same criminal information as Pilsner with one count of wire fraud. Vance Taylor, age 71, of Acworth, Georgia, also owner of Nuvision, was indicted on September 19, 2018, by a federal grand jury and charged with 40 counts of mail fraud, wire fraud and unlawful monetary transactions.

The maximum penalty under federal law for Mail Fraud and Wire Fraud is 20 years of imprisonment, a term of supervised release following imprisonment, and a fine. justice.gov

Editor's Note: The obvious question is who are the "other Rite Aid employees designated by Pilsner" that were paid the $634,300?

This is the oldest trick in the book actually. But one that can be difficult to detect. It would be interesting to learn how this was detected. Going for over 22 years they had the system down to an annual amount of $259K in fraudulent charges. Which really isn't a big amount considering the advertising budget for a $21B to $30B retailer. This one would be great as an industry study and presentation.

Owner of New York City Pharmacies Charged in Scheme to Defraud Medicare and Medicaid For $7.9M
The owner of four pharmacies in Queens, New York, will be arraigned later today in federal court in Brooklyn on an indictment charging her with submitting $7.9M in claims as part of a scheme to defraud Medicare and Medicaid.

Aleah Mohammed, aka “Aleah Haniff,” 33, of Queens, New York, was the owner and operator of Superdrugs Inc., Superdrugs I Inc., Superdrugs II Inc. and S&A Superdrugs II Inc. Reimbursement for prescription drugs that were not dispensed, prescribed as claimed, or medically necessary. The allegedly fraudulent claims included claims for prescription drugs for the treatment of the human immunodeficiency virus (HIV). justice.gov

PetSmart In the Crosshairs
Talk About Social Media Impact & Brand Reputation

At Least 47 Dogs Die Shortly After Grooming at PetSmart in 14 States
Facebook Group Numbers in Tens of Thousands
A new investigation is raising questions about the safety of dogs at PetSmart.

An NJ Advance Media investigation documented 47 cases across 14 states since 2008 in which families claim they took their dog to the nation’s leading pet retailer for a grooming — everything from a nail clipping to a haircut — only to have it die during or shortly after the visit.

Most cases — 32 in total — occurred after the start of 2015, the same year the company was bought out by a private equity firm. But those numbers are hardly a definitive accounting of deaths because very few groomers are required to publicly report them.

PetSmart, which fiercely defends its safety record, has not admitted wrongdoing in any of the deaths reviewed by NJ Advance Media.

But the nine-month investigation found deaths during or after groomings at PetSmart stores — once portrayed by company officials as “entirely separate and unrelated” anomalies — appear to happen far more frequently than customers and the general public know.

At the same time, rising awareness already has PetSmart in the crosshairs on social media. Tens of thousands of people in recent months have organized on Facebook, and customers have shared their stories and criticized the company.

Some former employees allege PetSmart’s groomer training — which the company touts as the industry’s very best — can fall short of what’s advertised. They say they have seen unprepared trainees rushed into stores because of short-staffing, putting dogs at greater risk of injury. Read the Rest of Story

'Time'Article & Video - PetSmart Story
47 Dog Deaths After Grooming at PetSmart Documented, But Link Uncertain
Over the past decade 47 dogs have died across the U.S. during grooming, or within days of showing signs of ill health after grooming, at the nation’s leading pet retailer, a New Jersey news organization reports, though what the numbers mean is uncertain.

NJ.com said that its count is based on reports by PetSmart customers in 14 states, and said it is not definitive because there is little public accounting of such deaths, and no state requires all individual groomers to be licensed.

PetSmart does millions of groomings a year, so the deaths cited represent only a tiny fraction of the pets it works with.

And because of a lack of data, NJ.com said it was impossible to determine if the rate of deaths during or immediately after grooming at PetSmart is higher or lower than at other groomers. time.com

PetSmart Press Release
Response to NJ.com Story
The death of a pet is always heart breaking. As a company of pet lovers who are dedicated to the health and happiness of all pets, we empathize with these grieving families. Nevertheless, we are not aware of any evidence suggesting that PetSmart services caused the deaths of these pets. Read Full PetSmart Press release. petsmartcorporate.com

According to Multiple Third Party Sources
PetSmart Could be Facing Massive Downsizing or Altogether Bankruptcy is Imminent
This past June PetSmart Inc, the largest U.S. pet retailer, has hired restructuring advisers to explore ways to trim its debt pile of more than $8 billion as it continues to face falling profits, according to people familiar with the matter. The move comes as PetSmart’s debt trades at a deep discount to its full value amid concerns the brick-and-mortar retailer’s big bet on online commerce has yet to pay off. PetSmart told investors in its bonds on Monday it would move part of its ownership of e-commerce website Chewy Inc away from the reach of its creditors.

PetSmart’s woes come as the retail sector continues to struggle with the shift to online commerce and rapidly changing consumer tastes. More than 15 U.S. retailers, including Toys “R” Us Inc, filed for bankruptcy last year.

