January - February 2017 by Loss Prevention Magazine

JANUARY–FEBRUARY 2017 | V16.1 LOSSPREVENTIONMEDIA.COM

LOSS PREVENTION MAGAZINE THE AUTHORITY ON ALL THINGS ASSET PROTECTION

THE BIG PICTURE RETAIL VIDEO SURVEILLANCE TODAY AND WHAT’S COMING TOMORROW

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TABLE OF CONTENTS 6 EDITOR’S LETTER

New Year, New Editorial By Jack Trlica

8 EDITORIAL BOARD 10 RETAIL SPONSORS 12 INTERVIEWING

The Big Picture

Retail video surveillance today and what’s coming tomorrow

The Case against Confrontation By David E. Zulawski, CFI, CFE and Shane G. Sturman, CFI, CPP

By Garett Seivold, Contributing Writer

24 BENCHMARKING

Comparing Policies and Practices on Managing Shoplifting By Adrian Beck, Walter Palmer, and Colin Peacock

36 FUTURE OF LP

From Supermarket Store Detective to Director

Social Media Monitoring: How Does It Work? By Tom Meehan, CFI

44 LPM EXCELLENCE Recognizing the Best in Loss Prevention

A conversation with Scott Ziter of Price Chopper

46 CERTIFICATION

Becoming a Big-Picture Thinker

By James Lee, LPC, Executive Editor

Interview with Tamara Murray, LPC, Walmart

48 EVIDENCE-BASED LP Leadership in Action

By Read Hayes, PhD, CPP

60 SUPPLY CHAIN

RFID Technology and Asset Protection By Maurizio P. Scrofani, CCSP, LPC

See You in Court

64 LPM DIGITAL

Innovation Leading Us into the New Year

The new essentials of retail crisis management

By Jacque Brittain, LPC, and Kelsey Seidler

By Laurence Barton, PhD

67 PRODUCT SHOWCASE 71 PEOPLE ON THE MOVE 72 CALENDAR 72 ADVERTISERS 73 VENDOR SPONSORS 74 PARTING WORDS

Fifteen Years of Loss Prevention

Looking at 2012 through 2016 from the eyes of the magazine

Happy New Year By Jim Lee, LPC

By Bill Turner, LPC, Contributing Writer

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EDITOR’S LETTER

New Year, New Editorial T

he New Year is often bittersweet. On one hand I look back at 2016 with a bit of nostalgia given it was the magazine’s fifteenth anniversary and a very successful year for our print and digital offerings. Then again, looking forward to 2017 is exciting as we face the challenges of producing an even better product for our readers and advertising partners. To that end we are launching several new editorial projects that we expect will be interesting to our audience.

Benchmarking

The first appears in this issue on page 24 called “Benchmarking.” The benchmarking column is the result of a collaboration between three gentlemen who have been working together on various projects for the past decade or more—Adrian Beck, a researcher at the University of Leicester in the UK; Walter Palmer, a consultant and trainer here in the US; and Colin Peacock, formerly with Proctor & Gamble and now associated with both ECR Europe and the Retail Industry Leaders Association here in the states. These associates—and close friends—will produce a series of surveys on specific topics of interest to retail loss prevention practitioners. Their column in the magazine will provide an executive summary of the results of these surveys to allow readers to compare

the results against their own organizations’ experiences. The first of these studies is on “Comparing Policies and Practices on Managing Shoplifting.” I encourage everyone to read the results and participate in future studies to provide the best results possible.

Excellence

Something else new in this issue is a page devoted to recognizing individuals in our industry who exemplify excellence in their professions and communities. On page 44 you will read about two asset protection executives and a law enforcement partner who we believe are worthy of recognition to the greater LP community. Mike Lamb, LPC, of Walmart, Bob MacLea of TJX, and Superintendent-in-Chief William Gross of the Boston Police Department each in his own way has made a significant positive contribution to his organization and community. In each print edition we plan to recognize those individuals nominated by their peers for contributing to the betterment of the industry. We purposely have not constructed a litany of rules for what we think should be recognized. We want to hear what you think someone has done that merits recognition—whether it be at the individual store level or across the broad industry. This also includes

JANUARY–FEBRUARY 2017

our solution provider partners. Please let us hear about someone you work with who deserves to be acknowledged. Send your nominations to excellence@LPportal.com.

Perspectives

Another new column is in the works that will focus on thoughts and perspectives from the solution provider side of the table. The retail industry is lucky to have a great number of intelligent, strong partners developing new products and services to meet the needs of loss prevention organizations. We hope to tap into the thought processes and visions of the executive teams running these companies to provide insights to practitioners and promote better understanding and partnerships. Look for the first of these articles soon on our digital channel and in a future print edition. These new editorial projects are meant to expand the scope and quality of the information we provide our readers. We welcome your comments—both positive and negative—about any of our editorial and suggestions for topics you would

Jack Trlica Managing Editor

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EDITORIAL BOARD Jim Carr, CFI Senior Director, Global Asset Protection, Rent-A-Center

David Lund, LPC Vice President of Loss Prevention, DICK’S Sporting Goods

Ray Cloud Senior Vice President, Loss Prevention, Ross Stores

John Matas Vice President, Asset Protection, Investigations & ORC, Macy’s

Francis D’Addario, CPP, CFE Emeritus Faculty Member, Strategic Influence and Innovation, Security Executive Council

Chris McDonald Senior Vice President, Loss Prevention, Compass Group NA

Charles Delgado, LPC Regional Vice President, Store Operations, Academy Sports Scott Draher, LPC Vice President, Loss Prevention, Safety, and Operations, Lowe’s Scott Glenn, LPC Chief Security Officer, Sears Holdings Tim Gorman Divisional Vice President, Loss Prevention, Asset Protection, and Business Continuity, Walgreens Barry Grant Chief Operating Officer, Canadian Images

MANAGING EDITOR Jack Trlica JackT@LPportal.com EXECUTIVE EDITOR James Lee, LPC JimL@LPportal.com

MANAGING EDITOR, DIGITAL Kelsey Seidler KelseyS@LPportal.com

Randy Meadows Senior Vice President, Loss Prevention, Kohl’s Melissa Mitchell, CFI Director of Asset Protection and Retail Supply Chain, LifeWay Christian Stores Dan Provost, LPC Vice President, Global Loss Prevention, Staples

CONTRIBUTING WRITERS Read Hayes, PhD, CPP Tom Meehan, CFI Walter Palmer, CFI, CPP, CFE Maurizio P. Scrofani, CCSP, LPC Garett Seivold Gene Smith, LPC Shane G. Sturman, CFI, CPP Bill Turner, LPC David E. Zulawski, CFI, CFE CHIEF OPERATING OFFICER Kevin McMenimen, LPC KevinM@LPportal.com

Tina Sellers, LPC Director of Loss Prevention, Retail Business Services LLC, an Ahold-Delhaize Company

DIRECTOR OF MARKETING Merek Bigelow MerekB@LPportal.com DIRECTOR OF DIGITAL OPERATIONS John Selevitch JohnS@LPportal.com SPECIAL PROJECTS MANAGERS Kat Houston, LPQ Justin Kemp, LPQ Karen Rondeau

Mark Stinde, LPC Vice President, Asset Protection, 7-Eleven

DESIGN & PRODUCTION SPARK Publications info@SPARKpublications.com

Bill Heine Senior Director, Global Security, Brinker International

Paul Stone, LPC Vice President, Loss Prevention and Risk Management, Best Buy

Frank Johns, LPC Chairman, The Loss Prevention Foundation

Robert Vranek Vice President, Loss Prevention, Belk

Mike Lamb, LPC Vice President, Asset Protection & Safety, Walmart Stores US

Keith White, LPC Senior Vice President, Loss Prevention and Corporate Administration, Gap Inc.

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700 Matthews Mint Hill Rd, Ste C Matthews, NC 28105 704-365-5226 office, 704-365-1026 fax

EDITORIAL DIRECTOR, DIGITAL Jacque Brittain, LPC JacB@LPportal.com

CREATIVE DIRECTOR Larry Preslar ADVERTISING MANAGER Ben Skidmore 972-587-9064 office, 972-692-8138 fax BenS@LPportal.com SUBSCRIPTION SERVICES

Loss Prevention, LP Magazine, and LP Magazine EU are service marks owned by the publishers and their use is restricted. All editorial content is copyrighted. No article may be reproduced by any means without expressed, written permission from the publisher. Reprints or PDF versions of articles are available by contacting the publisher. Statements of fact or opinion are the responsibility of the authors and do not necessarily represent the opinion of the publishers. Advertising in the publication does not imply endorsement by the publishers. The editor reserves the right to accept or reject any article or advertisement.

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INTERVIEWING

The Case against Confrontation

by David E. Zulawski, CFI, CFE and Shane G. Sturman, CFI, CPP

lmost nothing ever turns out well when you call someone a name. Maybe if they accept the term, it works out. But usually it leads to conflict. With conflict come a multitude of other problems: denials, resistance, recriminations, insults, and a total loss of rapport. Sounds like a fun time for all, doesn’t it? The confrontational approach to interviewing has been around in one form or another for thousands of years. Accuse. Deny. Then probably die as the inquisitors suffered a lack of patience. Enter the third degree fraught with trickery, threats, and physical intimidation. Again, the suspect was guilty until proven innocent with the conversation being decidedly confrontational, regardless of the protests of innocence. The U.S. Supreme Court denounced the use of the third degree warning that any use of those techniques would create an involuntary confession that would not be admitted in trial. The first real formalized interrogation training was an extension of the polygraph test borrowing heavily from the pre-test interview, the examination, and the post-test interrogation. This was a perfect fit for the times—an interrogation that was as confrontational as the management style and parenting of the 1950s and 1960s. The interrogator

would directly accuse the suspect of his crime and cut off denials much like the parents of a baby boomer broaching no excuse from the child. The confrontational interrogation comes from a place of power and control rather than rapport and mediation.

Changing Times

Today the times are very different in terms of management style and the later generations. Collaboration and a common vision are more important than power in reaching the ultimate goal. Resistance is reduced when people make the decision of their own free will to take a course of action. The end result is achieved by controlling the probable outcome without exercising power, which is a more elegant solution than ordering and confronting. So what has become of the confrontational approach? It’s still around but under attack from almost every corner. The academics point to the techniques as being the cause of false confessions. Police departments are being challenged for continuing to use it. Federal agencies are asking that it be dropped and not even mentioned during training. The courts are rejecting confessions obtained from using the technique, and experts are testifying against it. And entire countries prohibit its use. Much of the criticism focused on the confrontational method is the result of its improper use mixed with threats, promises, and revealing evidence by investigators who have modified the technique to their own styles. Mix in the interrogation of juvenile suspects, as well as long interrogations, and there you have a path to disaster. In fact, in defense of the technique Reid points to these very aspects as reasons why the technique should not be prohibited. In the second edition of our book Practical Aspects of Interview and Interrogation (CRC Press, 2001), we put it this way: “There are a variety of common denominators among false confessors. In general, they are younger, less intelligent, or mentally handicapped. In many of the known cases, there were the additional factors of a lengthy interrogation and the use of threats, promises, or the use of coercive tactics by the interviewers.” A common misconception is that strong confrontation is a means of gaining compliance from difficult subjects. This

Much of the criticism focused on the confrontational method is the result of its improper use mixed with threats, promises, and revealing evidence by investigators who have modified the technique to their own styles. Mix in the interrogation of juvenile suspects, as well as long interrogations, and there you have a path to disaster. 12

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Zulawski and Sturman are executives in the investigative and training firm of Wicklander-Zulawski & Associates (w-z.com). Zulawski is a senior partner, and Sturman is president. Sturman is also a member of ASIS International’s Retail Loss Prevention Council. They can be reached at 800-222-7789 or via email at dzulawski@w-z.com and ssturman@w-z.com.

continued on page 14 |

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continued from page 12

supposedly increases the subject’s level of stress while holding him in absolute control. In this strategy, the interviewer is all-knowing and all-powerful, and the subject is a victim who is powerless to change circumstances. This is supposed to provide the interviewer the leverage he needs to overcome the subject’s resistance. What this does in actuality is to force the “victim” to resort to the only power he has—resistance. When you consider Reid’s direct accusation (step one of the technique), it almost always produces a denial to begin the nine-step interrogation. This typically generates conflict and resistance immediately. With a direct statement accusing the suspect, it is easy to see how the emotional situation can easily become adversarial. Generally, forcing the suspect to defend the denial assures continued denials, frustrating the investigator’s efforts to obtain a confession. This lengthens the conversation, which is a key characteristic present in many false confessions. Unlike the private sector, which by policy often limits the length of the encounter, law enforcement has no apparent line in the sand being limited only by the totality of circumstances. Again from our 2001 book, “The court will take into consideration the age of the individual, his intelligence, the length of the conversation, his experience with police or loss prevention, and whether threats or promises were used to obtain the statement. If there was coercive conduct on the part of the interviewer who obtained the admission using promises of leniency or threats, the statement will be considered involuntary and suppressed.”

The Connection to Exoneration

With the Reid technique, the confrontational nature of controlling denials, and the directness of the accusation, the process ensures a longer, more contentious pathway to the confession. The danger becomes obvious when one looks at the characteristics of false confessions in a sampling of DNA-exonerated cases. WZ recently coauthored a “friend of the court” brief in the Brendan Dassey case made famous by Netflix program The Making of a Murderer. Much of the detectives’ strategy was drawn from the confrontational Reid model of interrogation with much more being improvised. This is not at standalone, unique type of case. According to the Michigan School of Law’s The National Registry of Exonerations: Exonerations in 2015 executive summary (published February 3, 2016), in the last year alone, twenty-seven of the 149 reported exonerations

There are a variety of common denominators among false confessors. In general, they are younger, less intelligent, or mentally handicapped. In many of the known cases, there were the additional factors of a lengthy interrogation and the use of threats, promises, or the use of coercive tactics by the interviewers. involved false confessions. Of those twenty-seven cases, most involved confessions by youth under age eighteen, individuals who were mentally handicapped, or both. It was clear to us over thirty years ago that the private sector was not the place for the confrontational approach for a multitude of reasons. Just a few of the problems are: ■ T he length of the conversation is increased because the interviewer has to handle denials, which creates difficulty in adhering to company policy limiting the length of the interview. ■ I nterviewers are put into hostile emotional situations where losing control of tempers can create additional conflicts. ■ T he directness of the interviewer’s statements can create morale problems with company workers. ■ T he interviewer reveals evidence of the investigation, which can contaminate or limit the admissions made by the suspect. ■ T he directness of the statements and emotions involved do nothing to enhance the reputation of the interviewer amongst other employees. These are but a few of the reasons to avoid the confrontational style of interrogation. While we have been licensed to teach the Reid method since 1984, we stopped teaching the nine-step interrogation in the private sector years ago because of the reasons listed above and others.

Characteristics of False Confessions in DNA Exoneration Cases Contaminated with Inside Information

Interrogations More than 3 Hours

Guilty Pleas

40 False Confessions, 1989–2009

26 False Confessions, 2009–2014

62 (94%)

61 (92%)

18 (27%)

Total Number of Cases by Percent

Source: Brandon L. Garrett, Convicting the Innocent: Where Criminal Prosecutions Go Wrong (Cambridge, MA: Harvard University Press, 2012).

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FEATURE

THE BIG PICTURE RETAIL VIDEO SURVEILLANCE TODAY AND WHAT’S COMING TOMORROW By Garett Seivold, Contributing Writer

RETAIL VIDEO SURVEILLANCE TODAY AND WHAT’S COMING TOMORROW

hy should video be high on loss prevention’s list of priorities? Because a fundamental change has created a wave of innovation and will fuel advances for years to come. Once, back when Canon made a splash with its “image is everything” advertising campaign, it really was. CCTV offered images of sales floors and stockrooms, with the visual information acting as a surrogate for human observation. The pictures provided the value. Cameras offered extra sets of eyes. It’s a world of difference today. Visual information is no longer the only—and perhaps not even the primary—component of a video surveillance system. Images are still valuable, but it is the data inherent within them that provides for new applications and value. A camera is now a computer with a lens. Video once provided LP with extra eyes—now it also offers brains. Harnessing this new intelligence has become a true test of loss prevention leadership. And it’s not a stretch to say that a retail organization’s success is increasingly linked to its ability to take advantage of emerging video surveillance tools to reduce loss, enhance situational awareness, improve store operations, aid compliance, and boost sales. By some accounts, this is an area where loss prevention teams and retailers are falling short. Experts we interviewed on all sides—manufacturers, integrators, and end-users—said it’s not uncommon for many deployed video system features to go underutilized and, worse, completely unused. Some cited specific gaps—between the use of video surveillance tools and what they’re capable of—in the areas of integration, remote monitoring, and analytics. One was harsh, saying it’s as much the rule as the exception for retail security cameras to be positioned incorrectly, poorly maintained, and insufficiently managed. In some cases, personnel may not be up to the task. As one loss prevention director shared, the video loss prevention technology now available to stores is, in car terms, like a Ferrari, yet we are asking it to be driven by novice drivers. It is not uncommon for retail security guards and store associates to use but a small fraction of the potential

capability of the video systems installed. And in the end, a system is reliant on those who have the time, skills, or inclination to use it. A lack of effective strategic security management can also be to blame. Developments in video technology can outpace loss prevention leaders’ understanding of how to exploit it, and while snapshots like this article may help, truly addressing a potential knowledge gap demands effective and consistent communication between those who follow security technology and those in charge of developing strategies to use it. That said, we think it’s worth noting the issues and applications that rose to the top when we examined new research and solicited expert opinions from end users and video technology providers on where we are, where we’re going, and what pitfalls we may find along the way.

Coverage and Integration

Panoramic HD cameras, remote monitoring, and integration are among the video uses providing LP with significant value. The consensus view is that video surveillance succeeds best in applications where it offers a clear benefit to users, is intuitive and easy to use, and offers robust performance. So how are retailers benefiting from today’s video solutions? Some of the strategies frequently mentioned include: ■ G etting More from Less. “High-resolution panoramic cameras, which can cover more of a store more cost effectively, is a video technology that has been providing a very positive practical contribution to users,” said Dan Reese, director of vertical market applications for Bosch Security Systems. ■ G oing Beyond You. The integration of cameras into store infrastructures—such as doors, store alarm systems, EAS gates, and lighting—creates new opportunities for value creation, and many experts think linking security video with other systems and databases is where you’ll find its greatest value. “Integration is a huge area of opportunity,” said Hedgie Bartol of Axis Communications, a network camera manufacturer. For example, the integration of high-definition video with point-of-sale data enables investigators to more quickly and successfully review

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■

video surveillance footage associated with a specific transaction. A retailer can expect, at a minimum, 10 to 20 percent of timesaving compared to traditional investigations, according to Scott Emery of NAVCO, an electronic security system integrator. B eing Generous. Some sharing of security video is common, such as with risk management to manage slip-and-fall risk, but widespread video sharing across a retail enterprise isn’t always common. One loss prevention executive said it’s important to think of store video as a tool for providing business benefits—not as a departmental asset. Cross-functional corporate executives can use video to obtain feedback on customer traffic, customer service execution, merchandising presentation, procedural compliance, employee safety, and general store operations, among other issues. And there is a bonus benefit, say experts: it’s easier

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RETAIL VIDEO SURVEILLANCE TODAY AND WHAT’S COMING TOMORROW

Visual information is no longer the only—and perhaps not even the primary—component of a video surveillance system. Images are still valuable, but it is the data inherent within them that provides for new applications and value. to justify investments in video—and to demonstrate return on investment—when there are more internal users.

