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MAGAZINE
SECURITY
2020
Identifying the
Store of the Future
INTERVIEW WITH
JOE FRYAR OF FOOD CITY
LAW ENFORCEMENT
AND RETAIL PARTNERSHIPS
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Finding bad apples
has never been easier.
17 6 PUBLISHERS LETTER
10-Year Anniversary
By Jack Trlica
Security 2020
8 ON THE WEB
Identifying the
Store of the Future 10 RETAIL SPONSORS
How will the retail environment
change in the next decade? 12 LOOKING BACK
By Francis DAddario, CPP, CFE, Ten Years of LP Magazine
Security Executive Council
14 INTERVIEWING
Power. Control. Part 2
By David E. Zulawski, CFI, CFE
26 ACADEMIC VIEWPOINT
Using Technology NRSS Article: Business Expense
By Richard C. Hollinger, Ph.D.
and Training
to Impact 50 FUNDAMENTALS
Game Changers in LP
Financial Success By Mike Marquis, CFI
A conversation with
Food Citys Joe Fryar. 72 ASSOCIATIONS
By James Lee, Executive Editor IN ACTION
Risks from Shoplifter
Apprehensions: Part 2
By Lisa LaBruno
74 CERTIFICATION
41 Retailers Benefit from Solution
Providers Scholarships
By Amber Virgillo
Law Enforcement 76 INDUSTRY NEWS
and Retail - Global Shrinkage Drops
Partnerships to 2007 Levels
- Continued Growth Forecasted
Working together for the Security Market
to fight retail crime. By Robert L. DiLonardo
By Millie Kresevich, Luxottica
78 CALENDAR
201
80 ADVERTISERS
Loss Prevention
51 Resource 81 VENDOR SPONSORS
2011
Loss Prevention
Guide 82 PARTING WORDS
To Be Young Again
By Jim Lee
Resource Guide
A comprehensive list of
industry solutions providers.
4
JANUARY FEBRUARY 2011 | LPPORTAL.COM
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PUBLISHERS LETTER
MAGAZINE
10-Year
Matthews, NC 28105
704-365-5226 office, 704-365-1026 fax
EXECUTIVE EDITOR
James Lee
ime flies when youre having funten years of fun.
T
JimL@LPportal.com
April 1, 2001, was not a joke. After several weeks of discussion, thats the day we
CONTRIBUTING EDITORS
decided to go for it and launch LossPrevention magazine. Two short months later, Adrian Beck
we wrote, photographed, designed, and printed a prototype that we introduced to the industry Walter E. Palmer, CFI, CPP, CFE
Amber Virgillo
at the National Retail Federation LP conference in Vancouver in June. Three months later, our
official Premier Issue hit the streets in the aftermath of September 11th. CONTRIBUTORS
William A. Alford, CFE
Robert L. DiLonardo
Looking Forward Read Hayes, Ph.D., CPP
A lot has happened since 2001 with both the magazine and the industry. But a lot is yet to Richard C. Hollinger, Ph.D.
Mike Marquis, CFI
come. The first step in our second decade is a redesign of the magazine. Gene Smith
Youll notice a major change on our cover. Instead of the LossPrevention masthead, weve Shane G. Sturman, CFI, CPP
changed to LP Magazine. After ten years of establishing our brand, we decided to call the Kelby Woodard
David E. Zulawski, CFI, CFE
magazine by the name most of you call us.
Inside the magazine weve updated the layout to be more readable as well as more focused. ONLINE EDITOR
Matt Richardson
While were looking forward to our next ten years, were also looking back at the past ten. MattR@LPportal.com
On pages 12 13 we revisit that premier issue as well as the six issues in 2002. Many of you
CREATIVE DIRECTOR
will likely remember many of those articles. If you werent a reader back then, you can read Larry Preslar
any of these back issues on our web site.
ART DIRECTOR
Mindy Kuhn
Digital Channels
Speaking of our web site, we are also totally redesigning our site to add additional function DESIGN & PRODUCTION
SPARK Publications
and content. The new site should be live by the end of February with text versions of all the info@SPARKpublications.com
articles from the past ten years as well as our PDF version. 704-844-6080
The new web site, www.LPportal.com, will be only one of multiple digital channels. We
have also launched our LinkedIn group, LP Central; our Facebook page, LP Voices; a Twitter ADVERTISING
page, @LPmag; and a redesigned e-newsletter, LP Pulse. See page 8 for details. ADVERTISING MANAGER
All of this, plus soon-to-be-available videos, podcasts, and iPad and iPhone apps, are meant Bonnie Dodson
828-479-7472 office, 704-943-5797 fax
to give you access to the magazine content and other LP information in whatever way best BonnieD@LPportal.com
suits your preference and lifestyle. Please join in.
WEST COAST REPRESENTATIVE
Ben Skidmore
Change Is Good 972-587-9064 office, 972-692-8138 fax
An awful lot has changed in the past ten years, both in the LP and publishing industries. BenS@LPportal.com
Were changing, too, as we strive to be The Voice of Loss Prevention. SUBSCRIPTION SERVICES
Let us know what you think about our new look and offerings. And especially let us
CIRCULATION MANAGER
know what you want to see from us now and in the future. Without our loyal readers, retail Kelly Durham, LPQ
sponsors, and advertising partners, we never would have made it these past ten yearsand KellyD@LPportal.com
certainly not the next ten. NEW OR CHANGE OF ADDRESS
www.myLPmag.com
POSTMASTER
Send change of address forms to
Loss Prevention Magazine
P.O. Box 1088
Lowell, MA 01853
Jack Trlica
Editor and Publisher LP Magazine 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 www.myLPmag.com. The publisher reserves the
LossPrevention and LP Magazine are service marks owned by the publishers and their use is restricted. All editorial content is copyrighted. No article may be
right to determine qualification standards. International print
reproduced by any means without express, written permission from the publisher. Reprints or PDF versions of articles are available by contacting the publisher.
subscriptions are available for $99 per year payable in U.S. funds
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
at www.LPportal.com. For questions about subscriptions, contact
does not imply endorsement by the publishers. The editor reserves the right to accept or reject any article or advertisement.
circulation@LPportal.com. Application to mail at periodicals
postage rates is pending at Matthews, NC, and additional entries.
6
JANUARY FEBRUARY 2011 | LPPORTAL.COM 2011 Loss Prevention Magazine, Inc.
POS
INTEGRATION
LP Departments are under tremendous pressure to perform more with less. Less manpower, less equipment and, yes, less budget every year. With this in mind,
i International, a digital video pioneer, has devoted 25 plus years in the development of intelligent video to address these issues. Find out more on how we have helped
hundreds of retailers use video for more than just loss prevention. Visit www.i3international.com/LP to download case studies and learn how
i International challenges the traditional value proposition.
iversary
Ann Go to www.i3international.com/LP for case study downloads, or call us at 1.866.840.0004
ON THE WEB EDITORIAL BOARD
8
JANUARY FEBRUARY 2011 | LPPORTAL.COM
RETAIL SPONSORS
10
JANUARY FEBRUARY 2011 | LPPORTAL.COM
Join these great companies as an LP Magazine corporate sponsor. Email JackT@LPportal.com for more information.
11
LP MAGAZINE | JANUARY FEBRUARY 2011
LOOKING BACK ON 10 YEARS OF LP MAGAZINE
I want LP people to be
seen as a vital member
of the team that helps
us be the everyday
low price leader. The
only way the everyday
In the days and low price works is if
weeks following 9/11, youre the everyday low Sometimes diversity in
LP executives have cost. Loss prevention loss prevention can be
examined, assessed, is an essential piece the big pink elephant
planned, reevaluated, of driving the everyday in the office. It is an
and implemented low cost. They are a issue that needs to be
policies and procedures competitive advantage. acknowledged, but in
for everything from Tom Coughlin, doing so requires action.
In the early days, we The choice with diversity
were literally the cops. crisis response Wal-Mart
plans to background is whether to nurture
We caught crooks. That it so that it becomes a
was our total value, checks to employee
communications to part of the corporate
and it was somewhat culture or have it so
limited. Today, however, travel safety. Anything
and everything having to well integrated that it
I think anybody who is is no longer an issue.
forward thinking at all do with employee safety,
about loss prevention is business continuity,
looking for any number and crisis management
of ways to add value has been put under
to a company and to the microscope.
be part of the team.
Dave Myers,
Montgomery Ward
2002
Organized Retail Theft Retails Response Interview with Tom The Many Faces of Loss
by King Rogers to September 11th Coughlin, Wal-Mart Prevention by Mimi Welch
Interview with David by Jack Trlica Integrating Technology Interview with Mike
Myers, Montgomery Ward Interview with into the LP Enterprise Keenan, Ross Stores
Lowes Intranet-Based LP Linda Florence, The by King Rogers How EAS Source
Audit by Claude Verville Venetian Resort When It Comes to Tagging Rewrote
ROI: Turning Accounting Managing in an Store Performance, It Shrinkage History in
Rules to Management Era of Uncertainty Is Entirely about the the Music and Video
Tools by Walter Palmer by Bruce Tulgan People by Steve Forgette Sector by Keith Wanke
Pre-employment How Much Are You Telephone Interviewing A Roadmap for Merging
Screening: If You Dont Losing to Paper Shrink? by David Zulawski LP Departments by Paul
Ask, You May Not by Mark Sullivan and Shane Sturman Jones and Alan Greggo
Find Out by Steve Millwee Myths and Realities Ensuring the Survival Bionomics by
of Criminal History of New Security Vincent Portera
Research by Fred Giles Managers by Bill Bragg
12
JANUARY FEBRUARY 2011 | LPPORTAL.COM
2001 2002
be confident in your
own abilities. You cant
let people put ceilings
up for you. You have to
shatter those ceilings
and not sit around
RFID Technology waiting for someone
TARGET INVESTIGATIONS The Future of Supply-Chain Management
Hits The Bulls Eye On Crime to give it to you.
Rosamaria Sostilio,
OUTSOURCING IN SPECIALTY RETAIL MANAGING ANGER IN THE WORKPLACE
INTERVIEW WITH FRITZ HIRCHERT BLOCKBUSTERS SAFETY PROGRAM
INTERVIEW WITH ASIS PRESIDENT | CERTIFIED FORENSIC INTERVIEWER
SHOPLIFTERS ATTITUDES ABOUT SHOPLIFTING | RISK MANAGEMENT AND LP
THE QUEST FOR EXCELLANCE AT SAKS CORPORATE FRAUD INVESTIGATIONS
SECURING THE GLOBAL SUPPLY CHAIN EXECUTIVE EDUCATION
Saks Fifth Avenue
CO
COLUMNS BY HOLLINGER SPAIN WELCH CORCORAN WICKLANDER-ZULAWSKI FIG
COLUMNS BY SPAIN | WELCH | MILLER | FIGLIO | WICKLANDER-ZULAWSKI COLUMNS BY HOLLINGER SPAIN MARQUIS WELCH WICKLANDER-ZULAWSKI
Ames Department
Stores announce
final store closings.
Power.
and Shane G. Sturman, CFI, CPP
of Wicklander-Zulawski & Associates
(www.w-z.com). Zulawski is a senior
partner and Sturman is president.
Control.
Sturman is also a member of
ASIS Internationals Retail
Loss Prevention Council.
They can be reached at 800-222-7789
Part 2
or via email at dzulawski@w-z.com
and ssturman@w-z.com.
2011 Wicklander-Zulawski & Associates, Inc.
I
n our last column we began the discussion of the concepts of until he understands the problem fully. The interviewer uses the
power and control during the interview process. Each of the individuals most likely response to establish control. This is a far
parties involved in the interview have some degree of power cry from flexing power to assert control.
and control over the encounter. How they use that power and There is nothing sinister about this approach. People control our
control may differ based on their status and emotional mindset behavior everyday using locks, lines, and curiosity. Traffic control
during the conversation. devices shape our driving behavior, sidewalks encourage certain
The concepts of power and control are significantly different. paths be followed, social norms formalize first encounters with
Power is commonly defined as the ability to do or act to accomplish others. The interviewer who understands subtle control can use
something, even through the use of might or force. Control differs many of them to encourage a particular action of another.
in that it relates to the exercise of restraint or direction over another;
although in a harsher form it could be used to dominate, command, Social Identity
or even constrain someone. Control can also be established by understanding the individuals
The X and Y generations are much more collaborative in their social identity. Each of us has a particular social identity that is
interactions with peers and their managers. Managers who use the way we perceive ourselves or wish to be seen by others. An
collaborative control to achieve their goals are much more likely to interviewer can encourage or control certain actions by recognizing
be accepted than those who establish control using power. Utilizing the subjects perception of himself.
subtle forms of control can reduce resistance while increasing a Social identity is variable depending on the situation we find
positive outcome in a variety of situations. This is totally unlike ourselves in. It is as if we have a series of internal boxes where we
using power, which often creates an equal-and-opposite reaction share who we are in different ways with different people. There are
resulting in resistance and conflict. our personas as business person, parent, spouse, and friend, to name
Lets examine the use of subtle forms of control that can lead but a few. In each of these we display to those around us who we
an individual to a positive outcome while reducing resistance and are while in that box.
conflict in an interview setting.
14
JANUARY FEBRUARY 2011 | LPPORTAL.COM
interviewer uses carefully constructed questions to control and direct
the conversation to the topics of real interest. Freely conversing
with the less intelligent interviewer, the subject becomes mired in
contradictions and incriminating evidence. Its like the mastodons
and saber-toothed tigers caught in the La Brea tar pits hundreds of
thousands of years ago. The inviting waters concealed the dangerous
sticky tar below the surface, which ultimately trapped and preserved
the animals.
Appearance of Control
For many people the loss of control is terrifying, creating anger
and resistance. For example, the demands of government on the little
guy are a common theme among all of us. Pay taxes, get permits,
do this, dont do that; all convey a sense that the government knows
whats best for you. What we sometimes feel is anger, resistance, and
a paralyzing helplessness. We all know resistance and inertia from a
subject during the interview is counterproductive, so what we must do
is give him the appearance of control.
