November - December 2018 by Loss Prevention Magazine

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MISSION DRIVEN INSIDE THE DEMANDING,

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An Unmatched Depth of Perspective

TABLE OF CONTENTS 6 EDITOR’S LETTER

Finding Answers through Research By Jack Trlica

10 RETAIL SPONSORS

12 INTERVIEWING

Mission Driven

Evaluating Memory: I Remember It This Way By David E. Zulawski, CFI, CFE and Shane G. Sturman, CFI, CPP

Inside the demanding, rewarding world of Goodwill loss prevention

24 ASK THE EXPERT

Retail’s Opportunity to Help Reduce Recidivism

By Garett Seivold, Senior Writer

Interview with Barbara Staib

26 LPM EXCELLENCE

LPM “Magpie” Award: Applauding Excellence

Featuring Wayne Hoover, CFI, and Chad McIntosh

Getting to Know You

34 FUTURE OF LP

How Our Memories and Perspective Are Shaped by Social Media By Tom Meehan, CFI

Three Executives Reflect on Their Careers in Loss Prevention

36 CERTIFICATION

Fundamental LP Knowledge Interview with Sue Read, LPC, FleetPride

By James Lee, LPC, Executive Editor

38 SUPPLY CHAIN

Into the Rabbit Hole of Supply-Chain Risk

By Maurizio P. Scrofani, CCSP, LPC

Scream if You Want to Go Faster

64 EVIDENCE-BASED LP Plan to Win

By Read Hayes, PhD, CPP

67 SOLUTIONS SHOWCASE - Protos Security - CONTROLTEK - Fortalice Solutions - LP Innovations - 7P Solutions

The roller-coaster world of profit protection at Europe’s largest entertainment company By John Wilson, Executive Editor, LPM Europe

74 LPM DIGITAL

Actions and Outcomes By Kelsey Seidler

75 CALENDAR 77 ANNUAL INDEX

78 PEOPLE ON THE MOVE 80 ADVERTISERS

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80 SUBSCRIPTION FORM 81 VENDOR SPONSORS 82 PARTING WORDS Once Upon a Time

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EDITOR’S LETTER

Finding Answers through Research

esearch in the loss prevention industry is alive and well on both sides of the Atlantic. Several organizations are growing our body of knowledge related to asset protection and controlling shrink through numerous ongoing surveys and research projects.

National Retail Security Survey

Earlier this summer the National Retail Federation (NRF) published the 2018 National Retail Security Survey (NRSS), now in its twenty-seventh year. Sponsored by Appriss Retail, the NRF survey is produced through a strategic partnership with Richard Hollinger, PhD, (retired) of the University of Florida. Key findings from the latest report shows an average shrink rate of 1.33 percent for US retailers, which is a slight decrease over previous surveys. Shrink distribution was reported as: ■■ 35.7% shoplifting and organized retail crime ■■ 33.2% employee theft ■■ 18.8% administrative and paperwork error ■■ 5.8% vendor fraud or error ■■ 6.6% unknown loss LP executives have long used the NRSS as a tool for comparing their companies’ shrink results against others in their retail segments. The full report can be downloaded at nrf.com/nrss.

Global Shrink Index About the same time the Sensormatic© Global Shrink Index was published by Tyco Retail Solutions and reported in our July–August issue in an article titled “The Worldwide Impact of Shrink.” This global research was conducted across fourteen countries in four regions—US, Europe, Asia Pacific,

and Latin America—and thirteen retail segments among retailers that account for 80 percent of total retail sales worldwide. As a comparison to the NRSS, the average US shrink rate was calculated at 1.85 percent (versus 1.82% globally). The US shrink distribution reported in this survey used only four categories of loss: ■■ 35.6% shoplifting ■■ 24.4% employee theft ■■ 18.4% administrative error ■■ 21.5% vendor fraud The full Global Shrink Index report that includes results from all regions surveyed can be found at shrinkindex.sensormatic.com.

Loss Prevention Research Council

Tyco Retail Solutions is also a major sponsor of the Loss Prevention Research Council (LPRC) based at the University of Florida in Gainesville where the LPRC maintains what they call their Innovation Lab just off campus. The LPRC membership currently includes over seventy retailers, another seventy solutions providers, as well as numerous manufacturers and industry associations and media including LP Magazine and the Loss Prevention Foundation. The LPRC conducts research in their Innovation Lab as well as in test stores in several areas of the United States. Research projects may focus on only one retailer or across several retail participants. Most of the findings are proprietary to the membership, but some are shared publicly either through their website at lpresearch.org or at their annual Impact conference each October. The most recent conference saw roughly 400 participants in the three-day event.

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This magazine also publishes ongoing articles both in our print and digital channels by LPRC scientists, including its managing director Read Hayes, PhD, and researchers Mike Giblin and Stephanie Lin.

ECR Community Shrink & OSA Group

The ECR Community Shrink & On-shelf Availability Group is a retailer-manufacturer working group focusing on finding ways to better manage the problems of on-shelf product availability, shrinkage, and food waste. Well-known UK researcher Professor Adrian Beck, recently retired from the University of Leicester, is an academic advisor while Colin Peacock is a strategic coordinator to the ECR. Both are frequently published in both LP Magazine’s US and Europe publications. In October at the magazine’s annual meeting, which is colocated with the Retail Industry Leaders Association (RILA) Asset Protection Leaders Council, Beck presented recent research on self-checkouts. Attendees reported the results were eye-opening. We expect to publish Beck’s research results in the next issues of the US and Europe magazines. The ECR and RILA have already sponsored research with Beck that has resulted in significant findings related to total retail loss (a new, more holistic definition of shrink), so-called “hot products,” and the impact of supply-chain factors on on-shelf availability. More information can be found at ecr-shrink-group.com.

Jack Trlica Managing Editor

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EDITORIAL BOARD Charles Bernard Group Vice President, Asset Protection and Comprehensive Loss, Walgreens

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

Erik Buttlar Vice President, Asset Protection, Best Buy

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

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

Randy Meadows Senior Vice President, Loss Prevention, Kohl’s

Ray Cloud Senior Vice President, Loss Prevention, Ross Stores

Melissa Mitchell, CFI Director, Asset Protection and Retail Supply Chain, LifeWay Christian Stores

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

Richard Peck Senior Vice President, Loss Prevention The TJX Companies

Charles Delgado, LPC Regional Vice President, Store Operations, Academy Sports Scott Draher, LPC Vice President, Loss Prevention, Safety, and Operations, Lowe’s Scott Glenn, JD, LPC Vice President, Asset Protection, The Home Depot Barry Grant Chief Operating Officer, Photos Unlimited Bill Heine Senior Director, Global Security, Brinker International Frank Johns, LPC Chairman, The Loss Prevention Foundation Paul Jones, LPC Director, Asset Protection and Risk Management, CKE Restaurants Holdings Mike Lamb, LPC Vice President, Asset Protection, The Kroger Co. David Lund, LPC Vice President, Loss Prevention, DICK’S Sporting Goods

EXECUTIVE EDITOR James Lee, LPC JimL@LPportal.com

Tina Sellers, LPC Director, Asset Protection, Retail Business Services LLC, an Ahold-Delhaize Company

MANAGING EDITOR, DIGITAL Kelsey Seidler KelseyS@LPportal.com

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

Hank Siemers, CFI Vice President, Global Retail Security, Tiffany & Co. Quinby Squire Vice President, Asset Analytics and Insights, CVS Health Mark Stinde, LPC Vice President, Asset Protection, 7-Eleven Paul Stone, CFE, LPC VP Security, Goodwill Industries of SE Wisconsin Pamela Velose Vice President, Asset Protection, Belk Keith White, LPC Senior Vice President, Loss Prevention and Corporate Administration, Gap Inc.

EDITORIAL DIRECTOR Jacque Brittain, LPC JacB@LPportal.com

RETAIL TECHNOLOGY EDITOR Tom Meehan, CFI TomM@LPportal.com

Joe Schrauder Vice President, Asset Protection, Walmart Stores

NOVEMBER-DECEMBER 2018

700 Matthews Mint Hill Rd, Ste C Matthews, NC 28105 704-365-5226 office, 704-365-1026 fax MANAGING EDITOR Jack Trlica JackT@LPportal.com

Loss Prevention, LP Magazine, LP Magazine Europe, LPM, and LPM Online 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.

LOSS PREVENTION MAGAZINE

DIRECTOR OF DIGITAL OPERATIONS John Selevitch JohnS@LPportal.com SPECIAL PROJECTS MANAGERS Justin Kemp, LPQ Karen Rondeau DESIGN & PRODUCTION SPARK Publications info@SPARKpublications.com CREATIVE DIRECTOR Larry Preslar ADVERTISING MANAGER Ben Skidmore 972-587-9064 office, 972-692-8138 fax BenS@LPportal.com SUBSCRIPTION SERVICES

NEW OR CHANGE OF ADDRESS LPMsubscription.com or circulation@LPportal.com POSTMASTER Send change of address forms to Loss Prevention Magazine P.O. Box 92558 Long Beach, CA 90809-2558 Loss Prevention aka LP Magazine aka LPM (USPS 000-710) is published bimonthly by Loss Prevention Magazine, Inc., 700 Matthews Mint Hill Rd, Ste C, Matthews, NC 28105. Print subscriptions are available free to qualified loss prevention and associated professionals in the U.S. and Canada at LPMsubscription.com. The publisher reserves the right to determine qualification standards. International print subscriptions are available for $99 per year payable in U.S. funds at circulation@LPportal.com. For questions about subscriptions, contact circulation@LPportal.com or call 888-881-5861. Periodicals postage paid at Matthews, NC, and additional mailing offices.

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INTERVIEWING

Evaluating Memory: I Remember It This Way

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

minutes, then stop and turn the stage over to the Democrats for five minutes—much more a show than a search for the truth.

ver the last several months, we have had an opportunity to watch a social and political drama play out as the alleged victim and perpetrator traded allegations and denials under the umbrella of the selection of a United States Supreme Court justice. The last time this occurred was during the hearings to appoint Judge Clarence Thomas to the court in the 1990s. Evaluating the memories of individuals can be critical in determining the veracity of each side of the issue. In the current debate, we are left to examine the memories of a fifteen-year-old girl some thirty-five years later and the current denials of the alleged abuser. Because of their preconceived biases, it wasn’t surprising that after the testimony almost no one changed their beliefs relating to who was telling the truth. What we can say for certain is there are only two or three people who know the real truth about that evening.

Memory Science While the political system used to vet candidates in Congress is clearly flawed, the differing memories are something we should examine more closely. We have all probably noted that memories can change over time as we retell and perhaps embellish a story for humorous reasons. Memories can be contaminated by the media or others who had their own thoughts or assumptions on the incident. Sometimes an event told by someone else changes over time and becomes our own. A memory is not like a video recording of an event that clearly captures all the details in a chronological order. Elizabeth Loftus, PhD, a renowned memory researcher, illustrates a more accurate version of memory: “Memories don’t sit in one place, waiting patiently to be retrieved; they drift through the brain, more like clouds or vapor than something we can put our hands around.” She means that our memories are distributed throughout the brain and may be linked by one or another of our senses to the event. Clearly, this is an oversimplification of an extremely complex storage-and-retrieval process. If we had these bits and pieces of drifting memory floating independently, it is easy to see how new memories can be shaped or created in their entirety. Over the years there have been a multitude of cases relating to repressed memories. These repressed memories often are “recovered” decades later as a result of therapy sessions with well-meaning counselors. Many of these memories become more and more bizarre as the questioning focuses on the “repressed memory.” In some child-abuse cases, the initial tale moved to orgies, satanic rituals, or killings as the probing continued, mixing fantasy with bits of reality to create an entirely new memory. Understanding the human mind is a complex process, but scientists think that the memory may begin with the recognition of objects in space forming the context of the memory. The details are spread much like a net with separate locales, and then the memory is imprinted. If each memory

Understanding the human mind is a complex process, but scientists think that the memory may begin with the recognition of objects in space forming the context of the memory. The details are spread much like a net with separate locales, and then the memory is imprinted. The FBI has been tasked with doing follow-up interviews to try and shed light on the situation and likely to avoid some political heat for the politicians. We know the professional interviewers from the FBI will do a better job than our politicians who have to pontificate rather than search for the truth. Even the questioning system set up for the congressional interview was flawed if one was really searching for the truth. Let the Republican-hired prosecutor ask questions for five

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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.

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strong feelings, which the therapist believes are indicators for the repressed memories. The question really must be considered, were the dreams real or did they and the resulting fragments come from the therapist’s attempt to resolve the client’s anxieties? A number of years ago psychologist Brooks Brenneis did a literature review looking at dreams and actual traumatic events. What he found during the literature review was that dreams about actual traumatic events did not reflect the actual traumatic event. Brenneis concluded, “There was no empirical evidence to substantiate the idea that specific traumatic experience predictably passes untransformed into dream content.” The process of altering or introducing a memory deals with the use of leading questions or even repeated attempts at retrieval during which certain words help set the tone of the event. There has been research into memory that clearly establishes that the first words in a list are best recalled during later attempts at retrieval. It’s the words in the middle of the list that are most often forgotten; concrete nouns are better remembered than abstract nouns; words that can be categorized are better remembered than those not categorized. But these laboratory attempts do not generalize well from the laboratory into the everyday world of victims and witnesses. However, some of the early work of Dr. Loftus showed how slight differences in how questions are asked and the words used have implications on the accuracy of a witness’s observations. In addition, when incorrect or misleading information was presented to a witness after the event, these also compromised the witnesses’ accuracy.

that we have has its own separate net of details crossing, overlapping, and perhaps replacing parts of the previous net, we can see how this analogy could contribute to a changing memory of an event. During therapy, many therapist do not recognize the inherent suggestibility of their clients and may reinforce delusional ideas or implant entirely new memories. Betsy Petersen, in her book Dancing with Daddy, describes the sudden recovery of her repressed memory. She said that while she was jogging, “A thought came into my mind as if it had been projected on the screen: I’m afraid my father did something to me.” In an attempt to explore this image further, she spoke with her therapist. ‘I have a story to tell you,’ I said to Kris, my therapist, several days later.’…‘I don’t know if I made it up or if it’s real.’ She listened: ‘It feels like a story to you,’ she said, ‘because when something like that happens, everybody acts like it didn’t.’ ‘You mean it might really have happened?’ Now I wasn’t sure I really did want to know. ‘There was a good chance it’d happened,’ she said.” The therapist went on to point out her strained relationships with family members, sexual difficulties, and the lack of closeness with her children all indicated abuse. Peterson went on in her book: “I had no memory of what my father had done to me, so I tried to reconstruct it.…I put all

The cognitive interview developed a series of retrieval strategies that provided greater levels of detail without contaminating the original memory or introducing errant details into the victim or witnesses story.

The Cognitive Interview One of the most successful advances in real-life interviewing was the development of the cognitive interview by R. Edward Geiselman and Ronald Philip Fisher. The cognitive interview developed a series of retrieval strategies that provided greater levels of detail without contaminating the original memory or introducing errant details into the victim or witnesses story. Some studies of the cognitive interview have shown retrieval gains of 40 percent with respect to accurate retrieval. The cognitive interview was later applied to real-life fieldwork settings using police officers as the interviewers with continued success. There have been other successful developments with memory retrieval in the areas of lineup research and interviewing child witnesses. The child witness is especially vulnerable to improper questioning since they are so suggestible and lack the life experience to understand the implications of their witness statements. In the next several columns we will discuss the complexity of human memory and implications for the interviewer who is attempting to recreate the events of the situation as accurately as possible. This will be important for any interviewer who is looking to identify the truth and actively wishes to avoid problem areas that can contribute to inaccurate details or the introduction of false details into an individual’s story.

my skill as a reporter, novelist, and scholar to work making that reconstruction as accurate and vivid as possible. I used the memories I had to get to the memories I didn’t have.” When examining the initial recovery of the memory, an investigator should consider how the therapist or interviewer developed the final memory. Often the therapist may have expectations or a predisposition that a client’s problems are caused by sexual abuse. Some therapists may ask the patient to go home and consider the possibility they had been sexually abused and to attempt to recover the memory of events. These memories can then be reinforced by asking suggestive or leading questions, further developing untrue details. Memories can also be introduced using what is being dreamt during the clients sleep cycle. These dreams form “indicators” of repressed memories, which the therapists’ work to retrieve other repressed memory fragments. These dreams may be reoccurring, nightmares, or dreams containing

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LOSSPREVENTIONMEDIA.COM

FEATURE

MISSION DRIVEN INSIDE THE DEMANDING, REWARDING WORLD OF GOODWILL LOSS PREVENTION By Garett Seivold, LPM Senior Writer

MISSION DRIVEN

fter a long career in loss prevention, including twenty-six years at Best Buy, Paul Stone, CFE, LPC, is now experiencing unparalleled results. Tempted out of semiretirement six months ago, Stone joined Goodwill Industries of Southeastern Wisconsin as its vice president of security. “We have zero shrink,” he said, a smile in his voice. “It is, by far, the lowest I’ve ever had in my career.” Paul Stone He’s joking. When you’re accepting and selling donated items, it’s impossible to know, really, how much diversion is going on. Traditional inventory tracking doesn’t exist. Valid shrink figures can’t be calculated. But while a standard performance metric may not apply, the importance of successful loss prevention is the same for a nonprofit as it is for any retailer—and perhaps more so. When LP leaders work for a cause-driven organization, revenue protection truly is “mission critical.” “Whether you’re at a big box store or a place like Goodwill, all of us in LP are trying to do the right things for our companies,” explained Larry Hartman, director of risk management, loss prevention, and safety at Goodwill Industries of Central Florida. “Usually that protection of assets is helping our companies’ sales. In our case, it’s providing the revenue we need to carry out our missions.” Goodwill is a big operation. It has 161 member organizations, comprises 3,250 North American stores, and has approximately 130,000 employees. It’s the second-largest nonprofit in the US, serves 36 million people annually, and has helped put people to work since 1902. It is both ubiquitous and well regarded; yet, it can be oddly misunderstood. People typically know that there is charity going on behind the scenes—that good works are the driving force lurking behind its

model—but the face of Goodwill is its retail locations. Its thrift store business is at the heart of its public image. So, for many people, there may not be much consideration of Goodwill beyond it being a good place to shop and a convenient way to get rid of clothes that no longer fit for a tax write-off. Until he got involved with Goodwill, Mike Keenan, CPP, CFI, LPC, said he had a very rudimentary picture of it. “But when you learn about all Mike Keenan that they do and how they help people in need, it really blows you away,” said Keenan, who has led LP at Macy’s, Ross, and Gap and is now president of Mike Keenan and Associates, a retail loss prevention consulting company. Goodwill organizations routinely provide job training opportunities and job placement free to disadvantaged individuals. “I found it really fascinating, and I have been moved by the people whose lives I’ve seen changed,” he said. He was so moved, in fact, that his volunteer commitment to his local chapter has expanded significantly, and since April 2018 he has served as the chairman of the board of Goodwill Industries of the Greater East Bay, which serves Alameda, Contra Costa, and Solano counties in Northern California. Before his involvement, however, “I mostly thought of it as a donation drop-off place,” said Keenan. “I didn’t know much about the mission or what it did.” Regardless of geography or size of Goodwill territory, LP leaders we interviewed cited awareness and perception as a primary determinant of LP’s success. Theft depends significantly on the extent to which employees and members of the public equate Goodwill’s mission with its thrift-store items. If that connection doesn’t exist,

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then the items on store shelves or at donation drop-offs are someone’s unwanted items or junk—and, to many, freebies for the taking. “Philosophically, when you’ve got donated product coming in, people see it as free. And because of that ‘free’ notion, they are certainly tempted to take it,” explained Keenan. “The ‘free’ attitude permeates everything about inventory loss. When people think it’s free, they don’t treat it as carefully. You can get in nice glassware, and someone will just throw it in a box.” The “free” attitude toward donated items underlies risk for a nonprofit retailer. And it is partly why some struggle financially even though inventory truly is, well, free. “Every Goodwill on the planet should be profitable, but some struggle because they lack efficiency and execution—and because of theft,” said Keenan, who is taking aim at exactly those items in an effort to solidify the unsure financial footing of Goodwill of the Greater East Bay. Trying to alter the “free” mindset is at the core of Goodwill LP programs, but implementing culture change is in addition to—it does not replace—typical retail risks. Resellers pose a problem. Stores get hit by organized retail crime (ORC) gangs. Price switching—yes, price switching—is a common scheme. Goodwill stores also face other unique risks, such as the fact that store associates are often individuals who would never pass a background check at a major retail chain. In short, Goodwill offers LP leaders a rewarding place to apply their talents, but it’s not easy work. “Thrift stores are a billion dollar business,” said Carlos Garcia, director of loss prevention for Goodwill Industries of South Texas. “But it’s also a million-dollar LP nightmare.” Carlos Garcia

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MISSION DRIVEN

The GII Mission Goodwill Industries International (GII) works to enhance the dignity and quality of life of individuals and families by strengthening communities, eliminating barriers to opportunity, and helping people in need reach their full potential through learning and the power of work.