Business Intelligence

Led by analytics, video is more than ever central to strategies to improve sales and cut loss. Video analytics—computer-assisted video monitoring, analysis, and indexing—changes what a surveillance camera network “sees.” Software using signal processing and pattern recognition techniques automatically

generate meaningful or semantic data from video images. It is technology that is rapidly improving according to LP and security executives we consulted. They noted specific and significant progress in analytic functions such as motion analysis, object detection and tracking, identification, and activity recognition. What’s the hottest trend? “Video being used and providing value for more than just loss prevention and expanding to in-store operations,” said Reese. “To make sure LP MAGAZINE | JANUARY–FEBRUARY 2017

things are running smoothly, to monitor queue length, examine dwell times, do calculations on conversion rates, and collect other business data to assist with marketing and merchandising—this is what is up and coming.” Interest in business intelligence and retail analytics stands to be a boon for loss prevention. The same cameras that can run analytics to measure customer impressions of promotional displays or to generate heat maps of customer traffic patterns are the ones used for loss prevention. “Now you can get dual use out of your cameras,” said Reese. “So now the LP pro has more people potentially funding the cameras.” Whether or not this promising future is fully realized significantly depends on whether retailers come to find that video surveillance data does, in fact, enable improved retail performance. Can video information, as is currently being promised, enhance customer experience, optimize store performance, reduce operational costs, and ultimately translate into higher profitability? On this critical question, there is good reason to be hopeful. Researchers at York University in Toronto examined retail sales and video monitoring data collected by video analytics provider i3 International from six US sporting goods stores over five months. Video tracked the times that customers entered and exited stores, their direction, and whether or not a customer entered alone, among other things. Three of the six stores used the data to adjust promotion and sales techniques, while the other three stores did not use the data. The study, “Cameras Tracking Shoppers: The Economics of Retail Video Surveillance,” published in the December 2015 edition of Eurasian Business Review, was unambiguous in its conclusion: “Under our most conservative estimates, the surveillance technology increased total sales per hour by 16.93 percent, increased the number of transactions per hour by 9.69 percent, and increased the average size of each transaction by 9.59 percent. There is less than a 1 percent chance that these findings are due to random chance.” Improvements in analytics are also poised to aid loss prevention. The hope has always been that video surveillance saves money by identifying thieves and

RETAIL VIDEO SURVEILLANCE TODAY AND WHAT’S COMING TOMORROW discouraging crime. Proof that it does has been surprisingly hard to come by, however, given the reliance of retailers on CCTV to address store theft. A review in May 2016 of forty CCTV studies by University of Leicester Professor Adrian Beck—Amplifying Risk in Retail Stores: The Evidence to Date—concluded that results paint “a very mixed picture.” Overall, research suggests that visible video deters opportunistic offenders but that “professional thieves are likely to look for ways to defeat it.” But experts generally agree that advances—specifically, better analytics, the ability of machines to “learn” from their environment what is a noteworthy event, and the ability for cameras to run analytics and detect anomalies at the edge—are improving video’s theft prevention prospects. Video analytics already do a good job outside by identifying blocked fire lanes, or inside to alert staff to blocked fire exits, and they “continue to get better and better,” said Bosch’s Dan Reese. Advances open new possibilities, such as using video analytics to alert when an employee is processing a return when there is no customer in front of them. Improvements in analytics now allow cameras to track individuals throughout an entire store, using their gait, height, and other personal features to keep them in view. And it’s no longer a fantasy to envision a video surveillance system that can—given enough data sets to go on—identify behaviors that suggest an individual is about to commit a theft and to alert store personnel. New algorithms are being developed that can learn the difference between normal and anomalous behavior. These “deep learning” algorithms could potentially be applied to automatically detect sweethearting and other behaviors related to internal theft. “This is emerging to the point where it’s just becoming practical. It’s something that’s not far off,” according to Reese. Recent scientific studies have shown that novel algorithm approaches significantly reduce false alarms and enhance precision in detecting nonscans versus scans by cashiers at checkout, for example. In short, network cameras plus high resolution plus rapidly advancing analytical capabilities equal a powerful platform to drive value

for retailers by both boosting business and reducing loss.

Facial Recognition

Technological improvements and an expansion in use cases are making facial recognition technology more viable in retail. Using facial recognition, equipped security cameras in a retail location are capable of comparing images of individuals who walk into a store against a database of images. If a match is found, personnel can be alerted and provided whatever information is known about the individual. For safety and security, that can alert an asset protection associate to the presence of known shoplifters, members of organized retail crime syndicates, or other persons of interest, such as a disgruntled ex-employee or a violent ex-spouse. Expanding a system’s database by incorporating images provided by local law enforcement or other retailers can make a system more valuable. In a study of potential privacy issues, researchers from the Government Accountability Office identified retail as a potential primary user of facial recognition technology but admitted that the extent to which it’s already in use is unclear. A representative of the National Retail Federation (NRF) said many retailers are looking into facial recognition systems for security purposes, but that it didn’t have data on the level of use. The general sense

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is that retailers in the US are not currently using the technology broadly as concerns over customer reaction has forced a go-slow approach. But as more retailers investigate positive uses for facial recognition, something that retailers in Europe and Asia have been doing, retailers may increasingly test the American public’s willingness to accept the technology. Facial recognition may have started as a security technology, but consumer commercial applications are growing fast. For example, cameras embedded into digital signs can determine the demographic characteristics of a face, such as approximate age and gender, and show targeted advertisements in real time. In a 2015 survey by Computer Sciences Corporation of 150 UK retailers, including more than half of fashion retailers, 27 percent said they use facial recognition technology (FRT). Saks has been one of the technology’s early adopters as the company described in a presentation at the 2014 NRF Loss Prevention Conference. Sharing Saks’ experience, Patrick McEvoy, director for AP systems and technology for Hudson’s Bay Company, Saks’ parent, suggested the technology had its limitations but was capable of delivering desired results. The presentation suggested that some of the historical causes for a lack of adoption—faulty technology, too expensive,

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RETAIL VIDEO SURVEILLANCE TODAY AND WHAT’S COMING TOMORROW

Facial recognition may have started as a security technology, but consumer commercial applications are growing fast. For example, cameras embedded into digital signs can determine the demographic characteristics of a face, such as approximate age and gender, and show targeted advertisements in real time. lack of benefits—were being overcome. In addition to identifying bad actors, stores are finding other ways to use the technology including identifying VIP customers, conducting targeted marketing, collecting data on customer demographics, and for general physical security applications such as access control and capacity management. Again, video surveillance cameras can do double duty—serving security needs and enhancing marketing and customer service. In discovering a wider range of uses for facial recognition, retailers are following the lead of casinos. Jessie Beaudoin, former executive director of surveillance for

Hard Rock Hotel & Casino Las Vegas, explained that the casino has successfully used face recognition for years to spot known criminals, prostitutes, previously ejected individuals, and card counters from its photo database of known “cheats” and problem individuals. Police mug shots of local criminals and discs of facial images sent to them by other properties enhances Hard Rock’s database of people it wants to know are on the property. But the casino also leverages FRT for value beyond security—to immediately identify when high rollers or celebrities come on its premises. This allows staff to greet and

tend to them—perhaps point them to high-stakes games in progress—a service that encourages top customers to keep coming back. It’s that type of customer service application that is expected to drive adoption of FRT in retail. In a December NRF poll, 82.5 percent of retailers said it will be “very important” to personalize the shopping experience in 2017, and facial recognition is perhaps the ultimate personalizing technology. “A valuable customer who has opted into a program can get a personal welcome when he comes into the store and personalized coupons sent to his phone,” explained Reese. T-Mobile has FRT in more than 1,000 stores and captures tens of thousands of faces per day, the wireless carrier explained in an ISC West conference presentation. But it regards the technology differently than most—not to provide “recognition” but to provide “face capture events” with the goal of associating every transaction with a face. Although it’s not the stereotypical “face in the crowd” application, it provides evidentiary value. In an identity theft

We May Need A Bigger Mantel. For the second consecutive year, BSI has won The Retail Partner of the Year Award from Axis Communications at the 11th annual Connect and Converge Conference (ACCC). We received this prestigious award in recognition of our dedication to customer loyalty, collaboration and commitment to crafting innovative loss prevention solutions. This award means alot, because we view our customers truly as partners working towards a common goal. And now that we’ve won back-to-back, we’re energized to do all we can to win again. We’d like to thank Axis Communications as well as our many loyal customers, and we look forward to displaying more cool stuff on our mantel.

LP MAGAZINE | JANUARY–FEBRUARY 2017

RETAIL VIDEO SURVEILLANCE TODAY AND WHAT’S COMING TOMORROW event, for example, investigators can search and find the face that goes with the transaction, and then pull up all other occasions when the suspect individual has been in any T-Mobile’s store. That alone often reveals their true information as a database search of a fraudster’s face often returns legitimate transactions when they used their real identity. Also because an account number has a face associated with it, when a different face makes a change to the account, security can be alerted to the anomaly. The technology did not have an immediate impact on T-Mobile’s security headcount, but it did leverage the value of the people it has, significantly improving investigative closure rates, investigation time-to-closure, and financial return per investigator.

Emerging Recognition Technology

In 2017, the most talked-about camera and recognition technology may have nothing to do with faces. Four major retailers, including a convenience store and a big box, are currently in varying stages of testing cameras embedded with an algorithm that pick-ups signals from shoppers’ WiFi- and Bluetooth-emitting devices, like smartphones, Fitbits, and Apple watches. The system assigns each individual a unique but anonymous identifier, which facilitates data collection such as where that individual goes in the store, how long they shop, and—so long as they’re in possession of the same device—whenever the individual returns or visits another of the retailer’s locations. The technology gives retailers that are interested in tracking shoppers—but scared away by the privacy concerns associated with personal identifiers—a way forward. With it, retailers can learn about a shopper’s personal habits and whether they’re someone store agents should be suspicious of, but that knowledge is never linked in a database with unique identifying information, like a Mac address, a name, or a face. The technology’s not new, and its inclusion in surveillance cameras allows retailers to take advantage of it without needing to alter the IT infrastructure. The technology has obvious marketing potential, and LP executives are finding useful applications as well, according to Jim Paul of ClickIt, which makes the

cameras currently undergoing testing. For example, a criminal who covers his face during a robbery may nonetheless be easily caught by searching for other times his device was in a retailer’s location and reviewing corresponding video to see his unobscured face. Or if a known problem individual enters any of a retailer’s locations, store personnel can receive an alert. On the “crawl, walk, run” continuum, Paul says the technology is currently at the “walk” stage—but that it would soon be a game-changing application for major retailers. Technology that can provide unique security and business intelligence but sidestep privacy concerns seems likely to find its way into retailers’ technology arsenal.

Effectiveness Does Not Require Perfection

A willingness to accept less-than-perfect technology is a promising development that may help to drive adoption of new loss prevention tools like facial recognition. “Human recognition systems are inherently probabilistic, and hence inherently fallible,” concluded researchers in Biometric Recognition: Challenges and Opportunities, a report by the National Research Council. It’s not the kind of characterization that is likely to inspire confidence in a retailer flirting with adoption of facial recognition technology. Indeed, according to existing retail users, there are substantial technical

JANUARY–FEBRUARY 2017

requirements and a long list of issues that can complicate implementation and degrade performance: ■ M ultiple cameras are often needed to effectively capture faces at a double-door entrance, ■ M ultiple servers are often needed to run face capture and database matching, ■ D atabase photos must be of a certain resolution for optimal use in matching live video, and ■ A ccurate system testing is really only possible in the live, operational environment of real-world users. Sometimes, warn researchers, improving the performance of one component of a facial recognition system degrades performance of the larger system. For example, upgrading a face image detector can allow a system to find more faces in more poses, but then the number of off-angle and partial faces sent into the comparison process increases. Additionally, there is no way to definitively determine the impact of component changes on system-level performance until the components have been inserted and the system is tested as a whole. Finally, with scant data on operational evaluations of FRT, retailers are often dependent on claims made by the FRT vendors themselves. For a retailer conditioned by Hollywood interpretations of technology, the many caveats may suggest that technology like FRT is simply “not ready.” However, perhaps the best way to approach new video applications are not with a mindset

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RETAIL VIDEO SURVEILLANCE TODAY AND WHAT’S COMING TOMORROW of pass-fail based on their original promise, but instead to recognize what these tools actually can do—and to decide whether those capabilities can return value to your security and retail operation. That approach may be growing increasingly widespread. Several Super Bowls ago, facial recognition was hyped for its use to spot terrorists, promotion that didn’t do the industry any favors, according Stephen Russell, CEO and founder of Prism Skylabs and former CEO of 3VR Security. Hype obscured the fact that even if 88 percent accuracy is as good as we can ever get in such a “face in the crowd” scenario, FRT can still pass a cost-benefit test. Ask yourself whether at that percent of recognition you would find bad guys you would not find otherwise. Then ask if the volume of investigating “possibles” would be too great for your staff to handle. If “yes” and “no,” respectively, are your answers, then the technology is useful despite a lack of absolute precision. While it may sound like an industry trying to lower the bar, there are countless case studies of companies extracting

real value from less-than-perfect video technology applications. For example, people counting functions may not be 100 percent accurate—people huddled at exits will cause a miss here and there—but the data may still provide for more informed business and security decisions. As advanced video surveillance tools have been increasingly used for business, there has been more variation in the way end users characterize “effective,” said one industry expert. Following are some additional insights from new research and perspectives that appear to be widely shared on the state and future of video: ■ M easuring customer response to products and understanding their level of engagement is necessary for the future of brick-and-mortar retail. ■ O n-board processing power of video surveillance cameras will continue to increase, with more applications being performed at the edge. ■ C ollecting data on shopping experiences can be done by cameras and image processing algorithms, “but the

LP MAGAZINE | JANUARY–FEBRUARY 2017

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appearance of new kind of sensors like iBeacons or radio frequency identification [on shopping carts, for example] is leading to new hybrid systems with great performance,” according to “Improving Retail Efficiency Through Sensing Technologies,” a study published in the October 2016 issue of Pattern Recognition Letters. 4 K video surveillance is accompanied by extensive marketing hype, according to IHS, a market analysis firm in a research report, Top Video Surveillance Trends for 2016. “Yet make no mistake, the video surveillance market is going to 4K cameras; it’s only a matter of when rather than if.” M undane factors like tight budgets are restricting adoption of advanced video technologies, but there is also a level of fear that, at times, their promise is oversold and that systems try to do too much, which harms performance and reliability. A nalytics and more efficient compression technologies can effectively reduce video storage requirements, but alone can’t

RETAIL VIDEO SURVEILLANCE TODAY AND WHAT’S COMING TOMORROW

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offset the burgeoning demand, according to IHS. An approach incorporating multiple storage types will often be the most cost-efficient solution, the firm concluded. “In its most basic form, this means a combination of cloud and local storage with one unified platform.” T he trend of linking of public and private video surveillance networks will accelerate.

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Will You Benefit?

The big change noted at the outset—that video cameras have moved from single-function pieces of store equipment to a platform technology with limitless business potential—requires effective management to leverage value. Enhanced video functions are less meaningful if they outstrip the ability of loss prevention departments to make effective use of them. As camera technology has improved and options have expanded, it has become more important, when purchasing video solutions, to have clearly articulated goals and strategies. It’s more important now than back when a camera was just a camera and loss prevention was the sole stakeholder. As such, experts frequently identify collaboration as a linchpin to success so that all potential stakeholders can provide input on how they might be able to leverage a retailer’s investment in advanced video technology. LP departments should also be wary of letting capabilities “drive the debate,” warned one security executive. The focus should be on how those features can be effectively used to benefit your LP operation. Experts offered additional advice for squeezing maximum value from future video investments: ■ A retailer’s video technology buying process becomes more important alongside the growth in the number of functions it performs. That makes the tests retailers perform of new video technology increasingly important. Said one executive we spoke with, “Staged product demonstrations always go perfectly. They are often done in a fixed environment and are well rehearsed, so I take them with a grain of salt. I like to see products proven under my own set of conditions.” Unless you thoroughly vet systems under the most

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extreme conditions in which they are going to operate, you won’t get the balance right—between false alarms and detection, for example—and may even select the wrong system. A staunch dedication to open architecture and a willingness to investigate manufacturer claims of it is important for capitalizing on advances in video technology no matter who develops it. “You don’t buy the camera for the video feed solely. You want all the other nice features,” said Mike Dunn, a vice president at Best Security Industries (BSI). “But you may not know how your retail organization will want to make use of them for months to come,” he warned. Open systems can accommodate those future demands. U tilizing expert counsel from integrators is valuable even as systems become easier to use. It may be easier now to tackle sophisticated video projects without help from integrators, but they can still serve a valuable role in a plug-and-play world. For example, one security pro told us that because end users frequently focus on “capabilities over practicalities,” integrators often return value to a project. I t is incumbent upon loss prevention executives to ensure that connected video devices don’t become a threat vector. Experts we consulted said it’s not sufficient to hope that integrators become more diligent or that vendors do more robust testing. According to research presented in October at the 6th International Workshop on Trustworthy Embedded Devices, studies on surveillance systems have revealed vulnerabilities that have had a “large-scale impact in real life,” including theft from retail organizations. The study, Security of CCTV and Video Surveillance Systems: Threats, Vulnerabilities, Attacks, and Mitigations, offers a clear warning to LP executives: “The variety of vendors and vulnerabilities disclosed in those studies

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and security advisories clearly indicates the unhealthy state of cyber security of video surveillance systems.” R etailers should have a strong baseline of privacy for use and retention of video as concerns will undoubtedly grow alongside more “futuristic” applications. It’s easy to imagine how a smart video camera system—capable of identifying shopper demographics and tracking individuals around a store—might spark lawsuits and raise concerns for the protection of images and data it records. Federal law does not expressly address the use of facial recognition technology by the private sector to identify or track individuals, but that only reflects the slowness of government to adapt laws to reflect new technologies, not necessarily a lack of interest in doing so. With the potential of increased liability and regulations on the horizon, LP executives might want to track industry self-regulation efforts and implement, adhere, and adjust privacy policies accordingly. For example, the Point of Purchase Advertising International’s Digital Signage Group has developed a code of conduct for data collection, the International Biometrics & Identification Association has issued IBIA Privacy Best Practice Recommendations for Commercial Biometric Use, and the Federal Trade Commission has issued a best practices document entitled Facing Facts: Best Practices for Common Uses of Facial Recognition Technologies. T racking general advances in video-related applications and technology helps prepare loss prevention departments to utilize them. Video technology is evolving rapidly, and several experts we interviewed recommended frequent brainstorming as a way to help LP departments capitalize as technologies mature and applications commercialize—and to help avoid potential problems and obstacles.

GARETT SEIVOLD is a journalist who has been covering corporate security for industry professionals for eighteen years. Since 1998, he has served as the principal writer and editor of Security Director’s Report, a monthly publication highlighting trends and best practices in corporate security management. Seivold has been recognized by several organizations for outstanding writing, investigative reporting, and instructional journalism. He has authored dozens of survey-based research reports and best-practice manuals on security-related topics. Seivold can be reached at GarettS@LPportal.com. |

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BENCHMARKING

Comparing Policies and Practices on Managing Shoplifting

by Adrian Beck, Walter Palmer, and Colin Peacock Beck is a professor in the criminality department of the University of Leicester in the UK where he is primarily focused on research on retail crime and shrinkage issues. He can be reached at bna@le.ac.uk. Palmer is CEO/president of PCG Solutions, a loss prevention consulting, training, and education firm. He can be reached at wpalmer@pcgsolutions.com. Peacock is a visiting fellow at the University of Leicester and strategic coordinator for both the ECR Europe Shrinkage and On-shelf Availability Group and the Retail Industry Leaders Association Asset Protection Leaders Council in the US. He can be reached at colinpeacock@hotmail.co.uk. All are frequent contributors to both LP Magazine US and European editions.

equates to 40 percent of the US market, totaling $1.306 trillion in retail sales. Overall, respondents had a total of 92,489 stores. It is important to note that this sample is not representative of US retailing in general. It only represents a significant proportion of the largest companies. Therefore, no effort will be made to extrapolate estimates from this data to try and represent US retailing as a whole. If individual companies intend to draw comparisons with this data, it is important that they understand the overall profile of the companies that responded. This article provides only a snapshot of the main results from the study. To receive a free copy of the full report, please contact one of the authors at the email addresses above.

hile the annual shrinkage surveys covering retail loss prevention go some way in offering an oversight as to how the industry is thinking about a range of issues, they rarely delve into much detail around specific topics. The purpose of this series of benchmarking surveys is to provide the LP industry with highly focused and practical insights into specific topics judged to be of interest by practitioners themselves. For this first benchmarking survey, the authors looked at how some of the biggest retailers in the US are experiencing shoplifting, violence associated with these incidents, and the policies and practices put in place to manage these issues.