Control means the ability to decide. When a subject believes he has
no control psychologically, he stops moving toward a confession. This
concept, called Locus of Control Theory, was developed by Julian
Rotter and refers to the extent that a person believes he can control
events that affect him. If a person has a high expectation of control, he
believes his actions in a situation will be successful. If an interviewer
can instill the perception of a higher level of control, the subject is
more likely to try to influence people with his explanations; in other
words, confess and rationalize his actions.
The interviewer has to encourage the individual to attempt to
control the situation with an explanation for his behavior. If the
failure to control his actions is the result of his own personality, the
subject loses face and self-esteem with an increased resistance to
confess. However, if there were external factors that can be blamed,
there is a relief of guilt and the individuals self-esteem can be
maintained.
The more you can protect your stores assets, the This is just one way Axis IP solutions help retail
less you lose. Now you can use network video to stores minimize loss and maximize prots. Be the
prevent losses due from shoplifting, theft and rst to know how to stay one step ahead.
fraud in your stores. Its all made possible with
high quality video feeds, real time alarms and
other smart features in Axis leading network Get the Axis picture. Stay one step ahead.
video solutions for retailers. Visit www.axis.com/retail
Axis network video solutions for retail integrate our leading network cameras with
specially-designed applications from our partners. Outstanding HDTV image quality
Integration to your existing POS, EAS and IP systems Scalable, future-proof
solutions from standardized equipment
Indentifying the
Store of the Future
By Francis DAddario, CPP, CFE
2011 Security Executive Council
Security 2020
Dateline: January 2, 2020 She paused at the entrance with bags in hand for the briefest
Mercedes Castro confidently exited her vehicle at 4:04 a.m. moment to register her biometric. As the door swung open and
in East Los Angeles. Her ear bud reported vehicle armed as she was greeted by the mellifluous tone of PAL: Good morning
she stepped away from her smart car. Confidence had replaced Ms. Castro, three class two exceptions are ready for your
the palpable anxiety that she had felt when first notified of her review. The Mercedes Mix purred from speakers. Harold
assignment. The neighborhood nine years ago would have been Melvin and the Blue Notes Wake Up Everybody seemed to
optimistically described as at risk or underserved. bring brewers out of their slumber. Other machinery of the store
The brief thought of past history brought a chill to the queued-up in order to conserve energy. What seemed like fantasy
unseasonably warm morning. Past near misses when the ten years ago had become reality with the help of a lot of selfless
accomplished manager was an intern would not be forgotten. cross-functional teamwork.
Personal, street, and workplace violence had risen in 2011 and the Mercedes contemplated the blueberry aroma of the Ethiopian
years that followed the decade of disappointment. Individual, family, Harrar coffee that brought the best of East Africa to LA.
and business survey data registered historical highs with regard Just-in-time security had optimized core processes and morphed
to fear of crime. The near meltdown of the global economy, nicely from bricks-and-mortar to virtual e-retail requirements.
combined with simultaneous stressors, including wind-downs of Promising solutions had been tested and adopted. Many reduced
the Iraq and Afghanistan wars, had extended unemployment and risk and had proven return on investment. Other products and
soft job growth. Required deficit reductions also had unintended services disappointed and were deferred pending improvement.
consequences. Impaired law enforcement arguably enabled the Natural and manmade risks still required ongoing,
expansion of organized crime. intelligent vigilance. Global warming, pandemic, and seismic
hazards were ever-present. Numerous human adversaries
remained dangerous in-person or via predatory networks, but
Board-level risk requirements innovation leveled the playing field. Private- and public-sector
risk mitigators worked more fluidly, identifying looming
for people, critical process, hazards. Next-generation leadership was relevantly engaged,
and asset protection are but the work was never done. Mercedes sipped her Harrar
thoughtfully and confidently rose to meet her opening manager
increasingly complex and require and the challenges of a new year.
a new, collaborative, and 2020 Antecedents
performance-based approach 2010 began ominously with a reversal of fortune in most
security measures. The risk landscape was littered with the
with practitioners, manufacturers, shortfalls of previous mitigation efforts. Global organized
crime, ably chronicled in Moises Naims book ILLICIT: How
and service providers. Smugglers, Traffickers and Copycats Are Hijacking the Global
- Bob Hayes, Managing Director, Security Executive Council Economy proved prophetic. Metrics dashboards turned red
despite an estimated trillion dollars spent globally on security
Mercedes communicator reported destination secure as she since 9/11. Consider the headlines:
closed the distance on foot to her storefront. Her three-factor device, Global Retail Loss Up to $45.99B, 3rd Annual Global
GPS proximity reader and voice biometric, remotely illuminated Retail Theft Barometer
her coffee shop-cum-social network, and e-retail entertainment hub, Supply-Chain Theft Up 67%, Freightwatch International
100 meters prior to her arrival. Light spilled out on the pedestrian U.S. Identity Theft and Fraud $54 Billion, Javelin Strategy
and personal mobility pathway. The store image and audio array & Research
was virtually communicated to her PDA. Camera views revealed Global Cyber Crime Estimate: $1 Trillion, McAfee, Inc.
comfortable seating and entertainment pods in a retro caf. No Officials Warn Terrorism Threat Imminent, Wall Street
critical exceptions flashed on the screen. Journal
Mercedes had survived the violence, identity theft, network Consumer Confidence at Record Low, MarketWatch
attacks, and supply-chain diversions that had collapsed iconic The going-forward outlook was also bleak. Long-term
businesses and promising start-ups alike. Colleagues, family, and performance was exacerbated by the combined near-collapse
good friends had been victimized. Some still struggled. Few had of the financial system and short-term cost-cutting measures.
been ready for the all-hazards risk that visited consequences on the Program reengineering, rightsizing, and downsizing, limited
unprepared. Business operators and boards of directors who were or eliminated onboard analytical talent. Economic constraints
slow to act on leading indicators had felt the wrath of stakeholders. curtailed budgets and purchasing, as well as research and
The impetus for change for some was swift and sometimes development. There were still proven people processes and
unforgiving. Mercedes and a number of her colleagues seemed to technologies, but the entire protection ecosystem required
thrive as they nimbly met and mitigated evolving challenges. reevaluation.
18
JANUARY FEBRUARY 2011 | LPPORTAL.COM
Security 2020
5
STORE,
9
Proponents include Jon Grander, vice president of loss
prevention for Brown Shoe, who said, Loss prevention will SUPPLY
evolve from the traditional shrink and safety as primary focuses, Inter-sector
CHAIN Smart-Safe
to a broader business-intelligence model. Enhancing the in-store Resopnse OF THE Virtual Bank
Credit
tools, where LP is the traditional owner, will revolutionize outputs FUTURE
while creating a differentiator for retail companies. Talent and
technology with be the most important drivers to influence the
8 7 6
speed at which this transition can be accomplished.
Many previous promising solutions had ultimately failed.
Some were doomed because they were siloed rather than Interoperable Point of Sale Inventory
cross-functional. Proponents sometimes lacked imagination, Controls (POS) Supply Chain
19
LP MAGAZINE | JANUARY FEBRUARY 2011
Security 2020
Accidental Injury and Damage. Number and cost Number of events and cost analysis yields
(frequency and severity) of injury and asset damage, consequential operating margin intelligence. Data may
events lost days, et cetera calculated with fully reside in peer organizations, such as facilities, HR, risk
loaded cost of personnel, repairs, replacement, and management, or others.
restoration.
Brand Reputation. Market-share valuation, customer Critical security events impact sales, prots, or service
and stakeholder condence due to real or perceived deliverables. Stakeholder condence may determine
unmanaged risks to people, plan, or core processes. share equity of publicly traded entities and contribution
viability for non-prots.
Business Interruption. Number and cost of mission, Insured and uninsured events may include planned
product or service sales opportunity misses due to exercises and drills as well as unplanned events. Data
preventable or mitigable man-made or natural risk may reside in business continuity, risk management,
events. operations, or other business units.
Criminal Injury and Damage. Event number and Arson, assault, battery, contamination, disorderly
cost of casualty events, including medical, lost days, conduct, diversion, embezzlement, extortion, fraud,
turnover, third-party liability, plus mitigation costs, homicide, identity theft, information alteration or theft,
employee assistance, repairs, restoration, and other. kidnapping, larceny, malicious destruction, robbery,
threat, and other.
Compliance. Number and cost of health/safety or Data may reside in operational and distributed support
regulatory penalties, nes, closure, or suspension of services, including compliance or other individual
business. business units.
Customer Experience. Stafng efciency, product or Typically available from marketing or merchandising
service availability, quality, and throughput. data. May include consumer survey data, service
snapshots, and helpline metrics.
Environmental. Health, safety, incidents, and cost, Utility, fuel, or natural resource dependencies for asset
plus carbon footprint requirements. protection or dependent services from cabling to audit
and maintenance available from facility data.
Insurance. Casualty, workers compensation, general Total claims and insured and uninsured costs are
liability, property, business interruption, professional generally available from risk management. Check
liability, crime, marine cargo (supply chain), and business unit cost allocations.
special indemnity.
Liability. Uninsured cost of non-compliance, quality Total cost of nes, sanctions, mitigation efforts, and
assurance (recalls), and legal claims. legal defense are found in legal, corporate affairs,
compliance, or other business unit data.
Other. Any relevant risk or mitigation cost. Use value experience, frequency, and severity.
Prot and Loss Statements. P&L information for Business unit operating data is key to determining the
manufacturing, product/service distribution, supply- efcacy of loss prevention and security risk mitigation
chain logistics, sales, operating costs, and prots. operations.
Security. Total cost of ownership for people, process, Risk awareness, prevention programming, event
and technology, including depreciation and service reporting, investigations, policy and procedure,
maintenance. systems, third-party services, and other.
Stakeholder Experience. Safety, security, condence, YOY assessment of churn, turnover, and customer
and engagement. condence for safety, security, and continuity.
20
JANUARY FEBRUARY 2011 | LPPORTAL.COM
Security 2020
28.3"
new
NANO GATE
Unprotected zones within your store can be difcult to secure. Working with
Alphas 3 Alarm, new Nano Gate provides enhanced security protection for those
areas in store where merchandise should not go.
To nd out how Alpha can help you protect your high-theft zones, visit us at
www.alphaworld.com/nanogate
21
LP MAGAZINE | JANUARY FEBRUARY 2011
W H AT D O T H E Y A L L H AV E I N C O M M O N ?
September 15 - December 3, 2010
866-616-5800 www.certiedinterviewer.com
Security 2020
STORE OF THE FUTURE protection investment will they appreciate the value of effective
continued from page 21
mitigation. Collecting and aggregating and benchmarking
Period-over-period and year-over-year profit and loss metrics for relevant trend reporting and ROI analysis is strongly
(P&L) statements are a rich data source for measuring solution recommended.
innovation impacts in a test store(s) against a matched control(s).
Not all costs are represented or fully allocated at the unit Cross-Functional Stakeholders
level. Significant costs, both direct and indirect, may be found and Solution Innovation Partners
in compliance, facilities, human resources, risk management, Strategically aligning protection to the business plan and
legal, or other departments. Fully understanding all measures board-level risk is essential. Executive champions are relatively easy
within a program or in context with a test or pilot enables us to to find for risk mitigation with strong ROI potential, particularly
persuasively calculate value. when the solution is scalable and peer management endorses the
Each of the areas depicted in the chart on page 20 pose plan and performance metrics. The ability to influence others to
monetary risk for a company. Improvements likewise will be leverage traditional security technologies for accident prevention
interpreted as benefits either through savings or cost avoidance. (safety or risk management), business intelligence (marketing and
Selecting a respected financial analyst for your cross-functional operations), compliance (audit), crime prevention (legal), and
team is strongly recommended to make your business case for loss optimized staffing (human resources) may lie within bonus-able
prevention and security contribution. performance measures and management imperatives. Networked,
Stakeholder confidence may be the Holy Grail of performance analytical solutions for cash, POS, and inventory will also likely
measurement. If associates, customers, partners, and the attract beneficial interest from finance, IT and supply chain.
community know that you will do the right thing, brand Proactively convening crisis-management team members for
reputation benefits follow, including benefit of the doubt even more strategic risk mitigation is a proven practice for a number of
after catastrophe. Drs. Rory F. Knight and Deborah J. Pretty of successful brands. Diverse data, functional expertise, and common
Oxford Metrica provide support in their landmark research that denominator interest in crisis avoidance typically prevails. Evolving
tracked publicly traded share values after mass-casualty events. preparedness compliance will move others. Any approach should
On the other hand, unmitigated risks including theft and fraud ultimately be informed by industry segment leader practices with
drive cost, deny sales, and constrain available labor. Only when input from trusted product and service providers.
organizations begin to discern their true total cost of risk and continued on page 24
23
LP MAGAZINE | JANUARY FEBRUARY 2011
Security 2020
24
JANUARY FEBRUARY 2011 | LPPORTAL.COM
Visit us in Booth #1563 at the NRF Convention & Expo
New York City, January 9-12, 2011 Jacob K. Javits Convention Center
The
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NVR, HVR, DVR
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Security Research Project, which annually
conducts the National Retail Security Survey
(www.crim.ufl.edu/srp/srp.htm). Dr. Hollinger can
be reached at rhollin@ufl.edu or 352-392-1025 x217.