Southeastern Wisconsin Goodwill Industries International (GII) provides its 161 member territories with consultation services, but they operate independently. Each one has its own leadership and decides for itself how best to run its business. There is support in the form of leadership seminars, including a summer conference that offers loss prevention leaders from the different territories an opportunity to learn from one another, but each decides the extent to which loss prevention is a priority and how to go about it. “Each territory decides for itself whether or not to have a security team or a safety team and determining what size those departments should be in order to best support the mission in that community,” explained Paul Stone. The core mission of empowering people through employment is at the foundation of all Goodwill organizations, but the mission services in support of it vary widely. Job training and placement services are common, but a Goodwill region may operate a laundry, a military-base cafeteria, a car wash, or a stenography college. The result is that Goodwill loss prevention operations—including risks, technology, and controls—vary significantly. Some take time to put UPC codes on merchandise, while some try to put goods on the floor within the hour. Some territories have mature LP departments, with all the bells and whistles of any major retailer. Some don’t have an LP department at all. Stone now leads LP for one of the largest Goodwill organizations, a twenty-three-county territory that includes southeastern Wisconsin and

metropolitan Chicago and has over 100 locations, including sixty-nine retail stores and more than 6,100 employees. He heads the retail asset protection and corporate security programs, operates a traditional safety operation, and oversees a medical services team. He leads business continuity and crisis management, and he’s starting a fraud management unit. As part of asset protection, he has security responsibilities related to supply chain, warehousing, and e-commerce. While they do purchase some after-season goods from retailers, the bulk of items it sells online and in retail stores come from donations—and

with a number of our vendors and have gotten them to sharpen their pencils a little bit and have had some early success,” he said, noting that he’s looking for opportunities where LP can add value to an already-effective operation. “Our Goodwill team had already done a terrific job of maximizing donations. Very little ends up being waste.” Although electronic article surveillance isn’t seen as viable—slowing down operations too much—Stone has other LP technology tools in play, including point-of-sale (POS) systems with exception reporting and video surveillance. LP agents

“Every Goodwill on the planet should be profitable, but some struggle because they lack efficiency and execution—and because of theft.” – Mike Keenan, Mike Keenan and Associates

that’s where the potential for loss starts. Employees sort the items, get them ready for sale, and direct merchandise appropriately, either to the secondary market, stores, online, or waste. “The goal is to preserve the revenue. We embrace the total loss concept and try to contribute in other ways, and cost control is certainly one,” said Stone. Six months in, Stone thinks they’re off to a good start. “We’ve worked LP MAGAZINE

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rotate throughout the territory’s retail locations, and Stone is looking at increasing their visibility to improve customer satisfaction and retention and to prevent theft. “We’re looking at more visible security agents versus undercover agents, and having them there at critical times, to further stop ticket switching.” While the reward for thieves is generally lower, they employ price

MISSION DRIVEN switching at Goodwill just like they do at for-profit retailers, said Stone. What’s often different is that after they are caught and banned from a store for a time, they come back as honest shoppers. Such is the loyalty of a Goodwill customer. “We see a number of customers switching price tags and taking a chance to save one, two, or three dollars,” said Stone. “If it was me, and I was caught, I’m not going to go back to that store. But they love to come in, so they come back as shoppers looking for that great find.” Because getting donations to the sales floor is mission critical, employee training and awareness take on heightened meaning, said Stone. “We let them know that revenue we generate drives our mission and that to provide folks with work we need to safeguard those donations.” They drive the point during new employee orientations, in-store training, town hall meetings, morning store safety meetings, and with visuals reminders like emails and break room posters. “It can be difficult for employees and customers to view a donation as valuable because it didn’t cost anything. But there is a cost to process it, store it, and move it. There is a cost to accepting it into the system,” Stone said. “Many Goodwills have incredible safety programs and have done a terrific job of opening communication channels and providing consistent messaging on a continual basis.”

Southern Piedmont Internal communications also plays an important role in preventing theft and protecting workers at Goodwill Industries of the Southern Piedmont, which covers Charlotte and an eighteen-county area in North Carolina. Most recently, for example, the LP department ran a campaign to warn and instruct staff on the upcoming “cold, flu, and robbery season,” according to Greg Hawes, its loss prevention services manager. Without LP agents positioned in its twenty-five retail locations, every team

“We see a number of customers switching price tags and taking a chance to save one, two, or three dollars. If it was me, and I was caught, I’m not going to go back to that store. But they love to come in, so they come back as shoppers looking for that great find.” – Paul Stone, Goodwill Industries of Southeastern Wisconsin

member is taught that he or she is part of the loss prevention program and that safeguarding the mission depends on them to observe and report loss. “They are the eyes and ears of the LP department,” explained Hawes. “Retail store members have developed and maintain a good rapport with our regular customers, who report suspicious activity to store management, who in turn report it to loss prevention.” External education also serves an important loss prevention function, according to Hawes, who was hired in 2003 when the LP department was in its infancy. “A lot of people know we have stores, but one of our challenges has been to let everyone know what our mission is and how our donations fund our mission.” Promoting the message to the community and

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educating shoplifters has been part of that effort. Still, Hawes said they have shoplifters every day, including instances of individuals running Greg Hawes out with carts full of merchandise. And robberies committed by gang members are a real, ongoing threat. Without LP staff in the store to provide deterrence, Hawes said they rely significantly on technology and are in the midst of a five-year plan to transition to HD cameras, so they can better secure evidence for prosecutions that will stick and to reduce civil liability claims. They’ve also successfully tested and have begun installing cameras

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MISSION DRIVEN equipped with license plate recognition capabilities, with a plan to expand its use at retail locations to solve cases and hit back at gangs and individuals that repeatedly target Goodwill stores. “This captures the license plate of the vehicle involved. Then we investigate how the suspect is associated with the owner of the car, and give the information to police to follow up on and move the investigation forward.” At donation drop-off points, Hawes said he is trying out two-way talking cameras. Triggered by motion detection, a pre-recorded message plays to engage individuals and to discourage after-hour “drop and shop,” where people leave one donation bag and take home three. This aggressive implementation of security technology has been critical to the LP department’s success, as has support from his senior leadership, for prosecuting offenders and technology resources, Hawes added. Although an uptick in internal theft has been noted recently, Hawes said they’ve been able to reduce employee theft 60 percent from its high watermark and, thanks to enforcement of strict cash handling procedures, have had only one case of a manager taking cash. Hawes credits education for preventing theft by store associates. “We focus a lot on personal decision-making in our presentations and strive to hit hard the importance of making ‘mission-minded’ decisions.” It helps, but LP also relies on deterrence through internal investigations. Using exception reporting tied to stores’ video surveillance systems, LP staff has the ability to flag unusual activity, such as lower-than-average cash intake by a certain cashier, and to review associated footage to see if it’s because he or she is engaging in sweethearting or other fraud. With a shrink metric unavailable, the LP department looks at its number of reported thefts, store performance/ sales, and the number of donations recorded to monitor its performance. “Our company looks at loss as anything that takes resources away

from our mission, whether it’s a slip-and-fall or negligence that results in damaging our property,” said Hawes. “If it takes away from delivering on our mission, it’s a loss.”

South Texas Before he accepted his job in 2011 as director of loss prevention for Goodwill Industries of South Texas, Carlos Garcia remembered one occasion when he dropped off a donation. “I left the item, and in my rear-view mirror, as I’m driving away, I saw someone else putting it on their truck,” he said. “I knew that dilemma was something I was going to have to deal with.” Although he knew of some challenges that awaited him, Garcia said he did not exactly realize what he was signing up for. In the Goodwill’s

forty years of operation, it never had a loss prevention department. Stores had museum-grade cash registers, no POS systems, and no video surveillance. That’s changed significantly, however. In addition to a new POS system, they embarked four months ago on a new UPC product labeling process that provides visibility into the merchandise stores sell. “We don’t know exactly what brands are sold, but it does tell us, for example, that we sold 150 blouses on this day,” said Garcia. “At least we now know what type of items we’re selling.” Like other Goodwill LP directors, Garcia has focused on education to drive down theft. His message is amplified by the fact that the Texas penal code enhances a theft offense by one level when the victim is a nonprofit. “If someone steals a $10

“Our company looks at loss as anything that takes resources away from our mission, whether it’s a slip-and-fall or negligence that results in damaging our property. If it takes away from delivering on our mission, it’s a loss.” – Greg Hawes, Goodwill Industries of the Southern Piedmont LP MAGAZINE

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MISSION DRIVEN pair of shoes, they still have to post a $3,500 bond,” said Garcia. The agency has used social media to get the word out to potential shoplifters and backs it up with a willingness to prosecute. Employees also are warned during orientation. “The hardest part I’ve had is changing the culture and public perception of donated goods as something they can take because someone else is giving it away,” said Garcia. “It’s changing but gradually.” Data reflects the progress. They’ve increased sales, for example, and internal theft, which resulted in ninety employee apprehensions during Garcia’s first year, has trended down to thirty or forty per year. Still, two recent theft cases involving cashiers—caught failing to ring-up merchandise—had values over $7,000. “Unfortunately, it’s a really tough thing. Even with orientation, training, and prosecutions, some employees still take the bait knowing that we’re limited in [our ability to track inventory].” External theft is equally stubborn. “A lot of the issue I have is with resellers, other thrift businesses, flea markets. We’re a prime target of those type operations,” said Garcia. Working with law enforcement has been extremely beneficial, but cooperation was hard earned. Even with his law enforcement background, Garcia said he found police initially unreceptive to requests for help in stemming after-hours donation theft. “At the beginning, they felt like if it was outside on a public sidewalk, then it was property that was open for whoever wanted to take it.” Area law enforcement is more supportive now and regularly works hand-in-hand with Garcia on sting operations. It has helped that they took law enforcement’s suggestion to improve signage at donation points to make it clear that left property is the property of Goodwill. It also helped to provide law enforcement with access to HD store cameras

via a website and mobile app. “They can set up in our parking lot and dial in to see our cameras. It helps them if they’re working on a credit card fraud case or following someone, for example.” Finally, it doesn’t hurt that he has a law enforcement background and that the sheriff in Corpus Christi is a former Goodwill board member, Garcia acknowledged. For all its progress, LP at Goodwill of South Texas remains a small operation. Garcia carries

Central Florida Like several others, Larry Hartman was attracted to the idea of using his LP experience to support a good cause. Also like others, his respect for Goodwill Industries is growing as he gains exposure to the full range of charity work it performs. “As I am learning about the inner workings here and what they do to help people in need…it really is a very special organization,” said

“The hardest part I’ve had is changing the culture and public perception of donated goods as something they can take because someone else is giving it away. It’s changing but gradually.” – Carlos Garcia, Goodwill Industries of South Texas

the title of director, but he is a loss prevention department unto himself. Strictly limited in manpower, he leverages hotline tips from the public to focus his investigations. “We have a lot of good customers who are very protective of our mission,” he said.

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Hartman, who joined Goodwill Industries of Central Florida in August after a long stint at Burlington Stores, and Home Depot and Kmart before it. “And this was the right time in my career for this and the right fit for me personally.”

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MISSION DRIVEN Hartman sees a grassroots, bottom-up approach as the best path forward for loss prevention. “Theft undercuts the mission to help those in need. I’m focusing Larry Hartman on trying to remind employees that every donated item is designed to help people overcome challenges,” he said. “We’re really trying to drive that emotional connection between our donations and our mission.” Included in its culture change initiative are employee awareness campaigns and a tip hotline, so employees have an avenue for reporting suspicions of theft. “That was something I saw that could be more active, and it’s something that I’ve had success with in the past.” He is also visiting stores and conducting focus groups with

employees to offer them an opportunity to share concerns, frustrations, and ideas. His goal is to help the new campaign gain traction. “We’re trying to form partnerships with employees by being responsive to their concerns and having associates feel that they have a voice and an impact on the program. We’re asking them right out of the gate, ‘What are your frustrations? What can LP do to get your buy in?’” Without some other traditional LP tools, such as EAS, employee engagement becomes even more central to LP strategy, suggested Hartman. “My goal is to work with retail store employees on providing great customer service, which will help us protect assets and also drive sales,” he said. “We’re trying to get there through awareness and by getting workers to take great pride in their work.” Knowing that some employees may be tempted regardless, the organization has controls to prevent theft of higher-end items, which are

typically sent to a central facility. There, merchandise is kept under lock and key until it is sold through its e-commerce platform, where it typically fetches a higher price. “There is always a risk of theft, so we are sure that work is very well supervised,” said Hartman. “But if someone is thinking about taking jewelry or something like that, we want to get them to think about the lives they’re going to impact with their decision. We want them to understand that anyone can face the same uncertainty that the people we help are facing—that this could be you or someone you love.”

Greater East Bay As the new chairman of the board of Goodwill Industries of the Greater East Bay, LP veteran Mike Keenan is, not surprisingly, directing the organization to make theft prevention a greater priority. The goal is to boost its profitability. “The number one profit drain is theft,” he said.

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MISSION DRIVEN With nearly 50 percent of sales going to resellers, Keenan sees substantial risk from collusion with employees. “It’s very easy for an owner of a store that sells collectibles to tell the guy behind the counter that if any Stars Wars items come in to let him know, and that he’ll buy it on the side from him.” These items are exactly the ones that can make or break a Goodwill’s financial fortunes. If sold in an online auction, they can command a substantial price. “You can’t measure success with shrink or loss, but what I’ve told my group is

can fetch the best price is important, and so is addressing theft at the point of donation, including video surveillance and integrity shops to assess if valuable donations make it into the sales pipeline. “I’m a firm believer that you publicize the program so that people have to wonder when something comes in if it might be a test and worry that they’d be caught if they didn’t turn it in.” To reduce temptation, Keenan is trying to attach a value to every donation in the minds of employees; for example, each donated item contributes

Goodwill is a big operation. It has 161 member organizations, comprises 3,250 North American stores, and has approximately 130,000 employees. It’s the second-largest nonprofit in the US, serves 36 million people annually, and has helped put people to work since 1902.

that with effective LP, we will see an increase in sales because more of the best product will be available,” said Keenan. “But many of the most expensive donations never make it to the store or on e-commerce. The most valuable stuff has gone right into people’s pockets.” Training employees to funnel donations to the platform where they

$5.33 to providing services. Identifying a specific value—calculated by a finance team and promoted to employees—helps workers make that critical connection. “It can be two dollars or five dollars, but you want to put some value to every donation, so people can understand that it is what funds the mission,” he explained.

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Attaching a monetary value to donations creates a deterrent and helps drive a successful shrink-reduction program. It also avoids other problems. When employees don’t equate a donation with a value, Keenan explained, they’re more likely to send a good product to salvage, less likely to protect it from damage, and may simply throw it away. Keenan also believes in expanding avenues for employees to report loss control issues, including the ability to provide confidential tips and offering incentives for doing so. He also sees store leaders as critical for driving loss control into the organizational culture and believes store visits have to include questions on loss control issues. Keenan acknowledges that he sees everything through an LP lens, but he believes it is serving him well as he steers his Goodwill organization in a more profitable direction. “I was always involving myself in the entire retail experience and tried to understand how LP fit into the entire picture, so I felt well prepared with my experience to direct the entire enterprise,” said Keenan. “Plus, if you don’t pay attention to LP, then you’re going to get hammered from a business point of view.” What Keenan was unprepared for, however, was the extent to which Goodwill was going to sink its hooks into him. “I initially joined back when I was with Gap because they were encouraging people to serve on local boards,” he said. “I thought about Goodwill and figured, ‘I’m a stores guy. They have stores. It’s probably a good fit.’” He didn’t expect his commitment level to grow so substantially. But when you see lives being completely transformed, it’s easy to get pulled in, he suggested. Plus, it has been a chance to show that an LP guy can make a positive difference when given the chance to run the entire operation. That the organization is already on the path to profitability, after just six months, is nice validation. “That’s been kind of fun,” he said.

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ASK THE EXPERT Interview with Barbara Staib

Retail’s Opportunity to Help Reduce Recidivism Why does the National Association for Shoplifting Prevention (NASP) talk so much about the retailers’ need to reduce recidivism?

the victim, retailers can press for action by criminal justice. Better yet, they can help jurisdictions in making programs available to offenders. Retailers can also explore the use of statutorily available programs like civil demand to make education available to offenders. (Retail AP teams are welcome to reach out and enlist the help of a NASP community coordinator in this effort.)

This single goal—reducing recidivism (repeat offenses)—provides the necessary focus to strengthen responses to shoplifting by retailers, criminal justice, and in turn the wider community. Preventing the next offense not only is good business for retailers but also provides value to the entire community. Retailers taking a stance and maintaining focus on this one goal will ensure that their strategies and those of criminal justice will begin to reduce the shoplifting problem—and the safety concerns it creates—in a meaningful way. Just recently, a retailer shared this point of view. Every time there is an incident in his store, it creates a safety issue for his team, associates, customers, responders, and bystanders. If there is a repeat contact, that issue can easily escalate and become a greater liability for store and community alike. Therefore, he concluded, reducing recidivism has to be the primary goal and end result of any program that purports to address shoplifting. We agree.

What would you say to retailers dealing with the growing lack of police response to low-level offenses? Don’t be too quick to throw in the towel and accept that the police are not going to respond. Do not accept that your only options are to send reports and hope for the best or give up and allow shoplifting to go unreported. As the victim of crime, not to mention a key constituent, retailers have a voice. They need to use it as a proactive and positive community partner so as not to risk tarnishing the brand. Use your voice to engender cooperation—to share the burden and offer up resources to help police create, for example, a conditional citation program rather than accepting the futility of cite and release. Or reach out to prosecutors to ensure their diversion programs include proven-effective education and sanctions. Set the bar high for communities in terms of education and recidivism but be a partner in achieving the collective goal.

If the goal is to empty the pond, then catch, warn, and release is not the answer. Ensuring substantive action to stop the next offense is the answer.

What about the many programs proposed by police and law enforcement who want to reduce the patrol hours spent responding to shoplifting? Such as the many “cite and release” programs? Unfortunately, in most cases, it is nothing more than a get out of jail free card—akin to a speeding ticket but without the fine—unless the police are issuing a conditional citation. A conditional cite and release program gives the offender a fixed period to complete the educational and other conditions set forth by the police (not the retailer) to avoid formal prosecution. With the proper education in place, conditional cite and release can be very successful in reducing the number of cases that end up in court as well as reducing repeat offenses, both of which represent cost savings for retailer and community. However, if it is just a catch, cite, and release without fixed sanctions, pass on it. A variation on cite and release are programs that provide for the electronic and remote filing of case reports. These eliminate the police need to respond to calls for service, but again, retailers should be sure to have visibility to both the handling and outcomes of cases. What are the criteria for prosecution? Better yet, is there a police-owned diversion program in place, which includes an effective mechanism to reduce recidivism and handle cases that do not meet

Can retailers really have an impact in reducing recidivism? Isn’t it up to the criminal justice system? Retailers can not only have an impact but also, as the victim of the crime, be the driving force in the effort to address repeat offenses to improve safety throughout the community. Yes, reducing repeat offenses is an imperative of the criminal justice system and is arguably their primary purpose. But for retailers, preventing the next offense is just good business. If the goal is to empty the pond, then catch, warn, and release is not the answer. Ensuring substantive action to stop the next offense is the answer. In addition, while retailers have traditionally relied on criminal justice to do this, they can no longer do so since more and more offenders are neither reported to nor accepted by the system. Even if they do enter the system, far too many jurisdictions focus on moving cases along quickly rather than on preventing another offense. As

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Staib began her career in sales and marketing before joining NASP more than eighteen years ago. As director of communications, Staib serves as a public champion of the retail loss prevention industry, an advocate of education to reduce offender recidivism, and an activist in retail and criminal justice cooperation to save resources and reduce the liability, cost, and criminal escalation of repeat offenders. She can be reached at bcstaib@ shopliftingprevention.org.