Benchmark Findings

Detailed below are some of the key findings from the survey, looking specifically at levels of victimization, policies and practices relating to the apprehension of shoplifters, and the extent to which respondents have standards on minimum age and dollar values when considering prosecutions. Recording Shoplifting and Violent Incidents. The vast majority of respondents had some form of system in place for recording the number of shoplifting incidents within their businesses (92%). However, far fewer stated they kept records of the number of shoplifting incidents where employees had been either injured, threatened with violence, or a weapon had been used (50%). As can be seen in the table below, the sample of retailers experienced 1.9 million incidents of shoplifting in the most recent twelve-month period, down 5 percent from the previous year. In terms of violent shoplifting incidents, they had records of 22,770 incidents in the most recent twelve-month period, down 2 percent from the previous year. For those retailers that track the number of shoplifting incidents they have experienced, this equates to an average of 28 incidents of

Background

Anecdotal evidence from the industry suggested the rates of shoplifting and violence associated with external theft were thought to be increasing considerably. In addition, there was little published knowledge on the extent to which different policies and practices to deal with these issues were being used by retailers. Of course, the value of any benchmark survey is highly dependent upon the quality and representativeness of the responses upon which it is based. For this study, the authors chose to target as many of the largest US retailers (based upon sales) as possible, exploiting existing contacts within the loss prevention industry. A request for information was sent out to 58 retailers representing 47 percent of US retail (based upon sales). In the end a response rate of 69 percent was achieved, meaning that the benchmark sample

continued on page 26

Total Number of Shoplifting and Violent Incidents by Year and Rate Per Store Time Period

Violent Incidents

Number

Number per store

Number

Number per store

Most Recent 12-Month Period

1,914,777

22,770

0.78

Previous 12-Month Period

2,004,171

23,190

0.80

-5%

-2%

Annual Change

Shoplifting Incidents

JANUARY–FEBRUARY 2017

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continued from page 24

shoplifters but require staff not to, where possible, touch them, unless in self-defense and not to run after them if they are fleeing the store. Respondents were also asked about their policies on allowing non-loss prevention staff to engage in apprehending shoplifters. Most stated that it was not their policy to allow staff to do this (58%), although 42 percent did state that they allowed only store management to apprehend thieves. Given the representation of large retailers in this sample, it was perhaps not surprising that 77 percent andemployed Practices on loss prevention staff in some or all ofPolicies respondents specific Shoplifters ofApprehending their stores to deal with incidents of shoplifting. Age No Limits and Dollar Values. The18% survey was also interested apprehension policy in finding out what policies respondents had concerning the 78% No chase policy prosecution of offenders, in particular, whether they had in place a 8% Limited chase policy minimum age and dollar value. physical As can beNo seen in thetouch age limits and dollar values45% chart below, 35%policies—between Allowrespondents force only in self-defense most had a similar approach to both usepercent of reasonable forcehave a policy 15% 28 Allow and 31 did not on either minimum age limits or Allow dollarusevalues, while the largest proportion stated that they of handcuffs 20% had a national standard policy (46% for an age limit and 43% for a minimum dollar value). On average, the minimum limit before an offender would be prosecuted was sixteen years of age, while the average value of an incident was required to be $30 before prosecution would be considered.

per store. For those companies tracking violent incidents, this equates to less than one incident of violence per store in any one year. Both these rates varied considerably by size of retailer (as measured by sales), with larger companies experiencing higher rates of shoplifting incidents and instances of violence per store. However, overall it is reassuring to note that of the nearly two million incidents of shoplifting recorded by these companies, just 2.3 percent resulted in violence. While any instances of violence against retail staff is regrettable and undoubtedly traumatic for the victim, this is a remarkably low number and, in many respects, testament to the efficacy of the policies and practices put in place to mitigate the likelihood of incidents of shoplifting turning violent. The data is also interesting in that it indicates a trend that is generally downward, countering some of the anecdotal concerns aired about both rising dramatically in recent times. Of course, it needs to be remembered that this data is based upon recorded incidents, and it is therefore highly likely that actual levels of shoplifting and violence will be different. But it is interesting that for those companies keeping a record, the evidence seems different from the perceptions held by some in the industry. Policies and Practices on Apprehending Shoplifters. The benchmark survey was also interested in understanding what policies and practices were being used by retailers when it came to employees apprehending shoplifters. Respondents were able to select more than one option. Therefore, the responses do not add up to 100 percent. Relatively few respondents—just 18 percent—said that they had a “no apprehension” policy. Of those that did have a policy of apprehending thieves in their stores, the vast majority operated a “no chase” policy (78%), with only 8 percent stating that they had a “limited chase” policy whereby staff could run after thieves, but only to an agreed boundary. A significant proportion of respondents (45%) said that they operated a “no physical touch” policy when dealing with thieves, with just over one-third (35%) stating that staff could use force but only in self-defense. A much smaller proportion (15%) allowed staff to use “reasonable force” in making apprehensions and one in five allowed the use of handcuffs (20%).

Company Policy on Minimum Age Limit and Dollar Value for Prosecution Policy set at district/regional level

Policy directed by local police/prosecutor Have a national standard policy No policy on age/dollar limit 0%

Future Studies

Policies and Practices on Apprehending Shoplifters 18%

No apprehension policy No chase policy Limited chase policy No physical touch Allow force only in self-defense

78% 8%

Allow use of reasonable force Allow use of handcuffs

45% 35% 15% 20%

Because of the relatively small number of respondents taking part in this survey, it was not possible to carry out any additional analysis on these policies and practices. Therefore, no conclusions could be drawn on whether having any given policy was related to higher or lower rates of shoplifting incidents or rates of violence. However, Company Policy Minimum Age Limit the data did show thaton there was no significant difference by size of and Dollar for Prosecution retailer. Overall,Value what seems clear is that the largest proportion of retailersPolicy responding to this survey do have a policy of apprehending set at district/regional level

Stores decide on case-by-case basis Policy directed by local police/prosecutor

Dollar Value Age Limit JANUARY–FEBRUARY 2017

Dollar Value Age Limit

Stores decide on case-by-case basis

10%

20%

30%

40%

The authors hope that the data presented in this first benchmark study will enable retailers to reflect upon their own policies and practices relating to incidents of shoplifting and violence and critically review where there are differences and share this with colleagues. The data also shows that relatively few companies have systems in place to record the number of incidents of shoplifting that involve violence. If the industry wants to better understand any changes in the prevalence of this type of problem, then it would seem important to prioritize the collection and analysis of this type of information. The authors are extremely grateful to those companies that participated in this first benchmark. If you would like to participate in future surveys, please contact one of the authors. Some of the current topics under consideration for future benchmarks include: ■ I nventory counting practices and inventory accuracy ■ L oss prevention reporting structures and responsibilities ■ D eployment and use of LP technologies ■ P re-employment screening practices We are also very interested in receiving your thoughts on these topics and suggestions for others to be covered by future benchmark surveys. LOSSPREVENTIONMEDIA.COM

INTERVIEW

FROM SUPERMARKET STORE DETECTIVE TO DIRECTOR A CONVERSATION WITH SCOTT ZITER OF PRICE CHOPPER

By James Lee, LPC, Executive Editor

INTERVIEW

EDITOR’S NOTE: Scott Ziter is director of asset protection for Price Chopper Supermarkets based in Schenectady, New York. He began his career as a store detective with Stop & Shop where he rose through the organization to director of asset protection and then vice president of asset protection for Stop & Shop’s parent company, Ahold USA. Ziter is chairman of the Food Marketing Institute’s asset protection council and a member of the board of advisors for the Loss Prevention Research Council and the National Anti-Organized Retail Crime Association. EDITOR: For those who may not be familiar with Price Chopper, give us a bit of background about the business. ZITER: The company is owned by the

Golub family. It was founded in 1932 and is in its third generation. Our current executive chairman of the board is Neil Golub, and several other family members also work in the company. Jerry Golub is the vice chairman of the board, Mona Golub is the vice president of public relations and consumer services, and Jane Golub is the director of in-store marketing programs. We have

the first non-family member CEO right now—Scott Grimmett. EDITOR: How many stores do you have? ZITER: There are 137 stores in New

York, Pennsylvania, Vermont, New Hampshire, Massachusetts, and Connecticut. Our largest market share is in the New York state capital district area, with our corporate headquarters in Schenectady, New York. Our company introduced a new brand called Market 32 in early 2015. We currently have eleven Market 32s, and the plan is

JANUARY–FEBRUARY 2017

to convert the entire chain over the next several years. EDITOR: Tell us how you first started in retail loss prevention. ZITER: After high school in

1990, I attended Westfield State College—now known as Westfield State University—with a passion to pursue criminal justice. My heart was set on working in law enforcement. During college, I declared a double major of criminal justice and psychology and became more interested in counseling in the correctional setting. I worked myself through college and was hired as a store detective at Stop & Shop in Pittsfield, Massachusetts. When I graduated in 1994, I stayed with Stop & Shop and shortly after was offered a loss prevention field manager role in Connecticut.

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INTERVIEW

When I became a loss prevention field manager, at the same time I was a finalist for a crisis counselor position in the Berkshire County House of Correction (Massachusetts). The sheriff asked me why I wanted to leave Stop & Shop for a job in the public sector. I took that conversation and made a decision that it would be in my best interest to continue a career in loss prevention, which has led me to where I am today. EDITOR: For the benefit of all of the young people out there, do you recall how much money you made starting as a store detective? ZITER: I made $7.00 an hour. I was an

overnight detective when I started, so that gave me premium pay. EDITOR: What caused you to change your mind and stay in retail as opposed to pursuing a career with law enforcement or counseling? ZITER: I really enjoyed working in

the supermarket environment. I also had some mentors in the past who said that you could go much further in the private sector. When I became a loss prevention field manager, at the same time I was a finalist for a crisis counselor position in the Berkshire County House of Correction (Massachusetts). The sheriff asked me why I wanted to leave Stop & Shop for a job in the public sector. I took that conversation and made a decision that it would be in my best interest to continue a career in loss prevention, which has led me to where I am today. EDITOR: You have accomplished something that not many people can say that they’ve done, and that is you went from store detective to director with the same company. That’s quite a feat. How did that happen?

ZITER: From the beginning of my

career, I was viewed as a strong business partner. I always had a very good connection with field and distribution leadership to align the loss prevention department’s objectives with those of the business. I was respected by the leaders, not just in the loss prevention department, but also in operations, merchandising, and elsewhere in the organization. The main objective for my team was to help our organization increase sales and profitability while reducing its exposure to risk and loss. EDITOR: After twenty-one years with Stop & Shop, Ahold pried you away. How did they do it? ZITER: Ahold USA is the parent

company of Stop & Shop, Giant of Maryland, and Giant of Carlisle. In late 2011, the vice president for asset protection at Ahold USA, Nancy Jones, announced her retirement. I saw an opportunity to bring what made me successful at Stop & Shop to the other divisions in Ahold USA. After nine interviews with executives from Ahold USA and its division presidents, I was offered the position in May 2012. EDITOR: And you’ve been at Price Chopper for how long? ZITER: In 2014, I learned that the

director of loss prevention position at Golub Corporation/Price Chopper Supermarkets was open. After careful LP MAGAZINE | JANUARY–FEBRUARY 2017

consideration, I decided to make a change in my professional career. I also saw an opportunity to help grow and expand on some of the existing programs and implement new initiatives at Price Chopper. I’ve been with the company for two-and-a half years, and my responsibilities include shrink management, investigations, analytics, corporate security, crisis management, and the field audit functions, which include cash and pharmacy audits. EDITOR: Does asset protection have responsibility for pharmacy shrink? ZITER: Asset protection does not have

direct responsibility for pharmacy shrink. There are pharmacy-specific specialists who deal with the inventory process. However, asset protection is responsible for pharmacy diversion, and that’s done through my analytics team led by Jodi Musto, utilizing Supplylogix. Asset protection partners with pharmacy leadership on all prescription-related investigations. EDITOR: When many of us think of grocery, one of the big things that stands out as a difference between it and other sectors of retail is spoilage and waste. How is that accounted for in the shrink equation? ZITER: Damages and out of codes is

what we scan out and is considered

INTERVIEW our “known shrink.” In addition to our perpetual inventory cycle counts, we’ve put an increased focus on known shrink as it represents roughly 40 percent of our center store shrink—grocery, frozen, and dairy. The dairy department accounts for a significant piece of our known shrink at Price Chopper. The main causes of dairy shrink are ordering practices and rotation. We’re working with the stores to address things that are in their control. Computer-generated ordering (CGO) is one area that we know is key to successful ordering. One of the problems with CGO in our industry is that there are always some individuals that don’t trust the system and fail to make the correct adjustments to their orders. This leads to an increase in out of codes and additional shrink. Fresh shrink continues to be a concern for many retailers. At Price Chopper, we place a greater emphasis on fresh shrink as it accounts for approximately 75 percent of a store’s total shrink result. Our store team leaders conduct period fresh-shrink inventories. As mentioned about dairy shrink, a significant amount of fresh shrink is due to damages and out of code product. Proper ordering and rotation is important in fresh departments as well. Among other reports, the asset protection shrink analyst provides a period shrink performance report. The zone shrink specialists use this report to address the departments that need additional attention. EDITOR: Since your arrival at Price Chopper, what are the things that you and your team are most proud of accomplishing? ZITER: One of our accomplishments

is the department restructure that took place in early 2015. Our team’s focus is now balanced between inventory shrink reduction and the traditional, but necessary, asset protection functions such as investigations, corporate security, and analytics. We’re also placing emphasis on developing a best-in-class crisis management program. Mike Gulli, manager of crisis management and corporate security, has taken the lead on this initiative. The most

important piece to the initial success was the buy-in and support from our executive leadership team. We’ve also put a lot of effort into building a successful partnership with store operations, to the point where senior leadership has commented that it’s the best they’ve seen during their time at Price Chopper. The asset protection leadership team has taken pride in building a team that is truly aligned with other business colleagues. EDITOR: What steps have you taken to strengthen the relationship between your department and store-line associates and operations people?

JANUARY–FEBRUARY 2017

ZITER: From the moment I got here, I

made it very clear that the success of our department depends on what we provide for support to the business. My focus has been and continues to be that my team will partner with the business to increase sales and profitability while reducing our exposure to risk and loss. One of the first opportunities I observed was to re-align our field structure to place more emphasis on both center store and fresh shrink. An important change was redeploying existing resources to provide a shrink specialist in each zone. The zone shrink specialists report to an asset protection field manager, but they partner every day with their zone’s director of operations and product specialists. Asset

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INTERVIEW

One of our accomplishments is the department restructure that took place in early 2015. Our team’s focus is now balanced between inventory shrink reduction and the traditional, but necessary, asset protection functions such as investigations, corporate security, and analytics. protection is now better aligned with the objectives of the operational team. The director of shrink initiatives and I work cohesively on corporate shrink controls and objectives. What helps strengthen our relationship is that asset protection reports into operations. EDITOR: Do operations people in the store, whether they are the store manager or store associates, have any role to play in theft prevention? ZITER: That’s sometimes a debated

question—should they or should they not

be involved? We at Price Chopper prefer a hands-off approach when it comes to store personnel apprehending shoplifters. We ask our store management team to utilize customer service skills to deter potential shoplifters. We ask them to document as much information as possible about the incident and report it to their asset protection manager. We utilize a process called “cycle count discrepancy” for department team leads to use to report if there are discrepancies between shelf stock and CGO for high-theft SKUs. These reports are electronically sent to asset

protection managers and quickly investigated using CCTV recorded video. AP managers build cases from the data and present to law enforcement. This program allows asset protection to utilize resources more efficiently and has also increased store level awareness. Law enforcement has identified or arrested 40 percent of reported cases through cycle count discrepancies. We have implemented in one zone a direct store delivery (DSD) discrepancy report that tracks DSD vendors who have quantity discrepancies in their deliveries. This program helps bring attention to the DSD receivers and the merchandising team those vendors who provide poor delivery service. Initial findings showed that approximately 13 percent of all deliveries had errors. EDITOR: You mentioned crisis management a few moments ago. Talk a little bit about what that means at Price Chopper and how you go about protecting the company?

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INTERVIEW ZITER: As mentioned earlier, our

executive leadership team takes crisis management very seriously. We view crisis management as a three-step program—emergency response, business interruption, and business continuity. In my opinion, we are very strong in the emergency response area. We’ve implemented a workplace violence program where all associates are required to complete a computer-based training (CBT) module. We also have a threat response team made up of individuals from asset protection, legal, human resources, and safety. This group reviews all threat intake reports and collectively discusses what steps should be taken to address the situation at hand. Our company does a good job in the area of business interruption. We classify a major storm in our operating area as a business interruption event. Our manager of crisis management and corporate security engages the business interruption team and provides necessary updates in a timely manner. Conference calls and other forms of communication occur throughout the event as well. We’re continuing to work on the third step—business continuity. Asset protection partnered with a crisis management consultant, Ripcord, to help us build a business-continuity (BC) charter and a three-year road map. An important piece of our BC plan has been getting all individual department leads together to build a business impact analysis for their area. The ultimate goal is to have all plans in a central repository. Ripcord has also assisted us with building a CBT module, which will be rolled out to our teammates in 2017. EDITOR: What are the challenges of organized retail crime (ORC) within Price Chopper? Are there any particular things that you do to deal with this? ZITER: Just like my AP/LP colleagues,

we have to contend with ORC in our operating area as well. During our department restructure, I included a position that reports directly to me, which is the corporate investigations and

From the moment I got here, I made it very clear that the success of our department depends on what we provide for support to the business. My focus has been and continues to be that my team will partner with the business to increase sales and profitability while reducing our exposure to risk and loss. ORC specialist. Danielle Gunville was hired for the position in November 2015. We have asset protection investigation specialists in each region and Danielle works with them, building on the cases that are occurring in their respective areas. Right now we have a significant case (over $200,000) that Danielle is working on with the United States Secret Service and New York State Police investigators—a major credit card fraud scheme that was hitting across our operating area. For the corporate investigations and ORC specialist, it’s very important to have a close relationship with law enforcement and our asset protection field team and a very tight relationship with other retailers across our operating area. My team attends the New England ORC conference in Worcester,

JANUARY–FEBRUARY 2017

Massachusetts, every year. Danielle is part of many trade associations throughout the industry because we think working with other retailers is extremely important in combatting organized retail crime. EDITOR: Are there particular food products that tend to be more common to the ORC offenders? ZITER: Red Bull is a big target. The

energy drink market in general is targeted fairly heavily, but especially Red Bull. Also baby formula, razor blades, dental care, and national brand laundry detergent to name a few. When it comes to ORC, I also include gift cards—the iTunes, Amazon, MasterCard, and Visa gift cards are hot items that are frequently purchased with fraudulent credit cards.