Expense
2011 Richard C. Hollinger
T
he National Retail Security Survey (NRSS) has been executive summary in this column, instead, I encourage each of
conducted by the University of Florida since 1991. This you to go to the Explore magazine website and read the story
study is an excellent example of a mutually beneficial titled Business Expense. Not only is the full article provided,
research relationship between the academic and business worlds. but you will also find a PDF file to print out, along with a slide
Without conflict of interest or bias, we have been collecting show of related photos that were taken in our local Sears store.
and analyzing data provided anonymously by retail loss
prevention executives from the top 100 firms. For nearly two
decades the NRSS Final Report, now published on-line, has
For nearly two decades
been a bellwether study that focuses primarily on average the NRSS Final Report, now
shrinkage levels, sources of retail loss, and the use of various loss
prevention countermeasures. published on-line, has been a
Both the retail LP community and the university directly
benefit from this type of applied research intended to help
bellwether study that focuses
address a problem of significant financial magnitude and primarily on average shrinkage
theoretical interest to both communities. Each year I have
summarized the major findings from the previous years research levels, sources of retail loss,
in my column in LossPrevention magazine. This year I will
provide these results in a slightly different manner.
and the use of various loss
The University of Florida publishes a magazine quarterly prevention countermeasures.
called Explore that features various research activities among
hundreds of faculty members in various disciplines. In the Fall The photo shoot accompanying this article is the result of
2010 issue the editor of Explore, Joe Kays, chose to feature the permission and cooperation provided by Bill Titus and Scott
findings of the 2009 National Retail Security Survey and my Glenn of the Sears Holdings loss prevention team. They gave
role in this research. Rather than repeat these numbers in an me and the photographers from Explore full access to the
store, merchandise, management staff, and much of the loss
prevention technology available. These photos really help to
convey the serious nature of shrinkage, organized retail crime,
and loss prevention, making the story much more real to the
reader. I want to express my thanks to the Sears Holdings LP
team for the opportunity to use this store as the setting for
this article.
I encourage all of you to go to the following URL to read
this most interesting story about what we all have dedicated our
careers tonamely, providing asset protection in order to reduce
the serious levels of shrinkage and crime in the retail store.
www.research.ufl.edu/publications/explore/current/story_5/
If you still have not yet read the 2009 NRSS Final Report,
please send me an email at rhollin@ufl.edu, and I will send you
the URL link and password. I also want to remind all of the
senior LP directors and vice presidents reading this column that
data collection for the 2010 NRSS will begin soon after your
year-end final inventories have been completed at the end of
January. Watch your email in-boxes for the new questionnaire
arriving soon.
26
JANUARY FEBRUARY 2011 | LPPORTAL.COM
Herbal
David J. Foreman, RPh., ND
The
Pharmacist
27
LP MAGAZINE | JANUARY FEBRUARY 2011
Using
Technology
and Training
to Impact
Financial A Conversation
with Food Citys
Success Joe Fryar
By James Lee, Executive Editor
EDITORS NOTE: Joe Fryar is the director of security and loss prevention procedures. I am responsible for hiring, training,
loss prevention for K-VA-T Food Stores, Inc., a supermarket chain and evaluating all department personnel, directing the corporate
operating 106 locations in the tri-state regions of Southeast Kentucky, investigations function, and managing the LP portion of our
Southwest Virginia, and Northeast Tennessee. Prior to his twenty-four corporate educational development and training program. It is also
years with K-VA-T, Fryar worked in loss prevention for Parks-Belk my responsibility to research, recommend, purchase, and manage the
department stores. installation of all LP technologies as well as all other LP budget and
Fryar holds a bachelors degree in criminal justice from East capital expenditures. My position requires open communication with
Tennessee State University. He has also earned the designation of all senior management and a close working relationship with human
certified protection professional (CPP) from ASIS International. Fryar resources, information technology, legal risk, and store planning and
is a member of the National Association of Chiefs of Police and the development.
Virginia Crime Prevention Association. He also serves on the loss
prevention committee for the Food Marketing Institute. EDITOR: What kind of staff and people resources do you have?
FRYAR: Our distribution center is secured by our in-house DC
EDITOR: For our readers who are unfamiliar with Food City, security team and is managed by the DC loss prevention specialist. I
would you describe the company? have four LP managers who are assigned multiple store districts. The
FRYAR: K-VA-T Food Stores, Inc., the name of our parent company, LP managers are responsible for all security and LP activities in their
is the acronym for Kentucky, Virginia, and Tennessee, which is our assigned areas, including providing LP specialists who are responsible
geographic trade area. K-VA-T does business as Food City with for the apprehension of suspected shoplifters. We also have a
94 supermarket locations. This is the name by which we are most point-of-sale [POS] exception-monitoring team that is responsible for
recognized. Our supermarket format is designed to be full service the managing and execution of our XBR incident-reporting software.
containing a bakery, deli, floral department, video department,
pharmacy, and fuel centers. K-VA-T also operates twelve Super Dollar EDITOR: Are some of your people in uniform in certain
Discount Foods, which are limited-assortment stores. The company locations?
also owns a 1.1-million-square-foot distribution center located in FRYAR: We have a limited number of stores where we use off-duty
Abingdon, Virginia. The DC also houses a bottling plant for the law enforcement officers who are required to be in full uniform. The
companys natural spring that operates as Misty Mountain Spring officers main responsibility is to be a visual deterrence to criminal
Water. activity. These officers are hired as part-time associates and are not
considered contract labor.
EDITOR: Is the company still family owned?
FRYAR: K-VA-T is a private, family-owned company. I report to the EDITOR: How did your loss prevention career begin?
CEO/President, Steve Smith, who is the son of the company founder, FRYAR: My career began like that of a lot of LP professionals,
Jack C. Smith. The company began back in 1955. The story goes that chasing shoplifters. While I was attending college at East Tennessee
Mr. Smith went into a grocery store in Grundy, Virginia. Finding the State University studying criminal justice, the CJ department was
lines backed up, he became frustrated with the lack of service and approached by the regional clothing chain Parks-Belk who was
thought, What this town needs is a good supermarket. Mr. Smith, looking to hire students to work shoplifting in their stores. The chain
his father Curtis Smith, cousin Ernest Smith, and uncle Earl Smith got had just made the investment in camera equipment to address a
together and built their first store in Grundy. He started the company growing shoplifting problem. I was recommended by the university
with a simple philosophyRun the best store in town. That first to fill one of these positions. After my graduation, I took a full-time
store carried the Piggly Wiggly banner. Over the years, Mr. Smith grew position with them.
the company by acquisitions of several Piggly Wiggly operations in A short time later Food City launched it own LP department,
Southwest Virginia and Eastern Kentucky, along with Quality Foods/ which at that time was called security. I was asked to interview for
Food City, White Stores, Winn-Dixie, and BI-LO units in eastern an internal investigator position with them and was hired in January,
Tennessee. In 1984 the company adopted the Food City banner. 1987. When Food City acquired the White Stores in Knoxville,
Tennessee, I moved to Knoxville as the LP manager for the Southern
EDITOR: It doesnt often happen in retail that the top LP Division. In 1993 I was promoted to my current position as director.
executive reports directly to the CEO. How did that come about?
FRYAR: The reporting structure is a result of Food Citys commitment EDITOR: So at a young age, you made the transition from what
to the loss prevention department. The concept is designed to keep some would call traditional retailing into the food-retailing
LP as a separate entity, as we could be involved in any area of the business. How did you learn the LP business in that sector?
organizations activities. The department was created to support all FRYAR: There was a tremendous difference between my duties at
aspects of the organization with a close working relationship with our Parks-Belk of apprehending shoplifters and my new responsibilities
operations partners. as an investigator at Food City. The courses I had taken in college
where now being put to good use. I also quickly realized that I needed
EDITOR: What are your responsibilities? a better understanding of the business end of the operation. I spent
FRYAR: I direct and coordinate all security and LP functions. time in the stores learning how they operated. I felt to be successful
This includes adding, developing, and maintaining security and I needed to understand everything from how the product is received
30
JANUARY FEBRUARY 2011 | LPPORTAL.COM
Interview
One constant
challenge is
to the financial side of the business. I read and studied every policy-and-procedure manual in the
keeping your
company. I was fortunate to be with a company that was progressive and would provide me with associates
the opportunity to attend formal training programs.
focused on
EDITOR: Are there individuals who have been particularly influential in your career?
FRYAR: One of the most important mentors in my career was Jack Smith, Food Citys founder. Mr.
the big picture.
Smith loved his people, but expected top performance. When I was promoted to director, he called By the very
me to his office, sat me down, and told me, Let me tell you how to be successful. You hire smart
people, surround yourself with them, and then stand back and let them do their job. He said, nature of what
That sounds easy, but the last part is the hard part. You need to let them do their job. Your job is
to manage. Mr. Smith stressed that I learn everyones strengths and weaknesses. He said everyone
we do, there will
has both. You build on the strengths and work on the weaknesses. always be fires
Steve Smith, our current president/CEO also had a lot to do with my success. Steve taught me to
look ahead for what is coming down the road. Steve stressed that as a leader, you need to manage to put out. The
todays issues, but not get consumed by them. You must keep your eyes focused on the horizon
and look at what is developing next month, next year, and five years in the future. I apply this
challenge is to
philosophy when I research and/or plan future activities for our organization, including purchasing monitor what you
new technology.
Jesse Lewis, our COO, has also been a big influence in my life. Jesse taught me that you can are doing daily to
work with compassion. He once said that Nobody should be surprised when they lose their job.
When you think about it, that is a deep insight. If your company culture is one of expected honesty,
make sure that
and you are getting that message out and it is understood, a person caught in a dishonest act will your priority does
know and expect the outcome. The same rule applies to all areas of your organization.
not revert back
EDITOR: What do you see as the challenges of running a major loss prevention program
within a big company?
to only putting out
FRYAR: One constant challenge is keeping your associates focused on the big picture. By the very fires. You must
nature of what we do, there will always be fires to put out. The challenge is to monitor what you are
doing daily to make sure that your priority does not revert back to only putting out fires. You must be proactive
be proactive and remain focused on long-term goals.
As an LP professional your biggest successes are not the number of cases, but the prevention of
and remain
incidents before they occur. Some LP folks discuss the huge dollar value of apprehensions and the focused on
numbers of criminals they have caught each year. This is a culture that is hard to change. If you are
proactive, your case value should be declining. Every case should be reverse engineered to determine long-term goals.
the break down that created the incident as well as a method for preventing or reducing the loss
should a similar incident occur. Big dollar cases are a direct hit to the profitability of an organization
and should be used to learn from.
31
LP MAGAZINE | JANUARY FEBRUARY 2011
Interview
Technology is advancing in our field. Some of the technology is really nothing new, but a remake
of something already on the market. As the lead LP executive you must be knowledgeable of loss
prevention products and tools. The responsibility of filtering through and evaluating new technology falls
directly on your shoulders. You must determine if this investment would obtain a true ROI.
continued on page 34
32
JANUARY FEBRUARY 2011 | LPPORTAL.COM
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JANUARY FEBRUARY 2011 | LPPORTAL.COM
PARTNERING WITH RETAILERS by John Mearls
Can you believe it is 2011 already? We at eBay certainly forensic analysis, and internally built exception reporting. These
hope you and your families had a joyous holiday season, and we wish resources assist with upstream detection and risk identification,
you a prosperous New Year. allowing us to take appropriate action related to suspected criminal
In the past weve utilized this space to update you on eBays activity, including engaging law enforcement to prosecute offenders.
initiatives to help tackle the stolen goods and organized retail crime Recoveries of losses are pursued through aggressive restitution efforts.
issues facing the industry. We are proud of the progress weve made We worked with experts in interrogation techniques from Wicklander
and look forward to continuing to work with our retail partners and the & Zulawski Associates to create a specialized training module with an
NRF, JSA, and FMI to find long-term solutions to these challenges. emphasis on phone interviewing techniques. We have already begun
With the holiday shopping season behind us, we thought this would to see a return on this personnel development investment.
be a good time to introduce and define the roles of the core teams and
key people within eBays global asset protection organization, above At eBay we recognize
and beyond the PROACT team. As our partners in loss prevention work the importance of a
with us in 2011, we want everyone to be familiar with the eBay teams
driving our trust and safety efforts.
good supporting cast
We recognize the importance of a good supporting cast with with flexibility, technical
flexibility, technical capability, and strong experience that can capability, and strong
approach challenges from all directions. At eBay were fortunate to
experience that can
have a group of dedicated professionals whose contributions support John Mearls is Senior
the brand objective of Driving Retail Like Trust. Manager, Global Asset approach challenges
Protection. Contact him
eBay created the global asset protection (GAP) team last year to at jmearls@ebay.com. from all directions.
centralize our worldwide investigative function and improve the lines
of communication among our trust and safety personnel around the The fraud investigations team (FIT) has primary
globe. The GAP group is led by Jack Christin, a former prosecutor and responsibility for satisfying law enforcement and regulatory requests
assistant attorney general, with responsibility over three operating for user information. The FIT team satisfied more than 100,000 requests
disciplinesdata, analytics, and tools; regulatory and policy last year. We recently introduced automated technology that allows
management; and investigations. law enforcement to obtain data supporting criminal investigations. This
The global data, analytics, and tools team conducts automation provides significant opportunity to redeploy eBays internal
in-depth analysis of our site data and produces formalized analytical talent and transition the team towards a more proactive investigation
reports on fraud trends, bad buyer experiences, and other key model.
performance indicators supporting our proactive predictive models. The special investigations group (SIG) specializes in
Additionally, this team is responsible for the development of internal conducting international high-level and sensitive investigations with
tools utilized by asset protection and other members of the legal team, an emphasis on serious financial crimes, including money laundering
inclusive of those supporting our shift towards leveraging automation, and bank fraud. Most members of the SIG team have completed the
including Law Enforcement Portal (LEP) and our newly released global highly distinguished certified fraud examiner (CFE) program. These
Law Enforcement eRequest System (LERS). professionals conduct forensic analysis, detect and resolve phishing
The regulatory and policy group maintains a scams, ID theft, stolen financial data, counterfeiting, child pornography,
comprehensive global list of practices, including the prohibited and and denial-of-service attempts. Theyre regularly invited to participate
restricted item policies. The team works with regulatory bodies to at the federal level and at banking regulatory conferences.
ensure our policies are in compliance with applicable laws. They also As with any large, global team with an extensive remit, we have
coordinate and guide customer service functions in managing our experienced some growing pains. Ultimately, we believe that our team
systems filters, rules, and policies. is structured to achieve our key objectivesprovide exceptional
The investigations team led by Paul Jones is focused on customer experiences; collaborate with our retail and law enforcement
protecting the business assets, user community, and brand reputation. partners; and develop the best tools and technologies to identify and
From a geographic perspective the team has presence in San Jose, eliminate bad actors before they can impact our platform.
