January - February 2011 by Loss Prevention Magazine

THE VOICE OF LOSS PREVENTION January – February 2011 | LPportal.com | V10.1

MAGAZINE

SECURITY

2020

Identifying the Store of the Future Interview with Joe Fryar of Food City Law Enforcement and Retail Partnerships 2011 Loss Prevention Resource Guide

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Contents

PUBLISHER’S LETTER

Security 2020 Identifying the Store of the Future

ON THE WEB

How will the retail environment change in the next decade?

By Francis D’Addario, CPP, CFE, Security Executive Council

10-Year Anniversary By Jack Trlica

REtail SPONSORS

LOOKING BACK

Ten Years of LP Magazine

14 INTERVIEWING

Power. Control. Part 2 By David E. Zulawski, CFI, CFE and Shane G. Sturman, CFI, CPP

26 ACADEMIC VIEWPOINT

Using Technology and Training to Impact Financial Success

NRSS Article: “Business Expense” By Richard C. Hollinger, Ph.D.

A conversation with Food City’s Joe Fryar.

Risks from Shoplifter Apprehensions: Part 2 By Lisa LaBruno

41 Law Enforcement and Retail Partnerships

CERTIFICATION

INDUSTRY NEWS

CALENDAR

PEOPLE ON THE MOVE

Working together to fight retail crime.

2011

By Millie Kresevich, Luxottica

Loss Prevention

51 Resource

Guide

A comprehensive list of industry solutions providers.

Game Changers in LP By Mike Marquis, CFI

72 ASSOCIATIONS IN ACTION

By James Lee, Executive Editor

2011 Loss Prevention Resource Guide

FUNDAMENTALS

January – February 2011

LPportal.com

Retailers Benefit from Solution Providers’ Scholarships By Amber Virgillo - Global Shrinkage Drops to 2007 Levels - Continued Growth Forecasted for the Security Market By Robert L. DiLonardo

80 ADVERTISERS 81

VENDOR SPONSORS

PARTING WORDS To Be Young Again By Jim Lee

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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

10-Year Anniversary

EDITOR AND PUBLISHER Jack Trlica JackT@LPportal.com

ime flies when you’re having fun…ten years of fun. April 1, 2001, was not a joke. After several weeks of discussion, that’s the day we decided to “go for it” and launch LossPrevention magazine. Two short months later, we wrote, photographed, designed, and printed a prototype that we introduced to the industry at the National Retail Federation LP conference in Vancouver in June. Three months later, our official “Premier Issue” hit the streets in the aftermath of September 11th.

Looking Forward A lot has happened since 2001 with both the magazine and the industry. But a lot is yet to come. The first step in our second decade is a redesign of the magazine. You’ll notice a major change on our cover. Instead of the LossPrevention masthead, we’ve changed to LP Magazine. After ten years of establishing our “brand,” we decided to call the magazine by the name most of you call us. Inside the magazine we’ve updated the layout to be more readable as well as more focused. While we’re looking forward to our next ten years, we’re also looking back at the past ten. On pages 12 – 13 we revisit that premier issue as well as the six issues in 2002. Many of you will likely remember many of those articles. If you weren’t a reader back then, you can read any of these back issues on our web site.

Digital Channels Speaking of our web site, we are also totally redesigning our site to add additional function and content. The new site should be live by the end of February with text versions of all the articles from the past ten years as well as our PDF version. The new web site, www.LPportal.com, will be only one of multiple digital channels. We have also launched our LinkedIn group, LP Central; our Facebook page, LP Voices; a Twitter page, @LPmag; and a redesigned e-newsletter, LP Pulse. See page 8 for details. All of this, plus soon-to-be-available videos, podcasts, and iPad and iPhone apps, are meant to give you access to the magazine content and other LP information in whatever way best suits your preference and lifestyle. Please join in.

