EDITOR’S LETTER

Finding Answers through Research

Research 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.

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

Charles Bernard Group Vice President, Asset Protection and Comprehensive Loss, Walgreens Erik Buttlar Vice President, Asset Protection, Best Buy Jim Carr, CFI, CCIP Senior Director, Global Asset Protection, Rent-A-Center

Ray Cloud Senior Vice President, Loss Prevention, Ross Stores

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

John Matas, CFE, CFCI Vice President, Asset Protection, Investigations, Fraud, & ORC, Macy’s Chris McDonald Senior Vice President, Loss Prevention, Compass Group NA Randy Meadows Senior Vice President, Loss Prevention, Kohl’s

Melissa Mitchell, CFI Director, Asset Protection and Retail Supply Chain, LifeWay Christian Stores Richard Peck Senior Vice President, Loss Prevention The TJX Companies Joe Schrauder Vice President, Asset Protection, Walmart Stores

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

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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 EXECUTIVE EDITOR James Lee, LPC JimL@LPportal.com EDITORIAL DIRECTOR Jacque Brittain, LPC JacB@LPportal.com MANAGING EDITOR, DIGITAL Kelsey Seidler KelseyS@LPportal.com RETAIL TECHNOLOGY EDITOR Tom Meehan, CFI TomM@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 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

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