September - October 2011

THE VOICE OF LOSS PREVENTION LPportal.com | V10.5 September – October 2011

LOSS PREVENTION

MAGAZINE

THE IMPACT OF 9/11 ON LOSS PREVENTION TEN YEARS LATER

Where Were You on September 11th?

Ten Long Years for One NYC Firefighter Training Mall Security on Terrorist Threats

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Contents 6

PUBLISHER’S LETTER Special Edition

By Jack Trlica

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ON THE WEB

The Impact of 9/11 on Loss Prevention

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RETAIL SPONSORS

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ACADEMIC VIEWPOINT The London Riots: Could It Happen Here?

By Richard C. Hollinger, Ph.D.

By Jack Trlica, Editor and Publisher

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INTERVIEWING History of Interrogation According to W-Z: The Future

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

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LOOKING BACK Ten Years of LP Magazine

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CERTIFICATION Connecting Retailers with Informed, Motivated College Candidates

By Catherine Penizotto

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FUNDAMENTALS Are You Cautious Or a Risk Taker?

By Mike Marquis, CFI

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SOLUTIONS SHOWCASE - Gulfcoast Software Solutions - The Retail Equation

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SUPPLY CHAIN Ten Years Later, Uncle Sam Wants to Be Your Security Manager

By Kelby Woodard

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EVIDENCE-BASED LP Decisions, Decisions

By Read Hayes, Ph.D., CPP

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INDUSTRY NEWS - Shoplifting History—Worth the Read - RFID Targets Draft Beer - Hayes Survey Reports Across-the-Board Theft Decreases - Crime Statistics Improve Again

By Robert L. DiLonardo

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CALENDAR

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PEOPLE ON THE MOVE

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ADVERTISER DIRECTORY

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VENDOR SPONSORS

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PARTING WORDS One of Those Days

By Jim Lee

21 Changes implemented by retailers in the past ten years.

29 Where Were You on the Morning of September 11th?

Memories and perspectives of a number of retail executives.

By James Lee, Executive Editor

45 Ten Long, Slow, Consuming Years

Living as a survivor of the collapse of the World Trade Center twin towers.

By Bobby Senn, FDNY (retired)

Retail’s Response to September 11th from the January-February 2002 issue

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We Will Never Forget commemorative book

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Training Mall Security to Respond to Terrorist Threats 4

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Publisher’s LETTER MAGAZINE 700 Matthews Mint Hill Rd, Ste C Matthews, NC 28105 704-365-5226 office, 704-365-1026 fax

Special Edition

EDITOR AND PUBLISHER Jack Trlica JackT@LPportal.com

S

eptember 2001 has special meaning to those of us at the magazine for two reasons…one happy and one not.

That month ten years ago saw the publication of the premier issue of LossPrevention magazine. After introducing the concept of the magazine at the June National Retail Federation LP conference in Vancouver, we produced and printed the inaugural issue that was distributed to the industry at the beginning of September. Our excitement, of course, was quickly dashed by the tragic events of September 11th.

A lot has transpired in the past ten years. The magazine has gone on to flourish as an educational vehicle for the loss prevention industry, chronicling the evolution of LP from a single-focused corporate function to a fully integrated contributor to a wide-range of functions that significantly contribute to the health and wealth of the retail corporation.

Part of that evolution may have been spurred by the security needs post-9/11. In fact, Tina Sellers, vice president of loss prevention at GameStop, makes that exact argument in the opening article in this issue: “The major impact of 9/11 was that, I believe, it was the trigger that began the evolution to real corporate security. Our profession is more respected and our opinions more sought after now than they were prior to that day. There was a definite shift in focus, as well as in budget allocation, from traditional shrink-reduction programs to true asset protection measures.”

Because of the significance of September 11th on our country as a whole as well as our industry, we decided to devote the majority of this issue to a retrospective of the event in the eyes of retail executives and their opinions of its impact on retail security today.

In the opening article on page 21, we’ve tried to summarize the principle changes that have taken place post-9/11. We’ve also included a great number of observations from a variety of executives starting on page 29, including a personal look at where they were that September morning.

We’ve included a heart-wrenching article on page 45 from Bobby Senn, a New York City firefighter who survived the collapse of the World Trade Center twin towers and the difficulties he and fellow surviving first responders have endured these past ten years.

I would like to thank all the many people who contributed their observations for this issue, especially David McGowan of Tiffany, Rosamaria Sostilio of Saks Fifth Avenue, Gary Johnson of The Vitamin Shoppe, and Malachy Kavanagh of the International Council of Shopping Centers, who all provided a great deal of background.

While we all have seen and read a great deal of information over the past few weeks on this ten-year anniversary, we trust that our focus on the effect of September 11th on the LP industry is worthy of your time. Hopefully it will stimulate a review of your company’s programs as discussed here, or confirm your position on crisis management, employee communications, travel safety, and other areas that protect your people and facilities.

We invite you to submit your own remembrances and observations by going to our website, Facebook page, or LinkedIn group. We expect there are numerous stories among our readership that are valuable to share. We hope you take the time to provide your own personal insights.

Jack Trlica Editor and Publisher 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 reproduced by any means without expressed, written permission from the publisher. Reprints or PDF versions of articles are available by contacting the publisher.

Statements of fact or opinion are the responsibility of the authors and do not necessarily represent the opinion of the publishers. Advertising in the publication does not imply endorsement by the publishers. The editor reserves the right to accept or reject any article or advertisement.

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EXECUTIVE EDITOR James Lee JimL@LPportal.com CONTRIBUTING EDITORS Adrian Beck Robert L. DiLonardo Walter E. Palmer, CFI, CPP, CFE John Selevitch Amber Virgillo CONTRIBUTORS William A. Alford, CFE Read Hayes, Ph.D., CPP Richard C. Hollinger, Ph.D. Mike Marquis, CFI Gene Smith Shane G. Sturman, CFI, CPP Kelby Woodard David E. Zulawski, CFI, CFE ONLINE EDITOR Matt Richardson MattR@LPportal.com CREATIVE DIRECTOR Larry Preslar DESIGN & PRODUCTION SPARK Publications info@SPARKpublications.com 704-844-6080 ADVERTISING

ADVERTISING MANAGER Bonnie Dodson 828-479-7472 office, 704-943-5797 fax BonnieD@LPportal.com WEST COAST REPRESENTATIVE Ben Skidmore 972-587-9064 office, 972-692-8138 fax BenS@LPportal.com SUBSCRIPTION SERVICES

CIRCULATION MANAGER Matt Richardson MattR@LPportal.com 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 LossPrevention aka LP Magazine (USPS 000-710) is published bimonthly by Loss Prevention Magazine, Inc., 700 Matthews Mint Hill Rd, Ste C, Matthews, NC 28105. Print subscriptions are available free to qualified loss prevention and associated professionals in the U.S. and Canada at www.myLPmag.com. The publisher reserves the right to determine qualification standards.

International print subscriptions are available for $99 per year payable in U.S. funds at www.LPportal.com. For questions about subscriptions, contact circulation@LPportal.com. Periodicals postage paid at Matthews, NC, and additional mailing offices.

© 2011 Loss Prevention Magazine, Inc.

ON THE WEB

Editorial Board

Legal Briefs

Leo Anguiano Vice President, Loss Prevention & Risk Management, Central Parking Corp.

Check out the new Legal Briefs columns in the editorial section of the magazine website, www.LPportal.com/legal-briefs.html. Following are some of the latest articles on legal issues affecting retail loss prevention.

Jim Carr, CFI Director, Loss Prevention, Rent-A-Center

Civil vs. Criminal: What Is the Difference?

By Marisa C. McIntyre, J.D. No Damage Does Not Mean No Damages

By Natt O. Reifler and Marisa C. McIntyre, J.D.

Ken Cornish Vice President, Retail Operations, The Kroger Co.

Civil Recovery in the Sunshine State

By Natt O. Reifler

Daniel Doyle, CFI Vice President, Loss Prevention & HR Administration, Bealls

The Lawful Search of Smartphones

By Jared Costa, CFI To Promise Or Not to Promise Natt O. Reifler and Michelle A. Gomez, Esq.

Patti Felz Vice President, Loss Prevention, Polo Ralph Lauren

Weekly e-Newsletter for the Retail LP Professional

The magazine recently launched a redesigned e-newsletter with a more frequent distribution schedule. Now going out weekly, the newsletter offers: ■ C urrent loss prevention, retail, and technology news, ■ O riginal content from magazine staff and contributors, ■ P eople on the move listings, ■ H elpful links, and ■ A little fun to brighten your week.

If you are not receiving our e-newsletter, visit the magazine home page at www.LPportal.com and click on the links under CURRENT NEWSLETTER to read the latest issue or to sign up. If you would like to contribute to the newsletter or have any comments, contact us at newsletter@LPportal.com.

Barry Grant Senior Vice President, Operations & Loss Prevention, CPI Corp

New Webinar

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September - October 2011

Tom Roan Group Vice President, Loss Prevention, Macy’s Tim Shipman Director, Corporate Investigations and Crisis Management, Food Lion Mark Stinde Senior Director, Asset Protection 7-Eleven

Frank Johns Chairman, The Loss Prevention Foundation

Bill Titus Vice President, Loss Prevention, Sears Holdings

Gary Johnson Vice President, Loss Prevention, Vitamin Shoppe

Bill Turner Senior Director, Retail Operations, Cole Haan

Paul Jones Senior Director, Asset Protection, eBay

Claude Verville Vice President, Loss Prevention, Safety & Hazmat, Lowe's

Doug Marker Vice President, Loss Prevention and Safety, Michaels Stores

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Monica Mullins Vice President, Asset Protection & Safety, Wal-Mart Stores U.S.

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

Bob MacLea Senior Vice President, Loss Prevention, TJX

Register at www.LPportal.com on the webinar page Sponsored by:

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

Bill Heine Senior Director, Global Security, Brinker International

Mike Lamb Vice President, Asset Protection, The Home Depot

2011 Global Retail Theft Barometer Sheds Light on Strategies for Cutting Shrink Wednesday, October 19, 11:00 a.m. EST Professor Joshua Bamfield, author of the Centre for Retail Research’s fourth annual Global Retail Theft Barometer, will shed light on this year’s findings and offer his insights as to what the survey results mean for retailers’ loss prevention strategies. In addition to such important statistics as sources of theft, high-theft product areas, and costs of retail crime, this 30-minute webinar also will focus on specific actions retailers are taking to reduce shrink, increase sales, and improve their bottom line.

Chris McDonald Senior Director, Loss Prevention, Dollar General

LPportal.com

Stanley E. Welch Vice President, Director of Loss Prevention, JCPenney Keith White Senior Vice President, Loss Prevention and Corporate Admin., Gap Inc.

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Retail SPONSORS

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Join these great companies as an LP Magazine corporate sponsor. Email JackT@LPportal.com for more information.

LP Magazine | September - October 2011

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ACADEMIC VIEWPOINT

The London Riots: Could It Happen Here?

T

his past August, large-scale rioting took place in London and other United Kingdom cities. Looting of stores, setting fires, and major acts of civil disobedience were all precipitated by the shooting of a black man named Mark Duggan by the London police.

On August 6th, during a peaceful march protesting the Duggan shooting, a heavy-handed police response to the march triggered serious arson, thefts, and aggravated shoplifting. Rioting with arson soon spread to various London boroughs and then other English cities. The most severe disturbances outside London occurred in Bristol and cities in the Midlands and the northwest of England. Related outbreaks also occurred in many smaller towns and cities in England. The participants were most commonly unemployed minority youths who wore black hoodies, scarves, and ski masks to hide their identities from the police and authorities.

By August 15th about 3,100 people had been arrested, of whom more than 1,000 were formally charged. Five people died and at least sixteen others were injured as a direct result of related violent acts. An estimated £200 million worth of property damage was incurred, and local economic activity was significantly compromised.

Police action was blamed for the initial riot, and the subsequent police reaction was heavily criticized as being neither appropriate nor sufficiently effective. In England and elsewhere these riots have generated significant ongoing debate among political, social, and academic figures about the causes for and context in which they happened.

by Richard C. Hollinger, Ph.D. Dr. Hollinger is a professor in the Department of Criminology, Law, and Society at the University of Florida, Gainesville. He is also director of the 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 352-392-0265 x230. © 2011 Richard C. Hollinger

While the first of these statements is hopefully correct, the second statement is clearly wrong. America is sitting on a powder keg of inequity that could, under the right conditions, explode into the type of serious rioting, looting, and arson seen in London. Here are some relevant social and economic facts to consider.

Currently in the United States, our levels of poverty, unemployment, and incarceration, especially among youth and people of color, are at unprecedented numbers. Recent data has shown that the economic downturn in our society is hurting minorities at a much greater level than the largely white middle and upper classes. The unemployment rate for African Americans has always been higher than the national average. Unfortunately, the problem has gotten worse.

Encouraging people to again feel that a better future lies ahead should be our nation’s and industry’s primary goal. Preventing losses to our stores will no doubt be a corollary benefit.

Conditions in America

While we in America watched the large-scale devastation of this major world city from afar, it produced a number of different reactions.

First, one would hope that our police forces would have responded faster and in greater numbers, so this situation never would have expanded to the level seen in London and various other large U.K. cities.

Second, many believe that the social conditions in the U.S. are not as bad as in the U.K. and, therefore, are not conducive to generating this level or scope of civil disobedience. I would like to argue that.

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In June 2011 CBS News correspondent Michelle Miller reported that black unemployment now is at Depression-era levels. The most recent figures show African-American joblessness at 16.2 percent. For black males, it’s 17.5 percent, and for black teens, it’s nearly 41 percent.

Moreover, tensions between the police and the poor, especially among racial minorities, in most cities continue to be a significant problem. While “to serve and protect” is the typical police department motto, many people living

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in our inner cities believe that the police are there “to oppress and control.” Recent civil and criminal court cases proving police corruption and abuse like those found in New York and post-Katrina New Orleans are not just limited to those two locations.

Impact of Poverty

Poverty in the U.S. has always been and continues to be the primary fuel for urban unrest. The Pew Research Center recently issued a report that concludes that the ongoing recession has led to the largest wealth disparity in twenty-five years for minorities as compared to whites. The median wealth of white households is 18 times greater than the median net worth of Hispanic households and 20 times that of black households.

Based upon 2009 Census data, this study also states that from 2005 to 2009, the share of households with zero or negative net worth rose from 23 to 31 percent for Hispanics, 29 to 35 percent for blacks, 12 to 19 percent for Asians, and 11 to 15 percent for whites.

These statistics indicate that we have some desperately poor people in America, especially in the ethnically homogeneous neighborhoods of our larger urban centers. These are people who are getting poorer by the day, as they see the rich in America getting richer.

Readers of this column know that retail sales for the very richest have not dropped significantly.

If a triggering event occurs that brings desperate people to the streets, such as a racially biased incident,

cities in the U.S. might be burning too. Remember this has happened in America a number of times in recent decades. On April 29, 1992, a jury acquitted white police officers for the video-taped beating of Rodney King in Los Angeles. Later in the Los Angeles Watts neighborhood during 1965, and again in 1997 in the slums of Detroit, harsh police tactics or violence against suspects brought thousands to the streets to riot, steal, vandalize, and burn.

Those involved often are people who feel disenfranchised from the “American Dream.”

Unfortunately, there are more and more people in our country each day who find themselves in this predicament. We should not be surprised if they take action and go into the streets to protest the economic and social crisis in which they now find themselves.

Many criminologists and sociologists privately wonder why this has not yet happened in our country given the level of economic adversity.

Obviously, the solution to this problem is a better economy with more jobs. Encouraging people to again feel that a better future lies ahead should be our nation’s and industry’s primary goal. Preventing losses to our stores will no doubt be a corollary benefit.

If you want to read a good book on this subject, I strongly recommend, The Rich Get Richer and the Poor Get Prison: Ideology, Class, and Criminal Justice by Jeffrey Reiman and Paul Leighton (Allyn & Bacon, 2009).

LP Magazine | September - October 2011

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interviewing

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

The History of Interrogation According to W-Z: The Future W

e have undoubtedly taken some historical liberties with our discussions in the last two columns about the history of interrogation, so we continue the folly by predicting the future of it as well. With the smudges wiped from our crystal ball, we will gaze forward through the foggy mists of time and divine the future…pet rock…brick phones…gold at $600! Ah, here we go.

Changing Regulations

Interviewing and interrogation will be under attack in the next decade by a host of critics attempting to force changes that fit their agendas. This is a similar pattern to the way the polygraph was attacked in the late 1970s and ‘80s. It began with academics criticizing the validity and scientific basis for the polygraph. They were then joined by unions who strongly opposed the use of the polygraph in an employment environment.

The cause was then picked up by partisan politics, which ended up passing The Employee Polygraph Protection Act that largely prohibited pre-employment and periodic polygraph testing by private companies. Although some entities, such as the federal government, police departments, armored car services, and nuclear facilities, were exempt, most of the pre-employment and periodic polygraph testing by companies was prohibited.

Even specific issue testing was highly restricted by the Polygraph Protection Act. It is unlikely the interviewing process will be restricted by the passage of a law through Congress since the private sector is highly organized through its lobbyists in the National Retail Federation, Retail Industry Leaders Association, and others. It is much more likely that any restrictions to employer interviews will come as part of regulations put out by the Department of Labor or other government entities.

For example, the U.S. Department of Education has recently altered guidelines for how colleges and universities should react to sexual assaults on campus. The institutions have now been ordered to consider sexual-assault allegations under the civil standard of evidence, rather than the clear-and-convincing standard now used. This moves the guilty finding to a “preponderance of evidence” required in a civil lawsuit, 51

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Zulawski and Sturman are executives in the investigative and training firm of Wicklander-Zulawski & Associates (www.w-z.com). Zulawski is a senior partner and Sturman is president.