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INTERVIEW EDITOR: Have you rolled out any technology solutions to address the ORC and other issues? ZITER: My team has implemented

several successful technology initiatives. To start with, Price Chopper was recognized prior to me joining the team as one of the companies to deploy network video management across the chain. Our company is fully rolled out with both IP and analog cameras. All camera systems throughout the chain are accessible from any location. Having this strategy has allowed asset protection to implement programs and integrate other technologies to help combat ORC and other issues. We’re working with Tally Solutions testing a new technology called Smart Shelf. We have Smart Shelf deployed in over twenty stores focusing on energy drinks. If the system senses sweeping of product, it will send a real-time email alert with video attached to asset protection and initiate a [public address] announcement at the store

stating, “Customer service needed at energy drinks.” The technology can also send out-of-stock alerts to store personnel and distributors. So far the system has been very successful in deterring far more events then actual theft. The plan is to install this technology in another ten stores next fiscal year. We’re exploring facial recognition for access control purposes in our main office using a company called FST Biometrics. The technology is also used for access into our data center. Potential future uses for facial recognition is to identify known ORC suspects as they enter the store, forcing real-time alerts to asset protection personnel. Our asset protection and marketing teams have partnered with a company called Cognimatics to develop a customer traffic flow analysis in our Market 32 stores. This solution, if successful, will provide synergies between departments utilizing current camera systems.

EDITOR: Let’s change the subject a bit. You are involved with the Food Marketing Institute (FMI) Asset Protection Council I believe. You have a conference coming up in March. Is that correct? ZITER: Yes, the upcoming FMI event

has been renamed the ASAP Conference, which simply stands for the three focus areas of the conference—audit, safety, and asset protection. It will be held March 20th through 22nd at the Rosen Shingle Creek Hotel in Orlando, Florida. EDITOR: What are some of the topics one can hear at the conference? ZITER: The asset protection track

will include sessions such as building a crisis management plan, fresh shrink, credit card fraud schemes, supply chain and corporate facility security, and emerging CCTV and facial recognition technologies. Wicklander-Zulawski will be doing an

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INTERVIEW

I encourage asset protection teammates to be part of local organizations in their areas, whether it’s a food association or a retail coalition of one of the states where we operate. I believe cross-functional training is important. advanced session on corporate fraud and high-level investigations. The risk and safety track will include sessions on driving a safety culture, OSHA compliance issues, ergonomics, and fire safety. Topics in the internal audit track will include “ten reasons controls break down and what to do about it,” better consulting skills for auditors, payment card industry (PCI) compliance, and Food Safety Modernization Act (FSMA) compliance. EDITOR: You’ve occupied every position from ground level up to director. How do you go about helping the people in your organization get better at what they do? ZITER: I’m on the board of advisors for

the Loss Prevention Research Council (LPRC). All of my direct reports, as well as some of their people, participate in one or more of the LPRC working groups or action teams. I encourage asset protection teammates to be part of local organizations in their areas, whether it’s a food association or a retail coalition of one of the states where we operate. I believe cross-functional training is important. So for example, if operations is doing any type of training like a pre-holiday model store presentation, all asset protection teammates will attend in

their assigned areas. I visit stores with my colleagues from other areas of the business, and I ask the same of my direct reports and their teams to be able to get a different perspective of a store walk. I think there’s so much value that one can take from the education and professional development sessions at an event such as FMI, National Retail Federation, or Retail Industry Leaders Association. I’ve pushed associates to take advantage of the company’s tuition reimbursement program as a college degree will definitely help someone advance in their career. One of the most important ways to help others grow and develop is to be the best mentor possible. EDITOR: Speaking of mentors, over the years as you’ve grown in the business yourself, has there been a particular person who you look back on as being instrumental in getting you to where you are now in your career? ZITER: Absolutely. The first person

who comes to mind is someone I’ve known since 1996 when I worked at Stop & Shop. His name is Ron Onorato. He’s currently the president and chief operating officer at Inserra Supermarkets, a co-op of Wakefern. Ron rose through the ranks to division president at Stop & Shop. From the time I was a division

JANUARY–FEBRUARY 2017

loss prevention manager in Connecticut, I worked closely with Ron to help increase my knowledge in different areas of the supermarket business, including operations, human resources, and merchandising. I have always thought of Ron as a mentor and someone whom I can pick up the phone to call to this day for his guidance and support. EDITOR: Are there particular loss prevention leaders whose opinions you value and who you might call on for advice and counsel? ZITER: Definitely. Kathleen Smith, VP of

asset protection at Albertson’s/Safeway. I’ve known Kathleen for almost ten years as we’ve served on the FMI Asset Protection Council together. She’s someone whom I talk with on a regular basis and is a true leader in our industry. Her commitment and dedication to our field is second to none. Overall, Kathleen is someone who provides guidance and support regardless if you’re a colleague of hers or someone new in the industry. For more information about the FMI ASAP Conference scheduled for March 20–22 in Orlando, see page 63 or visit the Events page on the magazine website at LossPreventionMedia.com.

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FUTURE OF LPVIEWPOINT ACADEMIC

Social Media Monitoring: How Does It Work?

By Tom Meehan, CFI Meehan is director of technology and investigations for Bloomingdale’s. He specializes in new technology deployments, business intelligence, industrial intelligence, and systems implementation and design. Meehan brings nineteen years of expertise in retail LP, information technology, and process improvement, the last eleven years with Bloomingdale’s and eight years prior to that with Home Depot. Meehan is also chair of the LPRC’s Future of LP Working Group and co-chair of the Fraud Working Group. He can be reached at tom.meehan@bloomingdales.com.

n this article, I will cover how social media monitoring works, the common use cases, and some of the myths and misconceptions. Let’s start by defining social media and social media monitoring. What is social media? Social media is content found on the Internet allowing creation and sharing of information, content, ideas, and interests, as well as any form of expression via an open public platform. Open public platforms can be categorized as blogs, news sites, photo-sharing sites, forms, message boards, and social networks like Twitter, Facebook, and Instagram. Social media differs from traditional media such as newspaper, TV, and radio. With social media, the reach and frequency are unlimited. The ease and usability allows anyone, from any age group, to report news or information regardless of its accuracy or merit. Just imagine that a large portion of the population walks around with high-definition cameras in their pockets and the ability to broadcast live video in real time to an audience of billions. What is social media monitoring (also referred to as social media listening)? Social media monitoring is capturing data, via social media sources, for information. Often it is monitoring multiple content sources such as blogs, news sites, photo-sharing sites, forms, message boards, and social networks like Twitter, Facebook, and Instagram. The three most common types of social media monitoring that I will review are social media monitoring for brands, location-based social media monitoring, and social media monitoring to manage crisis.

Social Media Monitoring for Brands

This is generally used by public relations or marketing teams to measure the impact of campaigns, marketing tactics, and customer sentiment. Here’s an example of social media monitoring for brands—a food-borne illness is associated with one of your restaurants, so you monitor your customer base for what is being said of the illness and your business.

Local, state, and federal law enforcement, as well as security and loss prevention professionals, often use social media monitoring for criminal investigative purposes, monitoring civil unrest, managing crisis, and responding to natural disasters. Generally, law enforcement and security professionals have used social media monitoring specifically designed to link individuals and track activity. One example you can use is simply the name of your organization. Let’s say you wanted to see every time the words “XYZ Company” and key phrases like “gun,” “bomb,” and so forth were used in a post. Social media monitoring could help you to identify threatening or informational posts regarding your business. Social media is used by 81 percent of terrorists.

The three most commonly used technologies to monitor social media are scraping, the “fire hose” or application program interface (API), and free open-source tools. Site Scraper. A site scraper, sometimes referred to as a web scraper, is a type of software that is used to copy most or all of the content from a website. Most websites or media providers prohibit scraping. In some rare instances, a website will work out an agreement to allow a third-party to scrape its data.

Almost all social media networks allow people to add locations to their posts or comments. Information is gathered about this geolocation, to help businesses make JANUARY–FEBRUARY 2017

Law Enforcement and Security Professionals

How the Technology Works

Location-Based Monitoring

decisions related to hours of operation and staffing. Some governments and city agencies use geolocation information to determine traffic patterns and predict transportation delays. Law enforcement and security professionals use geotagged information to track suspects and protect civilians. However, as of 2016, less than 3 percent of Twitter’s data is geotagged, and studies show that total non-commercial social media traffic has less than 10 percent geotagged information. In the past, this was a valuable resource, but as privacy concerns become more prevalent, less and less information is geotagged, and people need to opt in to share location information. Geolocation monitoring can be used when a law enforcement agency or business entity become aware of plans for protesting on the same street as your store location. You can create a virtual fence around the area and monitor any activity on social media.

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More often than not, it is a violation of the terms and in some cases could be illegal. An example of web scraping is similar to copying all of the text from a site, pasting it into a Word document, and using the “find” function for keywords. Scrapers take all the information from a website, index it, and place it in a database to search at a later date. Essentially scrapers steal other people’s data and then usually attempt to sell it. This would normally be a third-party solution but could be done in-house with the help of a developer. The Fire Hose or API. The term “fire hose” refers specifically to Twitter’s API, but other services have API options. Twitter’s fire hose can allow all of Twitter’s data to be indexed and searched via a third-party provider. The third-party provider will pay for the information, and depending on how much they buy, they could have all the data from Twitter’s start in 2006. Throughout the article, I will reference Twitter due to the amount of data that’s available daily. Twitter has 500 million posts daily. The fire hose is effective, but it requires using a pay-by-use, third-party entity. Free Open-Source Tools. Lastly are free open-source tools. There are several limitations with free open-source tools. As an example, Twitter only allows one percent of its data to be searched for free via open-source tools. I often talk to other asset protection professionals who say they monitor social media for free. Nothing is free. The cost is often that the information you’re receiving is lacking. Missing 99 percent of the data from Twitter is not a good approach when it comes to crisis management and life safety. What will you miss? You also must pay someone to sift through that one percent of data. Free open-source tools do have a place for departments with limited budgets. Just keep in mind that there are several million posts that you will never see.

The Myths of Monitoring

Now that we’ve covered the definitions of a basic overview of how the technology works, here are some of the myths related to social media monitoring: ■ Y ou can monitor social media effectively for free. As we discussed earlier, nothing is free. ■ G eotagged information is extremely useful. While there is some truth to the statement, with the limited amount of geotagged information available, this is a misconception. ■ M y provider can get me private data from social networks. While scraping will give you some private info, private is private and not truly available. Scrapers can only pull out what is directly available from the site. ■ M y provider won’t miss anything. With the amount of data out there things will be missed. Have a plan that focuses on what’s important. If everything is a priority, nothing is a priority. I hope the article helps answer some of the questions about social media monitoring. In my next article, I will cover some of the statistics around social media monitoring and new privacy roadblocks. LP MAGAZINE | JANUARY–FEBRUARY 2017

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FEATURE

SEE YOU IN COURT THE NEW ESSENTIALS OF

RETAIL CRISIS MANAGEMENT By Laurence Barton, PhD

THE NEW ESSENTIALS OF RETAIL CRISIS MANAGEMENT

ure, the headline is meant to grab your attention. But what is more likely is that as a loss prevention leader, your litigation team will eventually send an email request following some tragedy that impacts your company store, distribution center (DC), or regional office. The topic of the email—what did we know, when did we know it, and what did we do about it? Because these requests often arrive long after a critical event, it’s important to think carefully about the changing landscape of retail crisis management. While your team is focused on preventing inventory shrink and responding to other challenges impacting human and product assets, how ready are you for some of the challenges that have impacted other loss prevention executives in recent years? Remember that these other companies had accomplished executive leaders at the helm—just like you—who likely never thought “it” could happen to them.

The Chipotle Lesson

With a stellar brand, superb food, and a stock price that was so steadily climbing that many mutual funds embedded it in their top-twenty holdings, Chipotle was a Wall Street darling—until “it” happened. Their “it” was a slow bleed of food-borne illnesses across the country, especially occurring on college campuses, that propelled Chipotle’s crisis story to national prominence. This great company was slow to respond. They delayed acknowledging what they knew, told a fractured account of the blame game when they did respond, and failed to issue a strong, early statement that should have said: “We will work tirelessly to get to the bottom of this and redouble every effort to offer the best, safest food of any restaurant in America.” Their CEO was replaced in December, also too late. A company’s CEO

often pays the price for a delayed or inadequate crisis response, even if its efforts in other aspects of governance are strong. If your brand is under siege, and you are perceived as passive—Target’s board of directors replaced its CEO months after the major credit card attacks, also far too late—expect heads to roll. The heads that roll typically do not include the director of loss prevention; that’s the good news. However, CEOs increasingly are looking to you to anticipate what could go wrong. Providing thoughtful, proactive crisis analysis can help distinguish you from “the guys who chase shoplifters” to true business strategists.

JANUARY–FEBRUARY 2017

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THE NEW ESSENTIALS OF RETAIL CRISIS MANAGEMENT

The Waffle House Index

Ever heard of the “Waffle House Index?” Here’s a summary in a nutshell. When Hurricane Matthew devastated much of the Southeast last year, even FEMA acknowledged that they look to the regional leadership of Waffle House as one key indicator of how, when, and where they should apply resources. Here’s why. The often-mocked restaurant chain pledges to keep every restaurant open nationwide 24 hours a day, seven days a week. When Waffle House closes restaurants in a certain territory, it has been historically accurate that the coming “snowstorm” became a blizzard or the projected “rain storm” became a devastating hurricane. Waffle House has a war room, social media monitoring, wind-and-rain experts on retainer, and teams that move the menu to “red” when only prepared foods can be served, “yellow” if foods are provisional but fresh, and “green” if fresh ingredients remain available. I love The Miami Herald’s take on the Waffle House Index: “When Waffle House surrenders to a hurricane, you know it’s bad.”

Product Recalls

The negative effects of product recalls merit thoughtful discussion by your crisis management team. Product recalls hit a number of significant brands last year

including Volkswagen and Wells Fargo. The consumer anger directed at these companies led to threats against both executives and even store and branch managers that no one expected. In an age of around-the-clock media and heightened expectations that your company will be free of scandal, both companies not only allegedly engaged in illegal behavior, but also lied to the public about what they knew and when they knew it. They essentially played the wait game hoping that certainly some other story would trounce their problems. Not so. Crisis leadership requires that you get your message out quickly. Essentially, the message must communicate, “We goofed, we will hold those responsible for fraud accountable, and we apologize for breaking your trust,” period. Every loss prevention executive can have a seat and voice at the table by reminding your colleagues in marketing, legal, and finance that a tainted brand may need years to recover.

Consider the People

Never underestimate the people aspect of crisis management. On three occasions last year, I was working with clients on the tragedy of an active shooter or workplace homicide when family members learned of the loss of a loved one through Twitter before police or a company ambassador could contact them. Expect it to happen to you. Better yet, ask your crisis team what can and should be done in this era where employees typically know more details than management and aren’t afraid to post on social media. Think through what is appropriate, legal, and ethical and develop a response plan before you need it. Here are two recent examples that could happen at any company. One was a very public suicide attempt at Amazon headquarters. The second was a successful suicide of a 25-year-old employee at Apple headquarters. Both events led to blogging and Tweets before site management could properly respond. The corporate and consumer landscape has changed. The corporate microphone is no longer owned by management. In the

LP MAGAZINE | JANUARY–FEBRUARY 2017

midst of disaster, the crisis team as well as all executives need to be thinking about a swift, compassionate, and appropriate message that can be issued promptly so that the management team does not look inept or insensitive.

Assess Your Emergency Operations Center

Finally, your loss prevention team likely has multiple amazing technologies to connect you to your stores, your logistics locations, and your corporate offices. These technologies allow you to monitor regional crime trends, benchmark peers, watch store and DC incident reports, and, hopefully, stay on top of crisis events. But when “it” happens, what is the quality of your emergency operations center (EOC)? Some companies have not updated their EOCs for years. Many sit unattended because the company has been lucky. The old cliché is more true than not—it’s not if, but when “it” will happen to you. It would be wise to assume that your competitors are ahead of you. They likely have fusion centers, not EOCs. They are monitoring what Twitter is saying about your company and the crisis real-time. They know the crime trends in neighborhoods, not regions. They have fortified their fusion efforts to link crisis response to messaging with pre-populated statements and frequently asked questions. From a product recall to an industrial accident to a workplace violence incident, they have prepared beyond their peers. My hope is that you and your company move to that category of best practice sooner rather than later. Before “it” happens to you. LAURENCE BARTON, PhD, is a leading crisis management and threat consultant to many of the world’s leading retailers. He is the highest-rated instructor at the FBI Academy and US Marshals Service. Dr. Barton is also a distinguished professor of crisis management and public safety at the University of Central Florida. He can be reached via his website at larrybarton.com.

THE NEW ESSENTIALS OF RETAIL CRISIS MANAGEMENT Following are excerpts from Dr. Barton’s 2008 book, Crisis Leadership Now: A Real-World Guide to Preparing for Threats, Disasters, and Scandal, that may provide some points of discussion for executives involved in managing crisis management teams.

Words and Phrases to Emphasize in Most Incidents ■ ■ ■ ■ ■

■ ■

W e are working vigorously D eep concerns for community safety A biding efforts on a daily basis to protect our community R obust efforts are underway with law enforcement W e are cooperating with police in every regard to assist in their important work O ur thoughts and prayers are with the victim(s) and their families W orking to confirm as soon as possible

Words and Phrases to Avoid in Most Cases ■ ■ ■ ■ ■

■

D ead M assacre P olicies and procedures I mpact on revenue I nvestigation (law enforcement and regulators investigate; loss prevention leaders drive the internal “review”) N ame of a specific victim until law enforcement confirms

Can You Answer the Following Questions? oD o we know the site leadership, who is

in charge, and have pertinent contact data for all site leaders?

oW ho will communicate with employees

oW ho will communicate with victims

and witnesses? Are they trained in grief communications? o I s there a peer company or competitor

that has dealt with this type of disaster before? How quickly can we contact these peers to ask for insight and recommendations?

regarding the incident, what we know, and do not know? We need to remind them not to speak with the media, speculate, or spread rumors during this sensitive time. oW ho is monitoring blogs and social

media to determine if our message as a company is “breaking through” various barriers?

oW ho will contact our insurer on loss and

mitigation efforts? oW ho will contact OSHA or the pertinent

safety regulator in our province/country

to ensure we have properly notified all authorities?

o I f a site will need to be closed for any

number of reasons, will we pay our employees and continue benefits? This is always one of the first questions

JANUARY–FEBRUARY 2017

to emerge after a fire, flood, industrial disaster, or prolonged crisis. oH ow confident are we that we have

all of the facts? Do we have a fusion center so that we can look at the site, at damage and needs, with a live feed? If not, how quickly can we establish an ongoing link? oD oes our employee assistance program

provide grief counselors if needed as well as counseling for impacted employees who may need emergency cash or who have other urgent issues? Are we properly communicating this benefit to our impacted employees?

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Loss Prevention Becomes Crisis Central During and after a crisis, the loss prevention leadership team is often called to support other teams that may be overwhelmed in dealing with site leaders. In short, you may become critical to the communication needs of the entire company. Don’t assume your corporate communications team, which mostly deals with marketing, “good news,” earnings reports, and related issues, are ready to manage bad news and disasters on their own. Your expertise is valuable. Therefore, work with the entire crisis team to address the following issues: ■

■

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Other Articles on Crisis Management July – August 2006 LPportal.com

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“It Can’t Happen Here…Can It?”

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LPM EXCELLENCE

Recognizing the Best in Loss Prevention T he LPM team is privileged to have a front-row seat as observers of the loss prevention industry. That gives us a unique opportunity to identify positive, productive ways to promote loss prevention, build successful and constructive

partnerships, educate and inform the LP community, and support the thought leadership that drives us forward. One aspect of our role is to find ways to celebrate the positive contributions of the loss prevention and asset protection community. As a result, we are proud to launch the LPM Excellence recognition initiative. Rather than a once-a-year recognition program, we decided to establish a means to celebrate industry accomplishments on an ongoing basis, recognizing the loss prevention professionals, teams, solution providers, law enforcement partners, and others that demonstrate a stellar contribution to the profession. Our inaugural recipients each reflect a standard of excellence, representing the quality and spirit of leadership that provides a shining example for all of us to follow.