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and electronic reporting programs can be a great compromise—but not without some substantive and educational sanctions at the police or prosecutor level. If reports simply go into a black hole of cases, or if the criteria for prosecution are so high that the case has no hope of ever reaching the prosecutor, then the program is just empowering offenders with the knowledge that nothing will happen to them if they shoplift again. This not only promotes repeat offenders but also encourages the escalation of offenses to test the limits of each community’s apathy toward retail theft, which we all know is increasing every day. Simply put, shoplifting is a numbers game and a people problem. Statistically, there are almost 30 million people willing to shoplift on any given day. There is no practical way to catch and punish every single one, day after day—there just are not enough retail or law enforcement resources. Therefore, logic dictates that we reduce the number of people who shoplift to begin to level the playing field. Since apprehension is the only way to identify shoplifters, we must rely on secondary prevention—that is education after an offense has occurred. So once you identify an offender, the best action is to sanction and educate to prevent the next offense. Then you need a way to sort out the people. They will either take action on their own behalf, or they won’t, and thus they are self-sorting. We will know immediately who needs the hammer and the impact of the criminal justice system and those who don’t. Good corporate citizens would make it an option for all by funding it in part or in full and providing it free of charge for the indigent and homeless. It’s just good business to reduce the total number of offenders in the pool.

prosecution standards? If attached to a program like a conditional citation, electronic filing of cases is a practical option. If not, pass on it too. Even in the communities where you have the benefit of a traditional police response, there is an opportunity to support the use of police citation or station-house adjustment programs to keep offenders out of the courts but still educate them to reduce repeat offenses. This ensures a police record of the incident but still reduces the hours consumed by court filings and preserves resources for cases that are more critical or pose community safety threats.

As the victim, retailers can press for action by criminal justice. Better yet, they can help jurisdictions in making programs available to offenders. Any words of caution for retailers as they navigate these options? Cooperating with law enforcement, criminal justice, and the community to find effective alternatives to traditional shoplifting responses is crucial, but make sure the solutions offered meet retail needs in equal measure to criminal justice needs. Citation programs

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LPM EXCELLENCE

LPM “Magpie” Awards: Applauding Excellence

The LPM “Magpie” Awards offer 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. The ability to influence change is a product of drive, creativity, and determination, but

it also requires a unique ability to create a shared vision that others will understand, respect, support, and pursue. Each of the following recipients reflects that standard of excellence, representing the quality and spirit of leadership that makes a difference in our lives, our people, and our programs. Please join us in celebrating the accomplishments of our latest honorees.

Excellence in Partnerships

Excellence in Leadership

“Believe it or not, I started with WZ straight out of college,” said Hoover. “I had no experience, but Dave Zulawski and Doug Wicklander were willing to take a chance on me as an undercover coordinator and investigator. By 1994, I had become a trainer for WZ while also serving as police commissioner for North Aurora Police. In 1997, I became a partner at WZ, and in 2002, I began managing the CFI designation program. From there, Shane Sturman and I bought WZ from Doug Wicklander in 2009 and from Dave Zulawski in 2015.” When building business partnerships, Hoover feels that sincerity is the most important quality you can have in a relationship. “Being sincere in what you can and cannot accomplish helps build trust,” he said. “But you must also be a connector. If you don’t have the answer or the service that helps your partners, go find it for them and share it, so they know you’re there to help them be successful.” Hoover also has some advice for young leaders working their way up the career ladder. “When I look at the things that are most important to me—my family both at home and at WZ, and all of my partners in the field that help me work at being the best person I can be—there are many things that come to mind: faith, love, commitment, integrity, finances, and relationships, just to name a few. But there are three words that I truly believe encompasses all of these areas and can help everyone become successful in whatever it is they are doing: work at it! Work at your job. Work at your relationships, both at home and at work. Work at your finances. Work at whatever it is you find to be important in your life. If you’re willing and able to do that, everything else usually falls into place.”

“I fell in love with this industry over forty years ago working as a part-time store detective for Woodward & Lothrop while attending the University of Maryland,” said McIntosh. “As I moved up the career ladder, I worked hard to distinguish myself by learning as much as I could about the business and volunteering for assignments no one else wanted. While at Neiman Marcus I became more aware of the value of setting up members of my team for success and giving them the tools to do the job effectively. At Home Depot I perfected my skill of building partnerships to identify shortage exposures and reduce this profit drain. At Polo Ralph Lauren I was able to help reshape an LP program. Then when I moved to Bloomingdale’s and Macy’s, I was able to apply all of the skills I had developed through the years to forge a progressive strategy to impact the business. I believe true leaders build upon their experiences and never stop learning.” McIntosh feels that this mindset sets the bar for leadership. “When I think about the leaders I consider to be successful, they all have certain qualities. All have strong interpersonal skills and can relate to people at all levels of an organization. They’re comfortable speaking about their goals and priorities so that everyone understands how to contribute and their value within the organization. All are avid learners and readers, finding time for their personal development.” He also sees this as critical to the future of the industry. “One of the things I’m most proud of in my career is the number of people I’ve mentored, helping them achieve more than they thought they could,” he said. ”In today’s ever-changing retail environment, you have to think differently about problem-solving. The answers are no longer ‘under the street light’ where they can easily be seen. The competitive landscape has changed greatly. Perfect your interpersonal communication skills, distinguish yourself, and keep learning and growing daily. Raise your hand for those tough tasks and assignments. Remember, wherever you go, whatever you do, distinguish yourself. Be so good they can’t ignore you!”

Wayne Hoover, CFI, Owner/Vice President of CFI Programming, Wicklander-Zulawski & Associates

Chad McIntosh, Vice President of Loss Prevention and Risk Management (Retired), Bloomingdales

Nominate Your Peers at Excellence@LPportal.com We want this to be your program. Those of you working as LP practitioners witness these exceptional performances on a regular and ongoing basis, and we strongly encourage 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 of the loss prevention community. Nominations can be submitted via email to excellence@LPportal.com. 26

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INTERVIEW

GETTING TO KNOW YOU THREE EXECUTIVES REFLECT ON THEIR CAREERS IN LOSS PREVENTION By James Lee, LPC, Executive Editor

LP MAGAZINE

NOVEMBER-DECEMBER 2018

GETTING TO KNOW YOU

LPM annual meeting panel included (from right to left) Mark Stinde of 7-Eleven, Cathy Langley with Rite Aid, and Mike Lamb from Kroger. Moderator was (far left) Kevin Lynch of Tyco Retail Solutions.

EDITOR’S NOTE: Our annual magazine editorial board meeting was held in Philadelphia on October 10–12, 2018. The three-day event was colocated with our friends from the Retail Industry Leaders Association (RILA) who held their fall Asset Protection Leaders Council meeting as well as the Loss Prevention Foundation’s yearly board of directors meeting. As part of the magazine portion of the meetings that was themed “Getting to Know You,” we were fortunate to hear a panel of veteran asset protection executives discuss their careers and views on the industry. The panel included Mike Lamb, LPC, vice president of asset protection for The Kroger Co.; Cathy Langley, LPC, senior director of asset protection for Rite Aid; and Mark Stinde, MBA, LPC, vice president of asset protection for 7-Eleven. Serving as moderator was Kevin Lynch, LPC, executive director of business development for Tyco Retail Solutions. Following are excerpts from the panel discussion. We wish to thank the panelists for sharing their thoughts and viewpoints with our attendees. We are also sincerely grateful to the 150 or more retail executives and solution providers who made time in their busy schedules to participate in this event. Thanks especially to the companies who sponsored the event and made the annual meeting possible.

MODERATOR: Let’s begin with how you started in loss prevention and some highlights of your career. LAMB: I started in LP quite by accident, really. I was going to the University of Tennessee in Knoxville in 1979, and my cousin helped me find a part-time job with Millers Department Store. So my entry into retail was being the guy putting the price stickers on the Lancôme and Estée Lauder merchandise. A few months into that job, someone approached me about working in security. I asked, “What’s that?” and “Does it pay more than I’m making now?” Well, it did, so I started my retail security career with Millers and worked there until I moved to Rich’s Department Store in Atlanta in 1987. Then I went to Home Depot in 1999, Walmart in 2014, and now I’ve been at Kroger for about eighteen months. MODERATOR: How about you, Cathy? LANGLEY: I actually first applied for a job in Rite Aid’s warehouse when I was seventeen. I grew up on a farm, wasn’t afraid of hard work, and needed money to go to business school. The manager of the security department called me about a clerk position. At the end of our conversation, she asked if I’d come in for an interview. I borrowed my mother’s wool suit in June and

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did the interview with the director of personnel and the manager of security, so I started as a file clerk in the security department. I worked full time during the summer between my junior and senior years of high school and did a co-op through my senior year. I then worked full time including Saturdays for a while until I went to business school. Eventually, I went from file clerk to restitution coordinator handling all civil restitution work. Then I became office manager over the corporate LP staff, corporate director of LP, director of analytics, and about seven years ago, senior director of asset protection. MODERATOR: Mark, you grew up in the LP industry with some great brands—Mervyns, Toys“R”Us, Home Depot, Sears, Circuit City, and now 7-Eleven. But I know that you had a burning desire to get a college degree. Tell us about what motivated you at this point in your career to invest in education. STINDE: I’ve been head of asset protection at 7-Eleven now for about eight years. Around my third year in, the company selected key leaders in the organization to attend a leadership event at West Point University. We had to submit our resumes to be shared with everyone who was going to the event. When

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GETTING TO KNOW YOU I saw the resumes for these folks who were my peers, there were undergraduate degrees from the Naval Academy and West Point, graduate degrees from Dartmouth and Kellogg. Yet there I was never having completed my bachelor’s degree. I remember that very day I called my wife and told her I wanted to finish my degree, at forty-nine years old no less. When I started researching how to get started, I came across something online that said, “Why get a bachelor’s degree when you can get your MBA?” So after researching several universities in Dallas-Forth Worth, I applied for the EMBA program at SMU (Southern Methodist University), and I was accepted into the program. We made a family decision to sell our home in the suburbs and move into the heart of

LAMB: Over the years, I’ve tried to model the behaviors of leaders that I believe exhibit expertise in leadership. I’ve probably learned as much from the bad ones as I have the good ones. I’ve been fortunate to work for a lot of good ones. One of those is Frank Blake at Home Depot. Frank had this saying that it’s the responsibility of leaders to absorb the complexity of retailing up in the C-suite and push simplicity down to the stores. In 2007 when he took the reins at Home Depot, the company was struggling. He had a maniacal focus on the stores, and a human and personal touch that really translated across that organization. Frank would handwrite a note—even to someone in the lowest level of the organization—recognizing someone who had gone out of their way to do something that impacted the

“I’m a firm believer that what’s simple gets done. We run a complex business in retailing that has a lot of moving parts. Whether it’s managing the shrink with your AP teams, managing in-stock or service, or your ability to leverage technology or data, if you make it complicated for the store, it won’t get done.” – Mike Lamb, The Kroger Co.

Dallas near both my office and the campus. For twenty-two months, I put my nose down, managed a very demanding job, and was able to balance work, family, and school to complete the program. It was tough on me and my family but certainly one of my proudest accomplishments.

operations or the culture of the business. Yet he was unwavering during times when he had to make unpopular decisions. I think he materially changed the course and direction for that company, making it one of today’s truly outstanding organizations.

MODERATOR: Over the course of your career, would you highlight people who have made a profound effect on your life and helped you get to where you are today?

MODERATOR: What do you mean by “absorb the complexity and push simplicity down to the stores?” LAMB: I’m a firm believer that what’s simple gets done. We run a LP MAGAZINE

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complex business in retailing that has a lot of moving parts. Whether it’s managing the shrink with your AP teams, managing in-stock or service, or your ability to leverage technology or data, if you make it complicated for the store, it won’t get done. Someone I worked with at Home Depot coined a phrase, “Having a simple plan doesn’t make you a simple leader.” I think the retailers that are getting ahead of the game are the ones that are digesting the complexity and pushing down a program that’s easy to understand and implement for everyone on the sales

GETTING TO KNOW YOU In general, throughout my career, I’ve had leaders who have seen something in me before I’ve seen it in myself, and this is a trait I’ve always tried to emulate. To this day, I feel I am good at spotting talent. I’ve also been fortunate to have leaders who have rewarded me for doing more than what is expected. MODERATOR: How has that affected your management style, and what are some of your pet peeves that you find in people that you manage? LANGLEY: I’d say that I’ve grown more as a leader in the past ten years than I had in the previous twenty. I’ve become much more patient and transparent. There are still a few things that frustrate me, and one of them is when people

STINDE: I was fortunate enough for Jim and Jack to spend some time with me after about a year-and-a-half at 7-Eleven. I read an article that they published some years ago around the common denominators for successful loss prevention organizations. There were several tenets discussed. One was that data can help drive decisions. Second, a strategy that fits in the organization you came from may not fit in the organization you’re going to. While components of it may, you can’t just plug and play. Also, success almost always comes down to people. It’s so much easier to get things done if you’ve got great people who are committed to the job. When you have people committed to what

“I’d say that I’ve grown more as a leader in the past ten years than I had in the previous twenty. I’ve become much more patient and transparent. There are still a few things that frustrate me, and one of them is when people are not willing to give it their all. I also struggle when people are not accepting of other’s viewpoints.” – Cathy Langley, Rite Aid floor. Now that’s easy to say but hard to do. MODERATOR: Cathy, you work for a longtime stalwart in our industry, Bob Oberosler. It is well known that you are his number one person and he trusts you implicitly. Talk about working with Bob and others who have influenced your career. LANGLEY: Working for Bob has been amazing. When he came to Rite Aid, he was very focused on leveraging data analytics and had a lot of great ideas. We were able to work together really well and move very quickly.

are not willing to give it their all. I also struggle when people are not accepting of other’s viewpoints. We’re not all the same, but if we all join together and have the same mission, we can move forward in a much better way. MODERATOR: Mark, as I mentioned, you’ve been involved in several different genres of retailing from DIY to consumer electronics to department store. Now you’re in the convenience world. What are some of the common traits that contribute to success across those categories?

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you’re trying to get done, you’re not trying to manage the nonsense with people who are not committed and standing in the way. I think that’s key. Just as Mike said, you have to figure out what the organization is trying to get done and figure out the best way to support it. You can’t be bigger than what the company strategy is. You must figure out how to work within it. And I’ve tried to apply that in every place that I’ve been. MODERATOR: Mark has already talked about getting his MBA. All three of you have LPC behind your names, and all of you are involved in the Loss

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GETTING TO KNOW YOU Prevention Foundation. Talk about why you are involved in promoting certification in our industry. LAMB: What’s the old cliché? Knowledge is power. I went through the LPC process a few years ago, and I know what a personal benefit it was for me in broadening my horizons. I can’t speak for the room, but when you get to a point where you think you’ve learned it all, you’re probably kidding yourself. Advancing our industry through education and empowerment via certification, to me, provides extraordinary leverage. I believe it’s notable that the foundation is moving in the direction in which the business is moving—be it total retail loss or deescalating bad behavior. If you look at the retail change curve, it’s simply phenomenal. If you consider what we were focused on three to five years ago versus today, it’s materially changed and will continue to change. It’s key that the foundation keep up with that change. Why? Because it empowers the men and women in this room to not just be leaders in asset protections but also leaders in their companies. For me, that’s the secret sauce. MODERATOR: On a separate note, I was one of the first solution providers to get their LPC certification. Tell us the benefit that you see of solution providers getting certified. LAMB: To me, the more a solution provider knows about how my business operates and how it functions as an industry, the better equipped you are to have a more compelling value proposition when you come see me. The learnings from the foundation coursework and certification broadens a solution provider’s knowledge of what’s important to retailers and makes them better partners. MODERATOR: Let’s talk a bit about the interactions between retailers and solution providers. What are things

that contribute to a good partnership and things that do not? LANGLEY: From my perspective, it’s critical to work with provider partners who are good listeners. Integrity and honesty are absolutely key. And it’s also important to come to the table with solutions. LAMB: I would have to say that you know going into any significant project with a solution provider that it won’t be seamless, that there will be hiccups—things that neither we nor the solution provider anticipated. And that’s okay. To me, what separates the really great ones from the goods ones is that they’re really quick to react to that, particularly if it’s on their side of the fence. That allows you to get past whatever pain point that is and continue the project. The other thing that resonates with me is solution providers that sell me something and then they’re gone. I want a partner who will stick with me even if I’m not continuing to spend money, who continue to ask if the solution is still working for me. STINDE: Let me follow up to that by telling a story. As you know, I left loss prevention for a while and went into the safety business. There were two gentlemen from Tyco who reached out to me, not to sell me something, but to see how my family and I were doing. These were guys who cared about me not because I was spending a dollar with them because at the time I wasn’t. I’ve also had people spend time with me because they are in a new role; maybe they’ve moved from one company to another or from retail to the vendor side. They come tell me what they do, and we talk about my business needs. But at the end of the day, we say, “You know, there’s really not an opportunity here for you. If there is, let’s get back in touch and talk about it.” But that time spent has built a rapport that can pay off down the road. I am a big believer that it LP MAGAZINE

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is important to dig your well before you’re thirsty. MODERATOR: Mark, let’s stay with you for a second. You’re in a genre of retailing that has always been susceptible to violent crime. And violent crime is up in America. How does that aspect of your job weigh on you personally? STINDE: With over 10,000 stores in the US and Canada, we have incidents in the stores. For those of you that have been associated with the safety world, you likely understand the Heinrich’s triangle theory. The bottom of the triangle starts with potential risks and graduates in risk to the top of the triangle. For example, 300,000 potential risks relate to 3,000 near misses, and those relate to thirty lost-time injuries, ultimately relating to the potential for a severe if not fatal incident at the top of the triangle. When I get a call in the middle of the night from one of my people, I know it’s generally because something has happened. Our focus is to mitigate incidents by investing in technology and other solutions to minimize incidents, partnering with law enforcement, and learning from industry best practices. It matters a great deal to me that we minimize the number of incidents, so it doesn’t result in a severe incident at the top of Heinrich’s triangle. MODERATOR: Mike, what keeps you up at night? LAMB: I think there has to be an extraordinary sensitivity to safety. I had the misfortune at one company of attending a funeral for an asset protection person who lost his life. That will sober you quickly on the reality of the need to err on the side of caution with every policy you script relative to the detention of shoplifters or whatever potentially puts your people in harm’s way. At the end of the day, retail is insignificant if it means someone has to sacrifice their life over merchandise.

GETTING TO KNOW YOU MODERATOR: Speaking of shoplifting, it seems that as an industry we continue to debate whether or not to detain shoplifters. What is your position on that question? LAMB: I worked for one company where year-on-year, we kept growing the number of shoplifting apprehensions. While you might pat yourself on the back and say, “Look how good we are at this,” there are two problems with that. One, we were too easy to target, and secondarily and most importantly, it wasn’t affecting the shrink performance. So we shifted the scales more toward prevention

versus apprehension. At the same time, I do think organizations, both large or small who have asset protection teams, must train those teams to apprehend shoplifters with an emphasis on safety. MODERATOR: We talk a lot about the evolution of loss prevention and the things that we were doing five or ten years ago versus what we’re doing today. Can you identify something that you or your successor will be doing in five years that you’re not doing today? LAMB: I think your question is a good one and almost impossible to answer. With the way we’re digitizing retailing and the way in which the consumer wants to shop, you want to be ahead of it—invent the future instead of trying to predict it. The most immediate issues for me are at the frontend. I envision a world with possibly no cashiers in less than three years. It’s already out there with Amazon Go. We have an enormous challenge and opportunity to use technology to better leverage people, not only today but as things change down the road. Mobile pay, scan-and-go, self-checkout have changed the artistry of theft too. The notion of the five principles to detain a shoplifter can be thrown out the window. STINDE: We heard earlier today Professor Adrian Beck talk about his research on self-checkouts.

We’ve done some small tests with self-checkout, but we’re going to skip over self-checkout and go right to mobile scan-and-pay. As LP practitioners, many would say that’s completely ridiculous, and yet the operations team is trying to figure this out. Our job is to support the learning process, do our best at educating them on the risks, and figuring out the best ways to mitigate losses. But that’s just one example. To Mike’s point, tomorrow it’ll be something else. MODERATOR: That dovetails into a question about how the skillsets of LP professionals may change in the future. Do you need an IT person, a lawyer, a data scientist on your staff? LAMB: I don’t know if you need them on your team, but you need them at your side, and they need us at their side. We have to be tied into how the corporation is digitizing the business because there will be decisions made where shrink isn’t necessarily even in the discussion. If that’s the case, then you find yourself chasing the problem versus addressing it on the front end. STINDE: I have someone over my analytics team who’s a CPA. Her experience has been in inventory control, accounting with some loss prevention background, but she takes the lead as it relates to analytics. Even though the team

“Success almost always comes down to people. It’s so much easier to get things done if you’ve got great people who are committed to the job. When you have people committed to what you’re trying to get done, you’re not trying to manage the nonsense with people who are not committed and standing in the way. I think that’s key.” – Mark Stinde, 7-Eleven 32

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GETTING TO KNOW YOU is dedicated to asset protection, it’s interesting how often they support other functions in the organization when information is needed because of the quality of the work they do.