Change Is Good An awful lot has changed in the past ten years, both in the LP and publishing industries. We’re changing, too, as we strive to be “The Voice of Loss Prevention.” Let us know what you think about our new look and offerings. And especially let us know what you want to see from us now and in the future. Without our loyal readers, retail sponsors, and advertising partners, we never would have made it these past ten years…and certainly not the next ten.

CONTRIBUTING EDITORS Adrian Beck Walter E. Palmer, CFI, CPP, CFE Amber Virgillo CONTRIBUTORS William A. Alford, CFE Robert L. DiLonardo 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 ART DIRECTOR Mindy Kuhn 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 Kelly Durham, LPQ KellyD@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

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 express, 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.

EXECUTIVE EDITOR James Lee JimL@LPportal.com

January – February 2011

LPportal.com

LP Magazine is published bimonthly by Loss Prevention Magazine, Inc., 700 Matthews Mint Hill Rd, Ste C, Matthews, NC 28105. Print subscriptions are available free to qualified loss prevention and associated professionals in the U.S. and Canada at www.myLPmag.com. The publisher reserves the 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. Application to mail at periodicals postage rates is pending at Matthews, NC, and additional entries.

POS INTEGRATION

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ON THE WEB

Editorial Board

Meet Matt Richardson, LP Magazine’s online editor. Matt joined the magazine staff in December to manage all things digital for the magazine. As publications offer readers multiple ways to access information and connect with each other, we are going digital in a variety of ways. Most, if not all, of the digital offerings below are available to you now. If not now, they will be by the end of the first quarter. Further down the road, we are working on digital editions formatted for the iPad and other tablet PCs as well as Matt Richardson an iPhone app that will help you manage our digital content. If you want to connect with us digitally, first of all please participate in the online channels below. You can also help us by providing content, suggesting other online possibilities, and providing input as a beta tester. If you are interested in working with us to expand digitally, contact Matt at MattR@LPportal.com.

Leo Anguiano Vice President, Loss Prevention & Risk Management, Central Parking Corp. Jim Carr, CFI Director, Loss Prevention, Rent-A-Center Ken Cornish Vice President, Retail Operations, The Kroger Co. Daniel Doyle, CFI Vice President, Loss Prevention & HR Administration, Bealls

LP Portal MAGAZINE

We are launching a completely redesigned web site with cleaner navigation, enhanced search capability, and better access to archived articles in both text and PDF formats.

Patti Felz Vice President, Loss Prevention, Polo Ralph Lauren

LP Central

Our LinkedIn group is called LP Central because we expect it to be the central meeting place for LP professionals who want to connect with their peers to discuss important issues in the industry.

Monica Mullins Vice President, Asset Protection & Safety, Wal-Mart Stores U.S. Tom Roan Group Vice President, Loss Prevention, Macy’s Tim Shipman Director, Corporate Investigations and Crisis Management, Food Lion Paul Stone Vice President, Loss Prevention and Risk Management, Best Buy

Bill Heine Senior Director, Global Security, Brinker International

Bill Titus Vice President, Loss Prevention, Sears Holdings

Frank Johns Chairman, The Loss Prevention Foundation

Bill Turner Senior Director, Retail Operations, Cole Haan

Gary Johnson Vice President, Loss Prevention, Vitamin Shoppe

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

Our Facebook page, LP Voices, will allow LP professionals to share not only the activities they are involved with in the industry, but also their personal lives with their friends, family, and community.

LP Mag

The magazine’s Twitter page is @LPmag, where you can get frequent updates on what’s happening in the world of loss prevention.

LP Pulse

We are expanding our e-newsletter to a more focused, more frequent vehicle that will deliver important news, events, links, and other industry happenings right to your inbox.

Mike Lamb Vice President, Asset Protection, The Home Depot

Podcasts

Bob MacLea Senior Vice President, Loss Prevention, TJX

Thanks to a suggestion from a regional LP manager who wanted to listen to our articles as she drove between stores, we will have audio versions of select articles available for download to your smartphone.