Sturman is also a member of ASIS International’s Retail Loss Prevention Council.

They can be reached at 800-222-7789 or via email at dzulawski@w-z.com and ssturman@w-z.com. © 2011 Wicklander-Zulawski & Associates, Inc.

percent, versus the “clear-and-convincing standard” of 80 percent, or the criminal requirement of “beyond a reasonable doubt.”

The preponderance of evidence has already resulted in a miscarriage of justice in South Dakota where a young male college student was accused of a sexual assault by a female coed. Using the preponderance-of-evidence reasoning, he was found guilty and banned from campus. During the independent police investigation, the female coed was found to have lied, and the male student was exonerated. However, the university has yet to rescind its finding and reinstate the male student. Effectively, the Department of Education’s change of guidelines has modified the standard of proof, placing the burden on the accused while giving the accuser an unfair advantage.

Interviewing and interrogation will be under attack in the next decade by a host of critics attempting to force changes that fit their agenda. This is a similar pattern to the way the polygraph was attacked in the late 1970s and ‘80s.

There are a number of other examples where federal regulations have been changed, modifying business practices in place of a law being passed by Congress. It is likely with the polarized political environment today, we will see more use of regulations to control agendas, rather than the passage of laws. This may result in a Miranda-style statement being required in the private sector.

Changing Interview “Style”

If we look to the United Kingdom in the 1980s, their entire policing philosophy relating to interview and interrogation was changed as a result of several high-profile miscarriages of justice.

The academics examining police practices and politicians caused a

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revamping of the interview-and-interrogation process, replacing it with what was commonly referred to as PEACE. The acronym PEACE stands for: ■ Planning and preparation ■ Engage and explain ■ Account clarification and challenge ■ Closure ■ Evaluation Effectively the PEACE model prohibited the current style of interrogation used in the U.S. It prohibited the use of a rationalization and a persuasive argument to obtain a confession.

Instead, the approach is much more of a cognitive interview encouraging in-depth and detailed accountings of the person’s alibi or sequence of events.

The change in the United Kingdom’s approach to criminal cases has started to find its way into the Canadian law enforcement model. The Canadian model of interrogation was confrontational, using a direct accusation and rationalization to obtain an admission. The Canadian courts have slowly been undermining this type of interrogation, seeming to swing their model closer to that of the United Kingdom and away from the United States.

Here in the United States we have begun to see a similar push with the advent of DNA. There have been a number of cases across the U.S. where miscarriages of justice incarcerated innocent people. In some of these cases there were instances of false confessions that caused further criticism of the interrogation style being used here in the United States. The critics, it seems, think that interrogation focused on confession is coercive and immoral.

As a result of the trends in the United Kingdom, Canada, and here in the United States, we can undoubtedly expect a push to alter our current interrogation methods. It would not be unexpected for unions to join with the academics and university innocence projects in an attempt to force their will on the current interrogation styles.

Changing Demographics

With the change in population growth indicating that Latinos will be the majority in the United States in the coming years, we should anticipate changes that will relate to language and culture.

Since the early 1970s Generations X and Y, plus the millennials have initiated changes as well, based upon the way they work and think. We have developed the non-confrontational approach to interrogation, which meets the needs of the newer generations to collaborate, rather than simply be instructed how to do a job.

Based on the current need for Hispanic interviewers, we anticipate several things to occur. First, competent Spanish-speaking interviewers will be in high demand across the U.S. As Spanish-speaking interviewers are being trained, there will still be a need to resolve cases that will overwhelm the current supply of bilingual interviewers.

Because of the shortage of Spanish-speaking interviewers, the use of telephone interviewing will increase so organizations can maximize the use of the existing Spanish-speaking assets they have.

Having bilingual investigators available at a central point by phone will allow companies to meet their needs in the coming years.

Changing Technology

There may be some organizations that will move from telephone interviewing to using something similar to Skype or audiovisual conferencing to conduct interviews. Although there will be some advantage to being able to observe the employee, we believe that many organizations will continue to use telephone conferencing to avoid having a picture of the interviewer available to the associate. People construct a more favorable appearance based on a voice than they might have if they saw a picture of the person speaking to them. The expanded and continued use of the telephone or similar type of device will be a foundation of future loss prevention strategies.

As exception-based reporting continues to be refined, we also expect employees will be identified earlier in their theft schemes and removed from employment. As a result, the overall admissions made by dishonest employees will likely reduce in the coming years.

There is also a trend among a number of organizations to return to general loss interviewing at high-shrink locations. We think many organizations will begin to develop high-quality interviewing teams who will handle the interviews for store and district personnel. These teams will be the closers for the loss prevention department, taking the initial case development and holding the final conversation with the associate to obtain the admission. This will likely result in a more thorough examination of the associate’s dishonesty, and it will result in better written and audio statements from the employee.

With the current trend in law enforcement to record interviews and interrogations, we expect that this will spill over into the private sector. A number of organizations are currently taking audio statements in place of handwritten confessions, and we expect to see an expansion to the recording of the entire conversation with the associate.

As entire interviews are conducted, it is likely that there will be much more monitoring and measuring of interviewer effectiveness by managers and senior executives. Initially there may be resistance, but as the costs for recording equipment come down, it is likely to become a standard for the industry.

Automated Telephone Interviews

Our speculation could go on and on, but we thought we might talk about an idea we had for telephone interviewing. We are thinking of having the dishonest associate call a number and receive an introductory statement indicating their guilt is known.

The employee would then be asked to select from a series of prompts: ■ If your theft activity was the result of peer pressure, press one.

■ If your theft activity was the result of financial pressure, press two.

■ If your theft activity was the result of impulsiveness, press three.

The associate would then be offered a pre-recorded rationalization followed by an assumptive question. The prototype might be only a few years away.

The next decade will be an interesting time with political and technical changes on the horizon.

LP Magazine | September - October 2011

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“I’m certified.

Here’s why.”

Anthony ‘Tony’ Cavaliere, LPC Territory Loss Prevention Manager Sears Holdings

Many professions require a single, necessary certification process to prove expertise in that particular field. Until recently in the field of loss prevention, we lacked that universally-accepted benchmark certification process.

When I researched the LPC, I was intrigued by the broad array of subjects that were covered.

It’s a legitimate, in-depth review of all areas of loss prevention.

The coursework was expansive, and areas that I have had little or

“I have a job.

Why do I need certification?”

Certification not only prepares you for the future, it helps you when you need it most—in your current job. Certification refreshes and validates your knowledge base while teaching you critical business expertise to round-out your skill set.

It not only covers key components of loss prevention, it teaches you solid business skills to prepare you for your next promotion.

“Yeah, but…”

“It costs a lot.” Certification 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 don’t have the time.” Certification 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 find the time to invest in learning.

“I’ve never taken an online course.”

The certification 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 certifications 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.

“Okay, how do I get started?”

It’s easy to get started. Go online to sign up at www.LossPreventionFoundation.org.

If you need help or want more information, contact Kelly Durham at Kelly.Durham@LossPreventionFoundation.org or call 866-433-5545.

no experience with were explained in intricate detail.

I was also amazed to see the widespread support and acknowledgement the LPC garnered.

From retailers to grocers to vendors, it seems the entire loss prevention

universe has been involved.

I fully believe the LPC and LPQ will be the future benchmark for our industry that had simply not existed before. That’s why I felt I needed to be a part of it and why I’m proud to have “LPC” behind my name. www.losspreventionfoundation.org

LOOKING BACK ON 10 YEARS OF LP MAGAZINE Theft of critical information can be much worse than the loss of merchandise or money, as it can result in customers turning away from your stores, law suits, falling stock prices, and the loss of brand equity.

Being able to see what is in the global supply chain, anywhere, any time is becoming more and more important for better logistics management, inventory data integrity improvement, and for critical supply-chain security applications.

“With Sarbanes-Oxley, business practices that have always made sense to us make even more sense today. We always felt we were operationally strong and risk-aware.”

– Kevin Valentine, Sterling Jewelers “In the grocery industry, probably more so than other LP segments, food safety, bioterrorism, and compliance issues are critical.”

– Kathleen Smith, Safeway

Today, retail is a billion dollar industry in Las Vegas and has steadily become a sort of “pilgrimage” destination for serious shoppers both to ogle in amazement and purchase with little regard to price tag.

January-February

March-April

May-June

January – February 2006

March – April 2006

LPportal.com

LPportal.com

V5.1

V5.2

May – June 2006 LPportal.com

V5.3

LP CERTIFICATION

Culture is our first and best weapon in controlling shrink. It is our most powerful tool, because our organization’s culture is based solely on our people.

2006

Building Talent for the Future

ELECTRONIC CRIMES INVESTIGATIONS Pitting Spy vs. Spy

LPM 0306-9.indd 1

Albertsons sold to SUPERVALU and CVS.

David Dennis Miller dies.

Alarm Monitoring— In-house Or Third Party?

by Jeff Pepperney et al Interview with Kathleen Smith, Safeway Best Buy’s Approach to Distribution Center LP by Mike Jackson Self-Checkout Reaches Critical Mass

by Bob DiLonardo

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VISUALIZING SUPPLY-CHAIN SECURITY | LP TRANSFORMATION AT LIMITED BRANDS INTEGRATING DATA TO MAXIMIZE LP EFFECTIVENESS | PROFILE OF MGM MIRAGE

CONNECTING RETAILERS TO COMBAT ORT | PROFILE OF STERLING JEWELERS INTERVIEW WITH PEP BOYS’ SAM ROWELL | PREVENTING WORKPLACE VIOLENCE

BEST BUY’S DC LP PROGRAM | THE STATE OF SELF-CHECKOUT INTERVIEW WITH SAFEWAY’S KATHLEEN SMITH | 2006 LP RESOURCE GUIDE

3/1/06 7:12:11 PM

5/1/06 10:27:59 AM

Casual Male sells LP Innovations.

Electronic Crimes Investigations— Pitting Spy vs. Spy

by Chris Bitner Interview with Pep Boys’ Sam Rowell Connecting Retailers to Combat ORC

by Matt Lincoln Expanding LP at Sterling Jewelers in the Sarbanes-Oxley Era

by Michael Stugrin LP’s Role in Preventing Workplace Violence

by Steven Millwee

September - October 2011 | LPportal.com September - October 2011 | LPportal.com

LPM 0606-FINAL1.indd 1

Loss Prevention Certification

by Jack Trlica Interview with three top executives at Limited Brands Integrating Data to Maximize LP Effectiveness

by Allan Alberts Visualizing Supply-Chain Security

by King Rogers et al MGM MIRAGE: Roll the Dice, Bad Guys Lose

by Michael Stugrin

2006 Today, the concept of “brand” stretches beyond a company’s logo, colors, product design, and general trade presence to include its retail experience, employee actions, product performance, and more.

Being out in front of crisis issues and having specific plans in place to deal with them goes a long way in averting a potential crisis before it begins.

“Shrinkage is the only free money left on the table.”

– New Look CEO Phil Wrigley

July-August

September-October

We cannot ignore the issue of prescription theft any longer. The opportunity to divert prescription product will go unchecked unless retailers and loss prevention begin to address this problem.

November-December November – December 2006

September – October 2006

July – August 2006

We are very concerned about growing litigation in the LP industry and in the field of interviewing.

Because of this trend, it is critical that companies make sure they monitor their staffs to ensure they’re doing things the right way.

LPportal.com

LPportal.com

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V5.4

V5.5

V5.6

GLOBAL GLOBAL SECURITY AND LOSS PREVENTION

THE EVOLVING IMPACT OF RETURN FRAUD AND ABUSE

CRISIS MANAGEMENT

“It Can’t Happen Here…Can It?”

The Challenge for U.S.-Based Retailers

PRE-EMPLOYMENT SCREENING | INTERVIEWING WICKLANDER-ZULAWSKI PLANNING SPECIAL EVENTS | STORED-VALUE CARD FRAUD

PHARMACY DRUG DIVERSION | INTELLECTUAL PROPERTY PROTECTION LESSONS LEARNED FROM COACHING | EAS SOURCE TAGGING

REDEFINING SHRINKAGE | INTERVIEW WITH EMIL MONDA, YUM! BRANDS RISK MANAGEMENT AT McDONALD’S | PROFILE OF LONDON’S NEW LOOK

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6/26/06 5:55:12 PM

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Jim Bridges dies.

“It Can’t Happen Here…Can It?”

by Bill Turner and Larry Barton Interview with Emil Monda of Yum! Brands Redefining Shrink—Four Buckets of Loss

by Adrian Beck and Colin Peacock New Look Targets High-Fashion Stock Loss

by John Wilson Risk Management in the Quick-Service Restaurant Environment by Libby Libhart

8/21/06 12:47:07 PM

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10/23/06 2:32:33 PM

Tower Records last store closes.

Global Security The Evolving Impact of at Polo Ralph Lauren Return Fraud and Abuse and Tiffany by James Lee

by Caroline Cardone and Read Hayes Drug Diversion—Preventing Retail Pharmacy Theft Interview with

by Joseph Muba Doug Wicklander and Dave Zulawski Considerations for Evaluating EAS SourcePlanning, Implementing, Tagging Programs and Justifying an Employee

by Walter Palmer Screening Process by Al Vanegas and Claude Verville 360-Degree Intellectual Property Protection How to Plan a Safe and

by Nils Montan Successful Celebrity Event by Byron Coleman Everything I Learned in Life I Learned from Coaching Stored-Value Card My 4-Year-Old’s Soccer Fraud—A House of Team by Chris Lauritzen | September Cards?

by Paul2011 Cogswell LP Magazine - October LP Magazine | September - October 2011

Certain sectors of organized retail crime embrace the logistical beauty of the storedvalue card where returned stolen goods can be purchased back at a dollar-for-dollar basis rather than the deeply discounted fences of the past.

19

PARTNERING WITH RETAILERS

Congratulations! You are one of the reasons organized retail crime (ORC) statistics are on the rise. Many of us have been closely watching the direction of ORC. We are developing plans, calling on our experiences, collaborating with our retail partners, and doing what we feel is in the best interest of our companies to reduce our shrink. I have read the 2011 National Retail Federation ORC survey several times, reevaluating the data, and looking at the numbers. I strongly agree with the results of the survey. For many reasons beyond the results of the survey, I firmly believe ORC is not only increasing, but the dollar amount per ORC theft episode is also rising.

If this is true, what are the reasons for the increase? Some throw out explanations such as “the recession,” “downturn of the economy,” “economic challenges,” or “upward spiraling inflationary times.” While I agree in part with analysts that utilize these terms as reasons for the increase, I also believe the increase is due largely to a fundamental tool—education.

As retailers, we are better educated in ORC and have a better understanding of what drives ORC. We understand that narcotics play a pivotal role in driving the booster to furnish the fence with highly desired stolen products. Over the past several years, there has been an increase by retailers to expend more assets to investigate ORC activity. One of the most important assets is educating our company’s associates, LP personnel, and law enforcement to recognize ORC activity.

Educating our associates is our frontline defense against ORC. We are taking the time to make certain that our employees are aware that individuals exiting our store in a fashion that is commonly known as a “push out” or “roll out” with the cart filled with high-theft items is simply that—ORC. Through education, they understand that someone who has bypassed all points of sale with multiple cans of baby formula, razors, and laundry detergent is not typically going to use these items for personal use. Through education, our teams now believe these individuals will most likely sell these items to a fence. When apprehended, these individuals are now being interviewed as ORC suspects instead of shoplifters.

Retailers are reaping the rewards of education. As a result of ORC education, our LP and ORC teams now conduct more concise and in-depth interviews focused on gaining information on the fencing operation. Without the educational piece of the puzzle, a great deal of these boosters would be interviewed and trespassed, equating to a “catch and release” philosophy.

20

September - October 2011

By Dennis Dansak

Education has increased our ability to identify a booster and conduct productive interviews that result in these individuals divulging, for the mere sake of self-preservation, the names of other boosters, their frequency of thefts, and retailers they have targeted. Education has made us more in tune with what is actually occurring, and we are able to see firsthand what this crime called ORC encompasses. The individuals we are interviewing admit they are what they are or what we have labeled them—a booster, a professional thief—ready to admit to their need to steal to obtain cash to purchase drugs and that the product they attempted to steal was going to be sold to a fence.

Dennis Dansak is Corporate Manager of the ORC Division of The Kroger Co.

With our teams educated in ORC, is there really an increase in ORC-related activity?

Or was this activity already there, but is now better understood and recognized?

With our teams educated in ORC, is there really an increase in ORC-related activity? Or was this activity already there, but is now better understood and recognized?

Parallel to educating our associates, time and effort has been well spent educating law enforcement. Although we have a ways to go, law enforcement agencies who have embraced this education on ORC are now engaged because they have realized several factors—ORC is a gateway crime, there is a potential for property and cash seizures, and they can develop confidential informants. Because law enforcement agencies are better educated in ORC, we are finally seeing the booster being prosecuted for ORC and related crimes.

Yes, the economy can play a significant role in the effects of ORC on the retailer. But it is also education that is affecting the statistics of ORC episodes. With better education, we are able to identify ORC instances quicker, resulting in more ORC cases, which lead to indicating a spike in ORC activity. ORC is increasing for many reasons. Congratulations! Your B.A. degree in ORC is partly the reason for the rise in statistics in ORC. Share the knowledge.

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LPportal.com

SPECIAL feature

9/11 The Impact of

on Loss

Prevention Ten Years Later

By Jack Trlica, Editor and Publisher

THE IMPACT ON LOSS PREVENTION

T

o say that September 11th, 2001, was a watershed moment in history borders on understatement. The impact of the tragic events of that day was felt throughout government, law enforcement, and the broad security industry, not the least of which included retail loss prevention. As Jim Carr, director of loss prevention at Rent-A-Center, succinctly put it, “Professionally, 9/11 changed everything immediately.”