I think I could have done a better job of displaying humility early on in my career. It’s a lesson that I really try to emphasize, especially with emerging talent.

LANGLEY: We’ve taken a similar approach at times. The last analyst that we hired had no retail or AP experience. This analyst has a finance degree, and we benefit from having a new team member who analyzes data from a different perspective.

STINDE: Yes, it’s a cliché, but it’s great to see someone I’ve worked with over my career, who, hopefully, I had a little influence in their lives. That’s why I’m committed to my network. I try to stay in touch. I have an hour-and-fifteen-minute drive each way to and from work. I try to catch my East Coast colleagues on the way in and the West Coast folks on the way back just to see how they’re doing and give them advice or vent to them when I’ve had a bad day. What a great industry we have that allows us to form such meaningful relationships over time. I could spend hours talking about things where I’ve missed opportunities. I think the big thing is when you lose, don’t lose the lesson,

MODERATOR: Looking back over your careers, what is a highlight and maybe any regret you’ve had? LANGLEY: The highlight of my career has been watching people from my team grow and get rewarded with promotions and new opportunities. Anytime I can help somebody develop their career, it’s a huge win for me. On the other side,

then get up the next day and try to go figure it out. LAMB: This has been such a rewarding career for me both professionally and financially. As I mentioned, I kind of stumbled into this forty years ago, and I’m still here because I have such a passion for the work and the people in the industry. I think we have the most difficult job in retail. When you’re out there to try to solve the forensics of shrink that is everchanging, it’s the most demanding job in the industry. And that’s why I have such a passion for it. As far as regrets, I’ve had more than my share of ups and downs. But even when I’ve had major disappointments, I’m proud of how I’ve bounced back. You have to maintain a never-quit attitude and an insatiable desire to deliver results. If you do, then when you look back, you’ll have no regrets because you’ll know you did the best you could.

They have a great shopping experience.

You have greater peace of mind with a solution that secures your profits and property. Bosch empowers you to build a safer and more secure world with solutions that enhance safety, reduce shrink, and help you improve merchandising, operations and customer service. Bosch integrated security and communications solutions enrich the customer experience and deliver valuable data to help you increase your profitability. Learn more at http://bit.ly/BoschSolutionsforRetail

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FUTURE OF LPVIEWPOINT ACADEMIC

How Our Memories and Perspectives Are Shaped by Social Media

By Tom Meehan, CFI Meehan is retail technology editor for LP Magazine as well as chief strategy officer and chief information security officer for CONTROLTEK. Previously he was director of technology and investigations with Bloomingdale’s, where he was responsible for physical security, investigations, systems, and data analytics. He currently serves as the chair of the Loss Prevention Research Council’s innovations working group. Meehan can be reached at TomM@LPportal.com.

Let’s consider another example—the gruesome beheadings by extremists. The impact of being able to stream these horrific events on YouTube or Facebook can make people feel like this is a new or more recent occurrence. But beheadings date back to the biblical days, and they remained a common execution method for centuries. If there was YouTube in the 1700s, I can guarantee you we’d easily find the evidence of far more beheadings than there are today. In our times, however, we get visualizations and trend analysis in real-time from social media, so all these things, while fewer in number, potentially have a higher impact on our perception and information retention.

ave you ever wondered what psychological impact social media has on us? More specifically, how does it affect our perspectives and memories? Social media has been around for less than twenty years, yet in that short time it has already reshaped how information is distributed and how we consume it. Even if you’ve never been on Facebook, Twitter, LinkedIn, or other such sites, they all still directly impact you. Someone who tells you about some news may have easily gotten it from social media sources— even news organizations like CNN do it. Humans have short memories when it comes to news. For example, did you know that there were 2,500 domestic bombing in the US from 1971 to 1972? That’s right 2,500, with more than 1,800 of them in a single twelve-month period. If social media existed back then, the impact would have been greater because of images, videos, and comments by the people involved. These events happened at a time when newspaper, radio, and TV were the dominant news sources. Naturally, when there are hundreds of bombings happening in a short period of time, the news is only going to report on the most significant ones. Also, there were stricter deadlines back then. For example, there was a bombing in the shoe department in a major department store in New York City back in 1972 where no one was significantly injured. Was the New York Times really going to redo the front page for that after they already got it ready for print? No, not back then. So we don’t remember it. Now let’s look at our current times. In a four-day period in October of this year there were twelve mail bombs without any injuries or destruction. More than 75 percent of the US population saw it somewhere. The image of the suspect in the October mail bombing appeared over 700,000 times directly or indirectly on social media. What is the impact? Were these twelve mail bombs more harmful than the 2,500 bombings back in 1971 and 1972? I will not attempt to offer an answer. I will simply use this to illustrate the point that social media can affect what we consider significant, how we think and feel, and even how we recall an incident.

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Did you know that there were 2,500 domestic bombing in the US from 1971 to 1972? That’s right 2,500, with more than 1,800 of them in a single twelve-month period. If social media existed back then, the impact would have been greater because of images, videos, and comments by the people involved. So what does this have to do with asset protection? Think of our own bias and how we view an event. Consider what we believe is occurring in the world. More good things or more bad things? What is significant and what isn’t? What truly impacts our daily lives and what doesn’t? And when we are posting something on social media, are we emphasizing what is truly happening on the daily basis? The next time you have a policy review related to apprehensions, interviews and interrogations, or a workplace violence incident, remember the potential impact social media can have. Why not consider how you can use it for spreading what good your teams are doing? |

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#MeToo

Investigations today go beyond just theft. Investigators need to be prepared to help prevent, as well as investigate the seriousness and sensitivity of #MeToo incidents and other critical issues (or cases) within your organization. No matter what role you’re in: loss prevention, human resources, risk management or fraud, you must be ready. IAI is your resource to fully prepare and equip you with the necessary tools to meet the challenges associates with sensitive investigations.

Join IAI to access your toolkit today: Toolkit resources include topics related to sexual harassment, workplace violence, interviewing complainants, victims and much more.

Actionable video tips Specific rationalizations Discounts on classes across the country On-demand expert webinars Expert educational blogs Online training

www.certifiedinterviewer.com

CERTIFICATION Interview with Sue Read, LPC Read’s loss prevention career spans twenty-three years, starting as a part-time store detective with Value City department stores while earning her degree at Penn State University. She later joined Lowe’s where she spent fourteen years in a variety of LP and safety positions. She is now the director of environmental health and safety and loss prevention for FleetPride, the largest distributor of truck and trailer parts in the independent heavy-duty aftermarket channel. It operates over 270 retail locations, forty full-service centers, and five distribution centers across forty-six states.

Fundamental LP Knowledge Why did you decide to pursue your LPC certification?

What benefits have you seen from taking the course?

Lowe’s was and is fully invested in the value of the curriculum and quality of the certification and took steps to ensure that all field and corporate level leaders were offered the opportunity to earn the LPC accreditation.

The coursework provided me fundamental knowledge that has benefited me in conversations and collaborations with those in other retail businesses or in other business units within my organization.

Was the coursework what you expected?

If you could offer one key takeaway to someone currently considering getting certified, what would it be?

I wasn’t really sure what to expect, but I did go into the process making the assumption that my twenty years of experience would allow me to “fly through” the content fairly easily and that I would not learn much. Needless to say, I was wrong. I learned a lot, and it was more challenging than I believed it would be.

As a hiring manager and knowing what I invested with my time and what I learned getting the LPC, when I see that LPC designation after someone’s name on a resume, it means something. The LPC will pay dividends if you are looking to expand your knowledge about the loss prevention industry, whether to get your foot in the door or promote within your organization.

Talk about the process of going through the coursework and taking the exam. Like most people seeking education while working a full-time job, going through the coursework and preparing for the exam takes commitment and a level of time management. I found myself often trying to review a lot of the material in large segments as opposed to smaller, regular intervals due to the competing business and personal demands. The Gopher notes became critical as I got deeper into the content and completed the courses that covered topics outside of my expertise and experience. The quizzes and practice exam were also very beneficial to preparing for the certification exam.

How would you compare the foundation certifications to other educational courses that you’ve taken? I would put it on par with most of the courses I had in college with respect to quality and content. This curriculum was developed by our industry leaders and subject-matter experts. It’s like getting the blueprint to success in the industry from those who have been the most successful.

How has certification changed your expectations of loss prevention as a career, for yourself and for others?

Looking at your own personal background and knowledge, what information in the course helped you the most?

I don’t know if it changed my expectations about loss prevention as a career. I already knew that we had the some of the best and brightest people leading an evolving industry that has imprinted itself into the fabric of the retail business model as a critical component. I believe that the certification has added a level of credibility and professionalism to our industry that has been long overdue.

Going into the process, I really didn’t have depth of experience in the regulatory, pharmacy, and supply-chain content. I picked up a lot of value with these parts of the curriculum.

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

Would you recommend certification to others? Without a doubt. As a matter of fact, I received scholarships from AFA Protective Systems for my field team to get certified in 2018. I will be both excited and relieved when they all pass and can put LPC on their signatures.

I was quite surprised about the many layers of content, which expanded well beyond the traditional retail loss prevention framework.

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Newly Certified

Following are individuals who recently earned their certifications.

Recent LPC Recipients

Ryan Adams, LPC, Amazon Kristel Alamares, LPC, Walmart Stores Daniel Alexander, LPC, Walmart Stores Emily Buck, LPC, Walmart Stores Ryan Collins, LPC, Walmart Stores Justin Combs, LPC, Walmart Stores Joshua Daniels, LPC, Walmart Stores Deanna DeCourcy, LPC, Walmart Stores Christy Dennis, LPC, Walmart Stores Paul Dollinger, LPC, Amazon Joseph Gibney, LPC, Chico’s FAS Kelly Goracke, LPC, Walmart Stores John Gosciejew, LPC, Walmart Stores Mark Hallowich, LPC, Amazon John Higgs, LPC, Walmart Stores Alnahl Jones, LPC, Walmart Stores Sean Kostashuk, LPC, Amazon Michelle Langford, LPC, Albertsons James Lapcevic, LPC, Luxottica Rickey Lash, LPC, Amazon Kevin Lemons, LPC, Walmart Stores Daron Lindman, LPC, Sears Jeffrey Rickey, LPC, Walmart Stores Carlos Rico, LPC, Walmart Stores Zachary Ryan, LPC, Amazon Mark Shorney, LPC, John Lewis plc Rocky Smith, LPC, Walmart Stores Casey Smith, LPC, Walmart Stores Eric Stone, LPC, Amazon Antonio Van Hise, LPC, Amazon Maria Vaz, LPC, Walmart Stores Vincent Vita, LPC, Amazon Barbara Weaver, LPQ, LPC, Best Buy Jared Wesselman, LPC, Walmart Stores Christopher Willis, LPC, Walmart Stores Jennifer Zervas, LPC, At Home

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Recent LPQ Recipients

DIPLOMA LEVEL PARTNERS

Theresa Ajayi, LPQ, ORIS Media Lesley Capron, LPQ, ORIS Media Jeffrey Cashman, LPQ, TJX Jeannette Dunlap, LPQ, REI Tiffany Gray, LPQ, Walmart Stores Jakob Grun, LPQ, ORIS Media Ron Houk, LPQ, Mattel American Girl Abigail Jagger, LPQ, ORIS Media Donald Lauritsen, LPQ, 7-Eleven Latoya Long, LPQ, Rite Aid Dale Markiewicz, LPQ, Walmart Stores Michael McRoberts, LPQ, Law Enforcement Lindsay Parker, LPQ, DICK’S Sporting Goods Elizabeth Pegram, LPQ, Travis Perkins Kylie Rudy, LPQ, Kennesaw State University Nicole Salas, LPQ, REI Mohammadsami Shaikh, LPQ, Bloomingdale’s Nigel Sutliffe, LPQ, ORIS Media Zbigniew Trendak, LPQ, Levi Strauss and Company LP MAGAZINE

inc.

Professional development is key to a fulfilling career. Visit www.LossPreventionFoundation.org to find out more. SM

Educating an industry, one leader at a time. |

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SUPPLY CHAIN

Into the Rabbit Hole of Supply-Chain Risk

By Maurizio P. Scrofani, CCSP, LPC Scrofani is an LPM contributing writer and well-known supply-chain asset protection professional with over twenty-five years of experience in retail and manufacturing, including leadership roles with Macy’s, Bloomingdale’s, Delonghi, and Toys“R”Us. He was cofounder and president of CargoNet, a supply-chain theft prevention and recovery network solution of Verisk Analytics. Currently, Scrofani is the chief supply-chain security officer for ALTO Assurance where he leads the team that offers shippers and logistics providers a comprehensive, end-to-end asset protection and riskmanagement technology solution. He can be reached at mscrofani@alto-us.com.

Learning How Much We Don’t Know Is the First Step to Appreciating Supply-Chain Risk Management

supply-chain risks long before it has even made a product to ship. For every metal screw or plastic knob that will come from a supplier, the company will need to assess reliability, and for every shipment of wood, its health and quality.

he supply-chain web is spun so intricately that it’s impossible to know it, truly. Perhaps the most we can aim for is to gain knowledge about one link, then another, and gradually appreciate more fully how pieces fit together. Maybe it’s not realistic—when it comes to today’s supply chain—to have a goal of becoming an “expert.” Instead, dedicate oneself to being a lifetime student of supply chain’s infinite complexities. The aim of supply-chain risk management (SCRM) is fairly straightforward. It’s how we help to identify risk and manage supply-chain security adequately. But learning about supply-chain risks is a bit of a rabbit hole. Even something seemingly basic can be muddy, such as where supply chain starts. (With a product’s manufacture? When plans are drawn? At ideation?) What’s certain is that risks are inherent at every step along a product’s path to a store’s shelf. And, perhaps, back again as purchase does not always mark an end to a product’s path through the supply chain. In the case of a return, the product may hit the road again, from store back to vendor, and undergo additional steps. In the case of, say, an oil-filled radiator, a vendor may face a series of environmental regulatory steps before parts and pieces are sent back to the manufacturer or a scrap company. The number of players, the differences in technologies, the amount of information, and the sheer volume of interactions between these and other layers of today’s global supply chain make it extremely difficult to identify risks, let alone mitigate them. Supply-chain management encompasses the coordination of the many activities related to sourcing, procurement, conversion, and logistics. It involves planning and processing orders; handling, transporting, and storing the products purchased, processed and/or distributed; and managing the inventory of goods in a coordinated manner. And there is risk through it all—as broad and diverse as the supply chain itself. Cargo theft is an example of a risk in the supply chain. It is, however, a single risk within a small section of the supply chain (logistics). A furniture manufacturer/seller of wooden dressers, for example, will have to manage myriad

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Geographic Impact of Supply‑Chain Risk Management

Today’s vulnerabilities are multiplied due to greater geographic distances and the complex processes of the supply chain. Globalization presents unique challenges when applying supply-chain risk management methodologies to safeguard the supply chain from emerging threats and vulnerabilities. Disruption can hit the supply chain at any point, from manipulation in raw material usage, malware and intrusions in digital supply-chain processes, cargo theft, and crime in warehouses and distribution centers. At the very broadest level, external supply-chain risks include: ■■ Demand risks caused by unpredictable or misunderstood customer demand. ■■ Supply risks caused by any interruptions to the flow of product, whether raw material or parts, within a company’s supply chain. ■■ Environmental risks from outside the supply chain, such as economic, social, governmental, and climate factors, including the threat of terrorism, global crisis and recession, and political upheaval. ■■ Business risks caused by factors such as a supplier’s financial or management stability, or purchase and sale of supplier companies. ■■ Physical plant risks caused by the condition of a supplier’s physical facility and regulatory compliance. In each area, questions fuel a risk-management process. Our furniture company, for example, needs clarity on key issues related to its suppliers if it is to embed resilience into its business. Intellectual property is one area—one among many—that it needs to examine. ■■ Do our suppliers have a history of intellectual property theft? Been accused of it? continued on page 40 |

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analysis are necessary to get an accurate picture of the current situation. Risks then need to be scored and prioritized, based on their likelihood of occurrence and potential impact on business. Once risks have been identified and prioritized, organizations need to create a comprehensive risk-mitigation plan based on short-term, medium-term, and long-term risks; to identify the right people to implement it and assign responsibilities; and to create escalation mechanisms for each risk and contingency plan. A clear risk picture and planning are the base layer. Organizations must also monitor and track the progress of their risk-mitigation initiatives to ensure that they work in real-life business situations. Risk-management tools and insightful dashboards can help steer an organization through interactions with suppliers and other operational stakeholders and prompt timely, informed decisions. Broadly, SCRM is critical to manage interaction between suppliers, information, technologies, products, and logistics service providers. So what does our furniture company stand to gain? By improving its management of supply-chain risk, it can maintain control over inventories and distribution, thereby matching and managing supply with demand to reduce costs, improve sales, and enhance company profitability. That, too, sounds simpler than it is. It requires: ■■ Understanding the business, the customer and customer needs, and adapting the supply chain to find the balance that maximizes profitability. ■■ Customizing the logistics network to meet the service requirements of various markets, which may influence the size, number, location, ownership, structure, and mission of warehouse facilities. ■■ Recognizing market signals and aligning strategies accordingly to ensure consistent supply forecasts and optimal resource allocation. ■■ Strategically locating/warehousing products close to the customer base and speeding conversion efficiencies to react quickly to market signals and store/customer needs. ■■ Managing supply sources strategically to reduce the total cost of owning goods, as well as teaming with business partners to reduce costs across the supply chain to lower prices and enhance margins. ■■ Developing a technology strategy and IT system capable of integrating all the above information—one that makes all this critical decision-making possible. A well-managed supply chain—one that mitigates risks—is essential to a successful operation. In today’s global manufacturing environment, where merchandise often moves across oceans or continents before appearing on store shelves, the risk of loss or delays due to cargo theft, weather, work stoppage, and even paperwork errors requires innovative and comprehensive supply-chain risk-management solutions to manage successfully. When we consider that every single piece of merchandise must in some way pass through the supply-chain network, it’s easy to see the need to implement appropriate controls and protect our interests against an increasingly complex world of risk.

continued from page 38

Have they been victims? Did an employee improperly share sensitive information or provide access to a facility? Was there a computer network intrusion? ■■ How do they protect their internal computer networks? The furniture dealer also needs to know about its suppliers’ processes and procedures to verify the quality of its products or third-party products and services: How is the quality of product verified? What mechanisms are in place to ensure products meet requirements? Is an inspection process in place to review materials and/or services? Distribution is another category: How do suppliers transport products? Are they warehoused during transportation, and if so, where? Who has access to those properties? And what about finances? Are the suppliers stable? ■■

A robust supply-chain risk management process starts by identifying this world of risk—conducting a comprehensive, organization‑wide risk assessment to determine what can go wrong. Again, these are just some of the necessary risk-management questions to help neutralize a small sampling of external risks, from a few slivers of the supply chain. And while partnerships with top suppliers are typically strong, these questions should also be asked and answered for second and third-tier suppliers. Of course, our fictional furniture firm faces an equal number of internal risks, including manufacturing risks, business and process risks, and planning and control risks. It faces risk from shrinkage resulting from holding too much inventory, for example. And what about risk from product defects? Or high labor costs? Or poor planning? What if key personnel leave? How might that impact business processes or how purchasers communicate to suppliers and customers? The consequences of failure are hardly hypothetical. A new commercial airliner was delayed three years because of a failure to assess supply-chain risks properly. A candy maker’s stock sank 8 percent when it couldn’t deliver for Halloween. And in 2015, a cascade of technology missteps in a major big-box retailer’s supply chain, which caused the prospect of patchy or empty store shelves, forced it to withdraw entirely from a country’s marketplace.

Conducting a Company-Wide Risk Assessment

A robust SCRM process starts by identifying this world of risk—conducting a comprehensive, organization-wide risk assessment to determine what can go wrong. Relevant metrics, multiple sources of input, and augmented data

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FEATURE

SCREAM IF YOU WANT TO GO FASTER THE ROLLER-COASTER WORLD OF PROFIT PROTECTION AT EUROPE’S LARGEST ENTERTAINMENT COMPANY By John Wilson, Executive Editor, LPM Europe

SCREAM IF YOU WANT TO GO FASTER

here is an old joke about Madame Tussauds where the curator advises visitors to keep moving through the world-leading waxworks attraction because the staff is busy stocktaking. Although apocryphal, there is a grain of truth in the retelling. As with all Merlin Entertainments venues, a profit protection team has to carry out regular and often daily stocktakes purely because there are dishonest people who may—and do—try to steal anything from waxworks models to the exotic creatures located in the company’s theme parks around the world. Such antics make the world of Group Profit Protection Manager Lyn Blethyn interesting as she surveys her estate of world-leading entertainment brands—Merlin Resort Theme Parks, Midway Attractions, and Legoland. The Resort Theme Parks include Alton Towers, Chessington World of Adventures, Lyn Blethyn

Thorpe Park, and Warwick Castle, all in the UK; Gardaland Resorts in Italy; and Heide Park Resorts in Germany. Midway Attractions include the historic Madame Tussauds with twenty-four locations in major cities around the world including seven in the United States. Sea

“We are always on vigil because of the world that we are in. These people are brazen. Last year poachers broke into a Paris zoo and killed a rare four-year-old white rhino to steal the horns. Our security has to be the best in the world.”