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

LossPreventionTV

After experimenting with videos last year, we will expand our offerings with interviews, news items, research, and other LP-oriented videos.

January – February 2011

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

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

LP Voices

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.

Retail SPONSORS

January – February 2011

LPportal.com

Join these great companies as an LP Magazine corporate sponsor. Email JackT@LPportal.com for more information. LP Magazine | January – February 2011

LOOKING BACK ON 10 YEARS OF LP MAGAZINE

In the days and weeks following 9/11, LP executives have examined, assessed, planned, reevaluated, and implemented policies and procedures for everything from crisis response plans to background checks to employee communications to travel safety. Anything and everything having to do with employee safety, business continuity, and crisis management has been put under the microscope.

“In the early days, we were literally the cops. We caught crooks. That was our total value, and it was somewhat limited. Today, however, I think anybody who is forward thinking at all about loss prevention is looking for any number of ways to add value to a company and to be part of the team.” – Dave Myers, Montgomery Ward

Premier Issue

“I want LP people to be seen as a vital member of the team that helps us be the everyday low price leader. The only way the everyday low price works is if you’re the everyday low cost. Loss prevention is an essential piece of driving the everyday low cost. They are a competitive advantage.” – Tom Coughlin, Wal-Mart

January-February

March-April

Sometimes diversity in loss prevention can be the big pink elephant in the office. It is an issue that needs to be acknowledged, but in doing so requires action. The choice with diversity is whether to nurture it so that it becomes a part of the corporate culture or have it so well integrated that it is no longer an issue.

May-June

January – February 2002

Terrorists attack World Trade Center and Pentagon.

2002

2001

LossPreventionMagazine.com

From Crisis Planning to Travel Safety

Interview with Linda Florence Criminal History Research Paper Shrink Managing in an Era of Uncertainty Columns by Hollinger Welch Spain Levenberg Wicklander-Zulawski

ADT acquires Sensormatic.

Organized Retail Theft by King Rogers Interview with David Myers, Montgomery Ward Lowe’s Intranet-Based LP Audit by Claude Verville ROI: Turning Accounting Rules to Management Tools by Walter Palmer Pre-employment Screening: If You Don’t Ask, You May Not Find Out by Steve Millwee

Retail’s Response to 9/11

Kmart files the U.S.’ largest retail bankruptcy to date.

Retail’s Response to September 11th by Jack Trlica Interview with Linda Florence, The Venetian Resort Managing in an Era of Uncertainty by Bruce Tulgan How Much Are You Losing to Paper Shrink? by Mark Sullivan Myths and Realities of Criminal History Research by Fred Giles January – February 2011

Service Merchandise closes last stores.

Interview with Tom Coughlin, Wal-Mart Integrating Technology into the LP Enterprise by King Rogers When It Comes to Store Performance, It Is Entirely about the People by Steve Forgette Telephone Interviewing by David Zulawski and Shane Sturman Ensuring the Survival of New Security Managers by Bill Bragg |

LPportal.com

U.S. Customs announces C-TPAT program.

The Many Faces of Loss Prevention by Mimi Welch Interview with Mike Keenan, Ross Stores How EAS Source Tagging Rewrote Shrinkage History in the Music and Video Sector by Keith Wanke A Roadmap for Merging LP Departments by Paul Jones and Alan Greggo Bionomics by Vincent Portera

2001 – 2002 By the mid-nineties organized retail crime had reached epidemic proportions and Target Corporation decided to fight back.To that end Target put in place a highly trained team of investigators assigned to uncover the upper echelons of ORC organizations and work with law enforcement to conduct sting operations (as recorded by hidden camera here).

•LP-JULY-AUG 2002

July-August 3/21/07

1:51 PM

Page 1

RFID microchips (shown below) were in the early stages of research and development, promising what some envisioned as revolutionary changes to retail inventory control and loss prevention.