Salt Lake City, Philadelphia, Shanghai, Sydney, and Dublin. We look forward to continuing to evolve our overall efforts, strong
We incorporate a dynamic foundation of data mining, highly industry partnerships as well as growing our talented asset protection
sophisticated technological resources, advanced linkage technology, team. Have a great 2011.
Im certied. While I am beginning my
twenty-ninth year of retail LP
what they deserve by my
leadership and knowledge.
Heres why.
leadership, the LPC helped After the word ltered
me benchmark my skills out to our eld team that I
against the best in class to had successfully completed
ensure that I am providing my the LPC program, I received
William Bill Napier, LPC company and team members numerous phone calls and
Senior Manager of Corporate
Asset Protection, Cabelas
I have a job.
Certication not only prepares you for
the future, it helps you when you need it
mostin your current job. Certication
refreshes and validates your knowledge
base while teaching you critical business
expertise to round-out your skill set.
Why do I need
It not only covers key components of loss
prevention, it teaches you solid business
skills to prepare you for your
next promotion.
Yeah, but
certication?
It costs a lot. Certication is very
affordable and can even be paid for
in installments. It is one of the best
investments you can make for yourself
and will pay for itself over again as you
advance in your career.
I dont have the time. Certication was
designed by seasoned professionals who
understand the demands on your time.
The coursework allows you to work at
your own pace and at your convenience.
Everyone is busy, but those who are
committed to advancement will nd the
time to invest in learning.
Ive never taken an online course.
The certication coursework is designed
with the adult learner in mind. The
online courses are built in easy-to-use
presentation style enhanced with video
illustrations to elevate comprehension and
heighten retention.
What if I fail? Both the LPQ and
LPC certications have been accepted
for college credit at highly respected
universities, and as such, passing the
exam demands commitment and study.
However, the coursework includes highly
effective study and review tools to fully
prepare you for the exam. In the event
you fail the exam, you can review the
coursework and retest after 30 days.
www.losspreventionfoundation.org
Finding a Great Employee
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Te best job site for loss prevention professionals has just gotten
better. Weve redesigned the site to make nding great candidates
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streamlined, letting new employers post jobs and begin and easily.
seeing applicants quickly.
4 Log InSigning into the site brings you right back
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incorporated to make entering jobs a simple process, saved, so you dont waste time reconguring your preferences.
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5 Contact UsA quick and simple email form is handy in
3 Resume ManagementReviewing, deleting, and printing case you need assistance or have questions or comments
prospective resumes has been simplied, helping you about using the site.
41
LP MAGAZINE | JANUARY FEBRUARY 2011
Partnerships
F
ollowing is an example of a successful partnership between multimillion-dollar retail theft ring and fencing operation. At the
retail loss prevention and local law enforcement that resulted conclusion of that investigation, eighteen people were arrested and
in the dismantling of an organized retail crime (ORC) operation charged with felonies. Later that year, the Florida Retail Federation
in one Florida county. While the details are specific to this particular honored Sergeant Ostojic as the Retail Officer of the Year.
investigation, what is important to the loss prevention industry is The 2008 investigation gave the Polk County Sheriffs Office
that ORC is not just a discussion inside retail. Law enforcement is, much notoriety in the ORC arena and paved the way for how
in fact, interested in working with loss prevention organizations to retailers and law enforcement can work together to make great
proactively prevent crime in our stores and the communities we things happen. In recent years Polk County has consistently
both serve. helped retailers fight the battle against property crimes and ORC.
Therefore, it was no surprise that Sergeant Ostojic immediately
stepped up to the plate and extended his hand to help with our
pending blitz.
The first request Sergeant Ostojic asked was to move some or
the entire blitz into Polk County, which would give Polk County
jurisdiction should any criminal situation be encountered. We met
this request and immediately began discussing the specifics of how
to coordinate the efforts of both the retailers and law enforcement.
Sergeant Ostojic took the plan up the chain of command
starting with his immediate supervisor, Captain Andy Ray. Captain
Ray in turn received the approval from Sheriff Grady Judd who
gave the go ahead to gather how ever many officers would be
necessary to carry out the blitz.
Sergeant Ostojic hand-selected each officer who would be
involved by what they had to offer. In addition to the Polk County
Sheriffs Office, officers were recruited from the Winter Haven
Police Department, Lake Wales Police Department, and Lakeland
Police Department. In total eight officers would participate in
the blitz with Sergeant Ostojic supervising the law enforcement
contingent.
All the planning and organizing occurred very rapidly over
a two-day period. A formal operating plan was generated and
delivered to both retailers and law enforcement personnel. Sergeant
Ostojic conducted an ORC training session for all participants and
assigned each officer to specific duties.
The day before the blitz was scheduled, Captain Ray asked
to have dinner with the retailers in order to meet and talk with
Preparing for an ORC Blitz them. It was an enlightening conversation. Captain Ray was clearly
As 2010 progressed, organized retail crime activity in Florida excited about the blitz and that the Sheriffs County Office was
was high, resulting in significant losses for Luxottica Retail. playing a pivotal role.
Therefore, we decided to do a blitz in Florida to try to halt the The following day a meeting was held to review the plan one
losses. As usual practice, we sent invitations to other retailers to last time with everyone involved. At this meeting, participants were
join us on this quest to identify and address ORC-related incidents. partnered to include at least one officer for every retailer, locations
Macys ORC manager, John Morris, accepted the invitation to were assigned, and everyone went their separate ways.
work with us.
Our second step was to solicit help from law enforcement. Our Launching the Blitz
initial calls seemed to generate interest, however no commitments The first day one arrest was made, retail property was
were reached. Time was passing quickly, and we simply couldnt recovered, and an individual was charged with possession of
get the commitments we needed to secure a safe event. marijuana and narcotic paraphernalia. While this may have seemed
With only four days before the scheduled blitz, a call was made like a disappointing start, it turned out to be just a warm up session
to a neighboring county to ask for suggestions on how to move for day two.
forward with the blitz if we were not able to gain the necessary law Day two began with two arrests at a higher end department
enforcement assistance. That call was specifically made to Sergeant store. A third arrest at another department store nabbed a female
James Ostojic of the Polk County Sheriffs Office. suspect who provided critical information for an ongoing police
Loss prevention professionals may remember Sergeant Ostojic investigation in Polk County. That suspect decided to cooperate
and the Polk County Sheriffs Office from 2008 when their and provided information into other crimes that were occurring in
investigation of a shoplifting incident led to the identification of a
42
JANUARY FEBRUARY 2011 | LPPORTAL.COM
Partnerships
Participants in the ORC blitz included (from left) Millie Kresevich, Matt Michel, and Mark Flores of Luxottica; Det.
Stephanie Burcham of the Lakeland Police Department; and Sgt. Jim Ostojic, Dep. Eliss Mitchell, Dep. Andres
Marin, and Det. Joseph Makal of the Polk County Sheriffs Office. Not shown is John Morris of Macys.
surrounding areas. This is an example of how dealing with retail with. With his willing participation, the wheels of motion are
crime can lead to information regarding other crimes. put in place. Within a matter of two hours, the entire sting is
The grand finale came near the end of day two when the orchestrated.
blitz activities concluded by gathering the evidence that led to Macys provides two gift boxes of mens and womens cologne
the destruction of a large fencing operation located in Winter for the sting. Additional police officers from Winter Haven are
Haven, Florida. brought aboard. An officer and the informant are dropped off in
It was about 4:30 p.m. on Thursday. The participating loss front of the beverage store. The pair walk into the beverage store,
prevention manager from Macys mentions that he has video ask the person on the other side of the counter if they want to buy
of a suspect who comes into their store routinely and shoplifts the merchandise they just stole, and the transaction takes place.
high-dollar gift sets of mens and womens cologne. The suspect The individual purchasing the stolen goods give the officer and
had not been apprehended thus far because he was in and out of informant $20 for items worth almost $200.
the store very quickly. While the transaction takes place inside, a car pulls up in front
A second piece of intelligence provided is that the suspect often of the beverage store with what appear to be rectangular boxes.
comes in with another male. Almost on cue, not twenty minutes As the individuals from the car exit the car with the boxes, they
after revealing this information, the suspected cologne thief is seen notice the police cars surrounding the store. They immediately
standing outside the doors of Macys. While he isnt entering the jump back into the car and speed awayin reverse.
store, he clearly is interested in something going on inside. The person who purchased the stolen goods is arrested and
Sergeant Ostojic is watching him closely, and I am in the taken into custody. Drugs, stolen property, and pornography are
interior of the store. The cologne thief begins to head toward found in the store.
his vehicle when his partner, who was already in the store, exits
with a stolen pair of sunglasses in hand from Sunglass Hut. The The Law Enforcement Perspective
product is not concealed, just carried out by the accomplice. Once This blitz represents a great example of fantastic police work
the accomplice reaches the vehicle, both men are approached by in partnership with retail loss prevention. Every step was handled
officers and asked to step out of the vehicle. The sunglasses are meticulously, efficiently, and achieved a final result that was one
recovered with the tag still affixed. up on the bad guys.
Each suspect is placed into a separate room to be interviewed. Taking down the fence in these sorts of operations is key. If
The accomplice is completely uncooperative and will not provide we cant stop who is buying the product, there will always be
any information. The cologne thief, however, decides to cooperate. the desire to continue stealing it. It becomes much more difficult
He tells Sergeant Ostojic and me that the merchandise he steals to unload retail property once the main fencing operation is
is sold at a beverage store in Winter Haven. The suspect alleges a eliminated in a certain area.
female drug dealer who makes a living from selling drugs as well Speaking from the loss prevention perspective, we cant thank
as stealing and selling retail property introduced him to this store. Polk County enough for their efforts and diligence in helping
According to the suspects information, once employees of the retailers in their jurisdiction remove a significant piece of the ORC
beverage store purchase the product, it is then sent overseas. puzzle. While ORC is often discussed among loss prevention
The cologne thief, now turned informant, is asked if he would professionals, it is important to hear the following perspectives
be willing to go to the beverage store with an officer, represent on ORC from key members of the Polk County Sheriffs Office
product as stolen, and sell it to the individuals he has been dealing [starting on page 44].
43
LP MAGAZINE | JANUARY FEBRUARY 2011
Partnerships
warning may not stop the criminal preventing and controlling crime
Sergeant activity. Incarceration will immediately through our proactive efforts, usually
James Ostojic stop the individual from continuing
the crime spree. Incarceration many
based on our data-driven policing
model we refer to as PROCAP,
times deters future criminal acts. which stands for Proactive
When you received
Retailers can also assist by Community Attack on Problems.
the call about
providing accurate video surveillance We find that those criminals who
retailers needing
with updated equipment to produce commit crimes like burglaries and
help with the
the best identification of the grand thefts in the community
Blitz in Florida,
offenders. You should continue to are just as likely to commit other
what made you
monitor the activities of ORC groups criminal acts, including retail theft,
extend your hand
and keep the information flowing to whether as an individual or as a
so quickly?
law enforcement. Keep in mind, the participant in a larger organized
The Polk County
information provided must be timely group. Basically, people who arent
Sheriffs Office
and accurate with detailed accounts afraid to commit a felony are just as
has a proactive
of each incident involving the same unafraid to commit a misdemeanor.
approach on crime and assisting in
groups to help with prosecution. By arresting individuals involved
the blitz reinforces this philosophy.
in retail crime, we are making it
Over the past several years, I have
How can law enforcement gain clear that were serious about
been involved in several major
better understanding of the intricate crime control in our county, were
organized retail crime cases. Similar
workings of the criminal enterprise reinforcing that we are paying
cases usually begin with something
through the interview process? attention, and we may very
like a shoplifting case then expand
The interview process often leads likely arrest a criminal before he
to a larger organized investigation.
to information to solve other crimes. has the opportunity to commit
Teamwork and coordination are
It is imperative that a good, solid another crime. Basically, its what
essential as well as timeliness and
interview be conducted with each we do every day, and this is just
accuracy for law enforcement and
victim, witness, and suspect in every another opportunity for us to
loss prevention personnel during
case. This will ensure we are able further interrupt criminal activity.
an operation of this magnitude.
to evaluate trends and determine if
a larger group is involved and their You took the time to meet the
Why is the retail partnership
intricate workings. This is important retailers who were involved in
important to you and your job?
for law enforcement when trying to the blitz. You also showed up to
My job is to proactively prevent
infiltrate an organized crime group. the blitz to see how things were
crime. Shoplifters continue to educate
Many of the criminal activities have going and have conversations with
themselves on new and innovative
wide-spread criminal operations those who were apprehended.
ways to commit criminal acts. Many
and are often multi-jurisdictional. Why was this important to you?
times the items they steal are used
Often the interview process will lead I see this as an opportunity
in other crimes. Also, as these types
to a better understanding of the to meet stakeholders in our
of crimes escalate, they often lead to
depth of the operation and give us communitythose being the store
more violent crimes. Our partnership
information that is critical to solving managers and loss prevention
is beneficial to get information that
the crime as well as identifying specialistsand to demonstrate
may help lead to solving these types
leaders in the organization. The our interest in whats taking place
of crimes. It is important from a
better the interview, the easier it is in the local retail stores. It is also
consumer perspective to remember
to confirm the information to lead an opportunity to relay to those
the loss of profit for the companies
to the arrest of criminal enterprise. involved in criminal activity that
and loss of tax revenues. Our job
we take the problem seriously
requires us to educate consumers,
and that their criminality will earn
company employees, and the
community at large to be on the
Captain Andy Ray them a ride to jail, rather than just
a notice to appear in court. We
lookout for any unusual activity. You gave the feel like in order for there to be a
Every aspect of the retail partnership go ahead deterrent to retail crime, there has
is beneficial to me, my job, the for law to be an immediate consequence
businesses, and the community. enforcement thats not very appealing to them.
participation
What can retailers do better in the Blitz Polk County along with
to assist law enforcement very quickly, several other surrounding
in combating ORC? why is that? police departments provided
Retailers should be consistent in Because many officers to work as
holding shoplifters accountable for we have been undercovers during the blitz.
their actions. For example, a trespass successful in continued on page 46
44
JANUARY FEBRUARY 2011 | LPPORTAL.COM
Industry Leader Unique Link Analysis Tools Expert Consultation Protect Profitability Inform Build
Support Your Global Workforce Cutting Edge Technology Dynamic Loss Prevention Strategies
Advanced Analytics and Reporting Enable Well-Informed Decisions Develop Increase Retention
Streamline Communication Superior Client Support Comprehensive Data Management Adaptable
Minimize Liability Industry Expertise Increase Productivity Proven Budget-Friendly Solutions Invent
Educate Innovative Solutions Tailored Programs and Systems Problem Solve Data Sharing Scalable
Stimulate Participation Create Engaging Training Programs Enhance Workflow Crime Analytics
Maximize Efficiency Strategic Industry Partners Advanced Data Systems Complete Solutions
Patented Instructional Design Award Winning Formula For Success Flexible System Options
Stimulate Participation Next Generation e-Learning Content Communicate Corporate Directives
Its not hard to find words that describe who are and what we do...