Excellence in Leadership

Excellence in Community Service

Excellence in Partnerships

A veteran leader in the profession, Lamb has consistently embodied a style of leadership and a standard of performance that his teams respond to, rally around, and strive to emulate. In his current role, he is charged with leading the asset protection program for the world’s largest retailer, where he is successfully transforming the department into a true business asset while gaining the respect and support of company leadership. Lamb has faithfully served the greater loss prevention community through his commitment to top industry associations. He is an avid supporter of innovation, continuing education, and professional development for his team, making those around him better through his guidance and leadership.

Throughout his forty-one years at TJX Companies, MacLea served as a mentor for leaders at every level across the entire loss prevention community. He has always believed you must be involved with both your community and your profession, and he has lived up to that belief. Over the years MacLea has also given of himself to philanthropy, supporting many charitable initiatives such as the Youth Business Institute, Minority Suppliers, the NAACP, Lazarus House, Big Brothers Big Sisters, and Making Strides Against Breast Cancer. His innovation, compassion, and drive for excellence has raised the bar for loss prevention as an industry, providing a stellar example for all of us to follow.

Chief Gross has dedicated his life working to create a winning culture and a strong, positive relationship between the community and the police department. Working closely with his department, he has championed several programs to help bridge these gaps and help build a positive impression of the police and what they do. As a dedicated advocate of our partnership, he frequently touts the power of cooperation between the retail community and the police department, and the different ways that all of us can get involved and make a difference when we work together. We need both innovation and cooperation to help us move forward, and the programs in Boston are a clear example of the power of partnership.

Mike Lamb, LPC, Vice President of Asset Protection and Safety at Walmart US

Robert “Bob” MacLea, Senior Vice President, Director of Loss Prevention at TJX Companies (Retired)

William Gross, Superintendent-in-Chief, Boston Police Department

Nominations Are Encouraged We want this to be your program. You witness these exceptional performances at all levels of the organization on a regular basis. We ask you to provide us with nominees for each of the award categories. We encourage creative nominations and want the program to cast a positive light on the many tremendous contributions that all too often go unrecognized in the greater loss prevention community. Nominations can be submitted via email to excellence@LPportal.com.

JANUARY–FEBRUARY 2017

LOSSPREVENTIONMEDIA.COM

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HOW WILL YOU BE

MEASURED? Get certified through the Loss Prevention Foundation. Set yourself apart with credentials that are the standard for the loss prevention profession.

For more information visit losspreventionfoundation.org or call (866) 433-5545

Educating an Industry, One Leader at a Time

LP MAGAZINE | JANUARY–FEBRUARY 2017

CERTIFICATION

Becoming a Big-Picture Thinker

Interview with Tamara Murray, LPC Tamara Murray, LPC, is a regional asset protection director for Walmart. She assumed this role in 2015 after spending nine years in store- and market-level AP roles for the company. Murray currently oversees 100 stores and is responsible for shrink, security, and safety-related operations. She also regularly assists in providing shrink training at Walmart headquarters in Bentonville, Arkansas. She received her LPC certification in June 2014.

within the LP industry, it does seem to open avenues of conversation when around others in the field.

his is another in a series of interviews with working LP professionals who have earned their LPQ or LPC certifications from the Loss Prevention Foundation (LPF). Hear in their own words why they pursued certification and how it benefited their careers.

If you could offer one key takeaway to someone currently considering getting certified, what would it be? I would say do it—and also make sure that you plan to spend the time on it, so you aren’t rushing or feel pressured when your access to the course work is coming to an end.

Why did you decide to pursue certification? Was there something specific that influenced your decision?

How has going through the certification process influenced the way that you approach your job?

I pursued certification for several reasons: I knew it was a preferred qualification for promotions and other jobs within the LP industry, I wanted to find out what parts of the industry I didn’t know, and I wanted those letters after my name.

It goes back to that big-picture thinking. The certification process allowed me to have a better idea of the total process of asset protection, while at the same time demonstrating to me the need to teach that big picture to everyone, even on a single-store level.

Tell us more about the process of going through the courses and taking the exam.

How would you compare certification to other educational courses that you’ve taken?

For me, the hardest part of going through the courses was making time for it. Your regular workweek happens, life happens, and suddenly you’ve gone a month without getting any course work done. I eventually set myself a weekly reminder and wouldn’t dismiss it until I had finished some course work that week. Once you’ve gone through the course work, the test wasn’t too bad. The scariest part was hitting that submit button knowing the results would immediately show up.

I would say the certification is right around the same as other educational courses. It is self-led and self-paced though, so if you are used to someone reminding you that things are due, that won’t work for this. There is a good deal of information in the course, which can be difficult to focus on if you try to take too much on at a time. I recommend creating a schedule of how many courses you want to complete in a week or month and sticking to it, so you don’t get too overwhelmed.

Looking at your own personal development, what information within the course helped you the most?

Do you think getting certified will help make you a better LP professional? Why?

The course helped me to develop my big-picture thinking. Prior to it, I was thinking on a single-store or multi-unit level. The course exposed me to organizational and industry-wide thinking, which has helped to remove emotions from decisions and use creativity in problem solving.

I think that it already has and can only continue to do so because continuing education is required to maintain certification. So you just keep learning and staying on top of the current industry trends and advances.

What was the most eye-opening information that was part of the curriculum?

Do you think certification offers a professional advantage over those who have not been certified? Why?

Having never had any experience with logistics or IT security personally, those sections gave me the most information that I was previously unfamiliar with and were thus eye-opening.

Yes, I do. It changes the way you think and approach the business in a positive, constructive, and sometimes even creative way.

What benefits have you seen from taking the course? How has certification changed your expectations of loss prevention as a career, for yourself and for others?

I’ve made more networking connections having been certified. Whether internally at Walmart or externally

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I wouldn’t say that it changed by expectations, but I would say that certification opened my eyes to the wide variety of careers that are available within the loss prevention field.

Would you recommend certification to others? Why? Absolutely, the networking with other professionals, continued education, change of mindset, and of course those letters for your signature line all make the time it takes to learn or refresh yourself on the material worth it.

Is there anything else that you would like to share regarding the learning experience?

Advanced Analytics Actionable Insights

Nothing that I haven’t already said. I just can’t stress enough to get in there regularly to do the work so that you can truly get the most out of the program.

Newly Certified

Following are individuals who recently earned their certifications.

Recent LPC Recipients James Barbe, LPC, Lowe’s Dustin Blue, LPC, TJX Companies Nathan Bradfield, LPC, CFI, Lowe’s John Bradley, LPC, Blain Supply Corey Bowman, LPC, Walmart Stores Jason Coffey, LPC, Lowe’s Devin Conroy, LPC, Lowe’s Justin Dennis, LPC, Lowe’s John Fitton, LPC, Kmart Jaime Forsythe, LPC, Big Y Foods Scott Glenn, JD, LPC, Sears Holdings Justin Henkenberns, LPC, CFI, Restoration Hardware Marc Johnson, LPC, Blain Supply Ami Jordan, LPC CFI, Lowe’s Albert Latham, LPC, Lowe’s Jeremy Love, LPC, Sears Holdings Demetrius McClure, LPC, Sears Holdings Marc Mitchell, LPC, Lowe’s Michelle Peters, LPC, Walmart Stores David Plaster, LPC Sherri Reid, LPC, Kmart Eric Rutledge, LPC, Lowe’s Ronald Scanlon, LPC, MERS/Missouri Goodwill

Michael Simpson, LPC, Kmart Joshua Smith, LPC, Blain Supply Mary Smith, LPC, Lowe’s John Smithson, LPC, Sears Holdings Veronica Stafford, LPC, Office Depot Mark Stinde, LPC, 7-Eleven Stephen Tarbell, LPC, Lowe’s Justin Tillberry, LPC, Lowe’s Andrew Trumbour, LPC, Sears Holdings Sarah Valentin, LPC, Weis Markets Van Wysong, LPC, Lowe’s Jon Young, LPC, Harbor Freight Tools

Recent LPQ Recipients Kathleen Avariano, LPQ, Hermès of Paris Tricia Barron, LPQ, PETCO Animal Supplies Darcy Bohman, LPQ, IKEA North America Matthew Clark, LPQ, Hyatt Corporation Scott Johnson, LPQ, CVS Health Nathan Suen, LPQ, Restoration Hardware Mary Jo Tidd, LPQ, DICK’S Sporting Goods Delia Valadez, LPQ, Sephora Wollan Xue, LPQ, Columbia Sportswear

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EVIDENCE-BASED

Leadership in Action

by Read Hayes, PhD, CPP Dr. Hayes is director of the Loss Prevention Research Council and coordinator of the Loss Prevention Research Team at the University of Florida. He can be reached at 321-303-6193 or via email at rhayes@lpresearch.org. © 2017 Loss Prevention Research Council

eaders lead, of course, but what does that look like? What do successful leaders do? At the University of Florida (UF) and the Loss Prevention Research Council (LPRC), we’re looking at ways to improve LP/AP outcomes by enhancing decision-maker awareness and action tools. We’re also looking at how good leaders take in information, process it, and then make action decisions. Scanning leadership and management research shows some key behaviors. So leaders lead by: ■ F ocusing on supporting the overall organization’s mission and objectives. ■ C arefully mapping out their strategies and how each program component specifically supports success. ■ S etting high but realistic expectations for a results-oriented culture. ■ T raining subordinate leaders in why and how to specifically achieve success in their areas. ■ M onitoring key performance metrics with subordinates and other leaders. ■ R elentlessly facilitating personal and professional development including establishing a “learning agility” culture. ■ C onstantly coordinating with all company leaders in all parts of the organization. ■ A ccepting mistakes, doing after-action discussions, refocusing, and moving on. In a learning agility culture, team members: ■ S eek, encourage, and reward learning. ■ L ead by example. ■ A bsorb books, articles, conference sessions, webinars, courses, and degrees, and take some occasional, quiet reflection time. ■ E ngage with internal and external colleagues whenever possible. This list isn’t all-inclusive of course, but hopefully it gets some of us motivated to inspire, teach, and make it happen.

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LPRC Board of Advisors

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Speaking of leaders, the LPRC not only was founded by LP/AP executives, but also is shaped and steered by LP executives. LPRC has always been a blend of real-world, practical experience with more rigorous trialing and measuring of solutions. A full-time staff operates the overall LPRC, but the executives listed here make up the organization’s board of advisors (BOA). The BOA is composed of retailer, solution partner, product manufacturer, and industry leaders, and all have LP expertise and passion. Thank you to these executives that regularly meet by phone and in person to shape and drive the LPRC and evidence-based LP/AP.

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B rian Bazer, AVP of AP & Risk Management, dressbarn/Ascena Group B obby Bull, VP, P1/CCI E rik Buttlar, Senior Director AP, Best Buy J ohn Doggette, Director of LP Merchandise Shrink Solutions & Analytics, Lowe’s S cott Draher, VP of LP, Lowe’s D an Geiger, Senior Director of Field Operations, Target J ulie Giblin, VP of LP, ULTA Beauty P aul Jaeckle, Senior Director of AP Strategy and Solution Design, Walmart E my Johnson, Director, Theft & Fraud Ops, Assets, Protection, Target M ike Lamb, VP of AP and Safety, Walmart K evin Larson, Senior Manager, LP Operations, Kroger S teve Longo, VP Strategic Initiatives, CAP Index D avid Lund, VP of LP, DICK’s Sporting Goods C had McIntosh, VP of LP & Risk Management, Bloomingdale’s K rista Monnin, North America On-Shelf Availability Leader, Procter & Gamble R ick Peck, SVP, TJX Companies B arry Poole, Director, Broker Sales Division, Mead Johnson P erry Resnick, DVP of AP, REI J ohn Roberts, Director of Inventory Control, Michaels M ark Robinson, Executive Director AP, Toys“R”Us S teve Scott, VP of Loss Prevention, Tractor Supply B yron Smith, Corporate AP Manager, 7-Eleven S cott Springer, Director of LP, Michaels W illiam Titus, Managing Director, Titus Consulting J ack Trlica, Managing Editor, LP Magazine K evin Valentine, SVP of Internal Audit, LP & ERM, Signet Jewelers J ohn Voytilla, VP of Global LP & Safety, Office Depot D ennis Wamsley, Director of LP & Safety, Publix Super Markets M atthew Yanoschik, AP Analytics Manager, Meijer S cott Ziter, Director of AP, Price Chopper

Busy Year

LPRC was originally set up to carry out one research project per year. During his tenure as the LPRC BOA chair, Bill Titus requested we expand our productivity to four annual projects. Since that time, the LPRC team has been steadily increasing annual output. In 2016, we

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generated twenty-three research study findings for members including: ■ B BAT Shrink Reporting Benchmark Analysis, Griffin, Giblin, and Hayes, 2016 ■ C onsequence Phrasing, Giblin and Hayes, 2016 ■ D AWG Shrink Metrics Sheet, Grottini, Lin, and Hayes, 2016 ■ E mployee Theft Survey Brief, Lin and Hayes, 2016 ■ e PVM Matrix Meta Analysis, Giblin, Grottini, and Hayes, 2016 ■ F ace-Detecting ePVM Report, Lin, Giblin, and Hayes, 2016 ■ L NL Mat Short Report, Giblin and Hayes, 2016 ■ L PRC Violent Crime Benchmark, Hayes and Johns, 2016 ■ M id-Size Box Format ePVM Report, Giblin, Griffin, and Hayes, 2016 ■ O lay Fixture Retailer Feedback Short Report, Giblin and Hayes, 2016 ■ P aige Electric Label, Giblin and Hayes, 2016 ■ P arking Lot Safety Study, Lin and Hayes, 2016 ■ P oint of Sale Activation Short Report, Giblin and Hayes, 2016 ■ R FWG 2015 Credit Card EMV Benchmarking Survey, Lin and Hayes, 2016 ■ R FWG Gift Card Fraud Benchmarking Study, Lin and Hayes, 2016 ■ R obbery Impact Analysis, Lin and Hayes, 2016 ■ S CPWG Safety White Paper, Giblin and Hayes, 2016 ■ S ignage UHD DNA Short Report, Giblin and Hayes, 2016 ■ S naptagg Offender Report, Giblin and Hayes, 2016 ■ S RAT ALL-STAR White Paper, Giblin and Hayes, 2016 ■ U SS Mix Tag Full Report Final, Giblin and Hayes, 2016 ■ V iolent Crime-Parking Lot Crime Survey Report, Scicchitano and Hayes, 2016 ■ O nline Fence Awareness Survey Report, Lin and Hayes, 2016 By the way, the LPRC’s keyword-searchable Knowledge Center contains over 300 PDF-format research reports on a wide variety of topics and hundreds of video clips and other LP decision-support resources.

2017 Impact Conference

Two-Way Business Radios

Please plan and budget for yourself and your team to participate in the Impact Conference experience. Last year’s group was a record-breaking 300 strong, and we hope to work with even more of you all next October 2 to 4 at UF as we expand the Learning Labs, experience a new “zones zone,” review over twenty new LP research studies, and much more.

Recommended Reading

Place Matters: Criminology for the Twenty-First Century by David Weisburd and others provides a concise look at how motivated offenders are tightly coupled to specific locations for meaningful reasons, meaning crime is highly clustered in specific spots. And those reasons lead to focused protective actions. As always, our UF and LPRC teams are working to support you, so please let me know your thoughts and suggestions via our website at lpresearch.org, on LinkedIn, or at rhayes@lpresearch.org.

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FEATURE

THE RECENT YEARS 2012 THROUGH 2016 By Bill Turner, LPC

LP MAGAZINE | JANUARY–FEBRUARY 2017

FIFTEEN YEARS OF LOSS PREVENTION

ere we are at the third and final installment of the first fifteen years of Loss Prevention magazine. I had indicated in the first two articles that part of the third article would include a future look at some of the most important loss prevention technologies and practices such as RFID. However, it looks like we have run out of room. Therefore, I will dedicate an entire article to that subject in the March–April issue. For now, on to the magazine’s most recent five years.

Shoplifting and Organized Retail Crime

LOSS PREVENTION

MAGAZINE

MOVING FROM LP EXECUTIVE TO SOLUTIONS PROVIDER RED, WHITE, AND BLUE PROFIILE OF AMERICAN APPAREL A REASONED APPROACH TO PREMISES SECURITY LIABILITY

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In the March–April 2012 issue, Albuquerque’s police chief talked about the success of his department’s newly formed Organized Crime Unit and the positive impact it was making on crime in the city. Once again ORC made the cover in the July–August 2012 issue and

explored the question: “Are Retailers to Blame?” The answer was, probably not. Besides a few mentions inside other articles and columns, the next major ORC article didn’t occur until the November–December issue of 2015. In that issue, Jim Lee wrote about the international ORC summit held in Florida. Representatives from eBay and Tyco presented their perspectives and unique thoughts on ORC and its challenges. Representatives from Japan discussed their ongoing ORC issues. The final session was hosted by Read Hayes, PhD, of the Loss Prevention Research Council who discussed ORC deterrence methods. In the July–August 2016 issue, Tom Meehan from Bloomingdales talked about the relationship between ORC and cyber crime. The final article during this period featuring ORC was in the September–October 2016 issue. In it, Chris Trlica looked at the booster-fence ecosystem and the phenomenon of legitimate retailers fueling it by buying goods, maybe even their own, that were stolen by ORC gangs.

Crisis Management Crisis management is another subject that was featured heavily in the early years

JANUARY–FEBRUARY 2017

LOSS PREVENTION

MAGAZINE THE VOICE OF LOSS PREVENTION

FROM ALARM MONITORING TO CRISIS MANAGEMENT THE EVOLUTION OF WALGREENS’ SECURITY OPERATIONS CENTER

THE ATTITUDE OF SUCCESS OF MELISSA MITCHELL THE IMPACT OF MOBILE PAYMENTS ON LOSS PREVENTION

LPPORTAL.COM

ORC

ARE RETAILERS TO BLAME?

Learn More at NRF Booth # 1119

FROM ALARM MONITORING TO CRISIS MANAGEMENT THE EVOLUTION OF WALGREENS’ SECURITY OPERATIONS CENTER

LPportal.com | V11.4 July – August 2012

LPPORTAL.COM | V14.3 MAY – JUNE 2015 What’s new in Shrink Visibility?

MAGAZINE

THE VOICE OF LOSS PREVENTION

V14.3

There was not one mention of organized retail crime (ORC) in the January–February 2012 issue. A trend? Not really, but in the most recent years, there have been fewer articles on ORC. Regarding shoplifting, Johnny Custer wrote a very thought-provoking article in the March–April 2012 issue entitled “To Stop or Not to Stop?” He talks about the increasing risk and violence surrounding shoplift apprehensions and whether apprehensions really impact shrink to a great degree. He stops short of offering a firm opinion on the question, but it is very interesting reading and still timely today.

Jim Lee wrote about the international ORC summit held in Florida. Representatives from eBay and Tyco presented their perspectives and unique thoughts on ORC and its challenges. Representatives from Japan discussed their ongoing ORC issues.

of the magazine, but saw less coverage in recent years. As speculated previously, this is probably because post-9/11 reaction drove so many articles that many best practices have already been discussed. But not all. The cover story of the July–August 2013 issue dealt with mitigating and managing threats and acts of violence. The creation of threat assessment teams composed of diverse disciplines that are empowered to act was discussed as the key to effectively identifying and managing threats. In the July–August 2014 issue, Jac Brittain asked the question “Active Shooter—Is Having a Plan Enough?” In addition to having a good plan, he discussed the importance of practical training including teaching people how to act and what to do during an actual event. The importance of “see something, say something” was emphasized.