Life, which is the world’s largest aquarium attraction, has fifty aquariums around the globe providing unparalleled views of 150,000 different species that live below the ocean’s surface. Eye Brand observation attractions provide above-ground, 360-degree views of London and Sydney, including the iconic London Eye that is the number one paid visitor attraction in the UK. Legoland is a self-contained, self-explanatory brand offering seven global destination locations for lovers of all things Lego, including one in Billund,

– Lyn Blethyn, Merlin Entertainments

NOVEMBER-DECEMBER 2018

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SCREAM IF YOU WANT TO GO FASTER Denmark, which is opposite the main manufacturing facility and, with models created out of more than 65 million bricks, represents that country’s biggest tourist attraction outside of Copenhagen. Legoland Resort Parks in California and Florida are major family destinations.

Unusual Crime

Blethyn’s world covers profit protection across a vast and very public estate where brand protection is also a key factor in driving visitor numbers. Blethyn works closely with Eric Dench, head of security and counterterrorist expert, and David J. Smith, the business lead on internal audit, to form a holy trinity of protection around the Merlin brand and its 124 worldwide locations. Such high-profile theme parks and resorts are always on high alert for potential terrorist attacks because they serve as honeypots for millions of visitors every year. Profit protection operates

“I learned early on that we had to do it differently and very quickly. I needed to get everyone on board with a strategy that works, whereas previously people were not getting on board the profit protection train because, for whatever reason, it was not stopping at their station.”

separately from the other functions purely because of the specific and different challenges attached to security and internal audit. It is not as though Blethyn would not have enough to do without also having these two other functions reporting into her, as other typical brands on the high street might. “It’s been an incredible journey for me here—no two days are the same,” said Blethyn, who was the first and only line of LP defense when she joined Tussauds from Sainsbury’s as a consultant in 2003. “It was only supposed to be a six-month role, but here I am fifteen years later still doing a job that I love. “We’ve had school groups trying to pick up penguins and take them home and a man who successfully kidnapped a squirrel monkey called SpongeBob SquarePants. He realized when he got it home that he was out of his depth and could not look after it when it bit him on the hand. We later received a call from him claiming that he had discovered it at the bottom of his garden. But we had LP MAGAZINE

NOVEMBER-DECEMBER 2018

found his glove, and when he came back with SpongeBob, we noticed that he had a newly attached plaster on his hand. Although a funny story on the face of it, it was very serious for the animal who was traumatized by the affair, had to be isolated, and received a lot of veterinary care. Needless to say, we prosecuted the man and pursued him for civil recovery of the costs.” Determined and organized thieves have even broken into Merlin attractions and drained pools to steal sea lions because of the high value attached to the creatures, many of which never surface again because of a thriving black market in private zoos and collections. “We are always on vigil because of the world that we are in. These people are brazen. Last year poachers broke into a Paris zoo and killed a rare four-year-old white rhino to steal the horns. Our security has to be the best in the world,” Blethyn continued. At Legoland, the models form another kind of attraction to Merlin’s less welcome

SCREAM IF YOU WANT TO GO FASTER

visitors. “We have had attempts made to steal the models, some of which are valued in the thousands of pounds. At Tussauds, we have people trying to steal the waxworks, which can be valued at up to £100,000 each, which is why the heads and the bodies never travel together.”

Globetrotting

Merlin has 124 attractions in twenty-five countries across four continents and has a corporate mission to “deliver unique, memorable, and rewarding experiences to millions of visitors across our growing estate. We believe that we achieve this objective largely thanks to the commitment and passion of our team and the strength of our brands, which will never fail to be distinctive, challenging, and innovative. Our passion is putting smiles (or screams) on people’s faces and giving our customers memorable experiences.” It’s been a roller coaster of a ride for Lyn Blethyn in the last fifteen years, fourteen of which have been with Merlin after it merged with Tussauds. “I loved working at Sainsbury’s, but this job is nothing short of incredible. We are not dealing with tins of beans but

“It was only through the analysis that we understood what she did and why she never went off sick. She knew exactly what amount she could remove from the till every day without arousing suspicion and, if we had not caught her, could still have been creaming off the business.” everything from wildlife to theme park rides to hotels and all of the moving parts that are involved in this kind of hospitality business. In the time I’ve been here, I’ve flipped burgers, I’ve sold key rings in the gift shops, I’ve changed beds in the hotels, and I’ve worked in the front line at the zoo—and all just so I knew and understood every aspect of this business.” Blethyn has worked all over the world attending the openings of new

NOVEMBER-DECEMBER 2018

theme parks, and a typical day will see her involved in a conference call with her profit protection colleagues in Australia at 07:00 UK time and another with the West Coast of the US in the early evening so as to work in sync with her team’s time requirements and those of the attractions in which they work. “I’m a global clock watcher in that respect,” said Blethyn who has increased the size of the team to twenty-one profit protection field managers in the last fifteen years as the Merlin empire went truly international. “I have a visit schedule that takes me to Australia, Hong Kong, and Malaysia part of the year, and then on another trip, I visit the US—New York, California, and

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SCREAM IF YOU WANT TO GO FASTER

will all share and be incredibly proud of, and one I’m very proud to be a part of.”

Intelligent Analysis

The face-to-face nature of the business is one of the reasons that Blethyn invests in certain types of technology and solutions to help her do her job. Being in a people business, Blethyn needs to understand the human behaviors behind dishonest motivations—whether they are members of the public or staff employed by Merlin who may have issues in their lives that lead them into making bad decisions and betraying company trust. To this end, she has put all her investigation teams through Wicklander-Zulawski non-confrontational interview techniques training. She has also engaged the services of IntelliQ data mining to understand the numerous and creative point-of-sale scams that may happen at cash kiosks across the estate. “We did a trial with IntelliQ, and this quickly brought to our attention the antics

of a member of our staff who became known as ‘the sprinkles lady,’” Blethyn said. “On paper she was doing an excellent job, never went off sick, and had even won cashier of the year. It was only when we did the analysis that we realized that for every ice cream she was selling at full price, it was only the price of the sprinkles that she was putting through the till. Because guests to our parks rarely check their receipts, she was pocketing the difference. On a good day she was making around £250 pure profit. “It was only through the analysis that we understood what she did and why she never went off sick. She knew exactly what amount she could remove from the till every day without arousing suspicion and, if we had not caught her, could still have been creaming off the business. “Another team of twelve at Chessington was charging for fish and chips and voiding the payment so that it only showed the price of the mushy peas.

Florida. I spend a week in each location to meet as many people as I can. “Much of my time is at the closer attractions. I travel a lot to Europe as well, scheduling time in Italy, Germany, and at Legoland, Billund, which is just over the road from where the Lego factory is located. “Profit protection is really a face-to-face business, and you can’t do it all over the phone, which is why Skype has also made such a huge difference to us,” said Blethyn who attended the opening of a new resort in Japan in 2017 and will attend Merlin hotel launches in Dubai and California during the next twelve months. “Our next Legoland opening is scheduled for Goshen, New York, in 2020, which is to be my last before I retire. It will be a very emotional occasion for me,” she said. “This opening will be another chapter in the Merlin and profit protection journey within the US, one we LP MAGAZINE

NOVEMBER-DECEMBER 2018

SCREAM IF YOU WANT TO GO FASTER Once again, the system immediately spotted the scam not just as a fraud but also as a vulnerable process. Such was the sale of the scam that we had to close the unit as we had to get rid of the whole team, which obviously had a short-term revenue challenge for us.” The common denominator in many of these scams is the high use of cash, so under Blethyn’s stewardship, Merlin is currently conducting a trial on cashless alternatives following a successful pilot last year at Halloween, one of the group’s busiest periods. “This year we are trialling the cashless initiative at a number of our parks and resorts because of the benefits that we recognized in terms of reduced physical risk to staff handling cash and the number of employee thefts. Early indications have shown that it has also significantly reduced our operational costs whilst adding value to guests through shorter queues. In fact, we have seen a revenue increase because people like the speed of the operation. As far as rolling this out, we will continue the trial to the end of the year and then report back to the board, but it looks extremely positive, so watch this space. “You have to be constantly looking at new ways of doing things to increase value to the guests and the business. It’s like a roller coaster—it has got to keep moving to provide the thrill of the ride.” Such use of technology is testament to Blethyn’s tenacity to put the brakes on the double-digit shrink that was blighting the business when she joined in 2003. “The shrink when I joined the business was between 10 and 13 percent—it was horrendous. When I joined Tussauds before the merger with Merlin, there were five or six different stock and sales systems across the business, and there was no regular stocktaking function. The result of this was that we had no global picture of stock or accuracy. “I learned early on that we had to do it differently and very quickly. I needed to get everyone on board with a strategy that works, whereas previously people were not getting on board the profit protection train because, for whatever reason, it was not stopping at their station.

“Now, across the global estate, shrink is circa 1 percent, but I am lucky in that profit protection is supported from the very top of the organization across the world. This year we invited all our profit protection partners from all over the world to a conference at Chessington. The CEO, the CFO, and three other board directors attended and addressed the delegates—there are few businesses that can say they have that level of buy-in from the executive team.”

Cultural Awareness

The reduction in the shrink figure is also linked to the knowledge that because of different cultural and legal frameworks, a company cannot adopt blanket technological approaches across the world. “In Europe there are different approaches,” Blethyn said. “For example, in Italy there are regulations around the use of CCTV, and in Germany you have the works councils, so you have to try alternative approaches. “In Italy, we have CCTV in the cash offices and have successfully communicated that the cameras are there for their own protection to prove that they have done

NOVEMBER-DECEMBER 2018

“Now, across the global estate, shrink is circa 1 percent, but I am lucky in that profit protection is supported from the very top of the organization across the world.” nothing wrong, rather than there being any room for suspicion. In Japan as well, there is a strict honor code that impacts upon the way that you engage with colleagues. You can never be directly critical, but they are eager and happy to learn from their mistakes so that they never happen again. By making these simple adjustments in approach, you are more likely to secure the human engagement that you need to run your business as all of the territories and people will be happy to come forward more often. “We instill the profit protection message early as part of the induction, but trying to train new people on a new park or resort in a different country about profit protection can be challenging because

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SCREAM IF YOU WANT TO GO FASTER simply raising the issue can be interpreted as trying to catch them out, which is not the way you want it to come across when you are trying to build trust. “This is why trust and respect of different cultures form an integral part of how we do things at Merlin. As we are opening new resorts and theme parks, it is all about getting everyone involved from the senior management team to the cashiers—they have to understand what we are trying to achieve, so it has to be translated appropriately. Communication is everything because language cannot be a barrier. From a senior management perspective it is about learning all about the culture you are going into long before you open for business.” Every day is far from a walk in the park for Blethyn and her team, but when she is feeling stressed, that is exactly what she prefers to do. “If I’m at the office, which is one mile from Chessington, I take myself off and talk to the animals in the zoo,” she said. “I always talk to the monkeys and cockatoos—it makes me feel a lot better to chat to them, and I can honestly say there are no other workplaces where you are actively encouraged to tickle the rhinos.” For someone who describes herself as a person who does not enjoy the adrenalin rush of theme park rides, Lyn Blethyn has certainly enjoyed the journey so far. “I don’t like roller coasters really—I’m the sort of person who would happily hold someone’s bag while they went on. But as I said earlier, I absolutely loved my time at Sainsbury’s. I would love to have that time again and give it over to Merlin because it is such a special and incredible place to work, especially if you have a sense of humor and a positive attitude.” Apart from the waxworks of Madame Tussauds, Merlin Entertainments is defined by the number of moving parts on show at any given time. All of them have to work in a specific way to help the company reduce its global risk and exposure while at the same time give voice to its dual ambitions to both scream louder and go faster.

American Dream

Who would have thought, Blethyn said, “When I worked in the supermarket arena that I would be working across the United States, a truly rewarding experience for me. I have a very soft spot for the US attractions and fell in love with Legoland Florida. It really is one of our most beautiful parks. I love working with my team there, and I love the ‘American way’ (not just the food!), the whole can-do attitude, and the buy in from every part of the business there.” There is a rewarding team attitude right across all the global leisure industries within profit protection, a great sharing of knowledge, and a willingness to share experiences and best practices that benefits the entire Merlin Entertainments business.

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JOHN WILSON is executive editor of LP Magazine Europe. A graduate in law and criminology, he is a business journalist with more than twenty-five years’ experience in newspapers, magazines, broadcast media, and public relations, as well as providing external affairs support for ORIS Forums. Wilson can be reached at john.wilson@orismedia.eu. LP MAGAZINE

NOVEMBER-DECEMBER 2018

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Don’t Miss LPM Online An All-Digital Magazine with All-New Content

LPM Online is an all-new magazine experience. LPM Online publishes every other month on even-numbered months in between our print editions. The inaugural edition went live in August. You can view it and our current edition on the LPM Online tab on our website, LossPreventionMedia. com, or by entering LPM-online.com in your browser. The exciting feature of LPM Online is how we can use dynamic elements in both the articles and advertising—things like embedded videos, podcasts, and animations that will bring the information alive. Plus, it is optimized to view on smartphones, tablets, and desktop computers.

To receive notice of all editions of LPM Online, you need to be a digital subscriber of LPM. It’s free and gives you access to all our digital content, including our extensive website, print magazine archives, special reports, and much more. If you are not a subscriber, use the SUBSCRIBE NOW link on our website. If you are a solution provider and want to reach the loss prevention audience with a medium that allows you to demo your technology, show a corporate video, or otherwise showcase your products and services, contact our advertising manager Ben Skidmore at BenS@LPportal.com.

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Safeguard your most valuable inventory with Jahabow’s Theft Deterrent Level™ (TDL™) Series of high-quality, custom, secure display cases. All of our cases are made in U.S.A. Contact us for a quote or consultation: 573.437.4151 | Jahabow.com © 2018 Jahabow, all rights reserved. The TDL shield, TDL and Theft Deterrent Level are trademarks of Jahabow. Unauthorized use strictly prohibited.

Product Protection

with NEW

Feature!

Now available with SONR™ capabilities to provide an extra level of protection against theft with remote notification. LM Tags interface with the SONR™ Echobox (installed remotely) by relaying product activity notifications to increase awareness and improve response times!

Put our loss prevention solutions to work for you! Call 800.747.4665 or 815.877.7041 visit us online at www.southernimperial.com

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Product Protection

Retail Crime Intelligence

LP SOLUTIONS THAT MAXIMIZE YOUR PROFITABILITY Improve On-Shelf Availability with Open Sell Solutions and Real-Time Analytics

An innovative manufacturerto-store veri�ication, tracking, and auditing technology platform that manages the risk of loss or delays due to cargo theft, weather, work stoppage, and even paperwork errors.

An innovative new approach to reducing retail crime using a technology platform built on comprehensive analytics, intelligent prosecution, and deterrent marketing that bridges the gap between retail and law enforcement.

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RFID

ARE YOU A CEILING FAN? We are! Installing RFID systems on the ceiling is a perfect solution where floor-mounted pedestals are impractical or not permitted.

Explore our full line of solutions on our website or call 800-257-5540.

why we are big fans of Which is w ceilings, and why we install more !D Top RFID systems than anyone else in the country. To learn more, visit our website today: www.controltekusa.com

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2019 PRODUCT SHOWCASE AND RESOURCE GUIDE

Security Systems

Supply-Chain Security

Security Systems

Protect Your Most Valuable Assets GPS Tracking For... Cash Electronics Jewelry Pharmaceuticals Tobacco

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Retail Crime Intelligence

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Video Surveillance

Advertiser index 3SI. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 7PSolutions. . . . . . . . . . . . . . . . . . . . . . 15 AFA . . . . . . . . . . . . . . . . . . . . . 2, 8, 14, 15 ALTO Alliance . . . . . . . . . . . . . . . . . . . . 13 ALTO Assurance . . . . . . . . . . . . . . . . . . 14 Appriss Retail . . . . . . . . . . . . . . . . . . . . . 6 Auror. . . . . . . . . . . . . . . . . . . . 5, 8, 10, 14 CAP Index. . . . . . . . . . . . . . . . . . . . . . . . 6 Checkpoint. . . . . . . . . . . . . . . . . . . . . . . 13 ClickIt. . . . . . . . . . . . . . . . . . . . . . . . . . . 15 CONTROLTEK. . . . . . . . . . . . . . . . . . . . 13 Detex. . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 InstaKey. . . . . . . . . . . . . . . . . . . . . . . . . . 2 Industrial Security Solutions. . . . . . . . . 10 Jahabow . . . . . . . . . . . . . . . . . . . . . . . . 12 Loss Prevention Foundation . . . . . . . . . . 7 LP Innovation. . . . . . . . . . . . . . . . . . . 9, 11 LP Software. . . . . . . . . . . . . . . . . . . . . 3, 6 LPjobs. . . . . . . . . . . . . . . . . . . . . . . . . . . 7 LPM Media Group. . . . . . . . . . . . . . . . . . 4 lpPRO . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 NASP. . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Nedap . . . . . . . . . . . . . . . . . . . . . . . . . . 11 Protection1 . . . . . . . . . . . . . . . . . . . . . . . 2 Protos Security . . . . . . . . . . . . . . . . . . . . 8 Security Resources. . . . . . . . . . . . . . . . . 9 Siffron . . . . . . . . . . . . . . . . . . . . . . . . . . 12 ThinkLP. . . . . . . . . . . . . . . . . . . . . . 3, 5, 6 Tyco Retail Solutions. . . . . . . . . . . . . . . 11 Zebra Retail Solutions. . . . . . . . . . . . . . . 9

Get the most out of your video

For information regarding our complete line of digital video solutions, call 631-686-2949 or email info@clickitinc.com

www.clickitinc.com Supply-Chain Security

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2019 PRODUCT SHOWCASE AND RESOURCE GUIDE

EVIDENCE-BASED LP by Read Hayes, PhD, CPP

Plan to Win

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. © 2018 Loss Prevention Research Council

very loss prevention and asset protection team puts together some kind of “plan to win.” As we’ve discussed before, there is too much at stake to lose not to plan. Crime and loss means injuries, reputation damage, revenue loss, and much more. And the way we win is to defeat potential offenders. We convince them not to attempt crimes in the first place, or we disrupt their efforts so that they’re not profitable, or we get them apprehended and sanctioned. LP has layers. The top decision-maker is clued into how their company works and what and how their goals and process to success is designed to work. The “number ones” should very often live at the strategic level. (Strategy should always come first and is defined as a plan of action designed to achieve a major or overall aim.) Being strategic isn’t easy or even trained, and in fact it can be difficult. Many leaders avoid it by hiding in tactical details and tasks. But if you’re the corporate asset protection head, then the company’s leaders are looking to you to strategize how your department is going to support their plans and overall corporate success.

2. LP Operational Framework. After our strategic-focus planning, the team outlines the required protective process—how we will specifically protect and enable important company goals and processes. At this level, the leader and team spell out their action framework. In other words, we must precisely describe who does what, where, when, and why. The framework should outline a highly focused but agile, cross-functional game plan designed to address the strategy with specific people, programs, and systems. The framework also outlines how deployed treatments will be placed and kept refreshed to maintain treatment effects and ease of use over time. 3. Evidence-Based Protective Countermeasures. The lowest level describes specific evidence-based programs, technologies, and tactics. Here is where we plug in our components.

Featured Research: ePVM Impact Evaluation

Being strategic isn’t easy or even trained, and in fact it can be difficult. Many leaders avoid it by hiding in tactical details and tasks. But if you’re the corporate asset protection head, then the company’s leaders are looking to you to strategize how your department is going to support their plans and overall corporate success.