After Stride Rite, Wilsons Leather, and Fredrick’s of Hollywood had all outsourced their entire LP functions, people were asking if outsourcing was a passing fad or a growing trend.

September-October ~LP-SEPT-OCT 2002

3/21/07

2:50 PM

Page 1

The Certified Forensic Interviewer (CFI) designation is launched as the first LP-specific certification.

November-December LPM-NOV-DEC02

3/22/07

10:31 AM

Page 1

July – August 2002

September – October 2002

November – December 2002

LossPreventionMagazine.com

RFID Technology

TARGET INVESTIGATIONS

The Future of Supply-Chain Management

OUTSOURCING IN SPECIALTY RETAIL MANAGING ANGER IN THE WORKPLACE INTERVIEW WITH FRITZ HIRCHERT BLOCKBUSTER’S SAFETY PROGRAM COLUMNS BY HOLLINGER SPAIN WELCH CORCORAN WICKLANDER-ZULAWSKI

Hits The Bull’s Eye On Crime

THE QUEST FOR EXCELLANCE AT SAKS CORPORATE FRAUD INVESTIGATIONS SECURING THE GLOBAL SUPPLY CHAIN EXECUTIVE EDUCATION COLUMNS BY HOLLINGER SPAIN MARQUIS WELCH WICKLANDER-ZULAWSKI

“Women have to take ownership for their own careers and their own progress. You have to believe in yourself and be confident in your own abilities. You can’t let people put ceilings up for you. You have to shatter those ceilings and not sit around waiting for someone to give it to you.” – Rosamaria Sostilio, Saks Fifth Avenue

Ames Department Stores announce final store closings.

Target Investigations Hits the Bull’s Eye on Crime by Chris Nelson Interview with Fritz Hirchert, NEXCOM Outsourcing Options in Specialty Loss Prevention by Mike Marquis Managing Anger in the Workplace by Donald Gibson and Bruce Tulgan Blockbuster DC Reaches One-Million-Hour Safety Goal by Rod Fulenwider

RFID: The Future of Supply-Chain Management by Jack Trlica Interview with Steve Millwee, ASIS President CFI: Setting a Standard in Interview and Interrogation by Jack Trlica What Shoplifters Say about Stopping Shoplifting by Peter Berlin Risk Management and LP by Alan Tague and Keith Wanke

C-TPAT: Securing the Supply Chain Against Terrorism by Jack Trlica Interview with Rosamaria Sostilio, Saks Fifth Avenue What’s Ahead in Technology in 2003 by Bob DiLonardo A Multidisciplinary Approach to Corporate Fraud Investigations by Paul Cogswell Continuing Education and Development for Senior LP Executives by Walter Palmer

LP Magazine | January – February 2011

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

Power. Control. Part 2 I

n our last column we began the discussion of the concepts of power and control during the interview process. Each of the parties involved in the interview have some degree of power and control over the encounter. How they use that power and control may differ based on their status and emotional mindset during the conversation. The concepts of power and control are significantly different. Power is commonly defined as the ability to do or act to accomplish something, even through the use of might or force. Control differs in that it relates to the exercise of restraint or direction over another; although in a harsher form it could be used to dominate, command, or even constrain someone. The X and Y generations are much more collaborative in their interactions with peers and their managers. Managers who use collaborative control to achieve their goals are much more likely to be accepted than those who establish control using power. Utilizing subtle forms of control can reduce resistance while increasing a positive outcome in a variety of situations. This is totally unlike using power, which often creates an equal-and-opposite reaction resulting in resistance and conflict. Let’s examine the use of subtle forms of control that can lead an individual to a positive outcome while reducing resistance and conflict in an interview setting.

until he understands the problem fully. The interviewer uses the individual’s most likely response to establish control. This is a far cry from flexing power to assert control. There is nothing sinister about this approach. People control our behavior everyday using locks, lines, and curiosity. Traffic “control” devices shape our driving behavior, sidewalks encourage certain paths be followed, social norms formalize first encounters with others. The interviewer who understands subtle control can use many of them to encourage a particular action of another.