Much has been written, documented, videoed, and debated over the past ten years. Many public and private programs have been put in place. Many new policies and procedures, communications programs, and crisis management plans have been implemented.

With the ten-year anniversary, the magazine asked numerous industry executives to offer their thoughts on the impact of 9/11 on them both personally and professionally.

Many of those retrospectives are contained in this special issue; others are published on our website.

As Carr summarized, “What was once thought as an unthinkable or highly unlikely event is now a reality.

You have to assess the gaps in your program and develop initiatives and actions to mitigate your risks and protect your coworkers.”

Those “initiatives and actions” took many forms given the broad nature of the retail industry.

However, a handful of items clearly garnered the most attention: ■ Crisis management, ■ Employee communications, ■ Public-private partnerships, and ■ Travel safety.

impacts of 9/11 was to dramatically accelerate the already expanding role of LP in the corporation.

“The major impact of 9/11 was that, I believe, it was the trigger that began the evolution to real corporate security,” said Tina Sellers, vice president of loss prevention at GameStop. “Our profession is more respected and our opinions more sought after now than they were prior to that day. There was a definite shift in focus, as well as in budget allocation, from traditional shrink-reduction programs to true asset protection measures.”

Not only did loss prevention executives get more involved in these areas, many have since taken direct responsibility for them. Keith White, senior vice president of LP

One could argue that one of the most significant impacts of 9/11 was to dramatically accelerate the already expanding role of LP in the corporation.

Business Continuity

Crisis management and business continuity plans were in place in many corporations well before September 11th. However, 9/11 raised the bar dramatically.

“I believe September 11th was pivotal in prompting loss prevention executives to take crisis management and physical security efforts to the next level,” said Paul Jones, currently global director of asset protection at eBay. He was vice president of loss prevention at Sunglass Hut in 2001.

“We had to learn on the fly and build programs for attacks like 9/11 and the anthrax letters, which most of us had little to no experience with.”

Frank Johns, chairman of the Loss Prevention Foundation, agreed. “It put a new emphasis on installing business continuity and crisis management plans within a company. Most companies had neither, but this tragedy put much more urgency on developing these strategies to protect customers, associates, and company assets.”

Johns was global vice president of LP at Office Depot on 9/11.

Change in Loss Prevention

If one could return to September 10th to review the responsibilities of the loss prevention organization, the four topics above were either not on the list, or were significantly lower on the list. In fact, one could argue that one of the most significant

22

September - October 2011

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and corporate administration at Gap Inc., is one of those. “Since 9/11, we ultimately integrated corporate security, loss prevention, and business continuity planning into one organization, which I think was brilliant. The synergies you get from all three organizations combined with the capability of scaling our response has served us well,” White explained.

September 11th also played a role in increasing the collaboration within the LP world. “If I could pick one thing that has evolved from those events for our industry, it would be the willingness for us to share intelligence, best practices, and the weight of responsibility amongst our colleagues. As truly collaborative as we have been, I believe that those events served to further that goal within our industry,” said Paul Cogswell, CSO/ vice president of corporate security, safety, and compliance for Ceridian.

LPportal.com

THE IMPACT ON LOSS PREVENTION Tiffany & Co. was one organization that had an existing crisis management plan, but quickly moved forward to put in place a much more comprehensive program they now call “Tiffany Prepared.”

According to David McGowan, vice president of global protection, Tiffany Prepared is a three-pronged program of emergency response, incident management, and business continuity.

McGowan is one of five senior corporate executives who are designated “company incident commanders.”

When a crisis event occurs anywhere in the world, McGowan and the others are alerted “almost immediately” by their worldwide security control center based in New Jersey. Within minutes an incident commander becomes the single point of contact to manage the response.

The team meets quarterly to review any recent incidents or to train on particular topics, bringing in outside

expertise to address specific issues when necessary. This allows the program to be constantly fine-tuned and improved over time. The team most recently reviewed the company’s response to the Japanese earthquake and tsunami.

One of the few times Tiffany has fully implemented their Tiffany Prepared program was the Northeast power blackout on August 14, 2003, which affected 55 million people in the U.S. and Canada. Tiffany was able to get their people out of buildings to predetermined collection points where designated individuals provided information and helped get people home or provided shelter for those who couldn’t. According to McGowan, the program “worked fabulously well.”

Employee Communications

One of the lynchpins on any crisis management program is communications…before, during, and after an incident.

VIDE O SURVE I LLANCE

September 11th and subsequent events, such as Hurricane Katrina, exposed the critical role that communications plays in emergency response. Both 9/11 and Katrina saw normal communications severely disrupted, leaving corporate teams handicapped in responding to the emergency and employees isolated and without guidance.

Some companies have developed extensive “calling trees” where information is passed down the organization from executives to managers to supervisors to employees.

Other companies, including Tiffany, have contracted with outside service providers who specialize in rapid, multilevel communications.

Tiffany’s communications protocols allow information to be passed quickly to whoever needs the information, whether it is a single building, city, region, or globally. The system can also be used for both crisis and non-incident management advisories.

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VIDEO INTELLIGENCE PL ATFORM™

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LP Magazine | September - October 2011

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THE IMPACT ON LOSS PREVENTION A recent non-crisis example involved President Obama’s visit to New York City. According to McGowan, they were able to alert their employees throughout the city to avoid certain routes and expect disruptions to vehicle traffic, subways, and other transportation means during specific time periods.

McGowan pointed out that efficient communication is even more important today due to the widespread use of social networking channels, which allows individuals to quickly spread rumors and misinformation that could potentially panic employees. Rapid, credible communications from the corporation can counter the negative affect of tweeting and texting.

Whether it is a high-tech communications system or direct face-to-face meetings, employees expect and deserve to be informed on what is happening or has happened and how it might affect them.

Rosamaria Sostilio, senior vice president of asset protection for Saks Fifth Avenue, experienced the role of communications first hand in the immediate aftermath of 9/11.

With 4,000 employees in New York City, Sostilio and other executives spent days meeting with employees discussing security procedures, answering questions, and providing employees with credible information in the onslaught of rumors and bomb threats that were pervasive following September 11th.

“We have strong communications throughout all channels of the organization on an ongoing basis,” explained Sostilio. “When times are quiet or busy, whether it’s shrink issues or crisis issues, you have to practice good communications on a daily basis.”

[To read more about how Saks, Tiffany, and other retailers responded in the immediate aftermath of 9/11, see page 32.]

Republicans, young and old, private and public sectors, all were focused on the need to combat this new threat to ensure it would not happen again.

Melissa Mitchell, CFI, director of LP and inventory control with LifeWay Christian Stores, put it this way: “Because of 9/11, we now acknowledge that we live in a world where bad things happen, even on our own soil. We understand that we have to have partnerships across federal, state, local, and other private sectors because we succeed or fail as a country, not as separate entities.”

As the federal government created the Department of Homeland Security (DHS), the private sector

Crisis management and business continuity plans were in place in many corporations well before September 11th.

However, 9/11 raised the bar dramatically.

Public-Private Partnerships

September 11th united America in a singular way. Democrats and

24

was invited to join with the public sector in an unprecedented way.

“DHS was intended to be a broader homeland security effort, meshing the activities of federal, state, and local governments, the private sector, and even private citizens into one cohesive homeland security enterprise,” said Gary Johnson, vice president of loss prevention for The Vitamin Shoppe.

One of the first public-private partnerships was the Customs-Trade Partnership Against Terrorism (C-TPAT) program implemented by Customs and Border Protection where manufacturers and retailers worked together with the government to secure the global supply chain to prevent weapons of mass destruction and other contraband from entering the U.S. The Homeland Security Presidential Directive 7 signed by President Bush in 2003 also recognized the role of retailers and other private sectors as essential partners to protecting critical infrastructures and as critical responders in the event of crisis events. This particularly affected the security programs at grocery and food-service retailers.

Dan Faketty, then vice president of LP for Harris Teeter and now with Winn-Dixie, was part of a team put together by the Food Marketing Institute (FMI) to begin “developing recommendations on increasing security for food processors, distributors, and retailers. The short-term result of this team’s efforts was a series of recommendations that were forwarded to these three business segments across the country.” Those recommendations were formalized in a comprehensive manual titled Food Security Manual for Processors, Distributors, and Retailers that is still in distribution by FMI today.

The various retail associations, including FMI, National Retail Federation (NRF), and Retail Industry Leaders Association (RILA), continue to coordinate the interface of retailers with DHS and other government continued on page 26

September - October 2011

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LPportal.com

THE IMPACT ON LOSS PREVENTION continued from page 24

agencies. “DHS is constantly sharing information with retailers,” said Lisa LaBruno, vice president of LP and legal affairs at RILA. “FEMA (Federal Emergency Management Agency) recently added a private sector seat at their National Response Coordination Center because they realized they need the help of the private sector to effectively prepare for, respond to, and recover from a disaster.”

Travel Safety

One of the biggest concerns for companies in the aftermath of 9/11 was the safety of employees traveling both stateside and internationally. Air travel has become cumbersome for everyone due to increased security measures, but the real issue to corporate security and loss prevention professionals is tracking employees and protecting those traveling to potentially unsafe foreign destinations.

“At the time I was the director of corporate investigations for Sears, Roebuck and Co. in Hoffman Estates, Illinois,” said Paul Cogswell. “One of our immediate concerns was the effort to locate, communicate, and return home over 300 employees who were traveling internationally. It was a harrowing, but instructive time.”

The same issue was faced by nearly all retailers. John Selevitch, then divisional director of LP for Staples, said, “Our first priority was to account for all traveling field personnel. After my own team, we went through other functions, including HR, regional vice presidents, district managers, and others. A process that should have taken 15 minutes max, took an agonizing three hours. Never again.

Every position I have held since then always has a process in place to know who’s traveling and where.”

For many LP organizations, managing travel safety has become a daily routine. Bill Heine, senior director of global security for Brinker

26

International, which owns several restaurants including Chili’s and Macaroni Grill, said, “Today I get a daily report of who in our company is traveling that day, where they are going, and their flight information.”

These reports not only give LP a way of knowing where travelers are, it allows LP the opportunity to brief travelers on security issues prior to travel. Tiffany uses a third-party service that monitors security and health issues around the world. The service is integrated with their corporate travel group to filter all airline reservations to alert

Air travel has become cumbersome for everyone due to increased security measures, but the real issue to corporate security and LP professionals is tracking employees and protecting those traveling to potentially unsafe foreign destinations.

September - October 2011

|

LPportal.com

McGowan’s team when a flight is booked to a high-risk area. If the employee is not a regular traveler to that location, the LP team will contact the employee to provide comprehensive details on security and safety protocols for that location.

New technologies, such as GPS, will become increasingly useful to travel security professionals who need to monitor the whereabouts of senior executives and others who travel internationally.

More on 9/11

For more on the impact of September 11th, see the following articles in this issue of the magazine: ■ “Where

Were You on the Morning of September 11th?” page 29 ■ “Ten

Long, Slow, Consuming Years,” page 45 ■ “Terrorism

Training in Shopping Mall Security,” page 48 To read related articles from our archives, visit the magazine website, LPportal.com.

■ “Protecting

the International Business Traveler,” July-August 2008 ■ “Crisis

Management—It Can’t Happen Here…Can It?” July-August 2006 ■ “Global

Security and Loss Prevention,” September-October 2006 ■ “Hurricane

Impact—The Aftermath and Response by Retail LP,” November-December 2005 ■ “Supply-Chain

Security: A Strategy of Trust,” November-December 2004 ■ “Business

Continuity Planning,” September-October 2004 ■ “Personal

Safety While Traveling Abroad on Business,” Septemßber-October 2003 ■ “Planning

for Terrorist Attacks Against U.S. Retailers,” January-February 2003 ■ “Securing

the Supply Chain Against Terrorism,” November-December 2002 ■ “Retail’s

Response to September 11th,” January-February 2002

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Toll-Free in the U.S.: 866.875.6565

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THE IMPACT WHERE WERE YOU?

Where were

YOU on the morning of september 11th?

By James Lee, Executive Editor

THE IMPACT WHERE WERE YOU?

I

was driving from Austin, Texas, to Houston. Looking for a sports talk show, I could only find a news station on the radio. I heard the announcement that a small plane had crashed into the tower. I thought, “How strange to let a small plane get so close to the towers.” In a matter of minutes, I heard that another plane had crashed into the second tower and that it was, in fact, a large airliner as was the first plane. Upon arriving at Stage Stores headquarters in Houston, Lee Bland, director of LP, took me straight into the cafeteria where large televisions were set up.

Most of the corporate employees were gathered around in silence watching.

I was shocked, stunned, and angry.

I placed three phone calls to make sure none of my close friends in Boston were flying that day. Like so many people, I now faced the ordeal of getting home. I was over a thousand miles from home with no airlines flying in the next few days. I drove back on the 12th and arrived on the 13th. Upon checking in the rental car, I was surprised to learn that someone else had just driven in to Charlotte from Los Angeles.

I recall driving back home to Charlotte thinking about the Kennedy assassination. I was in high school at the time. It was a very similar feeling of fear for our country, sadness, and grief for so many people.

One of the positive things I take from this tragic event is I came to know Bob Senn of the Fire Department of New York City. He was there and lived through it, although many of his friends and fellow firefighters did not. He, along with so many others, are my heroes. [Read Bob Senn’s retrospective on page 45.]

Following are the memories and perspectives of a number of retail executives. There are still others on our website, LPportal.com. Please add your own memories to these on the website.

Integrating Corporate Security, Loss Prevention, and Business Continuity Planning Keith White, Senior Vice President of LP and Corporate Administration, Gap Inc. My memories of that day are burned into my memory bank. I remember having a very early breakfast with my wife when the first plane hit the trade center and Keith White the news broke on TV. It was such an unbelievable day that everything slowed down and the mere shock and audacity of the event was very paralyzing. I remember making decisions about closing stores and getting traveling executives back home that would have been a big deal under any other circumstance, but on this day they seemed small and routine because they paled in comparison to the people who were directly impacted in New York.

Personally and professionally I grew tremendously that day, and I think our country did as well. The innocence we had as a country was lost, and the confidence I had as a leader was shaken. This event was bigger than anything any of us had seen previously or, I would argue, since. However, I do think I’m better, stronger, more careful, and much more thoughtful when it comes to devising and providing protection strategies in my professional and personal life.

Since 9/11 here at Gap Inc., we ultimately integrated corporate security, loss prevention, and business continuity planning into one organization, which I think was brilliant. The synergies you get from all three organizations combined with the capability of scaling our response has served us well.

Adding the Word “Terrorism” to Our Retail Vocabulary Ken Bierschbach, CPP, Senior Security Specialist, Meijer Stores I was getting a coffee with a colleague when we walked into the cafeteria. People were huddled around the television saying that a plane had just flown into one of the towers in New York City. My first thought was simply that some small plane had gone off course, and some poor pilot had begun their day quite badly. Within about thirty seconds of watching, the second plane flew into the tower, at which point my initial thought changed permanently.

We spent the rest of the day in and out of our conference room watching TV and keeping up with the reports.

This event put the word “terrorism” into our retail vocabulary. Mischief is something every retailer experiences from time to time, but now having to consider the possibility of significant mayhem occurring was a thought process that hadn’t really been at the forefront since the riots of the sixties brought about civil-disturbance directives. From a corporate standpoint we began to consider the possibility of terrorist-like events occurring at our stores and how we would respond.

At the retail level there was increased vigilance on the part of our customers, which caused us to deal with frequent reports of suspicious people and packages. While that has leveled off over time, September 11th most certainly left a permanent mark on all of us.

Shift in Focus from Traditional Shrink Reduction to True Asset Protection Tina Sellers, Vice President of Loss Prevention, GameStop I was just about to leave the house to go to work when they cut in on Good continued on page 32

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THE IMPACT WHERE WERE YOU? continued from page 30

Morning America to show the first plane crashing into the tower. Beyond thinking about the poor people inside, I just assumed it was an accident. Then the second plane crashed, and I told my husband I’d be late coming home that night. I spent the day on the phone trying to locate my New York regional LP manager and all of our district managers, as well as tracking how close our stores were to ground zero and the Pentagon. I was three months pregnant at the time and remember thinking that the world would be a very different place in my son’s childhood than it had been in mine.

Air travel became cumbersome and much more time consuming in the first months after 9/11 and has continued to be a very different experience than what it was prior to that event. But the major impact of 9/11 was that, I believe, it was the trigger that began the evolution to real corporate security. Our profession is more respected and our opinions more sought after now

T

he second issue of LossPreventon magazine, January-February 2002, addressed the aftermath of 9/11 in an article titled, “Retail’s Response to September 11th.” The article focuses on Saks Fifth Avenue and Tiffany & Co., both New York City-

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than they were prior to that day. There was a definite shift in focus, as well as in budget allocation, from traditional shrink-reduction programs to true asset-protection measures.

Enhancing Internal Plans and Collaborating with the Public Sectors Lisa LaBruno, Vice President of LP and Legal Affairs, Retail Industry Leaders Association I remember driving into work on an absolutely gorgeous day with the clearest blue sky I had ever seen. I was listening to the radio when they broke in with a special report that a plane had hit the World Trade Center. At that point I thought it was “just” a small, private plane. I arrived at my office a few minutes later and several of my colleagues were inside my office looking out my window at the World Trade Center in the distance. I called my husband, who

based retailers.

The article chronicles much of how both companies loss prevention organizations reacted internally to the tragic event; especially how they worked to reduce the anxiety of their employees, many of whom were eyewitnesses to the fire and

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was a police officer, and as I was looking out the window, I saw the second plane hit the World Trade Center. I remember screaming at my husband that a second plane hit, and the phone going dead. Panic sunk in at that moment. My colleagues and I watched out the window in horror as the buildings fell one-by-one. I worked for the Archdiocese of Newark at the time, which is the largest Catholic diocese in New Jersey. The archbishop, bishop, priests, and nuns worked out of our building, so the natural reaction was to gather together and pray, which is what we did.