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The cover story from the May–June 2015 issue looked at Walgreen’s transition from simple alarm monitoring to the creation of a world-class emergency operations center and its value during recent civil unrest events such as Ferguson, Missouri. In September–October of 2015, Scott McBride of America Eagle outlined some tips to keep international travelers safe. He noted that, in recent years, the most acute traveler needs revolved around medical issues. In the May–June 2016 issue, Garett Seivold looked at “Readying Retail for Terrorism’s New Battleground.” The article discussed the vulnerability of retail with its

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FIFTEEN YEARS OF LOSS PREVENTION numerous and populated public venues. It went on to offer potential store-level solutions, including communications between retailers, heightened mall security visibility, uniformed guards, and partnerships with law enforcement to review plans. In the fifteenth anniversary issue of September–October 2016, Seivold looked at various crisis preparedness activities and program elements. Walgreen’s and 7-Eleven offered input and insights for the article. V14.2

LPPORTAL.COM | V14.2 MARCH – APRIL 2015

MAGAZINE

LOSS PREVENTION

MAGAZINE THE VOICE OF LOSS PREVENTION

E-COMMERCE FRAUD: THE RAPIDLY GROWING CHALLENGE FOR RETAIL INVESTIGATIONS

The cover story of the July–August 2013 issue dealt with mitigating and managing threats and acts of violence. The creation of threat assessment teams composed of diverse disciplines who are empowered to act was discussed as the key to effectively identifying and managing threats.

E-COMMERCE FRAUD THE RAPIDLY GROWING CHALLENGE FOR RETAIL INVESTIGATIONS

THE INTRIGUING CAREER OF RILA’S LISA LABRUNO VIDEO SURVEILLANCE AT ARIA RESORT & CASINO

LPPORTAL.COM

A CLOSER LOOK AT TIFFANY’S SUPPLY-CHAIN NETWORK

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Fraud We also saw less written about fraud in the past five years. However, the cover article in the March–April 2015 issue looked at e-commerce fraud and the rapidly growing challenge it represents for retail investigators. Fraud investigators from numerous retailers outlined some of those challenges and some of the methods to combat them. The importance of understanding complicated schemes such as triangulation was discussed along with detailed examples. Also emphasized was the importance for all retail e-commerce fraud investigators to get actively involved in every networking forum available, including national and local meetings and events. It was also noted that ORC is playing an ever-increasing role in e-commerce fraud based on big gains and less risk of being caught.

The National Retail Security Survey and Employee Theft As in the previous ten years, Richard Hollinger, PhD, continued to write a monthly column focusing on employee theft and the yearly National Retail Security Survey (NRSS) survey. In the March–April issue of 2012, Dr. Hollinger highlighted a recent survey that polled college students about stealing at work. The survey showed that alcohol abuse drove much higher incidents of work-related theft and ex-cons were four times as likely to steal as someone with no criminal record. The July–August issue of 2012 noted the interesting fact that most companies experienced lower-than-expected rates of employee dishonesty during economic downturns and periods of high unemployment. Dr. Hollinger gave an overview of the 2011 NRSS results in the September–October issue of 2012. Average retail shrink came in at 1.42 percent of sales, the lowest in the twenty-year history of the survey. Employee theft was noted as the biggest LP MAGAZINE | JANUARY–FEBRUARY 2017

shrink driver at 43.9 percent of the total. Total shrink losses were listed as $34.8 billion. In March–April 2013, Dr. Hollinger cited a recently published academic study called “Can Wages Buy Honesty?” that concluded higher employee wages, especially in retail, might actually reduce shrink. I guess we will have to wait and see what happens in California now that its minimum wage is $10 per hour and headed to $15 per hour over the next four years. In the November–December 2013 issue, Dr. Hollinger took a first look at the 2012 NRSS results. Overall shrink percent was at 1.47 percent, up from the 1.42 percent in 2011. Employee theft continued to be rated as the biggest shrink driver at 4.9 percent of the total. In the March–April 2014 issue Dr. Hollinger gave more detail on the 2012 NRSS noting that LP budgets actually rose slightly as a percent of total sales. The survey also found that stores in enclosed malls had below-average shrink at 1.09 percent. In the January–February 2014 issue, a recent Kessler International study was quoted as saying that 95 percent of employees reported stealing from their companies, up from 79 percent in its 1999 study. Some of the theft admission included pens, paper, and other small office supplies, but the number was sobering, nevertheless. In September–October 2014 Dr. Hollinger discussed a recent study by Dana Baxter entitled Who Is Taking the Shirt Off Your Back? A Multi-Method Analysis of Theft at a Specialty Retailer. Contrary to expected results, Baxter found that high manager and employee turnover were not highly correlated to shrink. Another observation was that “lifestyle” centers in wealthier suburban neighborhoods consistently suffered high levels of loss and that rural stores showed less of a shrink problem. A feature article in the January–February 2015 issue looked at the 2013–2014 Global Retail Theft Barometer. The study was based on in-depth phone and written survey interviews conducted in twenty-four countries among 222 retailers. Results

FIFTEEN YEARS OF LOSS PREVENTION showed that 49 percent of retailers listed EAS antennas, labels, and hard tags as the most effective loss prevention solutions. Also seen as very effective were keepers and 3-alarm accessories for high-theft items. Mexico was called out as the country with the highest shrink at 1.7 percent of sales. US respondents listed employee theft as the largest contributor to shrink representing 42.9 percent of the total problem. In the July–August issue of 2015, Dr. Hollinger covered sample results from the 2014 NRSS. Overall shrink came in at an all-time low of 1.38 percent of sales. Grocery showed the highest shrink at 3.23 percent. But it is well known that grocery struggles with spoilage and out-of-date product, which is sometimes included in shrink numbers. Men’s and women’s apparel retailers came in at 1.17 percent. The average employee theft case was valued at $1,547 and the average shoplifting case at $318. In July–August 2016, Dr. Hollinger looked at the NRSS results from 2015. Shrink remained low at 1.38 percent, but it still cost retailers $45.2 billion. It was noted that for the second year in a row, shoplifting slightly surpassed employee theft as the greatest cause of shrink.

Loss PreventionTechnology As called out above, some subjects saw fewer articles in the magazine over the past five years. Just the opposite is true for articles dealing with technology. I counted a whopping thirty-five articles dealing with various forms of loss prevention and retail technologies from 2012 to 2016. And, of course, the first one, in the May–June issue of 2012 centered around RFID. Bob DiLonardo noted that, once again, RFID in retail was a matter of when and how, not if. He said the primary message from the recently held RFID Journal Live’s tenth anniversary conference was that RFID works and that seven years of developing standards was paying off. It was also noted that a Bloomingdale’s case study had been used to champion the technology for the retail industry. A feature article on American Apparel in the July–August 2014 issue highlighted its dedication to and reliance upon RFID technology for loss prevention and inventory control purposes.

In the same issue, Bob DiLonardo looked at a survey around self-checkout and its connection to dishonesty. Conducted in the UK, the survey asked, “Have you ever cheated at supermarket self-service checkout?” A majority (58%) said no because they were afraid of being caught. But 30 percent admitted to everything from cheating by entering cheaper fruit items to walking off without paying. DiLonardo noted that the industry was still undecided about the risks versus rewards of self-checkout.

Dr. Hollinger highlighted a recent survey that polled college students about stealing at work. The survey showed that alcohol abuse drove much higher incidents of work-related theft and ex-cons were four times as likely to steal as someone with no criminal record. SEPTEMBER - OCTOBER 2012

YOU CAN STEAL IT, BUT YOU CAN’T USE IT

Moving Toward Benefit-Denial Technology By Read Hayes, Ph.D., CPP

LPPORTAL.COM

Self-checkout was also the topic discussed by Dr. Hollinger in the January–February 2013 issue. He talked about the beginnings in the UK followed by gradual growth in the US and that it threatened one of the most important retail traditions—the one-on-one relationship with regular customers during the checkout process. It was called out that at least one grocery chain had removed self-checkout, not for theft but because of reduced customer interaction. Benefit-denial technology was the subject of a feature article by Dr. Read Hayes in the September–October 2012 issue. Benefit

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denial is technology that renders an item useless until it is legitimately sold and the retailer eliminates the benefit denial feature. This could be the simple removal of an ink tag to the more sophisticated “programming” of a cell phone to make it work after the sale, but not until. Dr. Hayes quoted Tim Fisher, then at Best Buy, as saying that “benefit-denial technology has the potential to positively impact losses throughout the entire supply chain, making products useless until legitimately purchased.” In the November–December 2012 issue, Jack Trlica wrote a feature article around what leaders need to know about RFID in retail. In it he recapped some information from a recent webinar hosted by the magazine. A panel of industry experts noted similar facts and issues that have surrounded RFID for years: ■ I t’s coming but is not truly here yet, ■ I tem level RFID is the future, ■ O n-shelf accuracy is critical to omni-channel retailing, and ■ R FID may be useful in combination with EAS tags, but it would mean a huge infrastructure realignment. In the same issue, it was announced that Best Buy was conducting an initial trial of benefit-denial technology in conjunction with Dr. Hayes and the LPRC. The test concentrated on newly released video games that are physically locked until decoupled by the clerk with a wireless signal after a legitimate sale. Later in the same issue, mobile payments were described as “the next big

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FIFTEEN YEARS OF LOSS PREVENTION security headache.” Fears of compromised consumer financial information and payment problems for retailers from security breaches were noted. V12.3

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FACIAL RECOGNITION A GAME-CHANGING TECHNOLOGY FOR RETAILERS

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Facial recognition was the cover story of the May–June 2013 issue. Described as “having the potential to change the rules of retail,” author Chris Trlica advised

caution around poor execution or abuse that could have far-reaching negative consequences. It was also noted that the technology was typically too expensive for retailers, but was becoming more economically feasible. The potential uses for loss prevention were discussed, but so were concerns over privacy issues. Like RFID, facial-recognition technology is real and exciting, but widespread deployment may or may not be in loss prevention’s future. The brave new world of mobile point-of-sale (POS) was once again on the cover of the September–October 2013 issue. The pros and cons plus the vast potential of the technology was outlined by Chris Trlica. “Line busting” was quoted as an early appeal to retailers, especially during peak sales periods. Freed-up floor space was also listed as a plus, and SKU lookup could improve customer service. But the many challenges of mobile POS were also discussed including the physical security of the actual devices, unauthorized uses, and potential data breaches.

LP MAGAZINE | JANUARY–FEBRUARY 2017

In the same issue, Kevin Plante looked at the myriad of new and advancing store technology components and the fact that, while a boon to sales and operations, some may drive loss prevention crazy. Plante looked at the plusses and minuses of e-receipts, smart safes, mobile POS, and self-checkout, among others. The art of using social media in LP investigations was also discussed. The conclusion—technology usually helps, but it can hurt if we don’t pay attention. In November–December 2013, Bob DiLonardo was back discussing “Technology Innovations That Made a Difference.” He focused on the forty-year evolution of cameras from tube electronics to PC boards in smartphones. Included in the discussion were camera housings, remote-controlled pan-tilt-zoom (PTZ), video recording, and POS transaction data on video. He concluded that the metamorphosis to “mass surveillance/intelligence systems” is complete. In the cover article of the January–February 2014 issue, Bob DiLonardo began a two-part series on the “20-Plus Years of EAS Source Tagging

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The cover article of the September–October 2014 issue found Jack Trlica and Jac Brittain looking at the evolution of the LP professional. The main theme was around how technology is rapidly changing the retail landscape and how successful LP professionals must keep up with all technology, not just LP technology. In the March–April 2015 issue, Bob DiLonardo looked at consumer credit and debit card hacking and noted that 83 percent of the documented attacks were perpetrated using only five techniques: ■ D istributed denial of service (23%)—focused on a single target, virtually shutting them down, ■ S tructured Query Language injection (19%)—compromising customized data views, so the customer receives the wrong item or price, ■ U nknown (18%), ■ D efacement (14%)—attack on a website that changes its appearance, and ■ A ccount hijacking (9%)—hijacking of account information.

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The cover article of the September–October 2014 issue looked at the evolution of the LP professional. The main theme was around how technology is rapidly changing the retail landscape and how successful LP professionals must keep up with all technology, not just LP technology.

A feature article in the May–June 2015 issue saw Lee Pernice looking at mobile payments and their impact on LP. Various mobile devices and techniques such as mobile payments, mobile commerce, mobile POS, and mobile tablet POS were discussed. A survey of retailers found that they attributed 3 percent of all lost revenue to their mobile channels. The same group saw mobile transactions growing an estimated 47 percent in the coming five years. The need for LP professionals to get actively involved in mobile payments and the potential fraud downside was emphasized. Attacks on POS systems and payment card data theft was also discussed in the same issue. Common skimming techniques such as making a rub of a card, rigging ATMs or gas pumps with readers to steal data, and physical modifications of POS terminals were outlined. In a July–August 2015 feature article, Colin Peacock posed the question “Where Next for EAS?” He suggested retailers audit their current EAS systems in terms of product and training, removal devices, deactivation rates, EAS pedestals, and alarm management. He advised using this audit information to build a more effective EAS system. He also advocated looking at new stop-theft technologies such as (you guessed it) RFID. He also talked about smarter fixtures, smarter cameras, and smarter mobile devices. V14.6

Innovation.” He talked about Knogo, Sensormatic, and Checkpoint as visionaries in the EAS space and described their early years. He outlined competing EAS technologies such as AM and RF and the advantages/disadvantages of each. He went on to describe the beginnings of source tagging, its evolution, its importance, and its legacy. In his column in the same issue, DiLonardo talked about RFID and EAS standards being set and the ratification of a new version of the electronic product code (EPC). The new version was touted as improving security, adding versatility, and adding privacy protection for consumers. RFID was back again in a May–June 2014 article discussing the “ROI for RFID in Retail.” Retailers surveyed listed improved inventory accuracy as the main appeal of RFID followed by assuring on-floor availability and improving operating efficiencies. Shrink reduction was listed as fourth. In an interesting twist, in-store LP was listed as the most current actual user of RFID. With advancing technology comes the ever-increasing risk of data breaches. That was the subject of two articles in the July–August 2014 issue. The first focused on building a new defense team to guard against and manage data breaches. The second recapped the cyber-security panel discussion from the 2014 RILA Asset Protection Conference. Both articles contained common themes including the challenges and threats to retail and its customers, funding IT security adequately, and the importance of LP working closely with IT.

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The cover article of the November–December 2015 issue focused on mobile scan-and-pay (MSP)

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FIFTEEN YEARS OF LOSS PREVENTION technologies and their impact on retail losses. While the many benefits of MSP were discussed, the potential impact on theft and loss were also discussed. Things such as non-scanning and scanning errors, verbal abuse against staff during audit checks on purchases, and transaction fraud or fraudulent use of payment wallets were called out as issues. The cover story of the January–February 2016 issue looked at the state of video examining where we are, where we’re going, and how we get there. An online survey regarding the use of video in retail was completed by nineteen RILA members in 2015 representing over 37,000 stores. Some survey results were: ■ A nalog remains the dominant camera technology. ■ D VRs remain the dominant video management system (VMS). ■ R emote monitoring is coming of age. ■ I ntegration is still a ways off. ■ U se beyond LP is still a gray area. ■ T here is mixed interest in video analytics. Regarding the future, the authors advocated conducting a SWOT analysis around the user’s current video landscape and creating a detailed plan for the future based on the result of that analysis. Development of compelling business cases for non-LP users was also discussed. V15.3

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Once again, and one of the final technology articles in the past five years, RFID made the cover of the May–June 2016 issue. In that article, Lee Pernice outlined some history and talked about

use cases for RFID and ROI metrics. The usual advantages of total inventory visibility and on-shelf accuracy were discussed. One expert described RFID as the biggest breakthrough since the barcode. But in the end, proponents are still advocating analyzing the business for RFID applications. No huge successful implementations were called out.

Shrink Reduction and Loss Prevention Programs Articles covering retailers’ shrink-reduction plans and LP programs were not plentiful in the last five years. One might guess that the improving shrink results highlighted in the NRSS indicate that the programs discussed in the first two installments and those like them are working so well that there is not much new to discuss. That is probably not totally true. So in the next twelve months, we will make a concerted effort at the magazine to reach out and find some new and innovative programs to report on. One interesting article from the September–October 2015 issue talked about the concept of engaging merchants in protection of merchandise. It discussed RILA’s study looking at the relationship

Buyer input on theft-prone product as well as sensitivity to supply-chain processes was also highlighted. The use of data analytics and open communication between LP and the buying organization was cited as being critical to improving influence and relationships.

LP MAGAZINE | JANUARY–FEBRUARY 2017

between retail buyers and the asset protection function. Surprisingly, only 32 percent viewed asset protection as a partner in driving sales. Only 10 percent indicated that asset protection was something they routinely talked about. The survey’s authors called out ways that buyers can help reduce shrink including identifying product that may need additional security tagging or protection and working with vendors on product packaging to better protect high-theft items. Buyer input on theft-prone product as well as sensitivity to supply-chain processes was also highlighted. The use of data analytics and open communication between LP and the buying organization was cited as being critical to improving influence and relationships.

People, Education, and Diversity The Loss Prevention Foundation became a reality in 2006. As Gene Smith stated in an interview in 2009, the foundation’s mission is “to advance the loss prevention profession by providing relevant, convenient, and challenging educational resources.” And it has done just that. As of this writing, 1,650 professionals have obtained their LPQ or LPC certification. And based on current and projected enrollment, that number will soon be over 2,000. As in the previous five years, every issue of LP Magazine from 2012 to the present has contained a column featuring the LP Foundation. Numerous industry professionals talked about the value of the foundation to the LP industry and the personal value of certification to all who have completed it. Congratulations goes out to foundation leadership and staff, plus all those in the industry who have provided tremendous support over the years. In the cover article of the January–February 2012 issue, Kathleen Korwica outlined the “Nine Practices of the Successful Security Leader.” Among those practices was the creation of a robust internal awareness plan, making sure senior management is aware of security/LP’s mission, working as a helpful resource to business leaders, and understanding and adapting to the corporate culture and business goals.

FIFTEEN YEARS OF LOSS PREVENTION

Melissa Mitchell wrote a compelling cover article for the May–June 2012 issue describing the community involvement efforts of numerous LP departments and individuals. In the same issue, Bruce Tulgan talked about how to be effective when you and your boss work remotely. Tulgan was back again in the September–October 2012 issue proclaiming “Not Everyone Gets a Trophy.” In the article, Tulgan offered tips for managing Generation Y. In the November–December 2012 issue, Gene Smith announced the establishment of the Loss Prevention Foundation Memorial Fund. The original purpose of the fund was to aid the families of LP professionals who had lost their lives while on duty. The fund has now been expanded to also offer support to any LP professional whose family may be facing serious economic hardship.

The cover article of the March–April 2014 issue focused on the International Organization of Black Security Executives (IOBSE). The article described the origin and foundation of the organization, its contribution to the industry, and its ongoing support of diversity in the workplace. In the same issue, Bruce Tulgan moved on to Generation Z. He talked about how those born between 1996 and 2009 will be driven by social media, human connections, and a global mindset. In the September–October issue of 2014, Jac Brittain talked about the reality of racial profiling, its negative effect on people and business, and how it can and must be avoided in the LP industry. In May–June 2015, Walter Palmer focused on improving your store visits and that fact that one question can make a big difference—“Can you please tell me about the successes you’ve had and progress you have made since my last visit?” In the July–August 2015 issue, Jack Trlica announced the retirement of Bob DiLonardo and went on to thank him for his huge contribution to the magazine over the years. The good news is that DiLonardo hinted he may continue to contribute an article now and then. And he has. The next issue, September–October 2015, found Jim Lee saluting DiLonardo and conducting a full-length interview with him. In the March–April 2016 issue, Jim Lee interviewed four senior LP executives about their challenges, professional development, and career goals. Common themes were the importance of continuing education including LPQ and LPC and the need to gain broader overall business experience. In the May–June 2016 issue, Jim Lee’s interview subject was Dr. Richard Hollinger of the University of Florida who had just announced his retirement. Dr. Hollinger, like Bob DiLonardo, was one of the most regular and valuable contributors to the magazine in its first fifteen years. It will be very different not hearing from him in every issue. But we certainly hope Dr. Hollinger will continue to contribute to the magazine now and then like DiLonardo.