...the hard part is narrowing it down to just a few!
Data Management
1-888-595-CNET www.cargonet.com
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LP MAGAZINE | JANUARY FEBRUARY 2011
Partnerships
46
JANUARY FEBRUARY 2011 | LPPORTAL.COM
A Key Management System That Lets You Kick Back!
THE INSTAKEY SECURITY SYSTEM IS THE ANSWER THAT:
Incorporates a restricted key program with a simple rekey capability. Rekey because you need to,
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LP MAGAZINE | JANUARY FEBRUARY 2011
Partnerships
48
JANUARY FEBRUARY 2011 | LPPORTAL.COM
47::89-=-6;176)<,1;16/
:).-;@+76.-9-6+-
April 11-14 Gaylord Palms Resort & Convention Center Orlando, FL
.[RR:VIZX[SUL4UYY8X\TZOUT
<1<4-;876;7:
Game
by Mike Marquis, CFI
Marquis is currently an assistant vice president
of loss prevention with the TJX Companies.
Changers
His more than twenty-four years of LP experience
includes senior leadership positions with Limited
Brands and Urban Outfitters. Marquis invites
your comments at mike_marquis@tjx.com.
in LP
The opinions and commentary expressed by
Marquis do not necessarily represent the
TJX Companies or any of its divisions.
O
ne of the Christmas gifts I received was a bookThe Exception-Based Reporting. Prior to this technology,
Games that Changed the Game: The Evolution of the there were pages and pages of green bar reports to go
NFL in Seven Sundays by Ron (Jaws) Jaworski. Its a through. [Hey, whats green bar?] Oh, sorry, that was
deep inside football strategy book by a former quarterback printer paper that had half-inch stripes of white background
and current analyst. The premise is there are seven identifiable followed by a half inch of light green background. It made
strategy changes that impacted how football would be it easier to follow lines across the length of the paper.
played going forward. He used coaches film and exhaustive Exception-based reporting used the power of computing
interviews to determine the how, when, and whys. His to highlight the concern without having to flip pages and
assessment started in 1964 and the final change he notes was wear out highlighters. I still remember the first vendor
in 2002. Im not sure why he went back to 1964, availability demonstration I sat through. There were four or five
of film, or when he first became a fan. investigators in the room looking at live dataand writing
[I bet you may be thinking, Hey, when did this become a furiously about their new found thieves.
book review column?] Color CCTV. With color, no longer did you have to
Calm down. The book got me to thinking about what have make an educated guess on whether that was money or
been the game changers in LP. Similar to Jaws, my assessment something else. Was that blouse green, red, or blue? No
is limited to my own personal history starting in, say, the longer an issue. Taking guessing out of our world is a good
mid-eightiessince we have no coaches tape; but wouldnt thing.
that be cool if we did? Digital Video Recorders. Not having to worry about
recycling video tapes, the age of the tape, or whether a
manager will remember to turn on the recorder is all good.
The book But being able to save time on tape review is the real winner.
Why scan through dead time, or if your exception-based
The Games that reporting program is compatible, why not just look at the
Changed the Game: exceptions instead of everything?
Networking. This is a very general term for conferences,
The Evolution of the NFL blogs, message boards, magazines, and email groups. The
ability to share data, concerns, or ideas has increased the
in Seven Sundays mental bandwidth of our industry. The shared positions
got me to thinking have improved our ability to change law. On a local level
there are police departments that provide near live-time
about what have updates on large theft incidents. All of this makes us a better
50
JANUARY FEBRUARY 2011 | LPPORTAL.COM
201
20
Loss Prevention
Resource
Guide
Page Category Detex Corporation
2 Access Control 302 Detex, New Braunfels, TX 78130
3 Alarm Response TELEPHONE: 800-729-3839 FAX: 800-653-3839
4 Alarms CONTACT: Ken Kuehler
4 Auditing EMAIL: kk@detex.com
5 Case Management WEB SITE: www.detex.com
5 Cash Handling
6 Check/Credit Card Fraud
6 Civil Recovery
6 Consulting
7 EAS
8 Education/Certication
9 Emergency Services
9 Employment/Recruiting
10 Exception Reporting
10 Guards/Protective Services For more than a century, Detex has earned the trust of millions of
11 Hotline/Data Gathering Services property owners to secure and protect their people and property.
11 Inventory From our newest innovations in life safety and security door
12 Investigations hardware, integrated door security systems, and guard tour
12 Logistics Security verication technologies to our original Watchmans clocks, Detex,
13 Other a USA company, designs, manufactures, markets, and ships our
13 Personnel Outsourcing products from New Braunfels, Texas, and is recognized as a best-in-
13 Physical Security class life safety, security, and security assurance solutions provider
14 Pre-employment Screening worldwide. Call us today to discuss delayed egress, multipoint locks,
14 Product Protection or one of our many other products that help control shrink.
15 Refund/Returns Management
15 RFID
16 Safety Direct Source
16 Training/Awareness 8176 Mallory Ct, Chanhassen, MN 55317
17 Video Monitoring TELEPHONE: 952-934-8000 FAX: 952-934-8030
CONTACT: Brad Fick
Access Control EMAIL: sales@directsource.com
WEB SITE: www.directsource.com
Atlanticom Systems Direct Source is a nationwide technology solutions provider for
2140 Highway 88, Brick, NJ 08724 tier-one retail, warehouses, and distribution centers. Specializing
TELEPHONE: 888-845-CCTV in hardware procurement, software development, and deployment
CONTACT: Michael Barlow, President services, the company can work with loss prevention professionals
EMAIL: lpmag@atlanticom.com to perform an analysis of available technologies. Work alongside
WEB SITE: www.atlanticom.com Direct Source to perform an analysis to identify a secure solution that
is cost-efcient, exible, scalable, and easy to integrate with current
systems and future plans. Examples:
Facility access control
Camera placement and installation
Monitors
Encoders and decoders
NVRs, DVRs, and storage arrays
As a proven leader in integrated surveillance and security systems, Video management software
Atlanticom can provide you with the support you need to protect Business analytic software
your assets, reduce your losses, and support your investigations no Related accessory installations
matter what industry you are in. Enterprise Security Technology
solutions, from concept to completion, is our specialty. Integrated
video surveillance, physical access control, and intrusion detection Genetec
systems alongside a professional, dedicated staff, and the result is an 2280 Alfred-Nobel Blvd, Ste 400, Montreal, Quebec H4S 2A4
exceptional security solution experience. Whatever your needs, TELEPHONE: 514-332-4000 FAX: 514-332-1692
Atlanticom is your single-source solution for equipment supply, EMAIL: info@genetec.com
installation, and service for a variety of security technologies...with WEB SITE: www.genetec.com
exceptional service programs to meet your critical needs today and
tomorrow. Genetec is a pioneer in the physical security and public safety
industry and a provider of world-class IP license plate recognition
(LPR), video surveillance, and access control solutions. With Genetec
Bass Security solutions retail organizations can create enterprise-wide video
26701 Richmond Rd, Cleveland, OH 44146 management systems over existing IT networks and integration
TELEPHONE: 888-774-3400 FAX: 888-774-3500 of POS transaction data for exception reporting. Loss prevention
CONTACT: Joe Mignone departments can also remotely or locally monitor and manage
EMAIL: sales@basssecurity.com real-time alarms from the stores EAS, intrusion, or access control
WEB SITE: www.bass-security.com systems all from one easy-to-use interface. For more information,
Bass Security has been focused on providing turnkey solutions for visit genetec.com.
retailers nationwide for over 34 years. With a customer base of over
100,000 retailers in the United States alone, we are experts at solving
problems for the industry. Our offerings include: InstaKey Security Systems
CCTV solutions 7456 W. 5th Ave, Lakewood, CO 80226
Alarm systems TELEPHONE: 303-761-9999 FAX: 303-761-6359
Access control CONTACT: Cita Doyle
EAS EMAIL: cdoyle@instakey.com
Locksmith services WEB SITE: www.instakey.com
Safes
Web-based reporting and alarm monitoring
Customization and installation of door locks and loss prevention
hardware doors and frames
Facility-wide key control and standardized lock systems
Assistance in construction planning for new facilities or upgrading
your current system
2
2011 LOSS PREVENTION RESOURCE GUIDE
We are committed to making key management simple by saving
you time, money, and improving your overall security. When an
Alarm Response
immediate lock change is required, this system eliminates necessary
locksmith expenses by utilizing lock cylinders that can be rekeyed Detex Corporation
by onsite personnel up to nine times without removing cores or 302 Detex, New Braunfels, TX 78130
lock hardware. Our system ends the need to rekey when keys are TELEPHONE: 800-729-3839 FAX: 800-653-3839
returned by managing restricted serialized keys, and improves key- CONTACT: Ken Kuehler
holder accountability with web-based key control providing audit/ EMAIL: kk@detex.com
exception reporting that maintains program compliance. WEB SITE: www.detex.com
LP Software, Inc.
7000 W. 111th St, Ste 305, Worth, IL 60482
TELEPHONE: 708-361-4310 FAX: 708-876-5940
CONTACT: Michelle Michael
EMAIL: mmichael@lpguys.com
WEB SITE: www.LPguys.com
For more than a century, Detex has earned the trust of millions of
property owners to secure and protect their people and property.
From our newest innovations in life safety and security door
hardware, integrated door security systems, and guard-tour
verication technologies to our original Watchmans clocks, Detex,
a USA company, designs, manufactures, markets, and ships our
products from New Braunfels, Texas, and is recognized as a best-in-
class life safety, security, and security assurance solutions provider
LP Software, Inc. is a leading supplier of incident management and
worldwide. Call us today to discuss delayed egress, multipoint locks,
auditing software solutions. Our powerful reporting tool allows
or one of our many other products that help control shrink.
you to analyze data at the click of a mouse. We strive to streamline
your companys loss prevention, operations, employee relations,
and risk management departments. Our product suite offers a
comprehensive, cost-effective, and highly customizable solution
to help protect your companys bottom line. We are now offering
telephone and web hotline services to provide organizations a
4
2011 LOSS PREVENTION RESOURCE GUIDE
complete solution to gather information on all of your organizations LP Software, Inc.
incidents. Visit us at www.LPguys.com or call us today to learn more 7000 W. 111th St, Ste 305, Worth, IL 60482
about our suite of services. TELEPHONE: 708-361-4310 FAX: 708-876-5940
CONTACT: Michelle Michael
EMAIL: mmichael@lpguys.com
Protect WEB SITE: www.LPguys.com
1601 Trapelo Rd, Ste 286, Waltham, MA 02451
TELEPHONE: 781-290-0009 FAX: 781-290-0076
CONTACT: Lisa Strunin
EMAIL: lisa@protect.com
WEB SITE: www.protect.com
5
2011 LOSS PREVENTION RESOURCE GUIDE
Sure N Fast Counterfeit Detector Consulting
7900 N. Radcliffe St, Bldg 101A, Bristol, PA 19007
TELEPHONE: 215-547-7110 FAX: 215-547-0842 Contact, Inc.
CONTACT: Norm Siegfried 700 Matthews-Mint Hill Rd, Ste C, Matthews, NC 28105
EMAIL: info@daboink.com TELEPHONE: 770-335-4891 Fax: 704-365-1026
WEB SITE: www.SureNFast.com CONTACT: Amber Virgillo
EMAIL: amberv@lpportal.com
WEB SITE: www.contactinc.com
6
2011 LOSS PREVENTION RESOURCE GUIDE
The Shulman Center for Best Security Industries
Compulsive Theft & Spending 755 NW 17th Ave, Delray Beach, FL 33445
P.O. Box 250008, Franklin, MI 48025 TELEPHONE: 561-900-2744 FAX: 561-900-2747
TELEPHONE: 248-358-8508 FAX: 248-358-8508 CONTACT: Eric Brotherhood
CONTACT: Terrence Daryl Shulman, JD, LMSW, ACSW, CAAC, CPC EMAIL: ebrotherhood@bsi-eas.com
EMAIL: terrenceshulman@theshulmancenter.com WEB SITE: www.bsi-eas.com
WEB SITE: www.theshulmancenter.com
7
2011 LOSS PREVENTION RESOURCE GUIDE
Retailers Advantage, Inc. Food Marketing Institute
2255B Queen St E, Unit 150, Toronto, ON M4E 1G3 2345 Crystal Dr., Arlington, VA 22202
TELEPHONE: 416-691-4730 FAX: 416-691-7725 TELEPHONE: 202-452-8444 FAX: 202-220-0878
CONTACT: Sheila Barry CONTACT: Amanda Bond-Thorley
EMAIL: shelia@retailersadvantage.com EMAIL: abondthorley@fmi.org
WEB SITE: www.retailersadvantage.com WEB SITE: www.fmi.org
8
2011 LOSS PREVENTION RESOURCE GUIDE
Wicklander-Zulawski & Associates, Inc. type of emergency that occurs, our proprietary network of afliates
4932 Main St, Downers Grove, IL 60515 are licensed, insured, and available to meet your needs. Client
TELEPHONE: 800-222-7789 FAX: 630-852-7081 relation specialists are available 24 hours a day, 7 days a week, 365
CONTACT: Shane Sturman days a year. Realize the peace of mind and ease of utilizing a full-
EMAIL: ssturman@w-z.com service security personnel and loss prevention specialist by calling
WEB SITE: www.w-z.com United Security today.