I remember leaving my office and driving directly to my parents’ house.

Despite the fact that I was a grown woman living on my own, I felt this strong need to be with my family, in the “protection” of my parents. As I drove to my parents’ house, every fire station’s doors were open, sirens were wailing. I remember lying on my parents’ couch that night looking through the skylight in the ceiling and worrying about other planes falling

collapse of the World Trade Center twin towers.

The article also discusses both security steps immediately taken as well as those that were anticipated in the future. Now, ten years later that “future” is our past. It is an interesting exercise to read this article from today’s perspective. Visit LPportal.com to read the article.

Here is how the article ended: Returning to “Normal” There is no doubt that the events of September 11th and after have affected our lives both personally and professionally… and not just for the short term.

The heightened sense of security that we are instituting in our own companies and that are in evidence everywhere from airports to sports stadiums will likely be in place for the foreseeable future.

“My professional guess is that rather than going back to the old normal,” said Saks Fifth Avenue’s Tom Matthews, “this will become normal. And we’ll learn to live with it.”

THE IMPACT WHERE WERE YOU? from the sky. I remember gathering at the home of a police officer’s wife with other wives and girlfriends and waiting for our husbands and boyfriends to return from New York where they were helping in what was still a search-and-rescue effort.

I remember these strong, “nothing can get the best of me” guys walking into the house after a day of digging in the rubble full of soot from head to toe and defeated; they had not rescued a single person alive.

I was scheduled to fly to Atlanta on September 12th for an interview at The Home Depot. My flight was cancelled.

Before 9/11, I wasn’t inclined to move to Atlanta, but I wanted to proceed with the interview anyway. After 9/11, I was ready to leave New Jersey. I got the job at The Home Depot, moved to Atlanta, and started my career in the retail industry.

Retailers are much more keenly focused on incident preparedness and response now because of 9/11. Enhancing their internal plans and collaborating with the public sectors on ways in which retailers can

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help in recovery efforts is now much more common.

Increased Security for Food Processors, Distributors, and Retailers Dan Faketty, Vice President of Loss Prevention, Winn-Dixie I was in my office when the first plane hit the tower. Shortly after that I was advised that a second plane had hit, at which time I reported to the board room to view the events Dan Faketty on TV. When the plane hit the Pentagon, the problem became personal for me and my company at the time, Harris Teeter, as we had a

LP Magazine | September - October 2011

store in Pentagon City that was located directly across the street from the Pentagon.

During the remainder of the day and night, associates from that store were running to the grounds of the Pentagon with shopping carts filled with water, band aids, dressings, and anything they could pull from store shelves in order to assist.

Both my personal and professional life took on a new importance. Above and beyond the enhancements to airport security, I cannot fly today without paying particular attention to those around me.

This is especially true if anyone leaves a bag unattended, even for a minute or two.

From a professional standpoint things changed almost immediately as I was part of a team of LP executives who was put together by Chuck Miller, then vice president of loss prevention (now retired) from the Food Marketing Institute (FMI).

Miller and the team began developing recommendations on increasing security for food processors, distributors, and retailers.

The short-term result of this team’s efforts

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THE IMPACT WHERE WERE YOU? was a series of recommendations that were forwarded to these three business segments across the country. These same recommendations would eventually be placed in a comprehensive manual titled Food Security Manual for Processors, Distributors, and Retailers that is still in distribution by FMI today.

Another outcome of 9/11 was it helped many LP executives convince senior management to the need for capital investment in upgraded physical-security equipment. It also helped some justify the need for additional staffing, which some struggled with prior to 9/11.

An Overall Heightened Sense of Security in Our Day-to-Day Operations Mark Stinde, Senior Director of Asset Protection, 7-Eleven, Inc. I was divisional director of loss prevention for the Northeast Division of The Home Depot in South Plainfield, New Jersey, a little more than thirty miles from the twin towers. I was walking down the hallway when someone stepped out of the gym in our office to inform us that a plane had just struck one of the towers. We watched the TV in the gym as the second plane hit. The next several days were very difficult as many of our associates were directly impacted, several suffering the loss of either friends or family. Home Depot immediately stepped up and supported the recovery efforts in both New York and D.C. All of us were impacted by those events both personally and professionally.

I have personally become more cautious and aware. On a positive note, the events reminded me of how precious life is and how uncertain things really are. 9/11 also made me realize how proud I am to be a part of this great country and proud of those unselfish people who put themselves at risk to protect all of us every day.

There have been several changes in how loss prevention and corporate security executives address risk because of 9/11.

There is an overall heightened sense of

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security in our day-to-day operations even now, ten years later. From mailroom procedures and access controls, to a more formalized approach to disaster recovery and preparedness, all of us in retail loss prevention have become much more vigilant overall.

New Respect for Our Soldiers Risking Their Lives Serving Our Country Melissa Mitchell, CFI, Director of LP and Inventory Control, LifeWay Christian Stores I was in a meeting with a vendor who had flown in to meet with me. My administrative assistant opened the door and insisted that I step outside. I didn’t Melissa Mitchell really take a good look at her just then, as I was irritated that she had interrupted the meeting. I asked her if it could wait, but when she answered, I could hear her voice rise a bit. When I got outside the door, she looked panicked and started saying something about a news alert on TV and how terrible it was. My first thought was that there was a gun in the kids’ school. Finally, she got the words together to say a plane had crashed into the World Trade Center, and she thought we were at war. I actually laughed. I told her that this was probably a Cessna or other small plane, and, yes, it was sad, but not an act of war. She had a death grip on my arm and insisted that I go around to an office where there was a TV. As we rounded the corner, I saw the news broadcast at the moment the second plane hit. I remember thinking that it looked so graceful. A fellow U.S. Air Force veteran was standing next to me. We looked at each other and said “Bin Laden” almost at the same time. To this day I have no idea what made me think that. Had you asked me about the first Trade Center bombing, I would have September - October 2011

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been unable to name him as the suspected mastermind.

I went back and told the vendor what had happened. We just sat in my office for a while, until we heard another commotion in the hallway. Someone came in and said that a plane had hit the Pentagon. I called my husband, who was also Air Force, to try to figure out which of our friends were stationed there at that time. We later learned that a friend had been killed in the towers.

Although I am a veteran, my military service was during a time when we were not at war. We have a very close friend who enlisted immediately following, and because of, 9/11. I tried to talk him out of his decision because of my own selfish fear that he would be killed. He asked my husband and I to honestly tell him that, were we in the same position—young, unmarried, with no dependents—would we not do the same thing? He ultimately did two tours in Afghanistan and a tour in Iraq.

I thought I had a profound respect for the military because I had served my country, and I knew what a great military we have.

I realize now that I knew nothing about respect for our soldiers until I saw my friend risk his life serving his country.

Because of 9/11, we now acknowledge that we live in a world where bad things happen, even on our own soil.

We understand that we have to have partnerships across federal, state, local, and other private sectors because we succeed or fail as a country, not as separate entities.

We have become deliberate and intentional about learning how we can protect our employees and our companies in this changing landscape. We no longer operate under the misconception that there is really no re-inventing the wheel in loss prevention.

Crisis Management— The Foundation Upon Which Our Industry Was Built Christopher McDonald, Senior Director of Loss Prevention, Dollar General I was participating in a new training program at Babies“R”Us in Douglasville,

THE IMPACT WHERE WERE YOU? Georgia. It was one of the few times that I was actually in town for the week and close to home in Atlanta. It happened to be my son’s second birthday, so I stayed local so I could be home to celebrate with the family. I remember that business in the store just immediately died off that morning, which we thought was strange. My wife called me and several of us went next door to the Best Buy store where we learned the news from twenty wide-screen TVs on their wall—very surreal. When we stepped outside to walk back to our store, one of the team said, “listen.” We stopped for a minute and the common response was, “I don’t hear anything.” That was very odd given the store was in the flight path for the Atlanta airport. The planes had stopped flying.

Given September 11th is my son’s birthday, I can frankly say it makes me very appreciative of what I have and how life’s turns can be so random. Any other week of the year would have

virtually guaranteed that I would have been on a plane. But instead, I was able to be nearby during a crisis. When we had my son’s “official” party the following Saturday, we had fifty people at our house who all wanted to gather and celebrate a happy event after a week of sorrow.

Both personally and professionally, I think 9/11 made me more protective of things in life. Personally, I’m much more specific with my wife about where I am and where I’m going each week; calling her before I take off and when I land. Professionally, we have a standing rule in my team that electronic calendars must be up-to-date, so if we ever have a catastrophic communication failure we know were each team member is. We weren’t that detailed in 2001 and spent hours tracking people down. While I hate micromanagement, I want to have access to my team members in the event of an emergency. This has come in very handy in many smaller emergencies since

2001 and makes me appreciate a lesson well learned. Because of this rule we know where everyone is and can turn on a dime with the right people in the right place. It’s saved me many worries on many days.

While I would opine that as an industry we should continue to charge forward into both the technological and business acumen that retail affords our profession, we should also be very mindful of the foundation upon which our industry was built—that has always been crisis management.

Whether it is a national crisis such as 9/11 or a catastrophic weather event, such emergencies allow us to show the professionalism and skills that are the basis from which we have grown our industry. Today, I would say as an industry we are more prepared, have focused our emergency and crisis-planning tools, and are relied upon by many government agencies as self-sustaining professional teams who

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An “Innocence Lost” Feeling That Will Forever Exist Mike Lamb, Vice President of Asset Protection, The Home Depot I’ll never forget. I was in my office at our Atlanta-based Store Support Center and first became aware when a TV news report indicated that a plane had Mike Lamb apparently struck one of the towers. Simultaneous to hearing that, my wife was in New York City on a business trip and was just exiting a cab at the base of one of the towers. She phoned me to ask what was going on and could I obtain more information on specifics. I watched in horror as seconds later, it was reported a second plane had struck the other tower. I cannot explain the fear upon realizing this was a planned terrorist attack. I immediately told my wife to hail the next available taxi and get out of there. Fortunately, she was able to make it back to JFK airport, but, of course, all air travel was immediately discontinued. I’ll also never forget how my fellow Home Depot associates came to her aid and escorted her out of the area where she remained for a week before she could make it back to Atlanta.

Personally, it was a shocking reality of how as a nation we are vulnerable to these types of horrific acts of terrorism and an “innocence lost” feeling that will forever exist. Professionally, it was a sobering reminder of how both in the public and private sector, much work needed to be done. There has been enormous change for our industry simply based on the notion that an event like this one should never again be repeated. Hopefully, this tragedy will serve as a constant reminder for all us.

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The List of Issues to Deal with Was Mindboggling Bill Turner, Senior Director of Retail Operations, Cole Haan I was sitting in my office at Walt Disney World in Florida. As vice president of guest operations services, I was in charge of six operating divisions, one of them being security. We were without a director of security at the time so I had temporarily moved my office to the security complex, which also included the Communications Center and Emergency Operations Center (EOC) for the Florida property (42 square miles). I was about to begin my 9:00 a.m. weekly staff meeting in the EOC when my senior security manager walked in my office, turned on the TV, and said, “Something is going on in New York.” We went into the EOC where we had seven TV feeds and, as the directors gathered for our meeting, we watched the second plane hit.

I immediately activated the EOC, and the calls were made. All members showed up within a half hour.

Besides trying to figure out what was going on like everyone else, we were now faced with what to do with 55,000 employees and upwards of 250,000 guests on the property. The Magic Kingdom was on “early admission” so there were guests in the park. When all of the EOC members were assembled, we made the decision to close the Magic Kingdom and keep all other parks, water parks, and public venues closed. So now, what do you do with all of the guests occupying 22,000 hotel rooms with nowhere to go? The list of issues to deal with was mindboggling— communication internally and externally; how to keep guests entertained; how to accommodate guests who were preparing to fly out, but now could not; whether or not to open on September 12; what did safety and security need to look like going forward, both immediately and in the future; what would happen to our business as a travel destination; how can we reassure the public that we are a safe place to visit; and a myriad of other issues. Needless to September - October 2011

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say, nobody left the EOC for almost 36 hours.

Obviously our experiences and challenges were a bit different than a typical retail store, although there are close to 500 retail locations on the property, but a lot of the issues would be similar to those of a large, regional mall. The subjects of awareness, preparedness, and action plans around terrorism are now major parts of most retailers’ crisis plans where they virtually, for the most part, didn’t exist before. In the case of Walt Disney World and the Disney organization in general, physical security and crisis planning, while very good before, are world class today.

Reengineering Corporate Security to Anticipate, Mitigate, and Handle Catastrophic Events Paul Cogswell, CSO/Vice President of Corporate Security, Safety, and Compliance, Ceridian On the morning of September 11, 2001, I was home with our youngest daughter watching it live on TV. She had the flu and my wife had an engagement Paul Cogswell that could not be rescheduled. I remember watching with disbelief and thinking immediately about a time eight years earlier when I had just left the World Trade Center from a morning meeting and later found out that a device exploded in the Trade Center parking garage as I traveled to the airport.

My immediate concerns were that of my family and friends, having been a New Yorker for most of my early life. As the days unfolded, I learned I lost a good friend who was former FBI, a cousin who was an investment banker and whose father was a New York City policeman, and a business acquaintance who worked with an Insurance firm.

THE IMPACT WHERE WERE YOU? At the time I was the director of corporate investigations for Sears, Roebuck and Co. in Hoffman Estates, Illinois. One of our immediate concerns was the effort to locate, communicate, and return home over 300 employees who were traveling internationally. It was a harrowing, but instructive time.

The corporate investigations unit was honored to work with the FBI in gathering financial intelligence that lead to the capture of a number of individuals responsible for the direct and indirect support of this heinous undertaking. I have a letter of commendation from the FBI that sits on my desk for the great work our team did during the weeks following the event. It is there as a reminder that we need to be aware of how important our ability to work together is.

Several months after the incident, the corporate investigations unit was in New York and traveled to the site. We got a tour of the excavation by a retired fireman who lost his son. He volunteered

at the site in hopes that their family could find some closure. He showed us the firehouse which, despite the complete devastation, remained standing. It had hundreds of fire helmets from all over the world from individuals who helped.

In memoriam they left them there and the New York Fire Department placed them on the wall. It is a memory about the goodness and resilience of the people of our country that proves the words of Martin Luther King, Jr. when he said that “Character is forged in times of conflict, not in times from convenience.”

The face of corporate security has changed dramatically since then.

Counterterrorism efforts have become part of private and public sector culture, and security departments were reengineered to anticipate, mitigate, and handle catastrophic events. Business continuity plans were no longer just an academic exercise to keep on the shelf, especially as they relate to the new challenges post-9/11. Private and public

LP Magazine | September - October 2011

sector security partnerships were forged that made the flow of intelligence more consistent and rich in content.

If we look back at a snapshot of September 10, 2001, of the security industry and compare it to one taken today, most of us would recognize that a great transformation has taken place; one that has elevated the craft and brought tools, techniques, talent, and acumen to the profession. More importantly, the industry has realized how important vigilant service is to the organization.

If I could pick one thing that has evolved from those events for our industry, it would be the willingness for us to share intelligence, best practices, and the weight of responsibility amongst our colleagues.

As truly collaborative as we have been, I believe that those events served to further that goal within our industry. More than anything else, I credit that day as being responsible for changing each of us in a fundamental way toward our attitude of stewardship and service.

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THE IMPACT WHERE WERE YOU?

“This changes everything.

America is under attack.”

Gary Johnson, Vice President of Loss Prevention, The Vitamin Shoppe September 11, 2001, started off as a great day…cool, dry air, perfect blue sky, sunny. For some reason I was running late that Tuesday, but otherwise the Gary Johnson commute into New York City was routine; that is, until I passed the Statue of Liberty, approaching Manhattan. I could see smoke high in the sky coming from the World Trade Center.

Almost immediately, radio stations began reporting sightings of a small aircraft hitting the north tower. Shortly after 9:00, as I headed toward the Holland Tunnel, I could see the towers, the smoke, and then suddenly, I saw a commercial airplane emerge through the smoke. Flying at an extremely low altitude, the airliner banked and slammed directly into the south tower.

I knew instantly that this was no accident. The Holland Tunnel was immediately closed and cars were rerouted. Office workers evacuated buildings and ran into traffic. Chaos broke out and no one was getting through that tunnel into Manhattan.

Cell phone service was intermittent initially. Fortunately, I was able to reach Sara Mays, our regional LP manager, who lived in the city. I was director of loss prevention for Barnes & Noble at the time. She was already at the office and took the lead on administering our emergency plans and providing updates to our leadership.

The ability to maintain communication was considered a key failure in the 9/11 attack. As I was navigating my way back to my home office in New Jersey, I was able to reach our travel agency and identify the various Barnes & Noble associates who were flying

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that day and, thank goodness, we had no one on any of the hijacked planes.

We did have numerous folks traveling that day. We took steps to notify the families of our business travelers to let them know their loved ones were safe. Being outside the city with access to a land-line enabled us to reach everyone.

Then, I received a frantic call that I never expected. Unbeknownst to me, my brother-in-law who lived in Texas was in the city for an appointment with a client at the World Trade Center. He was in the midst of mass chaos as everyone in lower Manhattan was trying to get out of the city. Remember, Manhattan is an island. With bridges closed, tunnels closed, roadways closed or restricted, even the savviest New Yorker could not find a way out. After miles of walking and hours of waiting, he ultimately was able to get on a ferry to cross the Hudson. He then got on the first, albeit overloaded, commuter train westward to a destination where I could then drive him the remaining twenty miles to my home. As he got off the train, he had to be cleared by the medical and hazardous-materials team at makeshift treatment centers set up in the train station parking lot.