Private equity firm BC Partners Inc acquired PetSmart for $8.7 billion in 2014, as it sought to capitalize on consumers lavishing their pets with expensive treats and gear. However, the company quickly faced strong headwinds as many customers snubbed its stores for the convenience of online shopping.

In response, PetSmart acquired Chewy last year for $3.35 billion, the highest price ever paid for an e-commerce site. It was a bold move, with PetSmart adding $2 billion to its debt load to do the deal. reuters.com

John Jay College of Criminal Justice in Manhattan
College professors allegedly sold drugs, ‘pimped’ out students
4 Professors placed on administrative leave - allegations of drug sales & sexual misconduct
#1 for CJ Degrees in NYC Area - School of Choice for Law Enforcement & Retail LP
Veteran professors at the Manhattan school renowned for training future crime-fighters ran a lawless den of depravity called “the swamp,” where they allegedly used and sold drugs, and “pimped” out and sexually preyed on students, according to two women at the center of a widening scandal at the John Jay College of Criminal Justice.

State authorities are investigating allegations that several longtime professors at the John Jay College of Criminal Justice in Manhattan committed a wide range of crimes and other misconduct, according to documents and people briefed on the inquiry. The allegations include the use and sale of drugs on campus, the attempt to coerce women into prostitution, and rape.

Most of the professors named in two complaints filed with the college have been longtime fixtures in John Jay’s anthropology and sociology departments who have done extensive research on the history of drug use and prostitution.

The allegations, if proven, would suggest that a small group of faculty at the Midtown campus, long the choice of police and correction officers and others in law enforcement, presided over an academic underworld. Drug use and sex were said to be common in the offices of some professors and in an area known as “the Swamp” in one of the school’s buildings.

One question looming over the investigation, two of the people briefed on it said, is why the college, which has been aware of the allegations since at least May, conducted an internal review before contacting the police or prosecutors. The college has close ties to law enforcement.

One women compliant first told their story to The New York Post, which published their account on Saturday. nytimes.com nypost.com

"Employers Asleep at the Wheel"
The Opioid Epidemic Affecting 70% of all Businesses
Going Beyond the Blue Light Special

“Employers have been asleep at the wheel”
Workplace Overdose Deaths Increasing 25% Annually Since 2010
Workers Overdose on the Job, and Employers Struggle to Respond
As the opioid epidemic continues to rage across the country, with a record 72,000 drug overdose deaths estimated in 2017, the fallout is increasingly manifesting itself at construction sites, factories, warehouses, offices and other workplaces. A stunning 70 percent of employers reported that their businesses had been affected by prescription drug abuse, including absenteeism, positive drug tests, injuries, accidents and overdoses, according to a 2017 survey by the National Safety Council, a research and advocacy organization.

At least 217 workers died from an unintentional drug or alcohol overdose while at work in 2016, up 32 percent from 2015, according to the Bureau of Labor Statistics. Workplace overdose deaths have been increasing by 25 percent or more a year since 2010. Those numbers don’t include the many more overdoses that don’t end in death or accidents caused primarily or partly by drug impairment.

Incident reports from the Occupational Safety and Health Administration paint a grim national picture of workplace overdose deaths: a Sam’s Club worker who died while stocking shelves in a Texas warehouse.

But despite the growing problem, many employers have turned a blind eye to addiction within their work force, ill-equipped or unwilling to confront a complicated issue they do not know how to address, according to researchers and business executives. nytimes.com

The Problem: Injection Drug Use in Public Bathrooms in Service Industry
National Institute of Health Develops Opioid Overdose Response
& Naloxone Administration Program for Service Industry Employees
Trains 18 Mgr.'s & Employees at Coffee Shops in Brooklyn & Manhattan
Feeling confident and equipped: Evaluating the acceptability and efficacy of an overdose response and naloxone administration intervention to service industry employees in New York City.

Background

The problem of injection drug use in public bathrooms has been documented from the perspectives of people who inject drugs and service industry employees (SIEs). Previous studies suggest that SIEs are unaware of how to respond to opioid overdoses, yet there are no behavioral interventions designed for SIEs to address their specific needs. In response to this gap in the field, we constructed, implemented and evaluated a three-module behavioral intervention for SIEs grounded in the Information-Motivational-Behavioral skills model. This paper focuses on the evaluation of one module, namely, the intervention component addressing overdose response and naloxone administration (ORNA).

Conclusions

This study highlights the acceptability and evidence of efficacy of the ORNA module, as well as the utility of training SIEs in ORNA. The expansion of this training to other SIEs and public employees (librarians, etc.) who manage public bathrooms warrants further investigation. drugandalcoholdependence.com

Public Bathrooms Become Ground Zero In The Opioid Epidemic
During an epidemic, you might think public health officials would issue safety practices for bathrooms but there's very little discussion of the problem in public. Here's why.

"It’s against federal and state law to provide a space where people can use knowingly, so that is a big deterrent from people talking about this problem," says Dr. Alex Walley, director of the addiction medicine fellowship at Boston Medical Center.

Without some guidance, more libraries, town halls and businesses are closing their bathrooms to the public. That means more drug use, injuries and discarded needles in parks and on city streets.