INTERVIEW

FORTY YEARS OF RESEARCHING

RETAIL LOSS PREVENTION

A RETROSPECTIVE WITH PROFESSOR DICK HOLLINGER By James Lee, LPC, Executive Editor

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In the interview, Dr. Hollinger advised Lee that the NRF has agreed to continue the NRSS and that he would still contribute his time and expertise to that effort. In the September–October 2016 fifteenth anniversary issue, Dr. Hollinger described his first column in the preview issue of the magazine in 2001. It contained a discussion about The Container Store and its consistently low shrink numbers. He went on to say that the situation is still the same today and recognized Joan Manson, vice president of loss prevention, benefits and payroll, for her long tenure and successful efforts in keeping shrink very low. And there you have it—the end of our fifteen-year journey. It’s been a great ride for LP Magazine and promises to be just as exciting and informational going forward. I hope I am around in fifteen years to write three more installments. And as promised, I’ll be back in the March–April 2017 issue looking at RFID and other parts of the LP industry and where the next few years may take us. As a reminder, most of the articles mentioned here are available at LossPreventionMedia.com, the magazine’s website. PDFs are available by contacting editor@lpportal.com.

BILL TURNER, LPC, currently serves as a contributor to LP Magazine. He is also a founding member of the Loss Prevention Foundation, serving as its treasurer and on the board of directors executive committee since inception. Over the past forty years his career has concentrated in two industries—retail and entertainment—and has included stints at Bullock’s Department Stores, Disney, Nike, and USS. Throughout his career in loss prevention and operations, crisis management and response has been a passion of Turner’s as well as a reoccurring responsibility. He led the effort to formalize the programs at Bullock’s Department Stores, Walt Disney World, and Nike. Walt Disney World completed construction of its first formal emergency operations center under Turner’s direction, seeing its completion just prior to 9/11. Turner can be reached at BillT@LPportal.com.

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RFID Technology and Asset Protection

By Maurizio P. Scrofani, CCSP, LPC Scrofani is a well-known supply-chain asset protection professional with over twenty-five years’ experience in retail and manufacturing. He is a prolific writer and frequent speaker at regional and national conferences. Scrofani is a consultant and general partner with MPS Ventures. He can be reached at maurizio@mpsconsultants.com.

Human Capital Management

echnology regarding assets is moving at a fast pace. To be able to accurately monitor and track assets is of paramount importance to many industries and can protect the assets that a company has. Radio frequency identification (RFID) technology is one way that any company can track its assets accurately. It works by way of attaching or embedding a radio device to an asset, so the precise location of the asset can always be recorded. It uses electromagnetic fields to track the tag that is attached to the asset. The tag contains information that identifies the asset, so the company and its customers will always know where it is. RFID technology allows companies to know where in their process any particular asset is, so they can monitor the speed of production, the time of delivery, or other factors that will allow them to see how long their processes actually take and control assets by knowing where they are at any point in time.

How Asset Protection Could Leverage RFID Technology

When this technology was in its infancy, the RFID chips were relatively expensive and were used to track high-value assets to ensure that they were not stolen or removed from the business in another way. It was a useful way of tracking the high-value items that any business must protect in order to protect its profitability. This was especially useful to a company that had a high level of shrinkage through interaction with the public, such as retailers. To be able to track the location of an item is especially useful if these assets are regularly stolen as the precise location of the item will aid the recovery of that item. Added to this is the fact that RFID technology can be matched to an alert system at the exit of any store, so the people who work there or the security staff can be alerted when an item is taken from the safe areas of the store and potentially stolen. As the RFID chip passes a certain point, it will trigger an alarm making it immediately obvious that the asset is being removed without permission. Store employees are tasked with removing the RFID tags from all items that are paid for legitimately.

There are other uses for RFID in the workplace, and the fact that the costs of the RFID technology has lowered means that they can be used more widely. One such area is in the management of the people within the business. Using RFID technology to track people has many useful benefits. Accurate tracking of where people are means that you can produce accurate assessment or reporting on how the employees interact and operate within the business and also allows accurate payroll based on the precise hours worked. People. As a modern equivalent of the old punch clock that determined who arrived at work and at what time, RFID can allow employers to see: ■ W ho came in to work ■ E xactly when they came in ■ W here are they supposed to be ■ W hether they actually are where they are supposed to be ■ H ow many people are in specific locations or departments This can all be delivered by the use of UHF or HF via proxy card integration for entry and egress so that one would be able to virtually see what human resources are in the company location and where they are located. In modern business there is a great need for a flexible workforce, so the added benefit of better understanding employee location and distribution, for example, allows employers to redistribute excess capacity to other areas of the business that need additional support, such as a sales event in a store or an increase in inbound processing or outbound spike in customer orders in a warehouse facility. Pay. The system can work in a similar way to the way it does for retail products. As someone passes a certain point, they become active in the business and start to be paid. As they leave for a break or the end of their shift, then the time they are being paid for ceases. RFID technology allows a company to track where people are deployed, pay them accurately, and give an overview of where the money is being spent on labor. These systems can be subject to a little abuse as one person may clock-in others with their RFID cards. However, tying this system to your CCTV or RFID interactive tablets loaded with facial-recognition or other biometric software will help to identify and mitigate this practice. It empowers the company to stop time theft and to protect the workers who are abiding by the rules. Product. By attaching an RFID chip to a product as a matter of course allows the whole inventory to be tracked. The information of how long a product or component sits before continued on page 62

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This practice has allowed companies to build out trailers with such equipment pre-event and deploy to locations that are going to be impacted from a planning phase. From a reactionary or recovery phase, the same principle applies, but usually the build out would be from a closer geographic location to compress time to deployment.

being used or sold is a vital piece of information. It allows companies to become more efficient and hold an inventory that is accurate to the business needs. In addition to this you can see where the units are leaving the location and break this information down to more detailed levels of information, such as the category, the times of the day they are leaving, which exit they leave by, and for store locations, whether they have been paid for or not. The information that a business can gather on this level will allow it to deploy its sales teams effectively, make sure security resources are accurate, and keep sufficient levels of stock for high-moving items. Once a company has accurate information related to its assortment, it becomes more efficient and more profitable.

Workplace Hostility Visibility or Incident Management

Hardware Inventory Management

In order for a company to be most efficient, it needs to have relevant hardware available to the right departments or teams at the right time. Some devices are shared among different teams, and situations often arise where teams compete for precious time on shared devices. Using RFID technology can produce information that can be used to monitor location and usage of these devices to see that they are being used in the most productive manner. For instance, if one team collects a device early in the morning because they will likely need it in the afternoon, then this device may be laying dormant for several hours. Another team may be able to make use of that device in the meantime, thus maximizing its ROI as hardware is usually a capital expense versus an operating expense. Devices can often go missing in a busy work environment, and this missing device causes a lot of wasted time as people look for it and then potentially wait for a replacement if it cannot be found. Using RFID technology to accurately locate the device saves time and investment. The hardware that any company owns represents a significant investment and needs to be looked after. Devices can be mistreated, stolen, or accidentally misplaced. An RFID system gives any company a grip on where its hardware is, which can be matched against where it should be.

Crisis Management via Planning, Reaction, and Recovery

When a business hits a crisis situation it needs all hands on deck. Sometimes you need to pull out all the stops to resolve a crisis or match a spike in customer demand. RFID technology allows a company to be able to quickly and accurately see where all of its equipment is to make those fast decisions that resolve issues quickly. Having the most up-to-date information will allow the best decisions. RFID can provide a virtual inventory of all the heavy equipment needed to get the planning right and aid the effective reaction and recovery stages. For example, warehouse teams can quickly see how many assets are available for quick deployment as needed: ■ W here are my pallet trucks? ■ W here are my tow tractors? ■ W here are my forklifts?

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Sometimes a business faces a real pressure situation such as a violent incident. The focus on these events is to mitigate the event with an overwhelming concern for protecting the team members in the location. RFID allows you to see where your people are and whether they are at risk. Matching this up with CCTV systems gives a far more accurate view for your operations, security, and law enforcement partners. By having an integrated system, you could technically share your screen with outside entities or agencies when needed allowing first responders to see where team members are located. The combination of RFID visibility and your CCTV systems gives them the best decision-making opportunities possible. It allows companies to implement security and crisis management protocols to get the situation under control as quickly as possible while protecting employees and assets.

In-Transit Risk Mitigation

Many modern companies ship their items and assets long distances and over international borders, often via third-party companies. It is vital to be able to see where assets are to have control over the process. You want the peace of mind that your items are being transported where you want and in the timeframe agreed. RFID tied into a GPS system allows logistics managers to see which items were shipped or planned to be received, and GPS gives you that “finger on the pulse” even when they may be thousands of miles away. Cutting-edge locking devices with RFID software integrated are available as well. There are quite sophisticated devices that can be used as RFID scanners for RFID-tagged items and then converted to an encrypted locking device that is used to secure the trailer doors as well. This means that you can effectively lock the items until they arrive at the correct destination before transmitting an unlocking code that will allow them to be scanned and processed. RFID is one of the best-kept secrets in asset protection. It has been presented so far as an item-level inventory management ancillary tool. However, when you step back and begin to take a holistic view of all the bits and pieces, one quickly realizes that it can do quite a few things for asset protection and loss prevention organizations with both brick-and-mortar or supply-chain responsibilities. RFID is one more tool in the toolbox that can also assist from a data-sharing perspective similar to different asset protection teams from different companies who share elements of shoplifting events with one another. The difference is RFID data potentially provides far larger scale that could be used as a new force multiplier within our industry.

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LPM DIGITAL

Innovation Leading Us into the New Year F

By Jacque Brittain, LPC, and Kelsey Seidler Brittain is editorial director, digital, and Seidler is managing editor, digital. The two manage the magazine’s digital channels that includes multiple daily e-newsletters featuring original content and breaking news as well as vibrant social media conversations. Brittain can be reached at JacB@LPportal.com and Seidler at KelseyS@LPportal.com.

ollowing are a few article summaries that can provide you with a small taste of the original content available to you every day through our daily digital offerings, which are offered free through LossPreventionMedia.com. In addition to our daily newsletter, a comprehensive library of original content is available to our digital subscribers at no cost. Simply visit our website to gain free and ongoing access to all our content. You can also follow us on Facebook (search LP Voices), Twitter (@LPMag), and LinkedIn.

By Mike Limauro

Loss prevention technology, especially analytics, has evolved exponentially over the past few decades. And as this technology has evolved, the most recent solution—prescriptive analytics—combines all these ideas to identify opportunities for improvement and takes the next step, making suggestions designed to remedy these opportunities and capitalize on them. Ensuring corrective action is taken to address the identified problem is what makes prescriptive analytics more effective than a traditional data reporting solution. By automatically turning data into understandable insights and placing them directly into the hands of those who can impact your business, this solution will dramatically help optimize results.

Building a Strong Plan

Before you begin, you will need to educate yourself on which technologies are right for you and your organization. What current technology do you have, and how can it be used in a different way? What new technology will your company benefit from? Selecting your solution provider is a critical step in this process as they can make or break a program implementation. Finally, embedding your technology into other departments is not as easy as it may sound. Take the time to share your information in a manner that promotes partnership and teamwork. As loss prevention technology becomes increasingly useful across all departments within an organization, the opportunity to elevate your department grows. By capitalizing on basic data that is readily available and using it for purposes outside of the traditional asset protection wheelhouse, you will drive improved results and increase efficiencies in other departments, thus earning respect and adding value across the entire enterprise.

Opening the Doors

Up until recently, exception-based reporting was in the hands of a limited number of people, making the investment one of the best-kept secrets in the company, thus missing the true potential to maximize the return on investment. The data mining solution was used in a very limited capacity to identify dishonest behavior. The problem with this strategy is that it virtually eliminates the chance for loss prevention technology solutions to add value in other departments. To combat this, we need to think differently about how we use these technology investments, searching for new ways to use old ideas. At a time when the face of retail is changing so rapidly and many companies are cutting expenses in order to either stay competitive or simply survive, it has become critical for every asset protection team to add value throughout the entire organization. In today’s environment, it is critical to offer services the company simply cannot live without, and the best way to JANUARY–FEBRUARY 2017

Increasing Value

In my previous role, I utilized a prescriptive analytics solution, partnering with a company that had a very progressive view on how data could be used to expand a company’s profitability. We trained employees across all departments on how to use the solution to enhance daily functions. Each user was looking at something completely different than the next. But by sharing our loss prevention technology and our expertise, the solution’s value increased exponentially. In addition, the company looked at the department in a different way because we were able to assist in creating a broad range of successes by targeting individual requirements and unique challenges. Don’t limit yourself. The more data you push through your analytic software, the more uses you will discover. Imagine how the senior executives will perceive your department when you can say your team helped increase sales and that you have processes in place to monitor for any missed opportunities that occur in the future.

Adding Value through Emerging Loss Prevention Technology and Data Analytics

achieve this is to embed your culture, knowledge, services, and technology throughout the entire enterprise. It’s no longer enough to simply protect profits; it’s time to start thinking about how you can expand them.

continued on page 66 |

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Wages, Employee Performance, and Retail Industry Trends: Looking at Walmart’s New Approach

continued from page 64

Botched Crisis Management at Wells Fargo?

By Jac Brittain, LPC

By Bill Turner, LPC

Recently, the news seems to be reporting one crisis after another. The effectiveness of a company’s crisis management plan and execution can be a virtual make-or-break situation. Let’s take a closer look at Wells Fargo regarding unethical sales practices and the creation of phony accounts to boost sales numbers. All indicators are that Wells Fargo’s management scored poorly in their crisis management response. In fact, the Dow Jones business news called their efforts “a textbook case of botched crisis management.” Senators from both major parties have chastised Wells Fargo’s then-CEO John Stumpf over the company’s sales practices. Senator Elizabeth Warren of Massachusetts called it “gutless leadership and fraud.” The Wells Fargo team seemed unprepared and did not answer many questions from legislators about faulty sales practices. This ineffective response led to a $185 million fine. In the opinions of several former Wells Fargo executives, the root of the debacle stemmed from an insular culture that left it ill-prepared to effectively deal with a major crisis. Wells Fargo did respond by firing some 5,300 employees, but those layoffs only represented about 1 percent of its employee base. The bank would neither confirm or deny any wrongdoing, and Stumpf showed zero empathy, never saying he was sorry. At one point, an Oregon senator accused Stumpf of “scapegoating people at the bottom.” Wells Fargo’s crisis management missteps continued as it was reported that Stumpf became aware of the faulty sales practices as early as the fall of 2013. When he appeared before the Senate Banking Committee, he had few concrete answers. New CEO Tim Sloan got off to a rocky start when he announced a drop in profits while analysts were demanding more information on the crisis that had prompted his appointment. On the call, Sloan continually deflected questions and referred to the board’s continuing investigation. Wells Fargo’s crisis management efforts, at best, have been ineffective and, at worst, inexcusable for a company of its size. While crisis management and communication can be complicated, there are basic dos and don’ts that Wells Fargo seemed to be ignorant of or just disregarded. It is important that, in any major crisis, the top officer in the company is visible and is effectively communicating their response and direction. No executive should be expected to go it alone. Done right, effective crisis management takes a whole team that represents all critical functions of a company and prepares for a wide variety of issues that might arise in the future. While it is unclear if Wells Fargo has such a team or if they drilled to develop effective crisis management processes, it is clear that their actions have served to make the crisis worse, not better. Rarely is a company in a position to “tell all” during a major crisis. But they need to make every effort to show some transparency, empathy, and cooperation. “No comment,” especially from the top, doesn’t do any of that.

JANUARY–FEBRUARY 2017

Following an important topic that has been widely discussed throughout 2016, recent retail industry trends have explored the relationship between wage increases and the impact on employee performance. And as many employees and other interest groups across the country have expressed their opinions about wage increases and their impact on all involved, a recent New York Times article explored the subject and the potential impact that wage increases can have on employee performance by taking a closer look at the world’s largest retailer. A few years ago, Walmart, which once built its entire branding around a big yellow smiley face, was creating more than its share of frowns. Shoppers were fed up. They complained of dirty bathrooms, empty shelves, endless checkout lines, and impossible-to-find employees. Only 16 percent of stores were meeting the company’s customer service goals. The dissatisfaction showed up where it counts. Sales at stores open at least a year fell for five straight quarters; the company’s revenue fell for the first time in Walmart’s forty-five-year run as a public company. To fix it, executives came up with what, for Walmart, was a revolutionary idea. In early 2015, Walmart announced it would actually pay its workers more. That set in motion the biggest test imaginable of a basic argument: what if paying workers more, training them better, and offering better opportunities for advancement can actually make a company more profitable, rather than less? The results are promising. By early 2016, the proportion of stores hitting their targeted customer-service ratings had rebounded to 75 percent. Sales are rising again. At the store level, managers describe a big shift in the kind of workers they can bring in by offering higher pay rates. “We’re attracting a different type of associate,” said Tina Budnaitis, a Walmart manager. “We get more people coming in who want a career instead of a job.” From a loss prevention perspective, results from the annual National Retail Security Survey (NRSS) and other research conducted by Richard Hollinger, PhD, often considers the relationship between employee satisfaction, employee wages, and the impact of these critical retail industry trends on employee theft. How exactly would higher retail wages impact shrink in retail stores? Would higher wages influence overall store performance? Similarly, the research and content supported by Read Hayes, PhD, and the Loss Prevention Research Council also looks at retail industry trends and the many influences that support the motives behind employee theft, including employee wages and job satisfaction. In a volatile corporate world, an unexpected recession or management change, or rise of a new competitor, could upend any plans. But in the short term, the Walmart experiment shows pretty clearly that paying people better improves both the work force and the shoppers’ experience. As retailers look for answers to the ongoing threat of theft, fraud, and the many factors that impact retail shrink, let’s hope that these recent retail industry trends can have a similar impact on the loss prevention industry and our ongoing battle with retail industry shrink. continued on page 68 LOSSPREVENTIONMEDIA.COM

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Amazon Continues to Reshape the Retail Industry By Bill Turner, LPC

The idea of shopping online for groceries is not new. Retail technology companies have tried over and over to fix what people hate most about grocery shopping—long lines, slow moving cashiers, and now the long wait for chipped credit cards to process. As history has seen, however, the retail industry is slow to change on one issue that is critically important when it comes to groceries—touching and feeling the product. There have been many technological advances to improve the grocery shopping experience. Some have worked; some have not. Self-Checkout. It has worked reasonably well for some retailers. But grocery checkout is often more complicated. Weighing produce, having to wait for clearance when purchasing alcohol, and malfunctioning scanners are all major frustrations for consumers. Many grocery chains are removing or scaling back on self-checkout. Delivery. Once upon a time, most grocers delivered. But the rise of supermarkets and the automobile virtually ended the practice. In the late 1990s, Webvan had some success in web-based grocery delivery. But they lost millions of dollars and went bankrupt in 2001. There have been others. Even some large supermarket chains began experimenting with online order and delivery. Arranging delivery windows and guaranteed availability of items ordered online have been major problem areas. Plus the consumer can’t squeeze the melons. Self-Scanning. Europe has seen some modest success around having customers self-scan grocery items with their smartphones and using apps for mobile payment, thus avoiding checkout lines altogether. Meanwhile, the US retail industry remains skeptical. Dash Away. Amazon took a swing at the online grocery market in 2015 by launching its Dash button. The WiFi-enabled devices are branded with specific products, and the customer simply clicks the button to reorder from their Amazon account when needed. But adoption of the concept has been far from overwhelming. Smart Appliances. The idea of your refrigerator keeping track of food inside and having a food purchase app is novel. Samsung has been pushing hard in this area. However, to date, technical glitches and the continual need to update software have been major hurdles. Mobile Payments. Mobile payments are catching on rapidly but still only represent 19 percent of all purchase payments. Again, technical glitches have prevented widespread adoption. The requirement to have a relatively new and sophisticated cell phone and concerns over privacy and data security are also major issues. Delivery Drones. Again, the retail industry remains skeptical. Amazon is hard at work trying to iron out logistical and regulatory issues to bring it to reality, but progress is very slow. The widespread adoption of online shopping for groceries isn’t here yet. But as we know, Amazon never gives up thinking about how to make shopping more convenient for the consumer. The Amazon Go grocery store is now in the testing stage. It is still some ways away as the concept is grounded in a brick-and-mortar store. The idea is to allow shoppers to walk into the store, select items, and walk out, totally skipping the checkout process. Everything selected gets automatically charged to the customer’s credit card.