The sentiment I most remember thinking was, “This changes everything.

America is under attack.”

Food as a Part of the Critical Infrastructure of the Country Bill Heine, Senior Director of Global Security, Brinker International I was scheduled to speak at a training conference on the morning of September 11th in New York, so I flew into Newark on a late flight on September 10th. I was tired and decided to deviate from my normal routine and catch a cab from the airport instead of getting a rental car. When we landed it was raining. As I approached the line to the cab stand, I quickly decided I was not going to stand in the rain and wait, so I went to the rental car counter and got a car.

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I woke up the next morning to find the rain gone. It was a beautiful day outside.

The sky was bright blue; the rain clouds long gone. The World Trade Center towers were framed in my hotel window. For some reason I had the TODAY show on TV, with the sound turned down as I was getting ready for my presentation. I looked out the window and saw smoke rising from the top of one of the towers.

I assumed the restaurant was on fire. I remembered hosting my LP team there for drinks a few years prior. I turned the volume up on the TV and they were talking about a plane flying into the tower, and were trying to get confirmation. I went back to the window and stood just staring at the building and the smoke pouring out of the tower. As I stood at the window, I realized there was an actual hole in the building. I could not take my eyes off of the smoke pouring out of the building. I could hear them talking on TV about it being a small commuter plane.

As I was staring at the building, something came from the right; another plane, flying at an odd angle. The wings were dipped, it hit the other building, and a fireball shot out of the other side of the building. I knew I needed to do something, with forty restaurant managers down in the hotel meeting room, along with a training staff. I needed to make some phone calls. The first phone call I knew I had to make was to my Dad. My parents knew I was in New York, and I knew they would be watching one of those morning news programs. My father was at the Redskins vs. Eagles football game on December 7, 1941. He often spoke of how surreal it was to be there and hear the P.A. announcers calling for various military and government officials to leave the stadium. I now know how he felt. When I got my Dad on the phone, he said, “This is no accident; this is war.”

After speaking to my boss and other members of my family, I went down to the meeting room, cancelled the training, and notified all of the attendees to go home. We closed our restaurants in the market and sent everyone home. I walked outside the hotel. I could not see the twin towers from the street level, but I could see F-16 fighters

THE IMPACT WHERE WERE YOU? flying low and fast, several of them. At one point they looked like a swarm of bees.

I went back up to my room. As I went to the window I saw a completely different scene. Instead of the twin towers framed in my hotel window, they were gone. All I could see was heavy, billowing smoke.

It did not dawn on me that the buildings had collapsed. I assumed they had become engulfed in fire, and somewhere in all of that smoke the buildings were still there. It did not take too long before I realized the buildings had collapsed.

My boss told me our CFO and treasurer were at an investors’ conference, and, if I was in a safe place, to stay put until we had everyone on their way out of New York. It was at that moment I realized how lucky I was that I went ahead and rented a car the night before. I found out later in the day that we had one employee on the plane that crashed in Shanksville.

After making sure all of our people were either on their way home or in a safe place, I decided it was time to notify Hertz

that I was taking the car to Dallas. They said my car was for local rental only, and they would charge me $3,000 if I drove the car to Dallas. I said, “Charge me” and on September 12th, I set out for Dallas with another employee in the car and one to pick up on the way. Ever since then on every trip I take, I rent a car that I will have no problem driving back to Dallas from wherever I am, no matter how short or long a trip I am taking.

One of the biggest challenges we had as a result of the airline shut down was getting out payroll. After 9/11 we made a major push for direct deposit and electronic payment for our employees. In addition, today I get a daily report of who in our company is traveling that day, where they are going, and their flight information.

In December, 2003 President Bush signed a Homeland Security Presidential Directive that placed food as a part of the critical infrastructure of the country. Our security program changed. I keep that rental car receipt under the glass on my

LP Magazine | September - October 2011

desk to remind me of how important it is to be prepared for anything.

Thinking of Retail as Potential Targets Jackie Andersen, Business Development Manager, Retail, Axis Communications I was getting ready for an early flight from California to the East Coast.

I remember hearing early reports of a plane hitting a World Trade Center tower and assumed it was a small plane. As I continued getting ready, it became apparent it was more serious, so I stopped getting ready and sat in front of the TV, knowing I would not be getting on a plane that day.

I then remembered my mother was clearing out my recently passed step-father’s office in the second tower and became worried when I could not reach her cell. Fortunately, I did find her safe nine heart-wrenching hours later. When the

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THE IMPACT WHERE WERE YOU? Pentagon was hit, then the plane down in Pennsylvania, I knew we were truly “under attack” and in the midst of an event that would change our world.

From that moment on, I knew nobody would trivialize being a security professional. I realized that regardless of the industry, there would be more focus on security going forward. It gave me a perspective I never had on early responders and the risk they take every day. I was heartened by how such an unspeakable tragedy could galvanize a community, country, and world. It changed our culture. It clearly showed us that the U.S. was not as secure as we thought we were.

Personally, it made me understand that I needed to give back, and it became a priority from that day forward.

As an industry, 9/11 made how we think of and plan security a very important part of corporate mindset. Security was no longer a tolerated expense, but a necessary expense. It made security professionals globally rethink more wide-reaching strategies. Hundreds of thousands of jobs were lost and billions in revenue were lost with the ripple effect still affecting us today.

We began thinking of retail environments as potential targets rather than places deploying straightforward LP strategies.

Rethinking Just How Vulnerable We All Are When in Public James Carr, CFI, Director of Loss Prevention, Rent-A-Center I was at the Pep Boys corporate headquarters in Philadelphia for a quarterly business review. I was a divisional director of LP at that time. I remember meeting in the boardroom with the operators when we were interrupted after the first tower had been hit. We quickly scrambled for the closest TV to witness the second tower being hit.

Since all the airports were closed, I had to figure out how to get home to my family in South Florida. I was able to purchase a train ticket from Philadelphia to West Palm Beach, but had to wait three days for a seat.

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The train took 36 hours, with not one empty seat. I was happy to be home.

Professionally, 9/11 changed everything immediately. What was once thought of as an unthinkable or highly unlikely event is now much more a reality. You have to assess the gaps in your program and develop initiatives and actions to mitigate your risks and protect your coworkers.

In addition, you have to rethink just how vulnerable we all are when in public. Can I take my kids to the mall or a football game? Can I safely travel abroad?

Taking Crisis Management and Physical Security to the Next Level Paul Jones, Global Director of Asset Protection, eBay I was planning on taking the day off as we were in the process of moving from Florida to Ohio when my wife alerted me to the news of the first plane. After seeing the news, I headed to the office at Sunglass Hut. As vice president of loss prevention, I began our crisis management of the situation. We had several stores at the World Trade Center and were concerned about our associates. We later learned that everyone was safe. The Sunglass Hut stores and LP teams were a very close knit group, and everyone did an exceptional job through very rough circumstances.

On a personal note, I remember that night I went to a store in Miami looking for an American flag, but had to visit several stores because they were selling out.

I got a few flags and put two on my car.

I remember thinking, “Why as a proud American didn’t I already have some flags?”

Over the next few days we had a travel freeze and continued to prepare and plan for any unforeseen events. I remember the entire team, including our senior vice president of HR, watching the mass at the National Cathedral. At the end of the mass when the “Battle Hymn of the Republic” was sung, the entire team was in tears. It is still emotional now to think about it. At that moment it was very clear we were at war with an enemy that I didn’t know a lot about. I had a September - October 2011

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flight the day the travel ban was lifted, and I remember myself and a colleague had a plan in case anyone attempted to approach the cockpit, which seems pretty silly now, but we were on high alert.

The event has made me more aware of the entire issue around terrorism. I have read a bunch on it, was certified as CHS3 (certified homeland security), and I will never forget the sight of the folks falling from the towers and the firefighters running in. Whenever I travel abroad, I am on high alert of potential threats because of the fact I am an American.

I believe September 11th was pivotal in prompting loss prevention executives to take crisis management and physical security efforts to the next level. We had to learn on the fly to build programs for attacks like 9/11 and the anthrax letters, which most of us had little to no experience with.

Random Events Are Difficult, if not Impossible, to Control Bill Titus, Vice President of Loss Prevention, Sears Holdings I was in the air flying to Fort Lauderdale, Florida, for a routine store visit with Nancy Erichson. At that time I was SVP of loss prevention and risk management Bill Titus for OfficeMax. When we landed, pagers and cell phones began going off. Someone said a plane had hit one of the World Trade Center towers.

When we exited the plane, we stopped at a bar across from the gate to catch up on the news. Just as we walked up, the second plane hit. By then it was obvious that there was a coordinated attack under way.

Nancy and I met with our Florida team and made the decision that we needed to return to Cleveland right away. With no planes flying, we tried to find a rental car. continued on page 42

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41

THE IMPACT WHERE WERE YOU? continued from page 40

Ultimately, we found one in Orlando.

We started our road trip with a quick stop at a Sears store for some additional necessities and hit the road. Two days later we arrived in Cleveland. Shortly after getting back, I found out that some people I knew were on the flight out of Boston headed for Los Angeles; a flight I took many times when I was with T.J.Maxx.

The events of September 11th caused me to think about how I protect my family, loved ones, and those customers and associates under my care from the random nature of these types of attacks. It also started me thinking about the thin veneer of society. Certainly there have been significant security upgrades and process changes, but to me the biggest take away from 9/11 is how random events are difficult, if not impossible, to control.

Even Non-LP Associates Are More Cognizant of Informing LP of Suspicious Activity Frank Johns, Chairman, Loss Prevention Foundation I was vice president of global loss prevention for Office Depot on September 11th. That event and others that followed dramatically changed the way we did business.

The most important area of concern was physical security, Frank Johns looking for unusual activity at store level, including powder after the incidents of anthrax that came shortly after 9/11. It made my team become much more focused on a risk-avoidance strategy.

Personally, it became such a pain to fly that I began driving anyplace that was under five or six hours by car. Since then, ten hours is even okay.

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From a loss prevention standpoint, 9/11 has made even the non-LP associates more cognizant of informing loss prevention of suspicious activity. Before, we were never aware of all of the incidents that were transpiring in the field. But after 9/11 everyone became aware, and informed loss prevention of any issues.

It also put a new emphasis on installing business continuity and crisis management plans within a company. Most companies had neither, but this tragedy put much more urgency on developing these strategies to protect customers, associates, and company assets.

“Is there anything else we should be doing, boss?”

“Yeah, hug your kids.”

John Selevitch, Contributing Editor, LP Magazine I was living in Los Angeles working as the divisional director of LP for Staples, so we were three hours behind the rest of the country that morning. Then, as now, I am a creature of habit. I would wake up at 5:30 a.m., make a pot of coffee, walk the dog, turn on the local news, jump in the shower, get dressed, and fight my way through LA traffic to my office in Santa Ana. I remember thinking as the TV came on around 6:00, seeing Katie Couric and Matt Lauer instead of my local news people, “This can’t be good.”

After that got my attention, I listened to Katie and Matt speculate how a “small plane” could have hit the north tower about 15 minutes earlier. Watching live video of the smoldering tower, I watched in absolute horror, as no doubt millions of others would, while what would later be identified as United Airlines flight 175, slammed into the south tower. The rest of that day is a blur of phone calls, emails, news accounts, shock, and sadness.

From a work perspective, our first priority was to account for all traveling field personnel. After my own team, we went through other functions, including HR, regional vice presidents, district managers, and others. A process that September - October 2011

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should have taken 15 minutes max, took an agonizing three hours. Never again.

Every position I have held since then always has a process in place to know who’s traveling and where.

From my own perspective, I have always felt thankful. The Staples corporate headquarters is located outside of Boston, and American flight 11 from Boston to Los Angeles, the first plane to hit the tower, was my flight of choice each time I headed home. It usually left late, as it did that morning, but it was seldom full, so I usually got upgraded. Thinking about that always leads me to remember one of the last instructions I gave that day. One of my regionals asked, “Is there anything else we should be doing, boss?” I said, “Yeah, hug your kids.”

More Alert and with a “What If” Attitude Gene Smith, President, Loss Prevention Foundation On the morning of September 11th, I was in my office at Downing & Downing in Mentor, Ohio, talking on the phone as usual.

I do not recall Gene Smith who I was talking to, but that person told me that they just heard that a plane had crashed into one of the twin towers. I hung up the phone, walked into the conference room, and turned on the television only to then watch in awe as the second plane hit. Just before the second plane arrived, the rest of the staff and I were discussing that we hoped the first plane was an accident.

When the second plane hit, we knew instantly it was no accident.

I distinctly remember getting the feeling that what I was watching was something that was going to lead to something much larger than just two continued on page 44

THE IMPACT WHERE WERE YOU? continued from page 42

planes hitting the towers. I remember wondering if the towers could survive such a direct hit and subsequent fire. I had flashbacks of having taken a dozen or more trips to the top to show visitors the observation deck. I remembered how tall they really were and how my young son had taken a picture looking straight up of the tower front. At the time I thought that was a wasted photo, but now I cherish that picture more than ever. I also recalled how I had dinner once in the Windows of the World with my ADT national account reps, Bill Morris and Tony DeSefano. It was cloudy that day and we were above the clouds. I also remembered watching a helicopter fly by below us…then in absolute disbelief, I was brought back to reality when the first tower fell. We were stunned! Then all we could say was “Oh my god!” It is one of those times you really don’t want to believe is real. Similar to watching the news reports about President Kennedy’s assassination—shock and disbelief. I started thinking about how many people were on those planes and how many people were still in the tower, and then before my eyes the second one went down. All you could do was think of the thousands of families and how they were watching in horror as their loved ones were perishing before their eyes.

Since 9/11, I personally have become much more cautions when flying or when I am around large groups of people like at sporting events. I spend more time trying to be more alert and with a “what if” attitude. Every time I travel I think about how much more of a hassle it is now than before 9/11. I am always monitoring my surroundings and trying to be aware of suspicious people. Who thought it would ever have happened?

It could happen again. I feel my personal freedom has been restricted. Going across the border to Canada and returning was like driving to another state. Now I feel instead of going to a good neighbor, I am truly going to a foreign country.

Corporate America has become much more focused on the potential of a crisis or business interruption due to a terrorist attack.

I remember doing bomb-threat planning in my days in retail loss prevention, but it was not near the extent that is done today. It has clearly become more important to every company in America. It even became a major part of our LP certification program.

R

emember a friend or loved one by submitting a brief memoir of a fallen soldier to be included in a special book, published

by Bellevue University titled, We Will Never Forget: Personal Accounts Honoring Our Fallen Soldiers. Submissions can be made online at http://www.bellevue.edu/ neverforget.

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THE IMPACT NEVER FORGET

Ten Long, Slow, Consuming

Years

By Bobby Senn, FDNY (retired)

THE IMPACT NEVER FORGET

T

en Years. Ten long years. Ten slow years. Ten years of being thankful to still be alive. Ten years of watching my friends slowly die off of illness related to their work in the toxic plume in the wreckage of the collapsed World Trade Center (WTC).

Ten years of lobbying our government to do the right thing and embrace the medical issues that “The Heroes” are now riddled with.

Ten years of families still waiting for DNA to connect thousands of bodily remains so that they can bury or inter some piece of their lost family member as opposed to having nothing or no place to go. Ten years.

On September 10, 2001, I was a happy, healthy New York City firefighter looking forward to the next morning and what excitement the day would bring. As we all know, “that day” turned out to be a day that would change the face of the world, fracture its security, and redefine “terrorism” as a worldly concern for the U.S. as opposed to it happening everywhere but here. The world’s most televised event happening right in front of us. Either standing on West Street or standing in front of your television, we witnessed horror at a level unimaginable to the American people. Firefighters and police officers running in while everyone else was trying to get out. Regular folk refusing to leave their fellow friends or coworkers to find their own way down. Acts of selflessness that define bravery and humanity amidst the greatest travesty and disregard for human life that anyone could think of.

The Big One

That morning as I drove across the Brooklyn Bridge, I knew what my destiny in life was. I was going to what we called, “The Big One.” I and my comrades knew that this would indeed be our last day. It was the first thing I said as we turned off the approach and were mid-span on the bridge.

The officer in charge sitting across from me, a two-time Vietnam vet, cancer survivor, and 30-year veteran of the Fire Department of New York (FDNY) sat quiet and simply muttered, “This is very bad, Bobby.” I on the other hand was a bit more expressive in my words, “Holy shit, Ed! Look at that. We’re gonna die.” He agreed, and we both knew that people were in dire need of rescue. To put it simple, there were twenty floors of fire over a thousand feet in the air, and we were in

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Best Laid Plans

My plans were to be in the fire business for thirty years and retire as a captain with a group of young men that I would lead into battle and be respected for my compassion, leadership, and experience. I was in the process of transferring to Special Operations Company, which is kind of like getting asked to play for the Yankees even though I’m a Mets fan. Something wasn’t right. I wasn’t sleeping, and to be honest I haven’t slept a solid night in ten years now. I was drinking coffee by the gallon, and I was having some pretty wicked dreams and flashbacks of deep shit from the onset. People were flying people jumping from those windows. I was out the windows from above, exploding in dreaming of my dead friends talking to me, the street, and there was nothing we could do begging me to come and get them out of to stop it. As we pulled up to the foot of the “The Pile.” I was waking up soaking wet and WTC property on Liberty Street, everyone’s in a panic. I tried to ignore these symptoms attention was suddenly drawn to a loud sound and just go back to work. I went to a bunch coming from the south. I looked straight of fires, and I was most definitely on edge. I up to catch a glimpse of the tail section of was not looking forward to going to work United flight 175 sinking into Tower 2. “This as I had. In fact I was actually fearing it. is the end of the world,” I thought. Ed and When I’d drive home following the end of I were immediately swept into a stampeding my tour, I’d be saying, “Okay, Bobby, you swarm of people running for their lives. lived another day.” That was not normal by The rest of the morning went as we all any means. Eventually these daily conflicts know—thousands dead, an American icon had consumed my life, and it was time to of building construction and freedom now in acknowledge them. I reached out to the a smoking pile with bodies everywhere. Hell FDNY Counseling Unit to simply get a few had come to earth and taken up residence in weeks off so I could recharge my batteries. lower Manhattan. Little did any of us working To the contrary and to my surprise, those there realize, we all took this hell home “two weeks” became the rest of my life. I with us…both physically and emotionally. was eventually diagnosed with acute chronic Many are now ill and tragically many post-traumatic stress disorder. “What? Me? have also died from their exposure to what PTSD? That only happens to Vietnam guys.” then EPA Director Christine Todd Whitman I soon learned that many of us were called “air that is safe to breathe.” Lung suffering from the same emotional injuries that cancer, heart disease, sarcoidosis, colon combat vets suffer from. Now looking back cancer, brain cancer, and the list goes on.