Retailers striving to further suppress crime attempts are using varying ePVM (enhanced public-view monitors) to create deterrence in high-theft and other risky locations. This paper compares different studies conducted by LPRC to understand the effectiveness of the public-view monitor (PVM) and the enhanced public-view monitor (ePVM means enhanced to boost

A comparison of ePVMs over multiple RCTs IMPACT

An LP plan to win incorporates layers including: 1. Enterprise Support Strategy. At this level we determine our protective focus, our LP priorities. We determine important business outcomes, like sell more handbags or increase store safety, that need better precision and success to achieve organizational goals. We also look to improve our protection of key processes like handbag supply chain and in-store display while focusing on the highest-risk places and assets. Our goal here is to support overall corporate safety, sales, and margin-growth objectives by reducing loss and crime risks at data-identified opportunity points. This level is our asset protection strategy.

NOVEMBER-DECEMBER 2018

% Change in Shrink

Efficacious

Positive ROI

% Change in Sales

Unit

Cost/ Retail

Study 1 (asset protected Razor Blade)

YES

5% 

45% 

35% 

Study 2 (asset protected Razor Blade)

YES

1% 

26% 

23% 

Study 3 (asset protected Auto Parts)

YES

8% 

16% 

13% 

Study 4 (asset protected Premium Spirit)

YES

37% 

30% 

Study 5 (asset protected Infant Formula)

YES

LOSSPREVENTIONMEDIA.COM

16% (Ret. 1); 17% (Ret. 2)

70% (Ret. 1); 215% (Ret.2)

the likelihood of an offender seeing, getting, and fearing it) in reducing shrinkage. This paper also describes shopper, employee, and offender perceptions of the ePVM as an effective (and employee/customer friendly) crime-prevention intervention. This paper employs quantitative and qualitative analysis. The quantitative analysis from experimental or randomized controlled trial (RCT) research results shows the implementation of PVMs in selected high-theft product categories can be both impactful and cost-effective. LPRC RCTs have shown both shrinkage reductions and sales increases in a majority of the tested or treated stores between the pretest period (before the ePVM is put in) and the posttest period (after the ePVM has been installed). A summary of these studies is shown in the table at the bottom of the opposite page.

Customer reactions to the ePVM in multiple areas of deployment in multiple stores ePVM location and store type DIY Store – self checkout 1 DIY Store 1 – in aisle DIY Store 1 – customer service DIY Store – self checkout 2

See it

Understand the purpose of the PVM

Feel the PVM is effective in preventing crime

Does Feel more not secure impact at store shopping with PVM behavior

84%

79%

27%

97%

31% 45% 21% 42%

Supermarket Chain 1 (ePVM near infant formula)

100%

85%

90%

81%

86%

Supermarket Chain 1 (ePVM near premium Spirit)

100%

90%

76%

60%

100%

ePVM postion

See it

Get it

Fear it

Entryway ePVM in store 1 (n=10)

31%

84%

79%

In-aisle non-PIP ePVM in store 1 (n=10)

45%

In-aisle PIP ePVM in store 2 (n=38)

21%

In-aisle ePVM in store 2 (n=48)

42%

In-aisle PIP ePVM in store 3 protecting razor blade packs (n=49)

100%

85%

90%

In-aisle PIP ePVM in store 3 protecting whitening strips (n=49)

100%

90%

76%

shoplifters understand why the ePVM was there. Nearly 65 percent agreed the presence of PVMs deters them. In one study, it was found an ePVM with a picture-in-picture box (PIP) displaying a “security guard” deterred 30 percent more offenders than ePVM without PIP. A summary of these results can be found in the table above. Our University of Florida and LPRC teams continue to work new ePVM dosing options including unit placement, numbers per store, constant slight changes to maintain freshness, and aural and visual priming cues to boost the treatment’s noticeability and credibility.

2018 IMPACT Conference

In addition to the quantitative analyses of impact of ePVMs on ROI and shrinkage, the LPRC also conducted numerous small qualitative projects to understand customer, employee, and active-shoplifter perceptions on current or enhanced asset protection devices, including ePVMs. LPRC studies have found the majority of shoppers were oblivious to ePVMs, where many walked by the ePVMs without noticing them. More than 80 percent of customers in all studies said the presence of PVMs did not adversely affect their shopping experiences. Customers usually acknowledged they feel safer in the store with the ePVMs. Customers also noted their shopping experience was not affected by the ePVMs, and finally, they would buy the items protected by ePVMs. A summary of these findings can be seen in the table above. The results from the employee survey show most employees interviewed about the ePVMs were positive about its effectiveness. All employees in every study were aware of the PVM and felt PVM works to deter shoplifters in the store. Employees also pointed out the ease of use of PVMs compared to loss prevention techniques like fixtures, spiders, and boxes. The results from various offender surveys show there is wide variation in the likelihood an offender will notice an ePVM. Enhancements such as sounds and flashing lights can increase the chances an offender will notice the ePVM. Once the shoplifter’s attention is drawn to the ePVM, LPRC studies have shown most LP MAGAZINE

Results for See It; Get it; Fear It over multiple areas of deployment and stores

LPRC members set another attendance record at the beautiful University of Florida venue in two ways. First, overall participation hit just a hair under 400, and top LP leaders went from the typical dozen or so vice presidents to over thirty. While LPRC member engagement went up, so did the number of reviewed LP research projects in Learning Lab breakouts, posters, and main stage presentations rising from twenty-plus to forty-one. LPRC IMPACT is truly a learning and sharing environment. The Impact Mad Scientist gamification, the LPRC Solution Experience Center, updated conference app, along with the senior LP leader STRATEGY@ session made this year’s event even more unique. Next year’s LPRC IMPACT is already being planned and will be held September 30 to October 2.

A Growing Research and Results Community

As of this writing, the LPRC community continues to rapidly grow with over seventy retail chains, over seventy solution partners, industry partners like the Loss Prevention Foundation, LP Magazine, D&D Daily, the Restaurant Loss Prevention & Security Association, the National Association of Safety Professionals, and a half-dozen manufacturers like P&G, Mead Johnson, Bacardi, Coty, Duracell, and Stanley/Dewalt. What this means is more data, more test locations, and much more LP talent working together in eight working groups, the iLab, at summits, webinars, and Impact, and in the field to transform LP action and results. Please contact kevin.larson@kroger.com or jessi@lpresearch.org to learn more about how your organization can engage with us.

NOVEMBER-DECEMBER 2018

C-SUITE & SENIOR LEVEL EXECUTIVES ONLY

INTERACTIVE PANELS RANSOMWARE

CYBER SECURITY SUMMIT: LOS ANGELES 2018

PROTECT YOUR BUSINESS FROM CYBER ATTACKS THURSDAY, NOVEMBER 29TH

7:45AM - 6:00PM

THE BEVERLY HILTON

FREE ADMISSION

This panel addresses the question of whether your company should pay the cyber criminals with the fact that you still may not retrieve your data regardless.

INSIDER THREAT Protecting Your Enterprise from the Human Element

Use Promo Code: LPMAG2018 for Complimentary Admission. (Standard: $350)

This panel will enlighten you on what insider threat & corporate espionage put at risk in your business and how to identify threats within your business.

6 CPE CREDITS

To Pay or Not To Pay - That is the Question!

Full day attendance earns 6 credits following the Summit

CISO & Sr. Leadership’s Best Approach to Cyber Defense

LEARN FROM THOUGHT LEADERS & EXPERTS: MORNING KEYNOTE

AFTERNOON KEYNOTE

Sean Roche

Timothy Lee

Associate Deputy Director of Digital Innovation The CIA

ORCHESTRATION

CISO City of Los Angeles, Information Technology Agency

This panel discusses “Security Orchestration” which unites the security teams or “human element” with pre-existing automated tools and processes around security incidents.

VERIZON Focus Security Where It Matters Most Learn how to navigate the perfect storm of digital convergence and enable digitization across every area of your business while maintaining a secure environment.

David Ostertag

Global Investigations, Investigative Response Verizon

Barbara Kay

Sr. Director, Product Security ExtraHop Networks

John Knies

Chief Information Security Oﬃcer CenturyLink

Brett Hansen

VP Client Software & GM Data Security Dell

SPONSORS See Demonstrations & Evaluate Cutting-Edge Solutions From (Partial List)

PULSE SECURE Eﬀectuating Multi-Cloud Access Security The transition from legacy data centers to hybrid environments brings an array of usability, visibility and protection challenges as users connect to applications and resources across network, cloud and SaaS domains.

CENTURYLINK

This Pass is for C-Suite & Sr. Level Executives only and includes a Catered Breakfast, Lunch & Cocktail Reception. Sales/Marketing professionals will Not admitted. If you are interested in showcasing and/or speaking at the Cyber Security Summit contact Bradford Rand at 212.655.4505 x223 or BRand@CyberSummitUSA.com

CyberSummitUSA.com

Be Careful What You Ask For: You Are Now The CISO Dealing with ever increasing and sophisticated attacks, oversight by the Board of Directors, balancing threats versus compliance requirements, thought leadership, enabling digital transformation strategies, & more.

SOLUTIONS SHOWCASE PROTOS SECURITY

Are Security Guards Disrupting Your Holiday Season?

Protos Security Can Handle the Holiday Rush!

he holiday season is a wonderful time of year for many, but for loss prevention officials, there is no rest. No other time of the year is more professionally critical than the period between November 1 and December 31 each year. According to the National Retail Federation, the all-important, two-month holiday shopping season can represent as much as 30 percent of annual sales. As seasonal shopping increases, thefts of every kind are on the rise. However, a variety of new industry tools are helping LP officers take back the holiday season and spend more time with their families. With more sophisticated industry partners and vastly expanded technical capabilities, companies like Protos Security are showcasing the real value of their innovations to the entire LP industry.

LP MAGAZINE

“Our central AP team works hard every year to source quality guard coverage for the Thanksgiving and Black Friday holiday rush. In years prior, this process was extremely labor intensive and involved sourcing and contracting with multiple companies, only to be left without coverage when those companies were unable to fulfill our request or sent unprofessional, untrained guards,” one national LP operations director said. Protos continues to offer dispatch support twenty-four hours per day, 365 days per year. Their always-on, call-center teams take pride in standing ready to process emergency calls, fill last-minute security needs, and provide incident reporting around the clock.

NOVEMBER-DECEMBER 2018

SOLUTIONS SHOWCASE PROTOS SECURITY these great features are just as easy as checking the latest sports scores on your phone. From Black Friday to New Year’s events, LP teams nationwide have a long history of competing to secure top guards for crowd control, often at the last minute as they seek to supplement and to accommodate last-minute shopper surges. The Protos vendor network makes sure all in the Protos network have valid licensing, proper training programs, and active and appropriate insurance coverage. By eliminating the need to check individual placements before confirming each assignment, Protos is saving clients critical time and freeing up resources that can be better deployed to less-routine administrative tasks. Even the standard overnight security and night watch programs are being optimized. Protos’ now famous GPS location validation systems and hourly punch-in protocols continue to ensure that hired guards are in proper position and on active duty where and when they are supposed to be. With a continual virtual check-in on the guards you’ve hired, Protos can help ensure your merchandise is safe, no unauthorized parties gain access to your facilities, and service payments are both prompt and proper. Companies like Protos are helping the LP industry evolve rapidly and stay focused on their core missions. Now is the time to put the proper processes, technology, and partners in place before the holiday rush. Take advantage of these new service capabilities, so you can enjoy a little more time with your family this year.

“Since contracting with the Protos Security team, we not only have saved time and money but also have had superior customer service with attention to detail and terrific communication,” client Tim H. said. “With the Protos partnership, we were able to fill thousands of man hours with quality guards and provide a safe and secure shopping environment for our customers.” The dispatch team works together with dedicated client account managers (CAMs), who have standing long-term client relationships, are familiar with each of their customer’s specific facilities and support needs, and know each potential work site’s individual risk profile. Protos has designed its teams and client support structure to ensure that each and every guard order gets filled with vetted guard vendors and appropriately trained guards. The CAMs work hand-in-hand with the Protos dispatch team to ensure the best guard company and staffing plan gets matched to each individual contract and work site need as they are efficiently processed, booked, and confirmed. Available around the clock, this power team answers questions and helps respond to emergencies as they arise. “For one of our clients, we provide coverage for more than 200 locations on Christmas Eve and Christmas Day. This is the only time the stores are closed all year. With the security coverage in place, the employees are able to spend quality time with their families,” Rosalind Fields, Protos senior client account manager, said. “The security coverage also reduces concerns from our client, who knows that their locations are being monitored by trained security officers.” Protos has been successful in covering every location for this client the last two years. Prior to utilizing Protos, the client had multiple locations that routinely could not be staffed by other security vendors. Many know that Protos was founded on industry-shifting technology. They are no stranger to market disruption, and they continue to live up to their innovative reputation. For those LP professionals who still want to be in the know, the Protos Client Portal app allows for remote monitoring of guard status, incidents, and more. All

“Since contracting with the Protos Security team, we not only have saved time and money but also have had superior customer service with attention to detail and terrific communication.”

NOVEMBER-DECEMBER 2018

It can be wonderful. Leading LP pros are relying on Protos Security to reduce the burdens of managing large security guard programs. To learn more, contact Kris Vece, LPQ, at 540-751-3756 or krisvece@protossecurity.com.

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Let’s Sit at the Same Side of the Table Or How to Be a Better Partner By Stefanie Hoover, CFI

ith a regular blog titled “Confessions of a Forensic Interviewer,” you’d think that every week I’d have something to say about interviews. I do. But here’s the thing: I’m a solution provider now. In order for me to write regularly, I have to write about my experience, and what I’ve experienced since transitioning from retail loss prevention five years ago to solution provider has been, well, a lot. Thinking back to when I worked for various retailers over the years and bumping into “vendors,” let’s just say I was mostly underwhelmed (though sometimes pleasantly surprised) at the service we received. five years, I noticed that communication isn’t always easily forthcoming from the retail side either. And I relearned what my experience as an investigator first taught me—that communication is a two-way street. So this will be a two-way article. I’ll offer suggestions for improving the retailer-vendor communications from both sides, so regardless of which side of the table you are sitting at, you may find a helpful nugget.

I always thought to myself that if our vendors would communicate with us more often, then they would become solution providers. Now, having lived on the vendor side for five years, I noticed that communication isn’t always easily forthcoming from the retail side either. And I relearned what my experience as an investigator first taught me—that communication is a two-way street.

Being a Great Customer

My role brought me into contact with field technicians and occasionally a manager, if something had gone haywire. I was there during installations as the eye in the sky or checking on the work after it was done and saw a whole range of behaviors on the job, from taking extra-long lunches, to flirting with store staff, to just plain shoddy workmanship. Not everything was negative, as I said. There were pleasant surprises too: techs who showed up on time with a name badge, checked out at the end of shift, and walked me through the work that they did. Through all my years of working with vendors, I never once had a supervisor, project manager, or account rep call and ask me how the job went. This was curious to me. Wouldn’t they want feedback from the customer directly? I always thought to myself that if our vendors would communicate with us more often, then they would become solution providers. Now, having lived on the vendor side for

LP MAGAZINE

If you are a retailer who wants a rock-star vendor, don’t just sit back and wait for it to happen on its own. When you’ve gone through all the trouble to select a vendor—or even if you have a long-term partnership—talk about your expectations and then follow up on them. Almost every retailer has a service-level agreement (SLA) or master service agreement (MSA) in place, but how many actually talk about those things that make that SLA run? For instance, you may have an SLA in place that states your vendor needs to respond to service calls within five days; however, are there any mechanisms in place to make sure each service call is placed with a maximum amount of information from your end, so the vendor’s tech can properly complete the job when on site? If your store isn’t satisfied with something about their service, can they document the issue, or does it go by word-of-mouth to the loss prevention manager? You’ll see a common thread here: it’s communication. Many times, frustrations start to develop because the retailer waits too long to share the issues. The larger the organization, the more delays there are, and the quicker these frustrations pile up. Do you have a regular touch-base with your vendors? It may not be the most exciting conference call of your week, but regular calls can help to develop a rapport, and you may be surprised that information starts to flow,

NOVEMBER-DECEMBER 2018

SOLUTIONS SHOWCASE CONTROLTEK and things will bubble up that otherwise may have stayed dormant and festering.

Being an Awesome Solutions Partner

One thing I’ve learned as a solution partner is that every retailer is different, and they all communicate quite differently. Some don’t want to hear from me at all unless they have a problem. Then there are those with whom I can pick up the phone, pick their brain about a new product, and have a great chat. What needs to stay consistent is the attempt to communicate, from day one. Outlining the critical processes and double-checking that there is consensus is crucial. If your retail customer has a different expectation than you thought, it’s only going to become exacerbated as time goes on. Don’t hesitate to call your retail customers with bad news. We all have those tough calls to make; things don’t always go perfectly. But the longer you wait, the worse it will get. As my friend and boss, Steve Sell, likes to say, deliver good news fast and bad news even faster. Communicate truthfully. People can smell BS a mile away. Retailers have enough to worry about without having to deal with a vendor who is colorful with the facts. We also have to accept that sometimes people don’t click. Personalities may clash, or there may be history of some kind you have no control over. Communicate anyway. Ask the other party: How would you like me to communicate? What works best for you? What have you experienced in the past that you’d like me to do differently? Treat others with respect. This goes both ways. I have seen retailers treat vendors like indentured servants, and I have also seen vendors acting like they own the place. These attitudes don’t serve anyone and only further build the walls between the two sides. If you are a retailer and have a procurement team who handles your LP buying, I suggest sitting in on a conference call or meeting to see how things are going. A finely tuned partnership between retailer and vendor can only result in benefits for both sides. Just think of the idea-sharing, problem-solving, and money-saving that could arise if ideas were exchanged freely and on a regular basis. To illustrate this, I’ll leave you with an example as a final thought. I let one of my retail partners know I was going to be in his area recently, and we made plans to grab lunch. He was telling me about a problem they were having with

NOVEMBER-DECEMBER 2018

Treat others with respect. This goes both ways. I have seen retailers treat vendors like indentured servants, and I have also seen vendors acting like they own the place. These attitudes don’t serve anyone and only further build the walls between the two sides. If you are a retailer and have a procurement team who handles your LP buying, I suggest sitting in on a conference call or meeting to see how things are going. some auditing, and I was able to recommend a company to him that might be able to help. You could write this off as normal networking or even run-of-the-mill sales stuff, but I disagree. This came about because we have good communication and feel comfortable with one another. Comfort and easy exchange of ideas only come about with some work upfront on communication. We’re there. And you can be too.

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SOLUTIONS SHOWCASE FORTALICE SOLUTIONS

Cyber Security and Brand Protection Are Team Sports

s this holiday season approaches, are you ready to stand with your IT security counterparts and protect the brand? How many of you have a working relationship with your IT security department? Do you collaborate on “like” issues, share information, or sit at the table together to strategize and defend your company from both physical and digital threats? Do you discuss and assist in finding the right partners to protect your brand integrity? If not, you should. You are the original brand protectors. As companies invest in more and more technology and your more technologically savvy new hires enter your organizations in every department, you will need to understand these skills like never before. Many of you are and will be required to become system-savvy and develop an aptitude in data analysis to identify criminal activities that are constantly evolving online. Cyber crime

manipulation of devices to the fraudulent acquisition of new terminals. It’s an ever-evolving, persistent assault, and retailers can’t rely solely on a regulatory compliance or checklist approach. Having a trusted and creative third-party company like Fortalice Solutions on your team can often be invaluable, especially in the event of an incident or an over-capacity or resource-gap situation. Fortalice is a boutique “white glove” cyber-security professional services firm with an innovative and experienced team who are focused on protecting people and businesses while mitigating exposure to cyber criminals and activities. We do not rest on the typical regulatory compliance checkbox approach. Instead, we understand that each individual retailer is unique and focus on the efficacy of security, making sure that the right controls are in place and that they are actually working to stop bad things from

is a real threat to you and your business and not so unlike the threats from a physical standpoint. Threats around skimming, phishing, vishing (voice phishing), gift card fraud, social engineering threats, ransomware, return fraud, stolen credentials, password changing, e-commerce fraud, employee training and retention, vendor fraud, and even various security regulations all have both a physical and digital component. Since you are already accustomed to criminal activity around these types of threats, your added skills, including your keen investigations abilities, are a bonus, but you must invest in learnings in this arena. Did you know that cyber crime will more than triple the number of job openings to 3.5 million unfilled cyber-security positions by 2021, and the cyber-security unemployment rate will remain at zero percent? The state of retail cyber security is truly all over the board. Some retailers are more secure than others, but the attacks keep coming from all angles. Every forty seconds a business falls victim to a ransomware attack, and more than 90 percent of successful hacks and data breaches stem from phishing, emails crafted to lure their recipients to click a link, open a document, or forward information to someone they shouldn’t. In addition, phishing attacks with malware links are one of the easiest and most common ways for hackers to compromise social media platforms. The abuse of point-of-sale terminals is taking on new forms, from

happening. At Fortalice, we are professional secret keepers and work diligently and creatively to help companies recover quickly if an incident occurs and get to the heart of the matter in an effort to protect our clients. Our services include but are not limited to enterprise-wide cyber-risk assessments (CRA); red, blue, and purple team penetration testing; incidence response (IR), including preparing for and recovering after an incident; open-source intelligence (OSINT) investigations; merger and acquisition (M&A) due diligence; threat hunting and digital monitoring of VIPs and board members; social media account takeovers; highjacked devices; and various extortion demands. Having the right team on the field is the best way to keep you and your company safe from the onslaught of all unwanted threats, and Fortalice Solutions is here to keep you and your business Rhett Asher protected online. Visit fortalicesolutions.com or email Rhett Asher, executive vice president and director of retail solutions, at rhett@fortalicesolutions.com for more information.