JANUARY–FEBRUARY 2017

The system relies on a series of cameras and microphones. A customer’s smartphone is “tagged” when entering the store using the Amazon Go app. The system tracks the customer’s movements throughout the store. The customer’s selection of an item or returning it to the shelf is closely tracked by cameras. Payment is automatically calculated for all items selected and charged to the customer’s account. The customer simply leaves the stores with their purchases. The concept uses the latest technology to make grocery shopping more seamless for the customer. Will it happen? Maybe. But as we have seen, the US retail industry customer is skeptical. Loss of control, privacy issues, and other concerns still need to be overcome in order to make technology-assisted grocery shopping a reality. And how do you squeeze the melons? Time will tell.

More on LossPreventionMedia.com For more original news content, see the following articles: ■

ow the Right Retail Cash Management H Solution Can Minimize the Costs of Cash

■ Will

the Retail Industry Become Cashless?

■ The

Holidays Are Here. Are Your LP Plans in Place?

■

nreported Cargo Theft Incidents Make U it Difficult to Grasp Scope

■

2016 Data Breach Statistics by the Numbers

■

lack Friday, Other Retail Industry B Holiday Shopping Trends Shifting

■

RFID Technology and Asset Protection

■

Credit Card Fraud Goes Online for the Holiday Season

■

wareness of E-commerce Security A Issues Is the First Step

■

75 Years Ago: Pearl Harbor Anniversary

■

LP Magazine 2016—Wow! What a Year!

■

E-commerce Has Not Killed Brick and Mortar

Professional Development ■

LP101 Investigations and Retail Fraud

■

Keeping Your Loss Prevention Job Search Confidential

■

LP101 Safety in the Workplace: Program Elements

■

P101 Safety in the Workplace: Safety L Compliance Initiatives

■

LP101 Safety in the Workplace: Identifying Hazards

■

How to Snag a Loss Prevention Job

■

P101 Safety in the Workplace: Safety L Performance Measurements

LPM Voice ■

Y our Safe Can Do What? LP with Cloud-Based Management

■

Can a Smart IP Video Solution Help You Solve Problems?

■

re- and Post-incident Actions to Rebuff P Negligent Security Lawsuits

■

Holiday Crooks Are Here; Get Ready Inside and Out

■

hould You Pay for Security Technology S the Same Way You Pay for Theft?

■

Has the Time Arrived for RFID?

LOSSPREVENTIONMEDIA.COM

-  

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-  - 

   

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  

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PEOPLE ON THE MOVE Steven L. Jacson II, Ted Johnson, and Phillip Rice are now Regional AP Managers, and Mario Perez is now DC/Supply Chain AP Manager at 99 Cent Only Stores. Jasmine Choi was promoted to Senior District Manager AP at Abercrombie & Fitch. Joe Nuccio was named Senior VP, Business Development at ADT. Mike Putman was named Regional Sales and Business Development Manager at AFA Protective Systems. Emma Gomez was promoted to Corporate AP Data Analyst at Albertsons.

Tom Darling is now Regional LP Manager, and Paul Wheeler is now Distribution Center LP Manager for Retail Business Services LLC, an Ahold-Delhaize company. Scott Sanford was named Director of LP for Dollar Express. Randy Lima, CFE, CFI, LPC, is now Regional LP Manager at Dollar General. Sharon Van Meter is now Regional AP Manager at Dollar Tree Stores.

Octavio Jara, LPC was promoted to Senior Manager of Security at McDonald’s.

Ryan Torres was promoted to Regional AP Manager at Five Below.

Robert Gibson, CFI, was named Regional Logistics LP Manager, West Coast for Amazon.

Debra Martin was promoted to Senior Director–LP, Compliance, and Retail Communication at The Fresh Market.

Justin MacIntyre, CFI, LPC, and Zak Brownlee, CFI, LPC, were promoted to Regional LP Managers at Bealls. Brandon Decker is now Market Director of AP at Bloomingdale’s. Jessie Alvarez is now Regional LP Manager at Brooks Brothers. Brian Vincent and Karl Hall are now Regional LP Managers at Burlington Stores. Sean Johnson was promoted to Regional LP Manager at Charlotte Russe. Mark Reagan is now Regional LP Manager at the Children’s Place. Bob McCort has been named Director of LP for Claire’s.

Troy Holub was promoted to Director, AP and Building Services at Luxottica.

Bryant Grant, CFI, is now Area LP Manager at The Exchange.

Karl Langhorst, CFI, is now Executive VP for ALTO USA.

Armine Esackanian, MBA, was promoted to Regional AP Manager, and Frederick Allard is now District AP Manager at BCBG MaxAzria.

Jason Lopes was promoted to National Senior Manager Supply Chain LP, and Cam Wong was promoted to District LP at Loblaw Companies.

Justin Hallstrom was promoted to District LP Manager at Marshalls.

Salvatore Lupo is now Regional LP Manager at Family Dollar.

Jason Philpott is now Regional LP Field Coordinator at AT&T Mobile.

Shaun Vanderwerf, CFI, is now Regional LP Manager–Bath & Body Works at L Brands

Marco Alongi is now Global LP Investigator at Dufry Group in the UK.

Mike Limauro has been named VP of AP, Risk, and Safety at Alchemy Systems.

Tom Banks is now Senior Manager, LP, Supply Chain, and E-commerce at Aritzia.

Ryan Bauss, CFI, named Director of Center Store AP for Retail Operations at Kroger.

Gap Inc. announced the following promotions: Wendy BarrecaMelbrod and Teri Railey to District LP Managers; Patrick Eidinger to Regional LP Manager; and Chris Anderson, CFI, and Matt Brenner, MA, CFI, to Senior Regional LP Managers. Mike Magrum, CFI, LPC, was promoted to Director of AP, and Justin Maiorana, LPC, is now Regional AP Manager at Harris Teeter Supermarkets. Adam Vass is now Area LP Manager at HMS Host. Robert Martell and Tom Rankin were promoted to District AP Managers at The Home Depot. Steven Mosser, Adam Ruiz, and Damon Burger are now District AP Managers; Jason M. Jones was named West Coast LP Director; Kimberly Sanders is now Senior Manager of AP Operations; and Jennifer Kajzer was named Senior Director of LP for JCPenney. Jeremiah Donnell was promoted Multi-unit AP Manager at Kmart.

Milestone announced the following changes: Eric Moe to Director of Sales Operations; Tom Young to Channel Business Manager, NY/NJ; Andrea Meissner to Inside Channel Manager; Reg Collins to Western Canada Channel Business Manager; Mike Sherwood to Director, Technical Operations, Americas; and Brad Thomas to Strategic Account Manager. Kendra Pryce, CFI, was promoted to Director of Investigations at Nike. Tom Mace is now VP for the Southeastern Region at Office Depot. Diane Valdez is now Market LP Manager at Paradies Lagardere. Talana Lattimer is now Director of Digital Communications, and Christin Fernandez is now VP of Communications for the Retail Industry Leaders Association (RILA).

Kate Bryte is now District LP Manager at Save Mart. Dustin Wells is now Regional LP Manager at Savers. Umair Khan was promoted to Director, E-commerce AP, and Lonndon Seely was promoted to Divisional VP/Format Leader at Sears Holdings. Michael Hagenbush, CFI, CFE, is now Director of Audit and LP Integration at Sherwin Williams. Matthew Yount is now Regional LP Manager at Skechers. Patrick Keegan is now District AP Manager at Stage Stores. Kevin M. Plante, LPC, is now Global LP Operations Leader, and Charles Lewis was promoted to Senior Manager of LP at Staples. Matt Noriega-Saito was promoted to POS Investigations Lead, Global Investigations at Starbucks. Matt Widder was promoted to District AP Team Leader at Target. Amanda Belding was promoted to Assistant VP, Director, Planning, and Allocation, and Jeremy Henderson is now Regional LP Manager at TJX Companies. Randy Perkins, Ruthann Wolfgang, Christina Leiphart, and Randy Perkins were promoted to District LP Manager at Turkey Hill Minit Markets. Michael Redman named Director of LP for Unified Grocers. Anthony Slaughter is now National Sales Representative for USS.

Jeremy Ostapuk and Inder Minhas are now Regional LP Managers at Rexall.

Jonathan Grogan, CFI is now Regional LP Manager at Victoria’s Secret.

Herbert Melendez was promoted to Corporate Manager of AP, and Justin Goff was promoted to Regional Director of AP at Rite Aid.

James Partin has been promoted to Director of LP at Von Maur.

Stephanie (Sabato) Boyd is now an Area LP Manager at Ross Stores. Dale Lindgren is now Regional LP Manager at Sally Beauty.

James Connell and Ketrina Shyti are Market AP Managers, and Ali Kassim is Regional AP Director at Walmart. Nick Seaman was promoted to Head of LP, Manufacturing and Logistics at Wm Morrison Supermarkets.

To stay up-to-date on the latest career moves as they happen, sign up for LP Insider, the magazine’s daily e-newsletter, or visit the Professional Development page on the magazine’s website, LossPreventionMedia.com. Information for People on the Move is provided by the Loss Prevention Foundation, Loss Prevention Recruiters, Jennings Executive Recruiting, and readers like you. To inform us of a promotion or new hire, email us at peopleonthemove@LPportal.com.

LP MAGAZINE | JANUARY–FEBRUARY 2017

CALENDAR January 15–17, 2017 National Retail Federation Big Show Convention & EXPO Jacob K. Javits Convention Center New York, NY nrfbigshow.nrf.com February 12–15, 2017 Retail Industry Leaders Association Retail Supply Chain Conference Gaylord Palms Resort and Conference Center Orlando, FL rila.org February 20–22, 2017

Innovision 2017 Education Conference

Hyatt Regency Pier Sixty-Six Ft. Lauderdale, FL innovision2017.com

ADVERTISERS 7PSolutions............................................................67 7pgps.com

April 6, 2017

Cyber Security Summit Ritz-Carlton Buckhead Atlanta, GA cybersummitusa.com

American Public University.................................25 studyatapu.com/lp-mag

April 9–12, 2017 Retail Industry Leaders Association Retail Asset Protection Conference Hyatt Regency New Orleans (LA) rila.org April 25–28, 2017

International Organization of Black Security Executives IOBSE Spring Conference Hosted by Walmart Bentonville, AR iobse.org

Amphion.................................................................45 amphion.biz Axis Communications...........................................61 axis.com/support BSI...........................................................................19 bsi-eas.com Certified Forensic Interviewer ...........................70 certifiedinterviewer.com Checkpoint.............................................................31 checkpointsystems.com ClickIt Inc...............................................................23 clickitinc.com ControlTek................................................................9 controltekusa.com/rfid Cyber Security Summit........................................69 cybersummitusa.com Detex.........................................................................7 detex.com/badboys

May 5, 2017

Digilock...................................................................67 digilock.com

February 26–28, 2017

Omni Dallas (TX) Hotel cybersummitusa.com

Food Marketing Institute.....................................63 fmi.org/lpm

Eden Roc Resort, Miami, FL securestoresforum.com

June 1, 2017

March 1, 2017

The Westin Seattle, WA cybersummitusa.com

Hyatt Regency Denver, CO cybersummitusa.com

June 26–28, 2017 National Retail Federation NRF PROTECT Gaylord National Harbor Washington, DC nrf.com

Secure Stores Forum

Cyber Security Summit

March 7–9, 2017

Jewelers’ Security Alliance Seminar & Expo Kissimmee, FL jewelerssecurity.org March 13–16, 2017

Merchant Risk Council MRC Vegas

Aria Resort, Las Vegas, NV merchantriskcouncil.org March 20–22, 2017 Food Marketing Institute Audit, Safety, Asset Protection (ASAP) Conference Rosen Shingle Creek Orlando, FL fmi.org April 4–7, 2017 ISC West Sands Expo Las Vegas, NV iscwest.com

Cyber Security Summit

June 29, 2017

Cyber Security Summit

Ritz-Carlton Tysons Corner McLean, VA cybersummitusa.com July 30–August 2, 2017 Restaurant Loss Prevention & Security Association Annual Conference M Resort Las Vegas, NV rlpsa.com September 25–28, 2017 ASIS International 63rd Annual Seminar and Exhibits Kay Bailey Hutchison Convention Center Dallas, TX asisonline.org October 2–4, 2017 Loss Prevention Research Council Impact 2017 Conference University of Florida, Gainesville lpresearch.org

For more information about these and other industry events, visit the Events page at LossPreventionMedia.com.

AFA..........................................................................67 afap.com

JANUARY–FEBRUARY 2017

FireKing Security Group.......................................43 fireking.com Hanwha Techwin America..................................35 hanwhasecurity.com Industrial Security Solutions...............................55 isscorpus.com INNOVISION 2017.................................................50 innovision2017.com InstaKey Security Systems.................................37 instakey.com JVCKENWOOD USA Corp...................................49 kenwood.com/usa Loss Prevention Foundation................................45 losspreventionfoundation.org LPI............................................................................21 lpinnovations.com LPM Media Group.................................................38 lpmmediagroup.com LPjobs.com.............................................................67 lpjobs.com Protos Security........................................................3 protossecurity.com The Retail Equation.................................................5 theretailequation.com Retail Industry Leaders Association.................65 rila.org/ap Rocateq..................................................................67 rocateq.com Securitas................................................................13 securitases.com Security Resources..............................................75 securityresources.net Southern Imperial.................................................33 southernimperial.com Sysrepublic..............................................................5 sysrepublic.com Tyco Integrated Security.....................................76 synergyinretail.com USS............................................................................2 ussinnovate.com Verisk Retail...........................................................47 veriskretail.com Xpanda Security Products..................................59 xpandasecuritygates.com The Zellman Group.................................................1 zellmangroup.com

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VENDOR ADVISORY BOARD American Public University Tatiana Sehring Director, Corporate & Strategic Relationships

ControlTek Steve Sell Vice President, Global Sales & Marketing

Axis Communication Hedgie Bartol, LPQ Business Development Manager, Retail

Detex Ken Kuehler National Account Manager

Best Security Systems (BSI) John Gantenbein President CAP Index Stephen B. Longo Vice President, Strategic Initiatives Checkpoint Stuart Rosenthal Vice President Sales ClickIt Inc. Jim Paul Director of Sales

FireKing Security Group James Currey Senior Vice President Cash Management Solutions Industrial Security Solutions Dave Sandoval President InstaKey Security Systems Cita Doyle, LPQ Director of Sales & Marketing LP Innovations Steven May President/CEO

Nedap Retail Patrick O’Leary Vice President & General Manager NA

Southern Imperial Robb Northrup Marketing Manager

Palmer, Reifler & Associates Jeff Welch Executive Director

Turning Point Justice Lohra Miller President and CEO

Protos Security Kris Vece Director of Client Relations

Tyco Integrated Security Kevin E. Lynch, LPC Executive Director

The Retail Equation Tom Rittman Vice President, Marketing

Universal Surveillance Systems Adel Sayegh Chief Executive Officer

Securitas Electronic Security Terrie Ipson Director of Marketing

Verisk Retail Cheryl Blake Vice President

Security Resources, Inc. Patricia M. Rusak Director of Sales

The Zellman Group Stuart Levine, CFI, CFCI CEO

LP MAGAZINE | JANUARY–FEBRUARY 2017

PARTING WORDS

Happy New Year T

Jim Lee, LPC Executive Editor

his column is about things I may have said before in January, favorite things I heard said in 2016, and some issues for 2017.

Things Worth Repeating

Things I said in previous Januaries that I think are still pertinent include: ■M ake a list. Write down those things you want to accomplish or work a little harder on getting them done. ■V alue friendships. Work a little harder on rekindling past relationships and take advantage of friendship opportunities that may come your way. Your friends need to know that you care about them and how good it makes you feel that they care about you. ■C ount your blessings. Don’t fall in the trap of wanting more of this and more of that. Remember where you started, where you are now, and appreciate what you have. ■R aise your hand. It is always good that you can find a little money to support good causes that help those not so fortunate. But it does not have to always be money. Find a few hours a month to give of your time. That may be more valuable than money. ■Y our work is your calling. Don’t view what you do as a job but as what you want to do more than anything else. See it as your calling and a positive experience that makes you feel good. ■“ When you come to the fork in the road, take it.” That is what Yogi Berra would have said you should do. Just make a decision and move on. Don’t worry about the horse being blind; just load the wagon. Go for it and stay the course. ■G ood things do happen to good people. Teddy Roosevelt was quoted as saying, “In the battle of life, it is not the critic who counts, not the one who points out how the strong stumbles or where the doer of a deed could have done better. The credit belongs to those who have actually been in the arena.” ■M ake yourself unforgettable. You will meet a lot of unforgettable people in your travels. Make yourself unforgettable to others by showing your passion for your profession.

Good Things I Read

I read a lot of great articles in the magazine in 2016, both in print and digital. If I was giving out an award—an Espy, Oscar, or Magpie—here are a few excerpts from my favorites for the year. In “Changing Roles and Challenges in LP” in the March–April print edition, four senior directors of big companies talked about their profession. Brian Peacock of Rent-A-Center said, “Today I see a lot of great educational programs for someone starting out in a loss prevention career. I think it is critical to continue to push yourself to stay in tune

JANUARY–FEBRUARY 2017

with what is trending in your field and to be aware of the changing landscape of retail and the new skills sets needed to stay relevant.” Stacey Bearden of The Home Depot said, “Broader business experience is extremely valuable within the organization. While there is a significant piece of what we impact that is theft and fraud related, there are other completely controllable operational factors. Business acumen is not only beneficial but also necessary.” Tim Belka of Walgreens said, “Our profession has progressed significantly in the development of diverse thought and background of the people who pursue loss prevention careers. However, in retrospect it would have benefited the industry to aggressively pursue diversity of thought and background to make us more effective and relevant.” Art Lazo of 7-Eleven said, “It is the role of LP leadership to continue to seek out opportunities to address challenges that may be outside of the normal LP channels. Retail is constantly changing, and we need to be able to adapt accordingly and show value in our roles.” If somehow you missed this, the interview with these special executives is worth the read.

Important Issues in 2017

Here are some important “issues” to think about heading into 2017: W hat will be the outcomes of new leadership at Kroger, CVS, and Meijer? These are big jobs impacting lots of people. ■C an the leadership team headed by Scott Ziter reignite the Food Marketing Institute conference, now called ASAP? See the featured interview on page 27 in this issue for my interview with Scott and his comments on the conference in March. ■S tay tuned for another step into international certification with the Loss Prevention Foundation. In addition, the foundation is working on programs with retailers on disengagement and organized retail crime (ORC) education. ■S olution providers will continue to create products that will impact ORC and shoplifting. Violence remains a critical concern by all with apprehensions. ■T hink hacking is a political issue? Cyber security is still on the front burner on companies’ risk plates—and maybe on your personal device. ■P lan now for the Retail Industry Leaders Association (RILA) conference in New Orleans. RILA and the event committee do a terrific job for asset protection. ■A re your crisis management programs and roles solidly in place? Could be a tough year. ■W ill you see the solar eclipse? Who will retire? Will you change jobs? Will I get my knee surgery finally done? And will the Cubs win again? All are important issues. LP Magazine is now fifteen plus one and striving to do better each pass at it. ■

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