I understand that we were in a battle that Many, including myself, have an extremely morning; a battle that became known as the diminished lung capacity, a condition called first battle in “The War on Terror.” We didn’t RADS or Reactive Airway Disease. It kind carry rifles or wear camouflage. We wore fire of feels like you were under water too long helmets and fire gear. We were injured and or like you’re inhaling glass shards. Sinus some of us died. Under all that gear though, conditions, numerous bouts with chronic we were human just like everyone else. We bronchitis, sleep apnea, and skin conditions. feel pain and regardless of how much you are The numbers of “exposed” are in the taught in the fraternal aspect of the fire service thousands and most of us have that thought to “not feel,” these feelings get inside of in the back of our heads, “Wonder when it’s you, and they simply don’t go away. Just the going to be me.” No drama. No nonsense. opposite; they stay inside of you and bounce It’s something we are now living with and around like a razor blade that chews you up. will undoubtedly shorten our time on this Over the past twenty-five years, I’ve planet and our time with family and friends. been told I was a “very good fireman.”

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THE IMPACT NEVER FORGET I was told I was “one of the toughest guys” people had met with my ability to embrace death, blood, guts, sadness, and pain. It is what we strive for in the fire business—being that “go-to guy” who gets it done. I did, and I did it well.

However, having to adjust to the fact that I had become a “victim” of this attack and that I had to now care for the caregiver was not easy, and I still struggle with it ten years later. I’ve been in some form of cognitive therapy for seven years now. I retired from the FDNY in October of 2006, and my expectation of being that cranky old captain with thirty years of service?

Unfortunately that will remain a dream.

Never Forget

Ten years later, I am now addressing all walks of life with regard to our emotions and that we take a lot home with us. Cops, firemen, nurses, teachers, security agencies, you name it, I’m spending some time with them to expand their awareness to “emotional injury.” I’ve written articles for a number of emergency services magazines and websites. I recently finished my first

book titled, Beyond Surviving, and most recently began recording podcasts and a radio forum called, “It’s Okay Not to Be Okay” with a renowned clinical psychologist, Dr. Mark Lerner.

I had a choice to make at a point in my “recovery.” I had to do something with what happened to me. I felt the need to teach others that we are all human and that we all feel. Most of all, I had to pass on the message that life is “one day at a time” and that we are allowed to heal. Firemen, cops, and military; we all have a tough time embracing that one. When they meet me or read an article, they can’t say, “That guy has no clue what we go through. Who is he to tell me about my emotions?” I worked for the best fire department on this planet. I

worked in the busiest neighborhood and in a respected company. All validating marks that can’t be dismissed. I’ve been there and done it. Thankfully, they acknowledge that for their own well being and embrace taking care of themselves so they can continue to take care of others.

Take a moment every September 11th to watch an American flag blow in the breeze.

Be thankful that you live in a country that allows you to read whatever book or magazine you want, watch whatever TV channel you choose, and either walk into or pass by the house of worship of your choice. Thank a veteran for their service and realize that tomorrow has no guarantees.

Make the difference today.

NEVER FORGET. 343 37 23

EDITOR’S NOTE: Bobby Senn is the son of Larry Senn, vice president of asset protection for Dress Barn. The signoff of the article, 343 37 23, represents the number of NYC firefighters, Port Authority police officers, and NYPD officers killed on 9/11.

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THE IMPACT TRAINING

Training Mall Security to Respond to Terrorist Threats

M

any experts believe that so-called “soft targets,” such as malls, hotels, and sporting events, are attractive targets for terrorists. In fact, overseas these kinds of commercial establishments and venues are often targets of attack.

According to a Rand Corporation report, from 1998 to 2006 there were more than sixty terrorist attacks against shopping centers in twenty-one countries. Even here in the United States, there are individuals currently in prison for threats of mass destruction against shopping malls.

This has forced mall operators and retail tenants to dramatically alter their security operations over the last ten years. These upgrades included adding security personnel, broader use of technology, and greater emphasis on risk assessment and data sharing.

Things like suspicious package reporting, bollards at mall entrances, better evacuation plans, bag searches, and emergency response teams have become widespread.

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As the leading U.S. association serving mall owners, the International Council of Shopping Centers (ICSC) took the lead in developing a training program for mall security and others to better recognize and respond to terror threats after 9/11.

Working with the Department of Homeland Security and George Washington University, ICSC used $2 million from their reserve fund to create an online program that was intended to be consistent from company to company, mall to mall throughout the industry.

According to Malachy Kavanagh, spokesperson for ICSC, this initiative was somewhat unique in their industry. “There’s a competitiveness in our industry on many levels, including security,” explained Kavanagh.

“Because security is typically performed by vendor companies who compete for contracts, they often have their own approaches to training. However, we felt that as far as terrorism was concerned, we

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needed a single training program.”

Over 15,000 mall security personnel have been trained through this program since 2003 when it was introduced. The training program currently resides in the e-learning offerings of the National Center for Biomedical Research and Training (NCBRT) Academy of Counter-Terrorist Education at Louisiana State University.

According to Jim Fernandez, executive director of the National Center for Security Research and Training, which oversees NCBRT, loss prevention personnel and others who are considered emergency responders and U.S. citizens are welcome to take the online training program at no cost, thanks to federal funding from the Department of Homeland Security.

The fourteen-hour course consists of ten modules that address everything from the history of terrorism to observational awareness to IEDs. The mall security training program is only one of a large catalog of courses that address

biological incidents, food-related incidents, hazardous materials response, and many others.

For more information about these training programs, visit www.ncbrt.lsu.edu.

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E-RECRUITING FOR LOSS PREVENTION

Certification

Connecting Retailers with Informed, Motivated College Candidates M

any of us in the loss prevention profession didn’t dream of one day being the vice president of a loss prevention department for a major retailer. In fact, many of us didn’t even know what loss prevention was when we started selecting college courses or formulating our career plans. When completing surveys and profiles of likes, dislikes, preferences, habits, and tendencies with career guidance counselors in school, do you remember ever seeing a career in loss prevention included among the possible choices? Probably not.

The truth is many of today’s seasoned loss prevention professionals stumbled on this industry quite by chance. Loss prevention for many started simply as a part-time job while going to school for criminal justice. For others it was a temporary position that turned permanent while waiting for acceptance into a law enforcement agency. While for others still, a career in loss prevention evolved from working in different positions in store operations. Whatever the case, individuals who specifically sought a career in loss prevention are few and far between.

by Catherine Penizotto Ms. Penizotto is currently working with the Loss Prevention Foundation on the Academic and Retail Partnership Program.

She is the owner of OPTIC Loss Prevention LLC, a consulting and liaison firm founded in 2010. She has thirty years of retail management experience, including specialty clothing, full-service automotive aftermarket, grocery, and discount big-box retail. Penizotto has been a mentor in the National Retail Federation’s Women in LP Caucus and is also a member of the LPC exam committee for the Foundation. She can be reached at catherine.penizotto@losspreventionfoundation.org or 315-380-7740.

corporation’s bottom-line profit, which requires LP teams to learn the retail business and therefore requires a better-educated team.

In 2006 the Loss Prevention Foundation was formed by industry advocates to advance the loss prevention profession by providing relevant, convenient, and challenging educational resources to help answer the growing need for better-qualified LP teams. The Foundation created two certification programs, the LPQualified (LPQ) and LPCertified (LPC), which are designed to give individuals the opportunity to gain valuable knowledge about retail, business, leadership, and loss prevention for both entry-level and experienced individuals.

Still, the need to introduce loss prevention to young people looking to start a career remains. To this end, the Foundation has instituted the Academic and Retail Partnership Program.

Connecting Retailers with Students

Since its inception, the Foundation has partnered with both colleges and retailers. Now, the Foundation is taking that experience a step further by forging partnerships directly between the retailers and colleges themselves.

By giving college graduates an express line into major retailer’s recruitment offices, it is easier for retailers to identify high-potential applicants. This partnership will be a catalyst for elevating the loss prevention industry and raising the bar for talent levels in our industry.

An Industry Paradox

This pattern has created a paradox for our industry—loss prevention isn’t a career choice because the depth and offerings of our profession and industry are uncharted. Most troubling isn’t the perception of loss prevention or an unnamed stigma related to it. On the contrary, it is simply that there is no perception, understanding, or even remote familiarity of what loss prevention is. The result is high turnover of entry-level positions, the necessity for extended training periods, and shallow benches for succession planning.

Fortunately the tide is turning and there is significant movement in efforts to raise awareness at the college as well as high school levels for loss prevention and asset protection as a viable and rewarding career choice. This momentum is also being pushed by the increased expectations of senior retail management. Loss prevention is now expected to contribute millions of dollars to the

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The Academic and Retail Partnership Program serves to connect select retailers with colleges offering courses of relevant study. Partner colleges will introduce the Academic and Retail Partnership Program to students in retail management, criminal justice, and accounting courses in the students’ junior year of study. Participating students will complete the LPQ course and sit for the proctored exam. LPQualified students will be offered an interview with a participating retail partner.

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The retail industry has much to gain from this program. While the LPQ curriculum is focused on loss prevention, much of what students learn from this course translates into other areas within a retail environment, such as store operations, risk management, crisis management, safety, distribution, analytics, finance, and audit. The program gives partnering retailers a unique opportunity and advantage to bring on new college-educated talent with a broad understanding of loss prevention and a foundation of retail knowledge gained from the LPQ course.

On the other hand, students also have much to gain. With many college graduates today facing a job market heavy with experienced, skilled, and degreed professionals looking for work, it can be both challenging and frustrating for recent graduates without relevant experience to get their foot in the door and secure a position in their industry of choice. Fresh with the knowledge gained from their college curriculum and complemented with the industry-specific practical studies of the LPQ, students from participating colleges will have the advantage of meeting with hiring decision makers, thus opening the door to career opportunities that are both varied and plentiful.

The Foundation board of directors recognizes that in order to continue their mission of advancing the profession, the Foundation must act as the conduit for partnerships between colleges and retailers. By giving college graduates an express line into major retailers’ recruitment offices, it is easier for retailers to identify high-potential applicants. This partnership will be a catalyst for elevating the loss prevention industry and raising the bar for talent levels in our industry.

Efforts by Associations and Vendors

And that’s not all. Retail organizations, such as the Retail Industry Leaders Association (RILA) and the International Organization of Black Security Executives (IOBSE), are reaching out to college students and welcoming them to their conferences as well as offering scholarships to those with an interest in loss prevention, retail management, or a related field. Other organizations, such as the National Retail Federation (NRF) have invited professors to attend their conferences and are assisting in employer-led initiatives that connect companies with community colleges to ensure students are better equipped with skills for today’s workforce. These organizations and other associations, including the Food Marketing Institute (FMI) and the National Food Service Security Council (NFSSC), have also contributed to and continue to support the creation of specialized college degree programs.

Solution providers, such as Vector Security, have also demonstrate that they, too, recognize the value of educating the next generation of loss prevention professionals through their generosity of awarding scholarships to students.

With the consensus goal to make the loss prevention industry a career choice through awareness, partnerships, and aptly focused programs, we will soon see loss prevention and asset protection as choices on those career path surveys. We will hear loss prevention and asset protection discussed as options in college courses beyond criminal justice. And we will see our industry infused with talented individuals flourishing in their intended career.

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LP Magazine | September - October 2011

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Fundamentals

Are You Cautious Or a Risk Taker?

T

ell me about how you view yourself. Cautious and safe? Risk taker and entrepreneur?

I think if you are going to lead an LP effort, you have to be more of the entrepreneurial type. Don’t get me wrong, you aren’t doomed if you think you are “cautious and safe.” I just think in order to move an agenda along, you have to be willing to take a bit of a risk.

So, since I’m typing and you are reading, we move forward with the entrepreneurial concept, which happens to lead me to a quote I read recently (funny how that happened…funny ironic, not funny ha-ha).

“Entrepreneurs are like juvenile delinquents who say, ‘This sucks. I’ll do it my own way.’” This thought is from Yvon Chouinard, founder and CEO of Patagonia, an outdoor gear and clothing business he founded in 1974.

As you progress up the corporate ladder, you should realize something. It becomes more important as to how you share your knowledge over what knowledge you have. At some point in your career, how you handle information becomes more important than the information itself.

Today Patagonia products are 100 percent recyclable and primarily made from recycled product. Their corporate promise is, “None of our stuff ever ends up in a landfill.”

They are the small company leading the “green initiatives” in apparel.

But back to Chouinard’s quote. Obviously that frame of mind worked really well for him…but maybe not so much for the rest of us. Let me set the stage.

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by Mike Marquis, CFI Marquis is currently an assistant vice president of loss prevention with the TJX Companies.

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.

The opinions and commentary expressed by Marquis do not necessarily represent the TJX Companies or any of its divisions.

You are a new leader, sitting in a meeting for your area with three other peers and “the Boss.” Let’s call them George, Judy, Elroy, Jane, and the Boss. The discussion leads to the proper use of Spacely’s Space Sprockets and how they reduce shrink. You know Cogswell’s Cosmic Cogs are far better. How would you approach the issue?

(Here is where you pause and come up with what you would do. You know I am a patient correspondent and will wait.)

Ready? Ok, let’s see how your approach works with the other three.

George and Judy spent eighteen months researching Spacely’s Space Sprockets. They have developed the manual and training materials, plus spent six weeks on the road managing the implementation…weeks they will never get back. They have had to face three different financial reviews on the ROI. This program is their baby, yet you just said, “This sucks. I’ll do it my own way.” Hopefully, you took that part of the hint earlier and just said you had a better idea.

Right? Actually that didn’t help either. Now they’re upset you’ve called them dumb.

Elroy could care less whether sprockets or cogs are better. In his opinion either will work. There are more important things to focus on. He is, however, very concerned that the new person has just upstaged him in the group. His desire to advance has just been challenged. He ain’t happy.

Jane now has multiple concerns. Her A team has made a bad recommendation, spent poorly, and wasted time.

Her rising star isn’t, and the new person has no political acumen and disrupted the family atmosphere she has worked so hard to maintain.

How could this have gone so bad so quickly? You were just trying to “do the right thing.”

As you progress up the corporate ladder, you should realize something. It becomes more important as to how you share your knowledge over what knowledge you have.

At some point in your career, how you handle information becomes more important than the information itself.

Spending time practicing how you will interact can be just as important as researching what you will be discussing. Try it. Let me know how it works out.

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Solutions Showcase Gulfcoast Software Solutions

Automate Store-Level Loss Prevention Efforts with Digital Video Using the Self-Monitored Gulfcoast Hybrid NVR and DVR Solutions with Distributed Alerts and Real-Time Audits

W

hen companies first investigated migrating to digital video surveillance solutions ten years ago, most embraced the promise of the digital revolution. Reviewing multiple images in perfect synchronicity with a journal of POS activity seemed to offer a solution to one of our most profound challenges— addressing POS fraud.

Company executives and LP staff budgeted significant resources to equip stores with new video technology with the promise of enhanced controls and dramatically reduced shrink. But as is the case with most new technology, who owned it? Limited corporate LP staff traditionally addressed 10 to 20 percent of retail outlets each year using exception-based reporting to identify issues, and then physically audited stores with obvious fraud. Due to limited resources this model traditionally ignored the baseline stores representing minimal fraud that “flew under the radar.”

For the average 1000-store chain, remotely auditing all locations required as many as 2,000 man-hours per day, a prohibitive requirement of human resources, and streaming large amounts of video across the company network proved challenging to many IT departments.

The question of how to leverage additional benefit from video-based LP tools without overwhelming regional, district, and store-level management was obvious as time management presented a difficult, if not insurmountable, challenge. If local management owned the shrink and could easily review exceptions such as refunds and no-sale transactions daily, the problem could be addressed at the source and increased awareness could provide a strong deterrent to undesirable activity. With the burden of managing normal operations, store managers simply could not find the time to use the equipment, and in the end the anticipated loss prevention results and corresponding ROI were never realized.

The Future Is Now

Fortunately times have changed, and the technology has matured. The self-monitoring Gulfcoast NVR and HDVR

is a hybrid analog/digital tool that incorporates standard low-cost CCTV cameras and high-tech megapixel IP cameras. Gulfcoast Storekeeper software provides real-time self-monitoring tools, including exception management tools, employee score cards, site ranking reports, data-mining interfaces, and multilevel turnkey fraud and exception alerts that consolidate undesirable activity into easy-to-review packets. Corporate staff identifies, defines, and saves definitions of undesirable activity, and the Gulfcoast LP solution monitors activity and automatically distributes alerts and case files to various staff throughout the organization’s management structure. Easy-to-review consolidated reports with images and hot links allow hundreds of items to be reviewed in just minutes rather than hours or days. In fact in side-by-side tests our tools demonstrated the reduced time required to review hundreds of store-level exceptions by over 85 percent, from 90 minutes to less than 10.