LP MAGAZINE

NOVEMBER-DECEMBER 2018

SOLUTIONS SHOWCASE LP INNOVATIONS

Marrying Video, Analytics, and Customized Solutions for Smarter Locations, Superior Results

and single-sign-on functionality. Our teams in Boston, Los Angeles, Las Vegas, and Poland can support you with customized video and audio cross-reference capabilities supported by your local DTT field team. 2. Advanced Analytics. The combination of data analytics and video creates unparalleled value and is key to the DTT solution. We’ll tell you about your loss prevention trends or what locations are performing better amongst other critical metrics. DTT integrates with all major point-of-sale (POS) vendors, and our technology is API-driven. You get a complete reporting package based on video-based analytics like queuing, speed of service, or average greet time for example. Gain an end-to-end integration quickly that’s powered by our technology, not simply resold. 3. Customizable Solutions. Combining technology with our nationwide field team, DTT can build specific programs for you. ■■ Video-based SmartAudits™—A custom report detailing what’s happening daily by location showing loss, customer experience, and liability. ■■ Investigations and Remediation—Video-based or in-person help to recover cash and deal with problem situations. ■■ Holistic In-Store Programs and Performance Audits—With over 50 people in the field, we can have a key team member within an hour of your store. ■■ Safety and Security Package—For late night, 24-7, and theft- or security-sensitive areas. Marrying the combination of video, analytics, and field services means your locations work smarter with results that speak for themselves. A DTT customer increased its profits by over $700 per store, per month.

hether hospitality or retail, you need to maximize profit. A retailer needs to understand why seventy people walk by the store, but only three enter, or why buyers are standing in line, only to leave. Restaurants may have had a sudden unexplained increase in food costs. Grocery stores may have had a sudden decrease in margins. LP directors are tasked with answering these concerns rising from unexpected issues like high shrink, increased food costs, margin changes, a theft incident, or a substantial loss that requires a new approach. Combining this with the market’s new reality—shrinking profits, flat comps, closing locations, or modest growth—LP directors must play a more strategic role for profitability by improving how assets are protected. But it’s more than just asset protection. LP directors need to do more to improve the operations of their locations.

Decrease Costs, Increase Revenues: Disparate System Aren’t Helping You

As an LP director, you have two main objectives: decrease costs and increase revenues. No doubt you have a number of solutions in play to help you achieve these objectives. Amongst these could be video, fire and intrusion security systems, remote monitoring, or traffic-counting analytics, to name a few. Unfortunately, most of these systems and processes are not working together. When your systems don’t talk, they aren’t helping you.

Performance Improvements: Smarter Locations, Superior Results

What’s needed is a solution that helps you improve performance by marrying video, analytics, and customizable solutions for smarter locations and superior results. To deliver the industry a leading performance-improvement solution, DTT acquired 360iQ and LP Innovations, a nationwide, single-source provider of loss prevention solutions for the retail industry with a dedicated full-time field staff. This new combined solution enables DTT to be a one-stop shop for your performance improvement. DTT/LPI/360iQ helps make your location better and improve your top and bottom lines in three ways. 1. Intelligent Video. More than a camera, our video is intelligent, camera agnostic, and immediately installed. We’ll deliver you modern tools with low maintenance supported by multilocation

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Superior Performance Improvements

Working with DTT, you’ll reduce waste by 50 percent in the first year and improve margins. We’ll identify operational inefficiencies and provide a holistic view of data across the entire operation to deliver business insights. DTT will also create awareness, so employees are more productive and customers satisfied. DTT is delivered as a managed service, so you won’t get stuck with obsolete technology or upfront investment in expensive devices or software. With DTT, you’ll differentiate based on critical metrics, not guesses. Our 24-7 service team, staffed by hundreds of tech support and loss prevention professionals, delivers you these service insights. We deploy local teams backed by our support center. This location-by-location engagement is why our customers love us. Visit dttusa.com for more information.

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SOLUTIONS SHOWCASE 7PSOLUTIONS

Supply-Chain Security Getting Back to the Basics

he daily life of an LP professional continues to become more and more complicated managing complex supply chains, global markets, risks, increased e-commerce, big data, and a list that continues to grow. From time to time we all need to take a step back and make sure the basic fundamentals of our policies and standard operating procedures are being practiced throughout the organization. 7PSolutions began in April 2010 to fulfill an unmet expertise within the supply-chain security arena by employing global supply-chain experts that could guide LP professionals through the complexities of the domestic and global supply chain. This expertise is combined with real-time GPS technologies along with our RouteWatch SaaS that is second to none in the market—a model that has been so widely accepted as an industry standard that others have attempted to duplicate. Although 7P has had several “firsts” in our short history, the foundation of our services and technologies assists our customers to ensure the basic fundamentals within their loss prevention procedures are being driven throughout their organizations. One of our biggest strengths is assisting LP organizations ensuring that their company policies and goals are being met and employees at every level are properly trained and understand their roles on a need-to-know basis. A solid LP supply-chain strategy must go beyond placing a GPS device within a shipment or bait package. 7P’s expertise includes a robust cargo-security best-practice document that allows the LP team to check off those strategies that are most important to their policies, products, and shipping lanes. These services also include assistance with such certifications as Transport Asset Protection Association (TAPA) Facility Security Requirements (FSR) and Transportation Security Requirements (TSR). Whether these strategic processes are internal or external, 7P provides the assistance and knowledge to train staff members and vendors on a need-to-know basis only. As we monitor thousands of miles per days in the air, over the rail, on the ground, and on the sea, we gain a true understanding of the daily challenges that LP organizations face. As transportation experts, we are well positioned to provide solutions around these challenges. Still today one of the biggest issues that we see within the industry is the lack of proper vetting of carriers and drivers. This can lead to major delays and issues in the event of a cargo theft. For this purpose, we are speaking to domestic ground shipments; however, the same driver interviews should be performed for any mode of transportation, even when the carrier is simply taking the product a few miles to an airport. The vetting process of the carriers for air, sea, and rail should be similar as to how their employees, agents, and contracted LP MAGAZINE

vendors are trained and aware of best practices used to prevent loss of product. Drivers must be provided clear instructions of what is expected. They do not need to be aware that they are being tracked. Our monitoring center receives calls from drivers checking-in even when they do not have GPS on board. This is a result of good driver instruction and keeping them unaware that they may or may not have a tracker onboard. Additionally, we help document full details about the driver and the truck he is driving. The 7P RouteWatch platform allows you to document all of this information within the platform, including pictures of the driver and vehicle being used. We see all too often this information missing because it “takes too much time to document.” However, a few minutes with each shipment can save hours of time in the event something happens and can make the difference between making a recovery or not. Getting back to the basics and coupling 7P real-time GPS with CargoNet’s 24/7 recovery support center, cargo theft data, and expansive law enforcement communication platform could be the difference between a painful loss and getting back your products. Call us today at 812-988-4433 or visit 7Pgps.com to find out how we can help you get back to the basics of reducing shrink, fighting organized crime, and increasing the bottom line.

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LPM DIGITAL Kelsey Seidler Seidler is managing editor, digital. She manages the magazine’s digital channels that includes multiple daily e-newsletters featuring original content and breaking news as well as pushing content to various social media platforms. Seidler recently earned her master’s degree in technology and communications through the University of North Carolina’s School of Media and Journalism. She can be reached at KelseyS@LPportal.com.

Actions and Outcomes F

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 to you. Visit our website to gain access to all of our content. You can also follow us on Facebook (search LP Voices), Twitter (@LPMag), and LinkedIn.

Does This Mean Goodbye to Sears? By Bill Turner, LPC

Well, it finally happened. Sears filed for bankruptcy. For now, it’s only chapter 11, so there is still hope. Toys‘R’Us and Circuit City are both rumored to be making comeback attempts, and they liquidated. So you never know. Only time will tell. I’m willing to bet that Sears has touched almost everyone reading this post in one way or another. It’s worth looking up the history of the company online to get a feel for just how many facets of everyday life in the United States have, in some way, involved Sears. Whether with its brands such as Die Hard, Craftsman, and Kenmore, its companies such as Allstate, Land’s End, Orchard Supply, or Kmart, or with its once 3,500+ stores (including Kmart), Sears was everywhere. I know Sears has touched my life in a number of ways. My first bike was a J.C. Higgins (Sears). My dad would buy nothing but Craftsman tools (Sears). I still do. Die Hard batteries (Sears) powered my cars for many years. I have a Kenmore (Sears) refrigerator in my laundry room and still buy all my tee shirts from Land’s End (once Sears). Last, but certainly not least, my first retail job was at Sears in Glendale, California, which I think is still there. I worked in the marking room at night and on Saturdays. I still have dreams of pin-ticketing bras and panties by the thousands. Goldie, the foundations manager, was constantly coming to the marking room demanding more bras and panties. Ugh! And then there were the 110-pound weight sets that we had to bring to customers from the third-floor stock room. I met my best friend there, and we remain so to this day, some forty-nine years later. But my most vivid memory of my time at Sears was standing in the marking room on December 1, 1969 (yes, I’m that old!). We were intensely listening to the first lottery drawing (based on your birth date) for the draft on a transistor radio. Most of us were college students, and it was at the height of the Vietnam War. All of us were hoping for a high number. We didn’t know it at the time,

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but the highest number ever drafted ended up being 195. But we knew higher was better. My number was 300. The guy standing next to me was 001. He joined the Navy the next day. Lives affected by Sears? You bet. Sears has also had an impact on retail loss prevention. Some prominent retail loss prevention executives have spent at least a part of their careers at Sears, including Bill Titus (retired), Mark Stinde (now at 7-Eleven), Tom Arigi (Walmart), Stan Welch (Agilence), Suni Shamapande (PricewaterhouseCoopers), and Scott Glenn (Home Depot). So what happened to Sears, which once had 3,500+ stores (with Kmart), tremendous brand loyalty, and at one time was the largest employer in the United States? The list of concerns is long and varied, and there are lots of opinions. In order to understand the whole story, one really needs to do a fair amount of research. But here are a few things that led to the beginning of the end: ■■ Walmart, Home Depot, and Amazon ■■ “Merging” with Kmart ■■ Slow mastery of online retail ■■ Management shake-ups ■■ Lack of investment in stores and product ■■ Cutting hours, pay, and headcount, thereby negatively affecting service ■■ Eddie Lampert, if you believe many As with any bankruptcy filing, it’s not over till it’s over. But Sears is a sad story nonetheless. We all want to see what happens, and most of us will look back on the many ways Sears has impacted our lives, generally in a positive way.

Walmart Asset Protection in 2018: Transforming with Technology By Karen Rondeau

In late August, LPM Media Group was on site at Walmart’s Asset Protection National Meeting in Rogers, Arkansas, where the theme of the event centers around embracing change to enable the transformation of the business while reducing losses and accidents. Walmart AP’s transformation journey started three years ago on their quest to achieve their aggressive shrink goal, and in August they are able to celebrate the progress that’s been made in reducing unknown shrinkage. According to Joe Schrauder, vice president of asset protection, the shrink reduction success was not brought about by just one thing but rather the combination of many factors working together. Schrauder spoke to the fact that investments made in the stores and in the associates are working, but he emphasized that the AP leadership is to be credited for bringing the strategy to life across 4,700 stores. LOSSPREVENTIONMEDIA.COM

Organized Retail Crime in Idaho 3rd Annual Conference

CALENDAR

Washington Group Plaza, Boise orcaid.org

Schrauder then challenged the team to deliver better results by staying ahead of change, driving innovation, and providing the leadership that will push the team to get better every day. “Change is hard, and the pace of change will not slow,” he said. “The better we become at adapting, owning, and implementing it, the easier it will get.” To further drive this message, Schrauder shared an audio recording of former Walmart President and COO Jack Shewmaker from 1978 as he addressed the organization, highlighting this poignant point: “We must change as circumstance and time and competition and our customers require us to change.” The AP team heard from CEO Greg Foran who stressed that the way to get better is not by luck but by hard work. He implored the team to keep building the muscle that deals with change and to enjoy the journey, explaining that the AP team is making the difference. “Great people make a big difference to the performance,” said Foran. The team was also surprised by a visit from legendary NFL quarterback Peyton Manning, who spoke on leadership and conducted a thirty-minute question-and-answer session with Schrauder. Fifty attendees who have each experienced a great year qualified and were selected to have a private meet-and-greet with Manning. At the event, over 500 field leadership attendees experienced hands-on rotation sessions that mirrored parts of the store—the sales floor, receiving, and front end— where teams aligned on proper processes and were challenged to solve problems they encounter on a daily basis. A dynamic safety and security rotation session stressed the importance of situational awareness and used virtual reality to engage participants with an active shooter and a tornado scenario. As is tradition with Walmart, the meeting concluded with the annual AP awards celebrating the hard work of Walmart asset protection’s best of the best.

What It’s Like to Find and Buy EAS Detachers Online as a Shoplifter By Mike Giblin, LPRC

Imagine that you’re away on vacation. Your home is empty and unguarded, but it’s safely locked tight while you relax on the beach. You promised you’d limit phone time, but despite yourself, you check your messages to find a link a friend has shared with you. It’s an online posting in your hometown stating, “House Keys for Sale. Will Work on Any Lock, Any House.” The listing price? Eighteen dollars with free shipping and a money-back guarantee. While this wouldn’t be feasible in the residential world, it’s exactly the challenge that the world of retail faces daily. In retail, stores spend thousands of labor hours each year applying and removing protective electronic article surveillance (EAS) technologies on products. It’s an elaborate and costly ecosystem, with upfront costs for the tags, wraps, and safers, replacement costs when they wear down or are stolen, labor costs for application and removal, and costs for EAS detection technology at each store exit. These costs, however, have a tremendous payoff: they deter most kinds of shoplifters and stop an incalculable amount of shoplifting events from ever happening. They help create and reinforce an overall impression of control, as well as signal to shoppers that the store cares and isn’t “asking for theft.” There’s an important psychological effect to reinforcing the barrier between “in the store,” where it’s okay to have products you haven’t purchased, and “out of the store.” They deter opportunists, otherwise honest shoppers who may stumble into an LP MAGAZINE

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November 6–8, 2018 Anti-Counterfeit and Currency Expo North America Las Vegas (NV) Convention Center anticounterfeit-expo.com November 14–15, 2018 ISC East Jacob Javits Center New York City isceast.com November 29, 2018 Cyber Security Summit: Los Angeles The Beverly Hilton Beverly Hills, CA cybersummitusa.com January 13–15, 2019 National Retail Federation Retail Big Show Jacob Javits Center New York City nrfbigshow.nrf.com January 24, 2019 Cyber Security Summit: Silicon Valley DoubleTree by Hilton, San Jose, CA cybersummitusa.com February 13, 2019 Cyber Security Summit: Atlanta cybersummitusa.com February 24–27, 2019 Retail Industry Leaders Association LINK Retail Supply Chain Conference Gaylord Palms Resort Orlando, FL linkretailsupplychain.rila.org February 25–27, 2019 INNOVISION 2019 Wyndham Grand Orlando (FL) Resort Bonnet Creek innovisionconference.com March 6–7, 2019 International Supply Chain Protection Organization ISCPO Conference 7-Eleven Store Support Center Irving, TX iscpo.org March 18–21, 2019 Merchant Risk Council MRC Vegas 2019 Aria Resort and Casino Las Vegas, NV merchantriskcouncil.org

#2 My Response Hi X! I’d like detachers for the following tags, please let me know what you can sell me: -https://intelligentlossprevention.com/products/turtle/ -https://intelligentlossprevention.com/products/lm-tag/ -https://www.alphaworld.com/en/our-solutions/keys-detachers/ multi-detacher/ There is also a version of this that requires a coded key, I’d like that as well if you can get it -http://www.cisssinc.com/newgen-5-alarming-teather.html -https://all-tag.com/portfolio-items/q-tag/ Will your 16,000 magnet detach this? Thank you for your help! Mike

opportunity to steal that’s too easy to pass up. They deter low-level shoplifters, people who are only trying to steal a few hundred bucks here and there and will go elsewhere if they encounter resistance or obstacles. But despite all of this, a lingering question keeps retailers up at night: “Why am I bothering to lock it all up if anyone can get the key?” The primary answer to that question is because can and will are two very different outcomes. I set out to explore the underground, surprisingly accessible world of online shoplifting communities and marketplaces. I was going to try to buy the keys to the castle online, with free shipping. First things first, I needed to take off my research scientist hat and go at this endeavor with the same set of knowledge and resources that a typical shoplifter would have—no business credentials, no insider knowledge on technologies and where to find them, and no advanced schemes. I started where I believe a typical shoplifter interested in detachers would, with Google. I conducted a series of Google searches, combined with searches on these online marketplaces: Amazon, Alibaba, Craigslist, eBay, and Walmart. Several months ago, Loss Prevention Research Council (LPRC) research scientists were able to successfully purchase low-gauss magnetic detachers on Walmart.com. Walmart has since addressed this as no detacher devices of any kind were available for viewing or purchase on September 5, 2018. The final column below represents the rest of the Internet.

#3 Her Response Hi Mike Giblin, --The first Turtle ,we think use 16000GS can open it, because we checked the video, it is 9000GS ,and it use the same detacher to open the spider tags. The spider tags can use this 16000GS detacher. --The LM tags need use their speical detacher,other detacher can not open it. --We have no the third one (Alpha S3), it is patent (sic). --The last two likns (sic) can not be opened dear, could (sic) you please send me picture ? thanks. Any questions,you can let me know. Best Regards X

Alibaba and the Personal Shoplifting Concierge

Upon placing an order for a 16,000-gauss detacher on Alibaba, within twenty-four hours I received email correspondence from six different suppliers offering to fulfill my order. One supplier was particularly helpful, sending me a friendly email asking what types of tags I “use,” so she could ensure she sold me the correct detachers. She also sought me out on LinkedIn and connected with me there. This was a curious mix of due diligence and lack of caution as she had used my ordering email address to find out who I was and seek me out. Also noteworthy is that the price for these tags was very high at $149 plus $50 shipping. Our correspondence is captured below. In it, I simulated the experience a potential shoplifter would have, only using information and materials readily available to the public online. No verification or information was required to establish that I was placing a “business order” that could not be easily fabricated—and did not appear to be checked. Her name and business have been anonymized.

#4 My Response Sure! #4: Here is the info from the website: The CISSSinc Gen 5 and Decoder can be customized to a unique IR signature for your brand, certain stores or even specialty zones within stores. #5: Here is the info from the website: Q-Tag® can be RFID, along with AM and RF. It’s also the latest and greatest RFID and EAS solution that combines High Security, Versatility, Efficiency, Safety, and Marketing/Promotion. High Security “ Q-Tag’s size, shape, and the connectivity between the tag and pin make it virtually impossible to be forcibly removed from retail merchandise. “ Q-Tag’s unique stacked RF coil offers superior EAS system detection performance to standard RF coils. Retailers no longer need large EAS tags to achieve adequate detection. “ The patented lock inside of the Q-Tag is built to withstand 110 LBs. of pull force.