Social Identity

Control can also be established by understanding the individual’s social identity. Each of us has a particular social identity that is the way we perceive ourselves or wish to be seen by others. An interviewer can encourage or control certain actions by recognizing the subject’s perception of himself. Social identity is variable depending on the situation we find ourselves in. It is as if we have a series of internal boxes where we share who we are in different ways with different people. There are our personas as business person, parent, spouse, and friend, to name but a few. In each of these we display to those around us who we are while in that box.

Utilizing subtle forms of control can reduce resistance while increasing a positive outcome in a variety of situations. This is totally unlike using power, which often creates an equal-and-opposite reaction resulting in resistance and conflict.

Curiosity

Creating curiosity is a powerful component of subtle control that can have an important impact on the interview dynamic. Curiosity buys an interviewer time to engage the individual in the rationalization process while continuing to build the elements of rapport. Remember having a classmate say, “I know something about you.” Or, “I heard Katherine say something about you.” Immediately, our curiosity was aroused. What did they say? Was it good or bad? A whole range of questions flashed across our consciousness demanding to be answered. Then, how did you react if your classmate refused to answer your questions? For most of us our curiosity got the best of us, and we spent time trying to elicit the secret. Engaging a subject with subtle curiosity about where the conversation is going, what is its real purpose, or what evidence exists helps the interviewer buy the time necessary to establish the credibility of the investigation and allow the individual to save face. Interviewer control is established by the use of curiosity that misdirects the conversation and causes the person to delay leaving

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.

January – February 2011

Then, there is the one box we hold deeply within us that holds who we truly are. It is in this final box we hold our deepest secrets—those that we don’t share with anyone. This final box contains the contradictions to our public persona, and these may be shared with only a select few or not at all. For example, an interviewer can engage the person who fancies himself intellectually superior by playing dumb. Mr. Superior will talk and take chances since his opponent is clearly inferior and incapable of being a threat. As the subject’s talking continues, the |

LPportal.com

interviewer uses carefully constructed questions to control and direct the conversation to the topics of real interest. Freely conversing with the less intelligent interviewer, the subject becomes mired in contradictions and incriminating evidence. It’s like the mastodons and saber-toothed tigers caught in the La Brea tar pits hundreds of thousands of years ago. The inviting waters concealed the dangerous sticky tar below the surface, which ultimately trapped and preserved the animals.

Appearance of Control

For many people the loss of control is terrifying, creating anger and resistance. For example, the demands of government on the “little guy” are a common theme among all of us. Pay taxes, get permits, do this, don’t do that; all convey a sense that the government knows what’s best for you. What we sometimes feel is anger, resistance, and a paralyzing helplessness. We all know resistance and inertia from a subject during the interview is counterproductive, so what we must do is give him the appearance of control. Control means the ability to decide. When a subject believes he has no control psychologically, he stops moving toward a confession. This concept, called “Locus of Control Theory,” was developed by Julian Rotter and refers to the extent that a person believes he can control events that affect him. If a person has a high expectation of control, he believes his actions in a situation will be successful. If an interviewer can instill the perception of a higher level of control, the subject is more likely to try to influence people with his explanations; in other words, confess and rationalize his actions. The interviewer has to encourage the individual to attempt to control the situation with an explanation for his behavior. If the failure to control his actions is the result of his own personality, the subject loses face and self-esteem with an increased resistance to confess. However, if there were external factors that can be blamed, there is a relief of guilt and the individual’s self-esteem can be maintained.