Daily transaction audits are routinely performed by store managers or LP staff, and district and regional managers

are advised in real time of high-risk exceptions, general store-level performance, and issues requiring immediate action. Corporate LP staff use advanced real-time reports and dynamic employee scoring tools to pinpoint the worst offenders for prompt action.

With the expanding scope of loss prevention activities, the future is now and the proven potential of this technology is relatively unlimited. We offer real-time analysis of nearly every facet of store operations—POS

LP Magazine | September - October 2011

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Solutions Showcase Gulfcoast Software Solutions

systems, smart safes, money order machines, fuel dispensers, entry and exit points, storage room doors, cooler and freezer temperature monitoring devices, and more. Devices are monitored ten times per second, reports and alerts generated continuously in real-time and integrated synchronized video images and hot links are made available to any authorized staff worldwide.

Gulfcoast also offers a range of LP services, including daily remote audits, global exception monitoring and management, real-time site-level monitoring, investigation, intervention, case management, and prosecution services.

Our LP personnel includes staff with prior experience with federal, state, and local law enforcement agencies.

Gulfcoast Storekeeper has been instrumental in identifying and prosecuting individuals and groups responsible for millions of dollars in retail and credit card fraud.

In the end, the power of “ownership” at the store and district level is undeniable. While the benefit of integrated video as a remote investigative tool is apparent, most practitioners agree that retail loss prevention is most effectively executed by changing behavior at the store level. When fraudulent and high-risk behavior is addressed immediately and staff is conscious of the consequences, they are far less likely to engage in such behavior.

A well-respected LP consultant recently opined, “When municipalities use red-light cameras to combat dangerous driving habits, the bulk of the enforcement work begins when the camera works properly. Staff must identify the car and driver, send the citation, manage the correspondence, set a trial date, prosecute the offender, et cetera. Clearly the process is simpler, safer, more efficient, and the results immediate, when there is a patrol car at the intersection and drivers obey the signal.”

cash and merchandise shrink to less than one-half of one percent and our ROI has been proven to be an incredible six to twelve months.

Our commitment to innovative solutions and our first-to-market reputation are widely recognized in the retail market place. We introduced the first DVR featuring a ten-year electronic POS journal with M-PEG4 video compression to the retail industry in 2002, and our ONVIF integrated NVR solutions with multiple device data mining interfaces demonstrate that we are leading the industry by providing turnkey virtual retail management solutions.

Clearly the impact of our technological innovations on the LP segment of the retail industry has been nothing short of remarkable.

Tim Lindblom, executive vice president of Gulfcoast Software Solutions, LLC has been in the loss prevention business for twenty-five years and explains why the time is now to invest in smart, integrated Gulfcoast DVR solutions.

Visit Gulfcoast at www.retailcameras.com or call Tim Lindblom at 727-776-3429.

Innovative LP Tools

Gulfcoast LP tools engage all levels of the retail organization with streamlined time-efficient tools and consolidated reports. It is well-documented in multiple vertical markets that we reduce verified

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September - October 2011

Store Ranking by Exception Variance 7/17/09 Total Exceptions Count

Total Exceptions $

Total Critical Exceptions Total Critical Count Exceptions $

Score

Store Number

Rank

2412

1

63

1254.38

3

918.33

73

1275

2

63

1197.65

3

869.84

73

1249

3

34

1012.76

4

852.27

74

2164

4

43

682.31

3

407.86

77

3217

5

14

478.84

4

395.41

78

7263

6

8

367.63

3

325.9

84

1002

7

3

192.15

3

192.15

85

4836

8

17

279.3

2

159.40

87

4894

9

17

283.77

2

151.21

87

3842

10

17

229.15

2

145.76

87

1892

11

36

344.87

1

132.97

88

2613

12

36

312.97

1

126.55

88

5515

13

36

284.62

1

124.57

88

6238

14

36

225.94

1

121.36

88

1473

15

31

315.26

1

102.34

89

2735

16

31

257.42

1

98.58

89

2742

17

45

263.94

0

0

91

4169

18

45

257.35

0

0

91

5104

19

45

246.83

0

0

91

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Hot Link

Solutions Showcase The Retail Equation

Fight Organized Retail Crime with Predictive Analytics The Retail Equation Makes It Possible

O

rganized retail crime (ORC) continues to grow despite increased awareness and measures. According to the National Retail Federation’s organized retail crime survey issued in mid-June, it affects almost every single retailer, with 95 percent reporting they have been a victim in the past twelve months—a six percent increase from 2010. And senior leadership is paying attention. According to the survey, many companies are allocating more personnel and a greater investment in technology to combat the problem. But what are viable solutions?

New legislative efforts and technology are steps in the right direction. Many states already have passed bills to impose stiffer penalties for criminals, while others are working tirelessly to lobby in states where budgets are feeling the pain of lost sales taxes. Retailers are doing their part too to identify and combat these crime rings.

To date, these organized retail criminals have typically been nameless, faceless individuals with no predictable pattern to their fraud. Some retailers have tried to connect the offenders by reviewing incident reports or comparing security tapes, while others have made painstaking efforts to train employees on how to recognize behaviors associated with illegal consumer activity.

Nevertheless, the individual crimes have remained difficult to connect because of their sheer size and scope, and the complexity of the data that could potentially link the individuals. Until now.

links within and between customer identification data already collected during a purchase or return, including: Original receipt numbers, Driver’s license, Shopper name and address, Loyalty card, Credit, debit, or other trackable tender, and Shoppers’ purchase details.

This revolutionizes the methods in which organized retail crime is recognized and prevented. It provides evidence that crime is occurring, measures the size of the impact, helps pinpoint patterns, and predicts future theft. The best way to visualize this is to consider some shopper examples. The graphics below show how consumers, their transactions, and any known relationships may be connected.

Normal Shopper. This graphic demonstrates how a typical shopper makes purchases and returns/exchanges. Consumer Triangulation offers the capability to link identifiers, such as original transaction number, hashed credit cards, loyalty cards, or driver’s license number to create a transaction history on each consumer.

Tracking Fraud Rings

The return counter is a critical location to keep under control when addressing ORC because it is the only place where 100 percent of the cash and sales tax for a stolen item is received.

It also is a good place to gather the data necessary to begin tracking these fraud rings.

New technology by The Retail Equation creates a visual depiction of ORC by sifting through data and identifying organized crime through encrypted credit-card information, customer loyalty cards, and/or a consumer ID number. As part of the company’s Verify-2 return authorization program, it creates a purchase and return history on each consumer and links that individual to other customers using the same information.

The result is an automated tool that identifies and connects individuals while creating detailed summaries and visual images of organized retail crime operations to aid investigations and real-time decision making.

Using a technique called Consumer Triangulation™, The Retail Equation uses proprietary algorithms that measure and validate strengths of data relationships in order to construct

Suspicious Behavior. The graphic on the next page shows the beginnings of unusual behavior from the shopper—the quantity and percentage of returns/exchanges, along with the usage of multiple tenders is becoming suspicious. The automated method both identifies and connects individuals and their tender

LP Magazine | September - October 2011

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Solutions Showcase The Retail Equation saved. This particular retailer saw its return dollars peak in July at $175,313 and then drop dramatically to $18,438 in August when the stores deployed Verify-2 return authorization.

By being active in the battle against crime and loss, companies can protect themselves and let ORC offenders know they will be discovered and prosecuted. Modern ORC solutions are both collaborative and individual and aimed at directly attacking ORC operatives, as well as modulating their environment. Advanced technology solutions like Verify-2 can and should be used to deter organized retail crime rings. With innovative, calculable solutions, all retailers can efficiently evaluate, validate, and even predict a prime problem and ultimately prepare for thieves—before they strike.

About The Retail Equation

The Retail Equation, headquartered in Irvine, California, optimizes retailers’ revenue and margin by shaping behavior in every customer transaction. The company’s solutions use predictive analytics to turn each individual shopper visit into a more profitable experience. This yields immediate financial payback, increasing store comps by as much as 2 percent, with significant return on investment. The Software-as-a-Service applications operate in more than 17,000 stores in North America, supporting a diverse retail base of specialty apparel, footwear, hard goods, department, big box, auto parts, and more. For more information, call 888-371-1616 or visit www.theretailequation.com.

formats, depicting a web of consumer return patterns that provide additional information on which to base decisions about return authorizations.

Linked Fraud Ring. The graphic on the right is a simplified example of how a fraud ring can be mapped out by connecting people using advanced algorithms that link consumers making merchandise purchases and returns. By consistently tracking all returns and exchanges through Verify-2 Consumer Triangulation, retailers can identify strong relationships and connect these associated shoppers that may be part of an ORC network.

Retail Example

A prominent retailer in New York City recently used the technology to identify numerous individuals and automatically link them to one another with a statistical analytics model. Then, using the visual tool, the retailer was able to graphically plot the individuals to depict their connections to one another. When viewed separately, these individual associations may have appeared insignificant, but as a whole they painted a broader picture of ongoing fraudulent behavior.

Through these findings, the retailer not only discovered it had fallen victim to return fraud, but ultimately identified and incarcerated members of a booming organized crime ring operating actively and successfully in New York.

Use of these graphics instantly puts a retailer ahead of the game in combating retail crime, equipping them to deliver hard facts about specific people in fraud rings to the state officials, district attorneys, and police officers with the power and authority to stop these crimes. Not to mention the money

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Supply chain

Ten Years Later, Uncle Sam Wants to Be Your Security Manager N o one could have predicted exactly how September 11th would impact our lives and our profession. On that fateful morning I was in the air on my way to visit Target’s Indianapolis distribution center, oblivious to the new world we would encounter upon landing. What was clear is that the dastardly attacks on the World Trade Center, the Pentagon, and that open field in Pennsylvania were going to change the way the security game was played. We knew that our profession would be called upon to leverage our expertise and become “deputized” to the cause of securing our nation’s commerce and her economy. From that perspective we have stepped up to the challenges we face in the modern era and have gone a long way in establishing our credibility in board rooms and in the eyes of government officials around the world.

Not All Changes for the Better

Much has changed in the past ten years, but not all for the better. The vision of a partnership between private-sector security professionals and the government is alive and well in programs such as C-TPAT (Customs-Trade Partnership Against Terrorism) and OSAC (Overseas Security Advisory Council). The ability to share strategies, intelligence, and resources has never been greater. The danger of this level of interest in corporate security programs by government entities has a serious downside, however.

As an example, in the past few weeks Union Pacific Railroad was required by U.S. authorities to spend an additional $50 million on its security program. Union Pacific was found to have unwittingly been the vehicle for drug smugglers on the U.S.-Mexican border. There may be cause for the company to rethink its security strategy as a result of these incidents, but being forced to spend $50 million on a security program that includes funding a “fusion center” with Customs and Border Protection (CBP) sounds a bit more like extortion.

While the end result may be a more secure company and a more secure border, there is a profound difference between volunteering to do our part in the spirit of partnership and being required to do so through the use of regulatory authority. The ends do not necessarily justify the means.

In yet another instance of overreach, CBP has once again targeted Gibson guitars for its alleged lack of

by Kelby Woodard Woodard is a founding partner of Trade Innovations and the Trusted Trade Alliance, which specialize in security, customs compliance, and supply-chain strategy consulting through offices located on five continents. He also cofounded TRG Direct, which provides direct filing of customs entries utilizing an Internet-based software solution. Woodard is the former director of supply-chain security at the Target Corporation and a former board member of the International Cargo Security Council. He can be reached at kelby.woodard@tradeinnovations.com.

oversight of its import supply chain. This company has been importing wood from around the world for decades.

Then along came the Lacey Act in 2008 that required importers of woods to report details on the species and genus of the tree in an effort to protect endangered trees around the world. The Act did not stop there, however.

The strength of the post September 11th security regime is based on true partnership and flexibility. We must be vigilant to ensure it does not fall victim to an overzealous federal government.

The law also requires CBP to enforce the laws of the exporting country as well. The result is that the CEO of a well-respected American company has the potential of serving time in jail over the violation of an obscure Indian law that prohibits the export of “sawn wood.” The U.S. government has interpreted Indian law to say the wood Gibson imported was falsely declared as veneers because some assembly is still done in the U.S. rather than India. Fortunately, the solution to this issue was clearly outlined by the federal investigator.

Unfortunately, his recommendation was for Gibson to outsource their operations and avoid complying with U.S. import laws.

Watch for Overzealous Regulations

In a time where we should be encouraging companies to create jobs in this country, we have laws and the people who enforce those laws encouraging companies to limit their global supply chains because U.S. law is “too complex.” While the Gibson issue may not be directly related to the security profession, the bureaucratic inflexibility found in the Lacey Act is a lesson for us all.

The strength of the post-September 11th security regime is based on true partnership and flexibility. We must be vigilant to ensure it does not fall victim to an overzealous federal government.

LP Magazine | September - October 2011

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Evidence-Based LP

by Read Hayes, Ph.D., CPP

Decisions, Decisions L

oss prevention professionals are paid to make good decisions. And good choices come from good data.

The LPRC was founded and is run by top retailers and their partners to help their teams make well-informed decisions using mixed research methods to innovate and evaluate highly effective diagnostic and prevention tools.

This column is designed to do the same thing—to provide further decision support via discussing the whys and hows of reducing crime and loss. As I’ve mentioned many times, LP and solutions managers should be absolute experts at diagnosing and treating specific crime problems to promote organizational success. That’s why we exist.

Big to Small

One way our team looks at LP is by carefully examining the dynamics of offending and negligent behavior in three levels of the environment. Crime events flow from motivated offenders coming into contact with vulnerable, desirable targets. Environmental criminology refers to macro, meso, and micro settings, and we believe this reference helps us better think and act in those dimensions. By thinking about and collecting data on varying levels, your team can much better plan and deploy cost-effective solutions.

When we look at the below levels, think about offenders and how their behavior is shaped by the built and cultural environment, and how altering their perceptions of opportunities, risk, and required effort is critical at each spatial level. Your problem-analysis will indicate where and what crime and loss control tools to employ, where and why.

Macro environments like areas surrounding a given store, distribution center, or office, include offender clusters, such as socially disorganized living areas, temporary work sites, some high schools, and the larger transportation networks. Store or DC visitors and employees usually come from surrounding areas. And public and private transportation routes also help dictate a location’s risk level.

Think about and collect data on why, how, and when offenders target and travel to and from your places.

Estimated macro environmental risk level will help predict expected problem levels. Internal and external models, such as Cap Index, other

58

Dr. Hayes is director of the Loss Prevention Research Council and coordinator of the Loss Prevention Research Team at the University of Florida. He can be reached at 321-303-6193 or via email at rhayes@lpresearch.org. © 2011 Loss Prevention Research Council

models, and police calls for service, can help project violent and property crime levels.

Meso environments like parking lots tie together the neighborhood and a specific place like a store. The amount of curb cuts, boundary types and definitions, day and night time visibility, and surrounding places all play a role in risk level as well. Bars, game centers, and similar places can serve as crime attractors and generators.

Think about and collect data on why, how, and when offenders access and move to and through your locations.

Identify access and egress points, visibility and lighting levels, and consider reported crime levels and existing police and security services to help in your assessment.

Environmental criminology refers to macro, meso, and micro settings, and we believe this reference helps us better think and act in those dimensions. By thinking about and collecting data on varying levels, your team can much better plan and deploy cost-effective solutions.

Micro environments consist of a store’s or other location’s exterior and interior make up that we want to protect. The store’s assets, permeability, entrances and exits, visibility, deployed relevant security tools, manager commitment, and real-world practices all affect the place’s vulnerability to surrounding risk.

Think about and collect data on why, how, and when offenders visit, attack, and leave your places.

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Assess your employees’ commitment, training, execution, and needed tools to determine adequate protection techniques to minimize loss.

Another important concept to keep in mind is that retail organizations are really systems. Retail companies exist to sell goods to customers. And the flow of data, merchandise, and financial instruments should be carefully constructed, manned, and audited. Too often many of us isolate on the all-important stores, but purchasing, supply chain, and information and money flow are critical and all operations influence the others.

Likewise, at every point, people are the difference-makers. Good people make the best out of whatever they face. Not-so-good folks can make a mess out of even good situations, and can be a real disaster in tough environments. So we have to take the human factor into account during our diagnostic and treatment phases.

This list is just a part of retail performance dynamics, but hopefully it gets you and your team even more motivated to think about, analyze, and act in multiple dimensions.

LPRC Update

Our LPRC field team has just completed another round of in-store offender interviews. Corrie Tallman, John Eassey, and I talked to over 35 shoplifters around packaging dynamics at the request of the

LPRC’s Packaging Innovation Working Group headed by John Voytilla of OfficeMax. Some key findings include packaging size, shape, material, and messaging adjustments to better hinder/deter open-carry, concealment, and package-attack theft.

The Predictive Analytics Working Group headed

by Carlos Bacelis of Sears Holdings and LPRC’s Dr. Daniel Downs and made up of sixteen retail chains is working through an exhaustive list of macro-, meso-, and micro-level variables using structural equation modeling and hierarchal linear modeling to better establish actionable key factors and associations.

The Benefit-Denial Working Group led by Tim Fisher of Best Buy and Dain Sutherland of Walmart, and including over fourteen retailers is preparing several lab and in-store system-wide benefit-denial pilots to work out technology adjustments and best practices.

Again, the LPRC membership extends a warm welcome to all retailers to participate in the annual Impact workshop and conference being held at Office Depot’s Boca Raton headquarters October 10 – 12. This year’s agenda includes group exercises on new experimental, statistical, and interview research findings, as well as live-offender interaction, ORC surveillance and sting vehicles, and a lot of highly interactive networking events. If you’re interested, more information is available from Jenna Pennington at jpennington@lpresearch.org.