Employment/Recruiting
Jennings Executive Recruiting
4800 SW Meadows Rd, Ste 300, Lake Oswego, OR 97035
TELEPHONE: 503-534-3604
CONTACT: Denise Jennings
EMAIL: denise@jenningsrecruiting.com
WEB SITE: www.jenningsrecruiting.com
Wicklander-Zulawski & Associates provide the most up-to-date Jennings Executive Recruiting executive search rm focuses on retail
training on interviewing techniques. Seminars include: loss prevention throughout North America. Our specialty is focused
Interview and Interrogation Techniques on providing superior customer service to both client companies
Advanced Workshop on Interview and Interrogation Techniques and candidates. Unlike many larger rms who try to do many things,
Telephone Interviewing we intend to stay focused on our core offering, which is identifying
Interviewing Techniques for the Auditor and securing talent for our clients. We search for passive candidates
Pre-employment Interviewing to match the opportunity. We pride ourselves in evaluating talent,
Webinars include: making successful placements, and continual follow up before and
Interviewing Techniques for Non-Loss Prevention Personnel after each search. Our approach is a personalized one. A refreshing
Interviewing for Title 7 Infractions approach in loss prevention recruiting.
Certied Forensic Interviewer (CFI) Preparation Course
Online classes at www.wzcampus.com
LexisNexis
Emergency Services 1000 Alderman Dr., Alpharetta, GA 30005
TELEPHONE: 800-590-8535 FAX: 770-752-6062
Security Resources CONTACT: Joe Metro
1155 Marlkress Rd, Cherry Hill, NJ 08003 EMAIL: joe.metro@lexisnexis.com
TELEPHONE: 877-477-9638 FAX: 856-310-9192 WEB SITE: www.lexisnexis.com/screening
CONTACT: Kristine Vece
EMAIL: kvece@securityresources.biz
WEB SITE: www.securityresources.biz
9
2011 LOSS PREVENTION RESOURCE GUIDE
LPjobs.com MICROS-Retail
7868 Rea Rd, Ste F-302, Charlotte, NC 28277 1800 West Park Dr., Westboro, MA 01581
TELEPHONE: 704-405-1415 FAX: 704-365-1026 TELEPHONE: 888-328-2826 FAX: 508-647-9495
CONTACT: Jim Lee CONTACT: Sales
EMAIL: info@lpjobs.com EMAIL: info@micros-retail.com
WEB SITE: www.lpjobs.com WEB SITE: www.micros-retail.com
11
2011 LOSS PREVENTION RESOURCE GUIDE
Investigations Dunbar Armored, Inc.
50 Schilling Rd, Hunt Valley, MD 21031
Loss Prevention Associates, Inc. TELEPHONE: 800-888-2129
9550 Warner Ave, Ste 250, Fountain Valley, CA 92708 CONTACT: Ed Walsh
TELEPHONE: 888-688-2405 FAX: 888-846-4140 EMAIL: sales@dunbararmored.com
CONTACT: Bradley Kelsheimer WEB SITE: www.dunbararmored.com
EMAIL: BKelsheimer@LPAssociates.com
WEB SITE: www.LPAssociates.com
Logistics Security
Transport Security, Inc. has been providing cargo security solutions
CargoNet for over 30 years. The ENFORCER product line includes king pin
545 Washington Blvd, Jersey City, NJ 07310 locks, which have prevented numerous trailer thefts; Air Cuff locks,
TELEPHONE: 888-595-2638 FAX: 201-469-2027 which prevented numerous attempted thefts of trucks in 2009; rear
CONTACT: Richard Kirk door trailer and container locks; C-TPAT compliant security seals;
EMAIL: rkirk@cargonet.com ABLOY High-Security Padlocks; and The ENFORCER Covert GPS
WEB SITE: www.cargonet.com Tracking Technology, which is a portable, web-based application that
monitors assets covertly inside of trailers, containers, and sealed
packages.
12
2011 LOSS PREVENTION RESOURCE GUIDE
Other Detex Corporation
302 Detex, New Braunfels, TX 78130
Carttronics LLC TELEPHONE: 800-729-3839 FAX: 800-653-3839
12310 World Trade Dr., Ste 108, San Diego, CA 92128 CONTACT: Ken Kuehler
TELEPHONE: 858-312-5711 FAX: 858-618-2702 EMAIL: kk@detex.com
CONTACT: Barry Gallace WEB SITE: www.detex.com
EMAIL: BarryG@carttronics.net
WEB SITE: www.carttronics.com
13
2011 LOSS PREVENTION RESOURCE GUIDE
Pivot3 LexisNexis
6605 Cypresswood Dr., Spring, TX 77379 1000 Alderman Dr., Alpharetta, GA 30005
TELEPHONE: 281-516-6000 TELEPHONE: 800-590-8535 FAX: 770-752-6062
CONTACT: Lee Caswell CONTACT: Joe Metro
EMAIL: sales@pivot3.com EMAIL: joe.metro@lexisnexis.com
WEB SITE: www.pivot3.com WEB SITE: www.lexisnexis.com/screening
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2011 LOSS PREVENTION RESOURCE GUIDE
and management portal that also serves to deliver valuable business Supply-Chain AnalysisReturns prevention, reduction, and avoidance
intelligence to our retailer partners to help focus limited resources on Information IntelligenceWeb-based information with analytics
high-priority opportunities. Inmar also provides promotion management services, pharmaceutical
services, technology solutions, and information and document
management.
ILP Intelligent Loss Prevention
1400 Eddy Ave, Rockford, IL 61103 FID
TELEPHONE: 800-747-4384 FAX: 815-877-6563 The Retail Equation
CONTACT: Lori Yone 6430 Oak Canyon, Ste 250, Irvine, CA 92618
EMAIL: sales@intelligentlossprevention.com TELEPHONE: 888-371-1616 FAX: 949-262-5110
WEB SITE: www.intelligentlossprevention.com CONTACT: Tom Rittman
EMAIL: web_sales@theretailequation.com
WEB SITE: www.theretailequation.com
Retailers Advantage
2255B Queen St E., Unit 150, Toronto, ON M4E 1G3
TELEPHONE: 416-691-4730 FAX: 416-691-7725
CONTACT: Sheila Barry Enabl-u Technologies, a division of ISO Crime Analytics, Inc.,
EMAIL: shelia@retailersadvantage.com provides advanced data management solutions that offer the unique
WEB SITE: www.retailersadvantage.com advantage of increasing your ability to efciently manage tasks,
streamline communication, issue alerts, generate in-depth reports,
perform investigative and comprehensive link analysis, monitor
training, track assets, score audits, and much more. Our R&D
investment has resulted in cutting-edge enhancements to our APIS
system, as well as creating advanced systems applicable to all areas
of business operations. Our industry-leading software systems
Retailers are reporting a 40 to 60 percent reduction in shrink by using generate results in data management, emergency preparedness, HR
our a3tag compared to traditional EAS tags. The nancial savings are modules for pre-employment tracking, and allegation intake and
being proven mathematically. Our Reusable Intelligent a3tag is the investigation.
pathway to developing a complete management tool to control
internal theft, inventory control, distribution, marketing, and more.
Our new a3tag is fully compatible with your existing EAS systems. Global Compliance
For more information please call Sheila Barry at 416-691-4730. 13950 Ballantyne Corporate Place, Charlotte, NC 28277
TELEPHONE: 800-528-5745 FAX: 704-552-5820
CONTACT: Michelle Midkiff
Safety EMAIL: michelle.midkiff@globalcompliance.com
WEB SITE: www.globalcompliance.com
Jack L. Hayes International, Inc.
27520 Water Ash Dr., Ste 100, Wesley Chapel, FL 33544 Global Compliance is a leading global provider of comprehensive
TELEPHONE: 813-991-5628 FAX: 813-991-5682 ethics and compliance solutions that can help retailers build a
CONTACT: Mark R. Doyle culture of integrity, reduce risk, and minimize loss. We serve over
EMAIL: mrd@hayesinternational.com 4,000 clientsincluding over 100 retailersand their 25-million-
WEB SITE: www.hayesinternational.com plus employees in over 200 countries and territories. Our integrated
suite of ethics and compliance solutions, including employee hotline
Hayes International is internationally recognized as a foremost inventory services, training and education, expert advisory services, and
shrinkage control consulting rm. For over 30 years, we have assisted performance and benchmarking solutions suit every retail culture,
retail, distribution, and manufacturing companies become more protable from specialty retailers to department stores to big-box retailers. Visit
through effective inventory shrinkage control. We have developed a us at www.globalcompliance.com.
reputation within the retail area that is second to none. Hayes consultants
continuously travel throughout North America conducting third-party
loss prevention and safety compliance audits for our clients, while LP Innovations, Inc.
providing practical solutions for unnecessary loss exposures. All Hayes 37 Birch St, Milford, MA 01757
consultants came up in the retail industry and have twenty-plus years of TELEPHONE: 877-574-6682 FAX: 508-449-3965
LP experience. Contact us today and experience the difference. CONTACT: David Johnston
EMAIL: solutions@lpinnovations.com
WEB SITE: www.lpinnovations.com
Training/Awareness
LP Innovations (LPI) is a leader in providing retailers with nationwide
Contact, Inc. loss prevention solutions focused on earnings improvement. Since
700 Matthews-Mint Hill Rd, Ste C, Matthews, NC 28105 1998 LPI has partnered with retailers of all segments and sizes,
TELEPHONE: 770-335-4891 Fax: 704-365-1026 demonstrating proven results that dramatically reduce expenses,
CONTACT: Amber Virgillo improve shrink, and increase protability. Our trusted solutions
EMAIL: amberv@lpportal.com are used today by many leading retailers either as a complete loss
WEB SITE: www.contactinc.com prevention function or a supporting resource to an existing LP
department. Our wide range of services include best practice and
specialized auditing, exception-reporting analysis, investigative
resources, training and awareness programs, mystery and integrity
shops, and much more.