#1 First Contact Hi Mike Giblin, How are you, this is X from XX Limited. We are 16000GS eas detacher factory. Please check the attached picture. You can tell me the tags you use, so we can suggest you the best suitable detacher, different detacher used for different type tags. Any questions,you can let me know. Best Regards X

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Full results, including a complete chart of website results, the resolution of my conversation with X, and the metrics below, were shared in the EAS Detacher Learning Lab Breakout Session at LPRC’s 2018 Impact Conference, October 1-3 in Gainesville, FL. ■■ Price ($USD) ■■ Arrival time ■■ Effectiveness (does it work?) ■■ Forced account creation versus guest checkout ■■ What personal information was necessary to complete the order For more information, visit lpresearch.org/impact/. |

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ANNUAL INDEX January/February 2018 Power to the People: Rite Aid Uses a Crowdsourcing, Crime-Solving Tool to Amplify Investigations by Garett Seivold, Contributing Writer (p. 15) ORC Is Worrisome, Worsening…And at Risk of Becoming Ignored? by Garett Seivold, Contributing Writer (p. 35) Collaboration of Food Waste Reduction by Colin Peacock, ECR Community (p. 45) March/April 2018 All Together Now: Can LP Help Forge Collaboration to Fuel Retail’s Technology Revolution? by Garett Seivold, Contributing Writer (p. 15) RFID and Retailing: The Experiences of Ten Case-Study Companies by Adrian Beck, University of Leicester (p. 39) RILA’s Asset Protection Leaders Council by Jacque Brittain, LPC, Editorial Director (p. 51) May/June 2018 Women of Loss Prevention: Survey Results of How Women View Their Current Roles in the Industry by Jacque Brittain, LPC, Editorial Director (p. 15) Security at the Source: Manufacturers and Retailers Collaborate to Meet Product Protection Challenges by Garett Seivold, Contributing Writer (p. 39) Retail Crime in Los Angeles by Basia Pietrawska, CAP Index (p. 51) July/August 2018 Safely into the Night: LP Success Stories Show Thwarting Thieves After Hours Takes Many Forms by Garett Seivold, Contributing Writer (p. 15) The Worldwide Impact of Shrink: Sensormatic Global Shrink Index by Meg Costa (p. 39) Women of Loss Prevention: LP Leadership Reacts and Responds to the Results of the Survey by Jacque Brittain, LPC, Editorial Director (p. 49) September/October 2018 An About-Face for LP? Advances in Identification Technology Let Retailers Get Proactive by Garett Seivold, Senior Writer (p. 15) Partnering Science, Data, and AP to Tackle Retail Shrink by Clarissa Franklin, Rajat Malhotra, Dani Diehl, and Raksha Pai, The University of Texas (p. 39) Why Do People Steal? Examining the Robin Hood Complex by Mike Giblin, LPRC (p. 51) November/December 2018 Mission Driven: Inside the Demanding, Rewarding World of Goodwill Loss Prevention by Garett Seivold, Senior Writer (p. 15) Scream If You Want to Go Faster: The RollerCoaster World of Profit Protection at Europe’s Largest Entertainment Company by John Wilson, LPM Europe (p. 41) 2019 Product Showcase and Resource Guide (p. 49) Interviews by James Lee, LPC, Executive Editor From LP to Internal Audit to Enterprise Risk Management with Kevin Valentine of Signet Jewelers (Jan/Feb 2018, p. 23) The Three Amigos with Rex Gillette, ADT/Protection 1; Mike Grady, LPC, Vector Security; and Kevin Lynch, LPC, Tyco Retail Solutions (Mar/Apr 2018 p. 27) Taking a Data-Centric Role to Add Value to Your Company with Dan Faketty of Southeastern Grocers (May/Jun 2018 p. 27) Reflecting on the Evolution of Retail Security with Paul Jones, LPC, of CKE Restaurants Holdings (Jul/Aug 2018, p. 27) A Lifetime of Learning with Chad McIntosh of Bloomingdale’s (Sep/Oct 2018 p. 27) Getting to Know You: Three Executives Reflect on Their Careers in Loss Prevention with Mike Lamb, LPC, Kroger; Cathy Langley, LPC, Rite Aid; and Mark Stinde, MBA, LPC, 7-Eleven (Nov/Dec 2018 p. 27) Ask the Expert Intrepreneurship within AP Is a Retailer’s Competitive Advantage with Maurizio P. Scrofani, CCSP, LPC (Jan/Feb 2018 p. 44) Five Tips to Mitigate Retail Physical Security Threats with Ken Kuehler, Detex (Jul/Aug 2018 p. 56) Outsmarting Cyber Criminals with Rhett Asher, Fortalice Solutions (Sep/Oct 2018 p. 38) Retail’s Opportunity to Help Reduce Recidivism with Barbara Staib, NASP (Nov/Dec 2018 p. 24)

Certification Stepping Up Your Game as an LP Professional with Kenn Dilworth, LPC, Publix (Jan/Feb 2018 p. 32) Earning the Respect of Your Customers with Steve Hyle, LPC, AFA (Mar/Apr 2018 p. 24) Investing in Your Career with Miranda Colins, LPC, Petco (May/Jun 2018 p. 36) Stepping Up Your Game as an LP Professional with Lucas Moeller, LPC, Lowe’s (Jul/Aug 2018 p. 24) Remaining Engaged and Accountable with Tyson Robertson, LPC, Amazon (Sep/Oct 2018 p. 24) Fundamental LP Knowledge with Sue Read, LPC, FleetPride (Nov/Dec 2018 p. 36) Editor’s Letter by Jack Trlica A Look Inside this Edition (Jan/Feb 2018 p. 6) Thank You and I Appreciate You (Mar/Apr 2018 p. 6) Diversity in the LP Industry (May/Jun 2018 p. 6) Bob MacLea Scholarships to Fund LP Certifications (Jul/Aug 2018 p. 6) Reactions to Women of LP Survey (Sep/Oct 2018 p. 6) Finding Answers through Research (Nov/Dec 2018 p. 6) Evidence-Based LP by Read Hayes, PhD, CPP Checklists Matter (Jan/Feb 2018 p. 20) Offenders Adapt; So Must We (Mar/Apr 2018 p. 34) Monitors or Locked Displays? (May/Jun 2018 p. 62) Deterring Determined Offenders (Jul/Aug 2018 p. 36) Everything Is Connected (Sep/Oct 2018 p. 36) Plan to Win (Nov/Dec 2018 p. 64) Future of LP by Tom Meehan, CFI How to Become a Subject-Matter Expert (Jan/Feb 2018 p. 42) Stop Worrying about the Retail Apocalypse and Focus on the Tsunami of E-commerce Returns (Mar/Apr 2018 p. 50) We Gave Up Privacy for Convenience Years Ago (May/Jun 2018 p. 48) The Blurring Lines between ORC and Cyber Crime (Jul/Aug 2018 p. 35) How ORC Fuels Human Trafficking (Sep/Oct 2018 p. 50) How Our Memories and Perspectives Are Shaped by Social Media (Nov/Dec 2018 p. 34) Interviewing by David E. Zulawski, CFI, CFE and Shane G. Sturman, CFI, CPP Random Lessons from the Room: Part Four (Jan/Feb 2018 p. 12) Life Is Like a Circle: Part One (Mar/Apr 2018 p. 12) Life Is Like a Circle: Part Two (May/Jun 2018 p. 12) Life Is Like a Circle: Part Three (Jul/Aug 2018 p. 12) Hello Ladies…and Gentlemen (Sep/Oct 2018 p. 12) Evaluating Memory: I Remember It This Way (Nov/Dec 2018 p. 12)

LPM Digital by Kelsey Seidler ORC Research and Security Lawsuit (Jan/Feb 2018 p. 52) The Excellent Life of Bob MacLea (Mar/Apr 2018 p. 67) The Exit Inspection, the Retreat of Toys“R”Us, and a Farewell to Sticky Myths (May/Jun 2018 p. 66) Facing Crises (Jul/Aug 2018 p. 59) A New Reality (Sep/Oct 2018 p. 60) Actions and Outcomes (Nov/Dec 2018 p. 74) LPM Excellence Recognizing the Best in LP Adel Sayegh, Universal Surveillance Systems, and Tina Sellers, Retail Business Services (Jan/Feb 2018 p. 22) Fred Mullen, TJX Companies, and Kris Vece, LPQ, Protos Security (Mar/Apr 2018 p. 26) Cathy Langley, LPC, Rite Aid, and Louise Kadege, ORIS Media (May/Jun 2018 p. 38) Jim Carr, CFI, CCIP, Rent-A-Center, and Chris Duke, LPC, Heinen’s Grocery Store (Jul/Aug 2018 p. 26) Steve Longo, CAP Index, and Steve May, LP Innovations (Sep/Oct 2018 p. 26) Wayne Hoover, CFI, Wicklander-Zulawski, and Chad McIntosh, Bloomingdale’s (Nov/Dec 2018 p. 26) Parting Words by Jim Lee, LPC What If We Had Never Met (Jan/Feb 2018 p. 58) Don’t Miss the Chance (Mar/Apr 2018 p. 74) The Underdog (May/Jun 2018 p. 74) I Have a Business Deal for You (Jul/Aug 2018 p. 66) Liberty Bell, Rocky, Independence Hall, Cheesesteak, and LPM (Sep/Oct 2018 p. 66) Once Upon a Time (Nov/Dec 2018 p. 82) Perspectives by Jacque Brittain, LPC The Year Ahead in LP with Ryan Carter, InstaKey; William Santana Li, Knightscope; and Ed Tonkon, Zebra (Jan/Feb 2018 p. 50) Loss Prevention Sales Strategies with Cheryl Blake, Verisk Retail; Johnny Custer, Spark Resultants; and Claudia Tuttle, Accuride International (Mar/Apr 2018 p. 58) A Culture of Innovation with Randy Dunn, Tyco Retail Solutions; Vy Hoang, i3 International; and Steve Sell, CONTROLTEK (May/Jun 2018 p. 24) Stepping Outside of What’s Considered Safe with Jorge Nazer, Grupo ALTO (Jul/Aug 2018 p. 46) Strategies Using Video Surveillance to Audit Your Retail Business by Doug Montgomery, March Networks (Mar/Apr 2018 p. 46) Supply Chain The Fallout of Holiday Peak by Glenn Master, ISCPO (Mar/Apr 2018 p. 36) Into the Rabbit Hole of Supply-Chain Risk by Maurizio P. Scrofani, CCSP, LPC (Nov/Dec 2018 p. 38)

Statement of Ownership Publication title: LossPrevention. Filing date: 10/1/18. Issue frequency: bi-monthly. No. of issues annually: 6. Mailing address of office of publication: 700 Matthews Mint Hill Rd, Ste C, Matthews, NC 28105. Mailing address of headquarters: same. Name and address of publisher, editor, and managing editor: Jack Trlica, same address as above. Corporate owner: Loss Prevention Magazine, Inc., 10433 Pullengreen Dr., Charlotte, NC 28277. Stockholders: Jim Lee, 10433 Pullengreen Dr., Charlotte, NC 28277; Jack Trlica, 7436 Leharne Dr., Charlotte, NC 28270. Publication title: Loss Prevention. Issue date of circulation data below: July-August 2018. Avg. No. Copies No. Copies of Single Each Issue During Issue Published Preceding 12 Months Nearest to Filing Date Total no. of copies 24,033 21,600 Outside county paid/requested subscriptions 16,603 10,048 In-county paid/requested subscriptions 0 0 Other paid/requested distribution outside USPS 4,908 9,178 Requested copies distributed by other mail classes through USPS 0 0 Total paid and/or requested circulation 21,511 19,226 Outside county nonrequested copies 183 1,095 In-county nonrequested copies 0 0 Nonrequested copies distributed by other mail classes through USPS 0 0 Nonrequested copies distributed outside the mail 1451 930 Total nonrequested distribution 1,634 2,025 Total distribution 23,145 21,251 Copies not distributed 888 349 Total 24,033 21,600 Percent paid and/or requested circulation 92.9% 90.5% Electronic copies requested 13,458 12,675 Total print and electronic requested 34,969 31,901 Total distribution print and electronic 36,603 33,926 Percent paid and/or requested both print and electronic 95.5% 94.0% Name and title of publisher: Jack Trlica, Editor and Publisher Date: 10/1/2018

LP MAGAZINE

NOVEMBER-DECEMBER 2018

PEOPLE ON THE MOVE David Marks is now an assets

protection specialist at 7-Eleven.

Frank Sorgie Jr. was named

senior LP manager at Academy Sports. Eric Rose was named

global security, content protection lead at Apple.

Martin H. Lisitza, CFI is now a field AP manager at Advance Auto Parts. Angela Rueber was promoted to

crisis manager, global security operations, Yosef Messina was promoted to senior regional LP manager, and Denis Prose, Michael Korso, MBA, CFI, LPC, and Brian Horn, LPC are now regional LP managers at Amazon. Scott Pethuyne was promoted

to director of AP analytics and fraud management at Ascena Retail Group.

store operations, and Lee Bovington is now territory

Monica Trevino has been

promoted to director of corporate LP at GameStop.

LP manager (UK) at Nike.

Wanda Barnes-Lake was

Patricia Carbonara was promoted

promoted to global supply chain LP manager at Gap Inc.

to manager, violence in the workplace assessment, national LP, Christy Mitchell was promoted to area LP manager, Valerie Laschen and Jessica Bello are now corporate investigators, and Joanne Spear was promoted to senior field investigator at Nordstrom.

Guy Chenard has promoted to chief commercial officer, and Michel Chalouhi has been promoted to VP of global sales at Genetec. Alfredo Ontiveros is now a regional investigator at GoWireless, Inc.

Mel Davis is now a regional LP

Russell Barnett is now a regional

Justin Bowers was promoted

manager at The Parts Authority.

LP manager at Hermes (UK). Rui Rodrigues, BA, LPC was promoted to divisional VP of LP and risk management at Holt Renfrew (Canada).

to director of inventory control and LP at The Pet Club.

Edwin Colon is now senior

specialist of environmental, safety, and health at Petco.

Meredith Plaxco was promoted

Kelly Harrington was promoted

Frederick D. Hassel Jr. was

Shawn Zehel is now senior investigations manager of global eCommerce, commerce services at Pitney Bowes.

Rey Rodriguez is now director of investigations and ORC at Belk.

promoted to compliance, safety, and AP operations manager at Jet.com.

Scott Lox, CFI is now a

Luz Cruz is now corporate

to associate director of global threat detection and response at Best Buy. Rob LaCommarie, CFI has

been named VP of AP at Big Lots Stores.

Jim Kennedy was promoted to territory LP director, Janine Marin is now a regional LP manager, and Adam Luna is

LP at Prada.

regional AP Manager at Living Spaces Furniture.

senior VP of store operations, and Emily Akino (Bosworth), LPC is now a district store manager at Lowe’s.

Trevor Edwards, CFI, Dai-shawn Fowler, and Richard Rivera were

promoted to district managers of investigations at Macy’s.

David Wallace, CCII, LPC was promoted to senior analyst of fraud detection and investigations at Staples. Shawn Finley was

promoted to regional AP director at Stein Mart.

Paul Andrews was promoted to

director of AP administration and data analytics at Tapestry.

Patrick Walsh is now an ORC

investigator, national task force, was promoted to supply chain investigator at TJX. to district LP manager at TJX Canada.

Tracy Abrahamowicz, LPC was promoted to senior field LP manager at T-Mobile.

Jean Brodie was named

Kazuya Ohara, LPC was named director of AP at Tony’s Finer Foods.

Dale H. Loope, ATO is now a regional security investigator at QXH (QVCxHSN).

Maria Herrera-Garcia was

head of profit protection at Quiz Clothing (UK).

Vinny Scalese has been named

a region AP manager at Southeastern Grocers.

Robert Zyla was promoted

Canaan Peacock was

Kellen McWhite, LPC, CBCP, CFI was promoted

Steven K. Johnson is now

Karen Cruz is now a district LP manager, and Liliana Carioto

lead LP efforts at B&H Photo. promoted to regional LP manager at Beall’s.

Matt Sylvia was promoted to zone manager of asset and profit protection at Sears Home Services.

to senior director of LP and safety, and Jackie Goebbel is now safety and LP manager at PetSmart.

to corporate manager of investigations, and Mark Sosa was promoted to ORC investigator at Home Depot.

Brian Bazer has been named to

manager of AP and profit protection at Sears Holdings.

James Curtis was promoted to VP of shortage control, and Greg Dolcich, LPQ is now an area LP manager at Ross Stores.

promoted to investigative manager of global investigations, and Casey Childers is now a market AP manager at Walmart.

LP and safety director at McKinley, Inc.

Jayson Sutton has been named

VP of LP at Ross Systems.

Bill Lane has been named director of LP, health and safety, and audit at Watches of Switzerland.

Katherine Board is now

John MacLeod, CFI is now a regional LP manager at Michael Kors.

Ron Pacchioli Jr. was promoted

Isaac Valentin is now a

Adam Gilvin has been named

Guillermo Rivera is now a regional AP investigator at Mobilelink.

Alex Gaines was promoted

Kelly (Lakota) Jones is

manager of organizational AP and safety at Duluth Trading Company.

Omar Nuhoglu was named national LP manager at Myer (Australia).

David L. Maxim Jr., LPQ, CCFI, EHS is now an area LP

Keith Clarke, CFI, LPC was named director of LP at Family Dollar.

Justin Baker is now a divisional

Angie Cahill, CFI was named

Mike Rackley was promoted to senior director of global

Don Strand was promoted to VP or human resources, compensation, HR operations, and services, and Greg Hietanen was promoted to market

now a district LP manager at Burlington Stores.

a multiunit LP manager at Delaware North. director of LP at DSW.

Joe Anderson is now senior

director of LP at Forty-Five Ten.

Larry Greene is now regional

to district AP manager at Saks Fifth Avenue.

to district AP manager for Saks Fifth Avenue Off Fifth.

retail crime investigator at Weis Markets.

now international account executive at Wicklander-Zulawski & Associates.

specialist at Sally Beauty.

LP director at NAPA Auto Parts.

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.

NOVEMBER-DECEMBER 2018

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LP MAGAZINE

NOVEMBER-DECEMBER 2018

PARTING WORDS

Once Upon a Time

Jim Lee, LPC Executive Editor

Philadelphia. There are now thirty-two board members consisting of both retailers and solution providers. Almost all were in attendance, as well as some sixty guests as the meeting is open to anyone interested. During the nine years of the foundation’s certification, including both the LPC and LPQualified (LPQ) for novice LP associates, the coursework has been updated, and various other certificate courses have been added to the curriculum. As of the October meeting, there are now 1,224 LPC and 866 LPQ designates. I am proud to say I am one of those and did the right thing in waiting. This past summer the foundation hosted a golf outing preceding the NRF Protect conference in Dallas with the proceeds going to no-cost scholarships for those who apply. A total of 128 individuals were given grants representing over a hundred companies. It is worthy to mention some of the comments included on the applications: ■■ “While I am proud of my accomplishments, I believe in striving to do better.” ■■ “Being a certified professional in one’s field demonstrates a commitment to continuing education.” ■■ “LPC is now the standard, and I want to show to my clients I have maintained that high level of knowledge.” One of the heartwarming initiatives of the foundation is the Loss Prevention Benevolent Fund whereby funds are donated and set aside for those LP professionals who may have suffered loss of life or crippling injuries. Thousands of dollars have been passed on to suffering families in their time of need in the name of the foundation and certified professionals. Now as the foundation enters its tenth anniversary of the completion of the course work, it is good to pause and reflect on the growth of a profession through an association devoted to the individual loss prevention professional. This is one once-upon-a-time story that is not a fairy tale but a living and loving true story.

nce upon a time many years ago when I was very young, ASIS announced a new certification program called the CPP, which stood for certified protection professional. I received a call asking me if I would consider being “grandfathered” in as a CPP—no study and no exam. Interesting offer, I thought. I had been to a handful of local ASIS meetings but never found much retail information and commitment. There were a lot of smart people from industrial security and law enforcement but no retail loss prevention. I decided no thanks on the CPP; I will wait for something in retail that may add value to my career. Well, wait I did…and wait and wait. Over the years, CPP had become a distinguished certification, and many worldwide have garnered the designation through study and examination. But not me; I was still waiting for something more tailored toward retail. Then in 2006, a few individuals in the retail industry decided it was time, and the Loss Prevention Foundation (LPF) was announced. A content development committee was formed as well as a board of directors. It was a slow process by design. Some 300 LP professionals representing over 130 of the leading retailers worked on various modules of the certification. Then in the fall of 2009, the LPCertified (LPC) certification was complete and ready for study. On April 30, 2010, the first LPC designates were announced. Four years seems like a long time to develop a certification program, but all the work was volunteer by the retailers and financially supported by a few solution providers who have stayed the course over the years. And everyone involved wanted to do it right. The foundation was set up as a not-for-profit, IRS-approved association established and run by retail LP executives and relevant solution providers. It remains so today with many of the original leaders still on board. The names of the individuals and companies are not important to mention; they know who they are. It is important to note that the foundation remains an association for the LP professional, run by LP professionals. Now fast forward to this past October and the annual LPF board of directors meeting held this year in

NOVEMBER-DECEMBER 2018

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November - December 2018

Articles inside

PARTING WORDS

ANNUAL INDEX

PEOPLE ON THE MOVE

SOLUTIONS SHOWCASE

LPM EXCELLENCE

LPM DIGITAL

CERTIFICATION

EDITOR’S LETTER

INTERVIEWING

EVIDENCE-BASED LP

ASK THE EXPERT