LP Magazine | September - October 2011

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Industry News

Shoplifting History— Worth the Read S

ometime in late 2009 a woman called asking if I knew anything about shoplifting. She was doing research for a book, and after we talked I pointed her toward some of the “lions of the industry.” The end result is Rachel Shteir’s recently published book entitled The Steal: A Cultural History of Shoplifting (The Penguin Press), which is an exceedingly well-researched, interesting, quick-paced overview of shoplifting’s cultural positioning over 4,500 years of recorded history.

The first quarter of the book quickly recounts the history of society’s attitudes toward theft, beginning with the “ancient” view that stealing from the rich should carry a smaller punishment than stealing from the poor. Written instructions on successfully “lifting” merchandise from shopkeepers first appeared in a pamphlet written in 1591

by Robert Greene, a friend of William Shakespeare.

Of interest is the history of punishments for shoplifting, including thumb branding (rather than hanging) for thieves who could recite verse 1 of Psalm 51—“Have mercy on me O God, according to your unfailing love; according to your unfailing compassion blot out my transgressions.” Other punishments included banishment to the colonies and even capital punishment, as authorized by the Shoplifting Act passed in England in 1699.

My favorite chapter, entitled “Abbie Hoffman Meets the Chinese Handcuffs,” chronicles the early histories of the three “fathers” of the electronic article surveillance industry—Art Minasy of Knogo, Ron Assaf of Sensormatic, and Ted Wolf of Checkpoint. These men were hell-bent on finding a technology that would either catch or deter the likes of anarchists Abbie Hoffman and Jerry Rubin, who both wrote books glorifying shoplifting as “ethical.”

Much of the middle of the book is devoted to describing the pathological behavior for which socially conscious people presumably project sympathy. Examples include

60

by Robert L. DiLonardo DiLonardo is a well-known authority on the electronic article surveillance business, the cost 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 in retail security equipment procurement.

DiLonardo can be reached at 727-709-6961 or by email at rdilonar@tampabay.rr.com.

Robin Hoods” who…you guessed it…rob from the rich “ to give to the poor, Celebrity shoplifters (who knows why they steal?), and “The Shoplifting Addict” who cannot help him or herself.

While interesting reading, these examples are ensconced on either end of the “bell curve” of theft types—too small a sample for the space allocated. Shoplifting as a “business” is covered in a chapter called “Boosters.” Sadly, there is only a single, oblique reference to the growing, and decidedly modern problem of organized retail crime.

The historical vignettes captured my attention and educated me on rich and changing historical contexts. For me, though, the glorifying, sensationalizing, and excusing of wrongdoing serves to showcase a point of view that may be pervasive now in society at large, but is not necessarily shared by the retail loss prevention practitioner audience.

In her conclusion Ms. Shteir muses about a global trend toward “high-tech anti-shoplifting vigilantism,” the proper forms of punishment for shoplifters, and the impossibility of trusting stereotypes. While we would argue that we are not taking the law into our own hands, her larger point is that we are using technology to take a much harder line against thieves—immoral, misguided, faultless, enterprising, or desperate as they may be. That’s a good thing.

RFID Targets Draft Beer

Five years ago in this space, I reported on a revolutionary new application for RFID—eliminating liquor theft and sweethearting via over-pours or unauthorized free drinks in bars and restaurants. According to a recent article in RFID Journal, a variation of this technology is being used to facilitate “self-service” draft beer in a couple of Latino restaurants in suburban Atlanta, Georgia.

Thanks to ultrahigh-frequency (UHF) EPC Gen 2 RFID hardware, patrons are able to obtain an RFID-enabled card or wristband that allows them to help themselves to their drafts of choice. The card is linked to the patron’s credit card, and enables up to 32 ounces of beer each. Instead of pouring, restaurant employees, known as pour tenders, provide the cards, explain how they work, and keep an eye out for over-consumption or unauthorized usage by minors.

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Restaurant owner Jose Hevia says the “wall of beer” is especially popular with patrons waiting for a dinner table. DraftServe Technologies, the provider of the system, claims that the restaurant has more control over wastage from over-pours, and allows patrons to control how much they will drink. Really?

Hayes Survey Reports Across-the-Board Theft Decreases While internal and external thieves stole over $7 billion in 2010 from just twenty-three large retailers, the annual Hayes survey reported that total apprehensions and recoveries dropped for the first time in ten years. Mark R. Doyle, president of Jack L. Hayes International, the survey’s author, added that “it appears the economy, fewer store employees, and less loss prevention staffing all played a role in these results.”

Highlights from the report include the following items: Over 1 million total apprehensions for shoplifters and dishonest employees, but the total was 3.8 percent less than 2009.

About 960,000 shoplifters were caught, which was down 4.1 percent from last year.

Recoveries totaled $104 million, a decline of 4.7 percent over 2009. An additional $33 million was recovered from unapprehended shoplifters.

About 69,000 dishonest employees were caught, a slight decrease of 0.4 percent over last year. But, only $44 million was recovered, which was a sharp drop of 12.7 percent.

Shoplifting cases averaged $108.46, while internal cases averaged $639.99.

For every $1.00 recovered by the surveyed companies, $38.46 went unrecovered.

One of every 33.2 employees was apprehended for theft, which represents a total of 2.8 million employees.

The data was collected from a survey of twenty-three participating retail companies with over 19,000 stores and 2010 annual sales revenue of $632 billion.

Crime Statistics Improve Again

The FBI released its final crime statistics for 2010 in September. The estimated number of violent crimes dropped about 6 percent as compared to 2009 estimates, to just under 1.25 million. This is the fourth consecutive annual decrease.

Each of the four violent crime types decreased year-over-year: Robberies dropped by 10 percent, Followed by forcible rapes down by 5 percent, Murder and non-negligent manslaughter down 4.2 percent, and Aggravated assault down 4.1 percent.

Property crimes decreased by about 2.7 percent year-over-year to just over 9 million incidents, the eighth consecutive decline. Victims of property crimes, except for arson, lost an estimated $15.7 billion in 2010.

In the property crime category, each offense type also decreased: The largest decline of 7.4 percent was recorded in motor vehicle thefts.

Some experts believe that electronic entry and security features on newer models have had a significant deterrent effect.

Larcenies decreased by 2.4 percent.

Burglaries decreased by 2 percent.

Overall, the FBI estimates that law enforcement agencies made about 13.1 million arrests, excluding traffic violations. The complete report is available on the FBI website at www.fbi.gov.

LP Magazine | September - October 2011

Calendar

September 14, 2011 Retail Council of Canada Retail Loss Prevention Conference International Centre, Toronto, ON www.retailcouncil.org September 19 – 22, 2011 ASIS International 57th Annual Seminar and Exhibits Orange County Convention Center Orlando, FL www.asisonline.org September 27 – 28, 2011 International Association of Property Crime Investigators National Property Crime Investigations Conference The Gold Coast Hotel & Casino, Las Vegas, NV www.iapci.org October 1, 2011 The Shulman Center for Compulsive Theft and Spending Third International Conference on Compulsive Theft, Spending, and Hoarding Embassy Suites, Detroit (MI) Metro Airport www.theshulmancenter.com October 4 – 6, 2011 Coalition of Law Enforcement and Retail (CLEAR) 2nd Annual Training Conference Peppermill Resort and Casino, Reno, NV www.clearusa.org October 10 – 12, 2011 Loss Prevention Research Council Annual Impact Workshop Office Depot Headquarters, Boca Raton, FL www.lpresearch.org October 19 – 21, 2011 International AntiCounterfeiting Coalition Annual Fall Conference Waldorf Astoria Orlando, FL www.iacc.org November 2 – 3, 2011 ISC East Jacob Javits Convention Center, New York, NY www.iscsolutions.com March 11 – 14, 2012 Food Marketing Institute Asset Protection Conference Hyatt Regency, New Orleans, LA www.fmi.org April 22 – 25, 2012 Retail Industry Leaders Association LP, Auditing, and Safety Conference Dallas, TX www.rila.org June 19 – 22, 2012 National Retail Federation Loss Prevention Conference & EXPO Ernest N. Morial Convention Center New Orleans, LA www.nrf.com

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People on the move Brad Holderrea was appointed District LP Manager at A’GACI.

Ray Cotton, CFI, CPP was appointed Manager of Global Security Operations for Facebook, Inc.

Ron Smith, CPP was appointed Director of Security for American Girl.

Christopher Nielson has been promoted to Vice President of LP for Family Dollar.

Tally Bonlender was named Corporate Investigator at Bally Total Fitness.

James Grinevics was appointed Regional LP Manager and Angela Atilano was named Exception Report Analyst/Coordinator at Forever 21.

Bob Jensen was appointed Regional LP Manager and Andre Harris has been promoted to Director of LP, Logistics/ e-Commerce for Barnes & Noble.

Debbie Maples, CFI has been promoted to Vice President of LP, International Stores, Global Supply Chain, Investigations, and Corporate Security for Gap Inc.

Andrew Henderson was appointed Area AP Manager at Best Buy. Janine Marin was appointed Regional LP Director at Bloomingdale’s.

Anthony Antonelli has been promoted to Director of LP for Gap Outlet.

Shannon Griffin-Keenan was appointed District LP Manager at Brookstone.

Nicola Street was appointed Profit Protection Manager at GO Outdoors LTD.

Burlington Coat Factory has announced the following changes: Heather Brown, John Clark, Jr, and Johnnie Chromcak to Regional LP Managers and George Norris to Territory Director of LP.

Sheila Hunt was named Regional LP Manager at Golf Galaxy.

Kevin Thomas, CFE, CFI was appointed Director, Retail LP for Columbia Sportswear.

Michael Flanagan, CFE was named Regional Security Manager at Conway Freight.

Laura Metrick was appointed Senior AP Manager at Denny’s.

Laura Obremski was appointed LP Analyst at Discovery Clothing.

Dollar General has announced the following changes: Marlund Harvey, LPC and Lee Tamarack, CFE to Regional LP Investigators and Jennifer Thomason, CFI to Regional LP Manager.

Art Capone was appointed Regional AP Manager at Dollar Tree Stores.

Lance Krueger was appointed Regional LP Manager at Express.

MagaZiNe

Stephan Brown was appointed Branch LP Manager at KMS Host, Phoenix.

Cynthia Rogers has been promoted to LP Supervisor at Kirkland’s.

Amanda Pritters was appointed Regional LP Manager at Limited Brands.

Katherine Board was appointed Regional LP Manager at Liz Claiborne.

Alfred A. Harris III was appointed LP and Safety Manager and Paul Tucker has been promoted to ORC Manager, West Coast Division at Lowe’s.

The lagging economic recovery continues to have significant influence on how retailers plot and execute their strategies to reduce shrink. This year’s Global Retail Theft Barometer highlights important trends on where shrink is increasing and why. This year’s report also includes new data on shrink in key vertical markets, such as apparel, food, and health/beauty/ pharmacy, as well as on the use of RFID technology by retailers.

Professor Joshua Bamfield, author of the study, will shed light on this year’s findings and offer his

Melissa Allgood was appointed Director LP and Security Liaison for NBC Universal Studios, Hollywood.

insights as to what this means for retailers’ loss prevention strategies.

In addition to such important annual statistics as sources of theft, high-theft product areas, and costs of retail crime, this 30-minute webinar also will focus on specific actions retailers are taking to reduce shrink, increase sales, and improve their bottom line.

Professor Bamfield’s remarks will be followed by a live question-andanswer period enabling attendees to gain an understanding of the way this impacts retailers and how they can improve their future loss prevention initiatives.

Mike DiBella was appointed Director of AP for Polo Ralph Lauren.

Dustin Hudgins, CFI was named Area LP Manager at Rent-A-Center.

Yvonne Rouse was appointed Regional Director of LP at Ross Stores.

Kent Robinson was appointed Chief Operating Officer for Sargent & Greenleaf, Inc. Neil Browne, CFE has been promoted to Senior Director, Global LP for Sherwin-Williams Paint Co.

Ian Dill has been promoted to Vice President of AP, Northeast at Sports Authority.

Shawn Abernathy, LPC has been promoted to Group AP Team Leader at Target.

Catherine Penizotto was appointed Academic and Retail Partnerships Liaison at the Loss Prevention Foundation.

Robert Pennucci has been promoted to Associate VP of LP and Scott Prue was named Regional LP Manager at Victoria’s Secret.

Angela Nino was appointed Speaker/Investigator at Wicklander-Zulawski & Associates.

Information for the People on the Move section is provided in part by the Loss Prevention Foundation, Loss Prevention Recruiters, and Jennings Executive Recruiting. Send information on promotions and new hires for this listing to peopleonthemove@LPportal.com.

Tom Arigi was named SVP of LP for National Stores Inc.

New webiNar register Now!

Tom Stein, LPC, CFI was appointed Senior Director of AP and Risk Management for Ollie’s Bargain Outlet.

Robert Williams was appointed LP Manager at Spirit Halloween.

Larry Cruse was appointed Regional LP Manager at Goodwill Industries of Central Indiana.

Mark Elliott was appointed Regional LP Manager at Charming Shoppes.

Kevin Ach has been promoted to Senior Director, International LP and Terry Nichols has been promoted to Senior Director of Stores LP for Office Depot.

2011 global retail theft barometer sheds Light on strategies for Cutting shrink

Learn about the biggest challenges facing LP professionals Wednesday, October 19th, 11:00 a.m. EST Speaker

Professor Joshua Bamfield

Professor Joshua Bamfield Executive Director of the Centre for Retail Research and Author of the Global Retail Theft Barometer, the retail community’s only global source of statistical data about shrink and loss prevention.

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to register visit the magazine website at www.LPportal.com.

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CFIs who spoke at National Conferences April - September 2011

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LP Magazine is available free to loss prevention and retail professionals throughout the U.S. and Canada. There’s no excuse for anyone interested in keeping up with the LP industry to not get the magazine.

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High Theft Solutions

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ClickIt Inc. Jim Paul Director of Sales

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ADT Retail Solutions Kevin E. Lynch Executive Director

Corporate Safe Specialists Ed McGunn President/CEO

InstaKey Security Systems Cita Doyle Director of Sales & Marketing

The Retail Equation Tom Rittman Vice President, Marketing

Alpha Carlos Perez Director of Marketing

Digilock Emma Mann Marketing Director

Intelligent Loss Prevention Joerg Niederhuefner Director of Business Development

Security Resources, Inc. Kris Vece Business Development

Axis Communications Jackie Andersen Business Development Manager, Retail

Enabl-u Technologies Kevin McMenimen President/CEO

LexisNexis Joe Metro Strategic Sales Director

Evolution Robotics Colleen Lindsey Marketing Director

Milestone Systems Trenton Thoms Retail Sales Manager

WG Security Products Ed Wolfe Vice President, Business Development

Bass Security Services Joe Mignone Vice President Sales and Marketing

LP Magazine | September - October 2011

65

Parting Words

One of Those Days

Jim Lee Executive Editor

S

ometimes in your job or life nothing seems to be working for you. You get upset, frustrated, angry, confused. Nothing you do or say seems to be right.

Everything you touch turns to you know what. We all have these days and our own ways of trying to deal with these downers. Or at least we should have ways to step back when nothing seems to be working for us.

Over the years I have witnessed many who have had that look of trouble. And sometimes I have looked in the mirror and seen someone with that same look. I think we would all agree that this business of loss prevention is full of stuff that can lead to “one of those days.”

When things are not going so well for you, talk out loud to yourself, get back on track, and then go look for someone you can help.

So, when nothing is working for you, how do you handle it? Following is my suggestion, which by the way is not my creation; just merely observations of some very special people who seem to be able to maneuver through trouble better than others.

Look Inward and Speak to That Person

Looking inward means to literally talk to yourself through the rough time. This involves self-talk directed at refocusing your intention and reminding yourself what you are trying to do. We all know bad days and crises occur in short spans of time and that they will pass. Your objective is to keep yourself aligned during the troubled times and focused on your task. Have positive self-talks.

Step back, reorient yourself, and think. It is okay to go away alone if you must. I once had a partner who would just disappear for a few days. He would go out hiking by himself just to rid himself of all the craziness and prepare to deal with the trouble. He literally would talk out loud to himself. I have tried it; it works.

associations that help others. That is one powerful way of giving. A more personal way is to find someone you can give something to. Don’t drown in thoughts about anything other than just lifting someone higher than you.

Find ways to give. Make it simple and constant. Make it who you are. I once heard someone say, “If you don’t like what you’re getting, take a look at what you’re giving.”

Try it. One of those bad days for you may turn out to be one of those special days for someone else.

Those in Transition

There are two groups of people who are likely to have “one of those days”—college graduates and military in transition. Getting a college degree does not mean getting a job. Leaving military service does not mean doors will automatically open and a job will be waiting. If you are having a downer day and want to give back to others, find out how you can help someone else find a job and maybe a career. Ask your boss what you can do to spread the story of retail loss prevention to college students and military men and women in transition. If you are the boss, ask yourself…out loud…what are you doing?

If you would like a structured approach to helping these two groups, contact the Loss Prevention Foundation.

The Foundation has developed a program to help individuals and companies attract college students, recent graduates, and veterans to loss prevention. Many college students often say they were not aware of a career in loss prevention, or they didn’t realize the job was more than just floor-walking or standing around. They did not understand the complexities and value of loss prevention to a company.

Or when they applied for work, they were told they did not have any experience. The same can be said for our veterans.

How might the hiring process change if these young people had an opportunity to complete the basic LPQ certification? The chairperson for the Foundation’s Military Transition Team, Kevin Lynch, coined the phase, “Give our veterans a fighting chance. Invest in them for your LP team.”

So when things are not going so well for you, talk out loud to yourself, get back on track, and then go look for someone you can help.

Find Ways to Give to Others

As much as any group of people I have ever seen, the LP world is remarkable in giving to charities and

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