16
2011 LOSS PREVENTION RESOURCE GUIDE
National Association for Shoplifting Prevention Atlanticom Systems
380 N. Broadway, Ste 306, Jericho, NY 11753 2140 Highway 88, Brick, NJ 08724
TELEPHONE: 800-848-9595 FAX: 516-932-9393 TELEPHONE: 888-845-CCTV
CONTACT: Barbara Staib CONTACT: Michael Barlow, President
EMAIL: bcstaib@shopliftingprevention.org EMAIL: lpmag@atlanticom.com
WEB SITE: www.shopliftingprevention.org WEB SITE: www.atlanticom.com
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2011 LOSS PREVENTION RESOURCE GUIDE
Best Security Industries Digital IDView
755 NW 17th Ave, Delray Beach, FL 33445 12000 Ford Rd, Ste 110, Dallas, TX 75234
TELEPHONE: 561-900-2744 FAX: 561-900-2747 TELEPHONE: 972-247-1203 FAX: 972-274-1291
CONTACT: Eric Brotherhood CONTACT: Sandy Lee
EMAIL: ebrotherhood@bsi-eas.com EMAIL: sandy@idview.com
WEB SITE: www.bsi-eas.com WEB SITE: www.idview.com
18
2011 LOSS PREVENTION RESOURCE GUIDE
coaxial cables. We offer 1080i or 720p HD cameras with six times the Mobotix
resolution of a traditional camera, giving you the zoom with clarity 110 Wall St, Floor 22, New York, NY 10005
HD images for more cash register coverage. EverFocus is your TELEPHONE: 212-385-6126 FAX: 212-385-6129
surveillance solution provider to reduce your losses. For more CONTACT: Steve Gorski
information, visit www.everfocus.com. EMAIL: steve.gorski@mobotix.com
WEB SITE: www.mobotix.com
Genetec
2280 Alfred-Nobel Blvd, Ste 400, Montreal, Quebec H4S 2A4
TELEPHONE: 514-332-4000 FAX: 514-332-1692
EMAIL: info@genetec.com
WEB SITE: www.genetec.com
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2011 LOSS PREVENTION RESOURCE GUIDE
StopLift Checkout Vision Systems Index
185 Alewife Brook Pkwy, Ste 401, Cambridge, MA 02138
TELEPHONE: 866-426-2479 FAX: 509-352-6048 Ackerman Security Systems, 4
CONTACT: Peter Parcellin ADT, 7, 17
EMAIL: info@stoplift.com Alpha, 14
WEB SITE: www.stoplift.com American Integrated Security Group, 13
Atlanticom Systems, 12, 17
Axis Communications, 17
Bass Security Services, Inc., 2, 7, 17
Best Security Industries, 7, 15, 18
CHECKOUT VISION SYSTEMS
CargoNet, 12
Carttronics, 4, 13, 14, 15, 18
StopLifts ScanItAll software is the fastest growing technology in loss Catalyst Tags, Inc., 7
prevention. Thousands of checkouts are right now having their video Center for Interviewer Standards & Assessment, Ltd., 8
(from existing overhead cameras) automatically analyzed every Certinder, 14
moment by StopLifts software to detect shrink visually, even when it Checkpoint Systems, 7, 16
leaves no data-trail, including:
ClickIt Inc., 18
Sweethearting between cashiers and customers
Bottom-of-basket (BOB) and middle-of-basket (MOB) loss Contact, Inc., 6, 16
Self-checkout loss Corporate Safe Specialists, 5
Operational error, refund fraud, void fraud, and others Detex, 2, 3, 4, 13
Major chains are utilizing StopLift to signicantly reduce shrinkage, Digital IDView, 18
deter future theft, and boost protability. See video of actual detected Direct Source, 2, 18
incidents at www.stoplift.com. Call or email today to schedule a live Dunbar Armored, Inc., 5, 12
web demonstration. Enabl-u Technologies, 5, 16
ENFORCER Transport Security, 12
S-TRON Envysion, Inc., 18
43 Werman Ct, Plainview, NY 11803 EverFocus Electronics Corp., 18
TELEPHONE: 877-887-8766 Food Marketing Institute, 8
CONTACT: Tina Dunn Genetec, 2, 19
EMAIL: tinad@s-tron.com Global Compliance, 5, 11, 16
WEB SITE: www.s-tron.com Global Elite Group, 10
Gulfcoast Software Solutions, 6, 10, 19
Hart Systems, 11
ILP Intelligent Loss Prevention, 15
INFORM Applications, 11
InstaKey Security Systems, 2, 10, 13
Jack L. Hayes International, Inc., 4, 6, 16
S-TRON Security Electronics is one of the fastest growing security Jennings Executive Recruiting, LLC, 9
and integration companies in the U.S., providing peace of mind to Kenstan Lock Company, 4
our customers across the country. Its not simply that our customers LexisNexis, 9, 14
demand fast, reliable servicethey depend on it. Every aspect of our Loss Prevention Associates, Inc., 4, 12, 14
business must work quickly, efciently, and expertly. Through
technology expertise, stability, and innovation, S-TRON has become Loss Prevention Foundation, 8
a trusted leader in electronic security services. Let us show you how Loss Prevention Recruiters, 9
we can provide you with exceptional service and installation for all LP Innovations, Inc., 4, 6, 10, 12, 13, 16
your security electronic needsGUARANTEED. For more information LPjobs.com, 10
on discounted pricing or to inquire about a free service call, please LP Software, Inc., 4, 5, 11
visit our website www.s-tron.com or call 877-887-8766. MICROS-Retail, 10
Milestone, 19
Verint Video Intelligence Solutions Mobotix, 19
12110 N. Pecos St, Ste 300, Denver, CO, 80234 National Association for Shoplifting Prevention, 17
TELEPHONE: 303-450-5900 FAX: 303-450-5950 Next Level Security Systems, 13
CONTACT: Cortney Jaret Niscayah, 3, 19
EMAIL: marketing.vis@verint.com Northern Michigan University, 8
WEB SITE: www.verint.com/video_solutions Palmer, Reier and Associates P.A., 6
PCG Solutions, Inc., 6
Verint Video Intelligence Solutions is a leading global provider
Pivot3, 14
of networked video solutions designed to enhance the security of
people, property, and assets. Its award-winning Nextiva portfolio Protect, 5
features IP video management software, integrated analytics, Retailers Advantage, 8, 16
encoders, cameras, wireless devices, and intelligent DVRs for use RGIS, 11
across a variety of vertical market environments. Open, standards- Security Door Controls, 3
based, and IT friendly, Verint solutions help organizations realize the Security Resources Inc., 9
benets of IP video, leveraging their legacy video investments. Sennco Solutions Canada, 15
Sentry Technology Corporation, 12, 19
StopLift Checkout Vision Systems, 10, 20
S-TRON, 20
Sure n Fast Counterfeit Detectors, 6
The Retail Equation, 15
The Shulman Center for Compulsive Theft, 7
United Security Protective Services, 3, 9, 11
Verint, 14, 20
Visionhitech America, Inc., 14
Wicklander-Zulawski & Associates, Inc., 9, 17
Wilson Safe Company, 6
WG Security Products, 8
20
2011 LOSS PREVENTION RESOURCE GUIDE
LP MAGAZINE | JANUARY FEBRUARY 2011
ASSOCIATIONS IN ACTION
A
by Lisa LaBruno
Risks from
Lisa LaBruno leads the asset protection offerings in
the areas of loss prevention, retail crime, workplace
safety, disaster recovery, operational audit, research,
and benchmarking for the Retail Industry Leaders
Part II
I
n the last issue I identified some of the more popular The merchant detention statute is generally not a defense
causes of action typically filed by shoplifters turn to a malicious prosecution claim, and it is never a defense
plaintiffs, dissected the merchant detention statute (aka to a defamation claim. However, retailers can take steps to
shopkeepers privilege) that can act as a defense for retailers, mitigate risk.
and discussed the risk of brand damage in the context of As a general concept, it is useful to develop policies or best
external apprehensions. This article will focus on two other practices designed to rebut specific elements of civil causes
favorite claims of plaintiffsmalicious prosecution and of action. For example, the judge presiding over plaintiffs
defamationas well as best practices that can help minimize civil claim against a retailer for malicious prosecution may
liability and consequential brand damage. find as a matter of law that the underlying shoplifting case
terminated in plaintiffs favor after the LP professional
Malicious Prosecution and Defamation failed to appear in criminal court, and the charges were
To prevail on a claim for malicious prosecution and dismissed against plaintiff without adjudication. A policy
defamation, a plaintiff must prove each of the elements requiring LP professionals to monitor their criminal cases
identified below: and appear in court when noticed or face disciplinary action
Malicious ProsecutionPlaintiff must prove (a) the retailer for their failure to appear could result in fewer criminal case
commenced a criminal proceeding against plaintiff, (b) the dismissals, thereby mitigating civil exposure on a malicious
proceeding terminated in plaintiffs favor, (c) an absence prosecution claim.
of probable cause, and (d) the retailer was motivated by Malicious Prosecution Best Practices. Other policies
malice or improper motive. or best practices that can help disprove the elements of a
DefamationPlaintiff must prove (a) the retailer made a malicious prosecution claim include the following:
statement about plaintiff, (b) the statement was published Conduct a thorough investigation and follow-up on any
or communicated, (c) the statement was false, and (d) the reasonable explanations offered by the subject to justify his
statement tarnished the persons reputation. actions.
When practical, defer to law enforcements assessment
evidence.
program can expose their A decision to refer a case to law enforcement should be
ESZZ^`]dWRSZ]ba]TU`SObWRSOaO\RVSZ^TcZ[ObS`WOZab]USbg]cabO`bSR
8cab`S_cSabg]c`>OaaW]\ObSZg>W\YYWbOb^OaaW]\ObSZg^W\Y]`U
'AcaO\59][S\T]`bVS1c`SBVS@c\\W\U@WPP]\WaO`SUWabS`SRb`ORS[O`Y]TAcaO\59][S\T]`bVS1c`SBVWaa^OQS^`]dWRSROaO^cPZWQaS`dWQS
73
LP MAGAZINE | JANUARY FEBRUARY 2011
CERTIFICATION
by Amber Virgillo
Benefit from
Solution
Providers managers, leaders, educators, social scientists, accountants,
statisticians, high-level executives, and, of course, investigators.
2011
is already shaping up to be full of who are not even current Vector customers, to assist them in
opportunities for retailers to expand their furthering their personal development, said Jeffrey Levitt, CPP,
education and loss prevention skills with senior manager, asset protection for Panera Bread/Paradise Bakery.
the Loss Prevention Foundation (LPF). Vector Security recently I believe this has long lasting impact on the industry. While I
announced they would increase their LPQualified (LPQ) and have not yet completed the LPC, I have communicated within my
LPCertified (LPC) scholarships for retailers from twenty last organization that I received the scholarship and proudly advertise,
year to thirty this year. The scholarships include all course and even on my business card that I am a member of LPF.
exam certification fees. This increase was primarily due to the
overwhelming response and interest they received from retailers
about completing their certification through LPF.
I am very impressed when a private
organization looks beyond increasing
Vector Security Increases Scholarships
When we began our scholarship program three years ago, profits and supports an organization
we did so with two clear intentions in mind, said Michael T.
Grady, executive vice president of Vector Security. First, we
like the LP Foundation and identifies
wanted to support an educational process that would create individuals like myself, who are not
additional value to the LP profession. Second, we wanted
to offer LP professionals a funding source to achieve either even current Vector customers,
certification, without the need for the funding to come from
them personally or from their employers
to assist them in furthering their
Launching any professional certification program requires personal development.
a lot of funding, time, and effort, Grady explained. Many fail
due to lack of sincere continuous support and interest. Knowing - Jeffrey Levitt, CPP, Senior Manager, Asset
the long-term value of this endeavor, we wanted to continue to Protection, Panera Bread/Paradise Bakery
support the program in any way possible to help guarantee its
viability and prove its worth in the eyes of the retail industry. I am a huge believer in the Foundation, continued Levitt. I
Mike and his team have worked hard to promote and help am a charter member and proud be a part of a group with such
validate our programs, said Gene Smith, president of the Loss a prestigious membership. While I also have a CPP, I believe my
Prevention Foundation. They have been there from the start association with the LPF is more focused and relative to what I do
and are a remarkable example of how a solution provider who on a daily basis.
serves the retail LP industry can make a difference to the people Adrian Nowalk, Radio Shack. Being an LPQ Vector
who work within it. Vector gets it. They realize that todays LP scholarship recipient has greatly helped in my career, said
professionals are expected to be sharp, technically savvy business Adrian Nowalk, CFI, regional LP manager for Radio Shack.
74
JANUARY FEBRUARY 2011 | LPPORTAL.COM
I am very dedicated to my education. This certification
has added to my knowledge base tremendously. I believe
that this certification did play a role in acquiring my new
We Do Retail
position with RadioShack. By showing my dedication to
my education, I believe that it has showed my employer my
overall dedication to my career. Finally, I truly believe that
the LPQ certification has added greatly to me becoming a
well rounded business professional.
Shawn Abernathy, Target. Todays retail environment
for the asset protection and loss prevention professional
is ever-changing and presents new challenges and
opportunities, said Shawn Abernathy, investigations
team leader, Group 397, Target. The LPC program offers
enhanced education and skill development for todays
loss prevention personnel. My experience with the LPC
scholarship program has been outstanding.
I was honored to receive a Vector Security LPC
scholarship this year, continued Abernathy. I am
taking full advantage of the in-depth and expert training.
The online course allows for self-paced learning and
is fantastic for the full-time professional. It has been
a great investment of my time and has enhanced my
core competencies in my field. Through the course, I
And We Do It Well!
have expanded my knowledge of the business and been
In today's difficult economy, finding a partner who provides
challenged to consider new perspectives, which have allowed
me to be more effective in my current role. By obtaining the high quality service with value based pricing is a top priority
LPC certification, I will demonstrate my commitment to for all retailers. At Bass Security, we have worked hard to
further education and understanding that is critical to our
achieve this motto for over 35 years.
profession. This is a great investment in your education and
will definitely propel you to greater career opportunities in
the future. Retailers in North America have found that whether they need
mechanical security solutions for locks, keys, safes and
Commitment to the Industry
Other solution providers that are dedicated to the panic hardware, or electronic security solutions for CCTV,
loss prevention industry have been instrumental in the EAS, Alarms, and Biometrics, price and quality are important
advancement of loss prevention practitioners careers,
to them. At Bass Security, we are dedicated to delivering value
including ADT. There is no better vehicle for showing a
vendors commitment to the loss prevention industry than pricing along with high quality service.
sponsoring a young talented person with a Foundation
scholarship, said Kevin Lynch, executive director at ADT.
Everyone whose career is tied into retail loss
prevention has a stake in increasing the level of
professionalism within the industry, agreed Vectors
Grady. Better educated people can bring about greater
results, create better LP programs, and even better deploy
new LP technologies within their organizations. Curbing
losses due to shrinkage is the only free money left on
retailers tables. They dont need to discount it, promote it,
advertise it, or stay open late to create it. Better educated
and trained LP departments are the reason why that
money can fall right to the bottom line.
Retailers can apply for Vectors 2011 scholarship
program by visiting Vectors web site and through the Loss sales@bass-security.com
Prevention Foundation. Applications will be accepted www.bass-security.com
throughout February 2011 and the winners will be
announced in March. Inquires can also be made directly to Your Single Source for Mechanical and Electronic Security Services
Vector Security to Debbie Fisher at 724-779-8810 extension
1206 or by email at dkfisher@vectorsecurity.com.
75
LP MAGAZINE | JANUARY FEBRUARY 2011
INDUSTRY NEWS
Global
by Robert L. DiLonardo
DiLonardo is a well-known authority on the
electronic article surveillance business, the cost
Shrinkage
justification of security products and services,
and retail accounting. He is the principal of Retail
Consulting Partners, LLC (www.retailconsultingllc.com),
a firm that provides strategic and tactical guidance
Drops to
in retail security equipment procurement.
DiLonardo can be reached at 727-709-6961
or by email at rdilonar@tampabay.rr.com.
A
ccording to recently released results from the 4th ($2.8 billion). Those ten countries reported losses of $83.9
Annual Global Retail Theft Barometer (GRTB) for billion, or 78 percent of the global total.
the twelve-month period ending June 2010, total
global shrinkage cost respondent retailers $1.07 billion, or Scope of the Project
an average of 1.36 percent of retail sales. The results are Funded by a grant by Checkpoint Systems, the GRTB
5.6 percent lower than last years 1.44 percent, and match is the most comprehensive study of its kind. The data
the level reached when the report went global in 2007. is gathered from a survey prepared by the Nottingham,
All four geographic data subsets covered by the survey England-based Centre for Retail Research, under the
recorded reductions over last year as shown in the chart guidance of its director, Dr. Joshua Bamfield, a well-known
below. expert in retail crime issues. This year the survey was
sent to 4,900 of the worlds largest retailers, and usable
Region 2009 2010 % Change responses were received from 1,103 companies with
North America 1.60% 1.49% -6.9% combined retail sales of $873.8 billion representing a
Europe 1.33% 1.27% -4.5% cross section of vertical markets in 42 countries, including
Russia reporting for the first time. There are currently two
Asia-Pacic 1.24% 1.16% -6.5%
countries, Morocco and South Africa, representing the
Latin America 1.67% 1.60% -4.2% Middle East/Africa. Plans call for an expansion in this area
Global Total 1.44% 1.36% -5.6% of future growth.