Walley and other physicians who work with addiction patients say there are lots of ways to make bathrooms safer for the public and for drug users. A model restroom would be clean and well-lit with stainless steel surfaces — but few cracks and crevices for hiding drug paraphernalia. It would have a bio hazard box for needles and bloodied swabs. It would be stocked with naloxone and perhaps sterile water. The door would open out so that a collapsed body would not block entry. It would be easy to unlock from the outside. And it would be monitored, preferably by a nurse or EMT.

There are very few bathrooms that fit this model in the U.S. wbur.org

Public bathrooms become clandestine epicenter of opioid crisis
Safe Injection Sites Coming to San Fran, New York, Seattle & Philadelphia
Experts say the seclusion afforded by these spaces makes them dangerous, especially as fentanyl has increased the potency of heroin to unpredictably strong levels. “(Using drugs in public bathrooms) is a common occurrence because people want some kind of privacy to inject,”

In response, some building managers have restricted access to their bathrooms, tried design tweaks to discourage drug use or equipped their security guards with naloxone, the overdose-reversing medication.

But Chicago activists say it’s time for a bolder step — the creation of government-sanctioned facilities where users can consume drugs under medical supervision.

Brett Wolfson-Stofko, a public health researcher with the National Development and Research Institutes in New York who has examined drug use in public bathrooms, said business owners are in a tough spot. If they’re too restrictive, they risk discrimination complaints. If they turn a blind eye, bad things can happen.

“They can lose customers because of what’s happening in their bathrooms,” he said. “The staff is also at a lot of risk for needle sticks and other things. The business community is a stakeholder in all this.”

Businesses also face liability concerns. After Altop died in the White Castle bathroom, her family sued the company for negligence, and in January the restaurant chain settled the case for $120,000.

Jamie Richardson, a White Castle vice president, said the restaurants are installing keypad locks on their bathroom doors; customers will have to get the code at the front counter. That will allow employees to know when someone is inside, he said, and eliminate issues with lost or defective keys.

The company has also educated its managers about overdose awareness and worked with police to keep abreast of drug problems in areas near its restaurants, he said.

In Boston, the public health commission has alerted business owners about the danger of overdoses.

It has handed out posters that say, “Check your restrooms: Your actions could help save a life,” and offered to train employees to use naloxone.

Some say the best solution is to establish “safe consumption sites” — places where people can take drugs without fear of arrest, and where trained staff can revive them if they overdose.

Such centers already exist in Canada and some European countries, and San Francisco is poised to open the first in the U.S. later this year. New York, Seattle and Philadelphia have announced their intentions to begin similar services. chicagotribune.com

Canada's Biggest Drug Store Chain - Shoppers Drug Mart Gets Medical Pot License
First Step in Retail Mainstreet Selling Pot - Too Much Money at Stake
Shoppers Parent Loblaw Wants to Sell Recreational Pot
This comes after Shoppers in October 2016 applied to Health Canada to become a licensed medical marijuana producer. Although now they say they have no interest in producing medical marijuana.

"As trusted medication experts, we believe pharmacists have an important role to play in the safe and informed use of medical cannabis, and this is the first step in our journey to provide medical cannabis to our patients," said Loblaw spokeswoman Catherine Thomas in an emailed statement. "We will share more information about our plans in the coming weeks."

Under the current Health Canada regulations for medical pot, the only legal distribution method is by mail order from licensed producers direct to patients.

Shoppers' parent company, Loblaw Companies Ltd., is also looking to sell recreational pot once in Newfoundland and Labrador once it is legal nationally on Oct. 17. The grocery conglomerate's applications for several locations were among those on a list of potential licensed cannabis retailers selected by Cannabis NL, the provincial body handling pot sales.

It was also announced in July that Shoppers was partnering with Manulife Financial Corp. to offer enhanced medical marijuana insurance coverage. financialpost.com

Travel still dangerous in flooded areas of North Carolina
Gov. Roy Cooper said nine of the state's river gauges are at major flood stage and four others are at moderate stage, while parts of Interstates 95 and 40 will remain underwater for another week or more. Emergency management officials said residents whose homes were damaged or destroyed will begin moving into hotel rooms next week.

South Carolina also has ordered more evacuations as rivers continue to rise in the aftermath of a storm that has claimed at least 43 lives since slamming into the coast more than a week ago. msn.com

Some retailers paying up to 10X more than regular rates for shipping
Driver shortage is driving up rates and consumer demand and expectations has retailers scrambling. Editor's Note: Which may also increase risk and exposure. With everything moving faster, more rookie drivers, new freight carriers, new and creative delivery methods such using store associates, such is the case at Walmart, the risk will increase. Both from a loss and insurance standpoint. Less training, less experience, more accidents. chainestoreage.com


Retail Cash Strategy Summit, Nov. 1st, 2018, Hyatt Atlanta Midtown

Supervalu to sell 19 of its 36 Shop 'n Save Supermarkets to Schnucks

Huge retail and hotel project moves forward in Times Square


Last week's #1 article --

Bankrupt retailer Claire's says time's up for alternative reorg plan