In addition to reporting on the magnitude and trends of
Europe and North America are the largest components. shrinkage, the survey attempts to gather useful information
A five-year look back indicates that the sharp increase in about a wide array of important topics, including:
shrinkage in 2009, no doubt caused by the global recession, Causes of shrinkage, with a percentage breakdown by
may have been an anomaly. This years drop places the type and magnitude,
region averages at 2006 to 2008 levels. List of most-stolen merchandise by vertical market,
This is the third consecutive year that Latin America Methods used to combat shrinkage, with a breakdown by
has recorded the highest shrinkage as a percentage of sales. type, and information about future implementation,
However, the trend for Latin America matches those of Retail loss prevention and security spending, with a
Europe and North America, which is relatively stable aside percentage breakdown by type and a calculation of total
from the 2009 spike. spending as a percentage of sales, and
The Asia-Pacific five-year trend differs in that the general The global cost of retail crime.
76
JANUARY FEBRUARY 2011 | LPPORTAL.COM
Supplier/vendor fraud was 5.4 percent of total shrinkage, supermarkets/hypermarkets/large grocery stores. Other
compared with 5.6 percent in 2009. high loss categories were alcohol, cheese, candy, and infant
As in the previous years there is an interesting formula. Infant formula is a source used to dilute illegal
divergence of opinion among respondent groups over the drugs, so its inclusion is no surprise.
sources of shrinkage. North American and Latin American The highest shrinkage losses in the apparel/clothing
retailers regarded dishonest employees as the biggest and fashion categories were seen in accessories (3.84%),
problem (47.3 and 43.1 percent respectively). Shoplifters childrens wear (2.97%), and in fashion/tailored clothing
and ORC accounted for 35.0 and 32.2 percent respectively. (2.81%). Last year, these three categories were the highest
North American retailers have focused vigorously on ORC risk in every region, but in 2010 this is only true for North
issues over the past few years. America and Europe.
European and Asian retailers, on the other hand, Health and beauty product lines are sold by many
identified customer theft as the largest shrinkage different types of stores. The highest losses were found in
component (52.9 and 47.8 percent respectively). Dishonest shaving products (3.57%), perfume/fragrances (2.73%)
employees accounted for an estimated 29.8 and 23.3 and lipsticks, glosses, and lip liners (2.60%).
percent respectively. The study also includes a table listing the top seven
stolen merchandise categories in ten of the most prominent
Most Stolen Merchandise business categories or vertical markets. The results
The study asked retailers for specific information about indicate that high-risk merchandise knows no geographical
the average shrinkage rate of high-risk product lines in boundaries as meat, apparel/accessories, jewelry, health
grocery and food, apparel/clothing and fashion, and health and beauty, entertainment electronics, and infant formula
and beauty (first year). Many of the most-stolen product are targets the world over.
lines are expensive, major national brands and retailers
reported that between 10 and 30 percent of the most Relationship between
stolen lines are new to the market in the last two years. LP Budgets and Shrinkage
This was particularly true of apparel and clothing and GRTB researchers used ten years of Western European
health and beauty. statistics to test whether changes in one or more of the
For food and grocery items the highest shrinkage was components in loss prevention spending were related
reported in fresh meat (2.86%), which was more than to changes in shrinkage. The idea was to use regression
double the global shrinkage rate of 1.22 percent for analysis to see if there is a relationship between increased
Join other
loss prevention
professionals,
integrators,
installers, and
manufacturers
to discuss and
explore leading-
edge security
technologies. Learn more and register at:
/iV-iV-
V
OFFICIAL MEDIA SPONSOR:
77
LP MAGAZINE | JANUARY FEBRUARY 2011
CALENDAR
loss prevention spending and lower shrink, and between reductions in loss
n
prevention spending and higher shrink. The analysis, based on a basic function
called the Cobb-Douglas model, showed that that increases in loss prevention
spending on manpower, equipment, and services are associated with reduced January 9 12, 2011
shrinkage levels and vice versa. National Retail Federation
More information on the GRTB can be obtained from the Centre for Retail 100th Annual Convention & Expo
Jacob K. Javits Convention Center
Research (www.retailresearch.org) or by watching an archived webinar on the New York, NY
subject at the magazine website, www.LPportal.com/webinar. www.nrf.com
78
JANUARY FEBRUARY 2011 | LPPORTAL.COM
PEOPLE ON THE MOVE
Brian Fitzpatrick has been promoted Wayne Barnes was appointed LP Safety Supply Chain BSD for Office
to VP Operational Effectiveness & Manager U.S. and Art Siva has Depot.
Asset Protection for A&P. been promoted to VP Head of
Operations North America for Esprit. Priya Kamath has been promoted to
Dave Thompson was appointed District LP Manager, and Bryan Kling
Regional LP Manager for GameStop has announced the was appointed Associate Director for
Abercrombie & Fitch. following changes: Michael Polo Ralph Lauren.
Brookshire to LP Analyst and David
Sara Ketelhut was appointed LP Store Henger, Dale Jackson, and Kevin Janette Murray and Sam Reichman,
Investigator for ACO Inc. Thelan to Regional LP Managers. CFI were named Investigations
Managers for RadioShack.
Marlene Kusumoto was named Bill Nash was named Chief Operating
Director of LP for Annas Linens. Officer for Genetec. Andrew Grant was named Director,
AP for Raleys.
Jason Ploof, CFI has been promoted Kevin Price has been promoted to
to Regional LP Director for Armani Director of Field LP for GUESS. Ross has announced the following
Exchange. changes: Kevin Atkinson to Senior
Marco Sanchez has been promoted to Manager of LP Programs &
Rick Pennington was appointed LP Manager for HEB. Compliance, Adam Eaton and Steve
Director, Risk Services for Axcess Ecsedy to Area LP Managers, and
Financial. Mike Combs has been promoted to Jean Luma to LP Supervisor.
Director, AP Supply Chain for Home
Marcella Coppola was named Depot. John Holubowicz was appointed
Director of LP for Bath & Body Director of AP for Saks Fifth Avenue.
Works. Sean Manion was named VP of Sales
& Operations, North America for Anna Gunther has been promoted
James Russell, CFI was appointed to IDM Software, Ltd. to Director of LP, Home Services &
District LP Manager for Big Lots. Outlet Stores for Sears Holding Corp.
Mike Korcuba was appointed
Lawrence Hartman, CFI and Lori Business Development Manager for Mike Truax was appointed LP
Tobin were appointed Regional Iverify. Investigations/Process Manager for
LP Managers for Burlington Coat Sephora.
Factory. Marcella Coppola, CFI was
appointed Director of LP for Limited Andrew Martino and Charles Scott
David Homolka has been promoted Brands. were named Area LP Managers for
to VP of U.S. Retail Operations for Stein Mart, Inc.
Cabelas. Raj Rakkar was named Director of
Security for Loss Prevention Services. Dan Patasnik was named LP Director
Chief Anthony Canale was named for Swatch Group U.S.
Director of Operations and Jason Lotts was named LP Zone
Investigations for CargoNet. Partner for Lumber Liquidators. Mike Tadros was appointed to
Director of Security for Time Warner.
Leo Anguiano was appointed VP LP Navy Exchange announced the
and Risk Management for Central following promotions: Kevin Josh Machtinger was named AP
Parking. MacKenzie to District LP/S Manager, Process Improvement Analyst for
Hawaii; Danita Brown to District Toys R Us.
Douglas Martinez was named LP/S Manager, Guam; Ron Gillenberg
Regional LP Manager for Charming to District LP/S Manager, Japan; Gary Fraser was appointed Director
Shoppes. LeVern Hayes to LP/S Manager, of North American Sales for Vector
NEX Atsugi, Japan; Brian Nowlan Security.
Kirk Luke was appointed Director of
LP for CKE Restaurants, Inc. to LP/S Manager, NEX Bahrain; George Hines, CFI was appointed
Alex Bedoya to LP/S Manager, Manager of Security Systems for Yale
Barry Grant has been promoted NEX Naples, Italy; Adam Porter to University.
to Senior VP of LP & Operational LP/S Manager, NEX Portsmouth;
Support for CPI Corp. Eric Miller to LP/S Manager, NEX
Oceana; and Velvia West to Assistant
CVS has announced the following Security Manager. New appointments
changes: Randy Hall, CFI and Juan include Stanley King as LP/S Manager
Madrid to Regional LP Managers, at NEX Charleston; Tony Rowland
and Freddy Torres to Director LP as LP/S Manager, NEX Bangor; and
Financial Analysis. James Hyatt as Command Security
Ryan OHara has been promoted to Manager. Information for the People on the
LP Analyst for Destination Maternity Joseph Young was appointed Area LP Move section is provided in part by
Corp. Supervisor for Neimann Foods. The Loss Prevention Foundation,
Loss Prevention Recruiters, and
Sergio Martinez, CFI was named Tom Doyle was appointed Senior LP Jennings Executive Recruiting.
Regional LP Manager and Kelly Auditor for Oakley International. Send information on promotions
Moye, CFI was appointed Regional and new hires for this listing to
Investigations Manager for Dollar Dave Sacramone has been promoted peopleonthemove@LPportal.com.
General. to Regional Manager of LP &
79
LP MAGAZINE | JANUARY FEBRUARY 2011
ADVERTISERS
ADT ...................................................... 84
www.adtselectview.com
Subscribe
Alpha.............................................. 21, 23
www.alphaworld.com
Axis Communications .......................... 16
MAGAZINE for Free
www.axis.com/hotspot LP Magazine is available free to loss International Subscription.
Bass Security....................................... 75 prevention and retail professionals LP professionals outside the
www.bass-security.com throughout the U.S. and Canada. Theres U.S. and Canada can either
CargoNet .............................................. 45 no excuse for anyone interested in keeping read the digital magazine
www.cargonet.com up with the LP industry to not get the free or receive the print
CISA ..................................................... 22 magazine. version for $99 per year.
www.certifiedinterviewer.com Visit the Subscription page
ClickIt Inc. ............................................ 25 To sign up for a free subscription, go to at www.LPportal.com to
www.clickitinc.com www.myLPmag.com. Its simple. Takes only purchase an international
a minute. Or fax the completed form below subscription.
Contact ................................................ 28
www.contactinc.com to 978-671-0460.
Corporate Safe Specialists ................... 48 Yes, I would like to receive/continue to Yes, I would also like to receive/continue to
www.corporatesafe.com receive LP Magazine FREE of charge. receive your e-newsletter FREE of charge.
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No thanks. No thanks.
www.enabl-u.com Please ll out completely:
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www.evoretail.com Signature __________________________________________________________ Date __________________
Food Marketing Institute ...................... 35 Telephone _________________________________________________________________________________
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www.gulfcoastsoftware.com Email______________________________________________________________________________________
80
JANUARY FEBRUARY 2011 | LPPORTAL.COM
VENDOR SPONSORS
ADT Retail Solutions ClickIt Inc. InstaKey Security Systems Palmer, Reifler & Associates
Kevin E. Lynch Jim Paul Cita Doyle Jeff Welch
Executive Director Director of Sales Director of Sales & Marketing Executive Director
Alpha Corporate Safe Specialists Kenstan Lock Security Resources, Inc.
Carlos Perez Ed McGunn David G. Allen Kris Vece
Director of Marketing President/CEO National Sales Representative Business Development
Axis Communications Enabl-u Technologies LexisNexis The Retail Equation
Jackie Andersen Kevin McMenimen Joe Metro Tom Rittman
Business Development President/CEO Strategic Sales Director Vice President, Marketing
Manager, Retail
Evolution Robotics Milestone WG Security Products
Bass Security Services Colleen Lindsey Hedgie Bartol Ed Wolfe
Joe Mignone Marketing Retail Sales Manager Vice President, Business
Vice President Sales and Marketing Development
Gulfcoast Software Solutions
Tim Lindblom
Executive Vice President
81
LP MAGAZINE | JANUARY FEBRUARY 2011
PARTING WORDS
To Be
Young Again Jim Lee
Executive Editor
I
speak from experience when I tell you that as you get older, there training manuals and training classes. You likely would be observing
are things you cant do at all or cant do as well as you did when you and following around other experienced LP associates for a period
were younger. I was told over and over by my elders that this would of time until you figured out the functions of the job. Often the most
happen, but I refused to believe it could happen to me. critical component of the job was apprehending a shoplifter. You had
Physically you just begin to wear down. The body changes in a trial period to go through before you were cut loose on your own
many waysankles, shoulders, knees, feet, hips, eyes, weight. Heck, with shoplifters.
in my case I think I am shorter than when I was 21. The significant piece of your training was that there were other
Then there are the internal breakdowns. High blood pressure, partners in LP in your store that you could turn to or talk with
diabetes, cancers, and the list goes on and on. Havent you heard it or learn from on a daily basis. Working with experienced people
before, If I knew I was going to live this long, I would have taken or having a coach on site was the norm, and you matured fast
better care of myself. The medical experts will tell you that staying and became engaged early on in investigations. The more you did,
fit physically will keep many of those aging ailments away or at least the more you got noticed. Getting noticed created the chance for
delay them. advancement and stability.
82
JANUARY FEBRUARY 2011 | LPPORTAL.COM
Its 2:00 a.m. ... you have a break-in
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...whats your next move?
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ADTs UL- Certied monitoring centers watch over retailers all across the U.S. Let our special operations
team do the monitoring for you. At ADT, making sure you can focus on your business is our business.
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