Ebb and Flow

There must be an ebb and flow to control between the subject and interviewer. If all the power and control lies with the interviewer, the subject feels helpless and may turn to resistance as his only option to respond to the situation. A subject may offer an explanatory denial, such as, “I would never do that. I would be afraid I would lose my job” as a means of taking control of the interviewer. The interviewer could ignore the statement, but this would result in the subject again trying to control the conversation using his assertion. The interviewer accepts the subject’s statement at face value and regains control by agreeing and changing rationalizations to match the needs of the subject. Here we could look at the subject’s statement as a call for help—“Help me resolve my fear of the loss of my job.” The new rationalization allows the interviewer to regain control as he creates curiosity with the outcome of his new rationalization and story. As the subject listens, he becomes engaged and moves closer to confession. As you think about the interview process, consider it in light of the concept of power and control. Many interviewers think they must exert their power to overcome any resistance. As you consider how you control the flow of the interview and influence the subject, we wonder if you believe power is really the key to a confession. LP Magazine | January – February 2011

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12/6/2010 10:43:56 AM

Cover Feature

Security

2020

™

Security 2020

Dateline: January 2, 2020

Mercedes Castro confidently exited her vehicle at 4:04 a.m. in East Los Angeles. Her ear bud reported “vehicle armed” as she stepped away from her smart car. Confidence had replaced the palpable anxiety that she had felt when first notified of her assignment. The neighborhood nine years ago would have been optimistically described as “at risk” or “underserved.” The brief thought of past history brought a chill to the unseasonably warm morning. Past “near misses” when the accomplished manager was an intern would not be forgotten. Personal, street, and workplace violence had risen in 2011 and the years that followed the decade of disappointment. Individual, family, and business survey data registered historical highs with regard to “fear of crime.” The near meltdown of the global economy, combined with simultaneous stressors, including wind-downs of the Iraq and Afghanistan wars, had extended unemployment and soft job growth. Required deficit reductions also had unintended consequences. Impaired law enforcement arguably enabled the expansion of organized crime.

“Board-level risk requirements for people, critical process, and asset protection are increasingly complex and require a new, collaborative, and performance-based approach with practitioners, manufacturers, and service providers.” - Bob Hayes, Managing Director, Security Executive Council Mercedes’ communicator reported “destination secure” as she closed the distance on foot to her storefront. Her three-factor device, GPS proximity reader and voice biometric, remotely illuminated her coffee shop-cum-social network, and e-retail entertainment hub, 100 meters prior to her arrival. Light spilled out on the pedestrian and personal mobility pathway. The store image and audio array was virtually communicated to her PDA. Camera views revealed comfortable seating and entertainment pods in a retro café. “No critical exceptions” flashed on the screen. Mercedes had survived the violence, identity theft, network attacks, and supply-chain diversions that had collapsed iconic businesses and promising start-ups alike. Colleagues, family, and good friends had been victimized. Some still struggled. Few had been ready for the all-hazards risk that visited consequences on the unprepared. Business operators and boards of directors who were slow to act on leading indicators had felt the wrath of stakeholders. The impetus for change for some was swift and sometimes unforgiving. Mercedes and a number of her colleagues seemed to thrive as they nimbly met and mitigated evolving challenges.

January – February 2011

She paused at the entrance with bags in hand for the briefest moment to register her biometric. As the door swung open and she was greeted by the mellifluous tone of PAL: “Good morning Ms. Castro, three ‘class two’ exceptions are ready for your review.” The “Mercedes Mix” purred from speakers. Harold Melvin and the Blue Notes’ “Wake Up Everybody” seemed to bring brewers out of their slumber. Other machinery of the store queued-up in order to conserve energy. What seemed like fantasy ten years ago had become reality with the help of a lot of selfless cross-functional teamwork. Mercedes contemplated the blueberry aroma of the Ethiopian Harrar coffee that brought the best of East Africa to LA. Just-in-time security had optimized core processes and morphed nicely from bricks-and-mortar to virtual e-retail requirements. Promising solutions had been tested and adopted. Many reduced risk and had proven return on investment. Other products and services disappointed and were deferred pending improvement. Natural and manmade risks still required ongoing, intelligent vigilance. Global warming, pandemic, and seismic hazards were ever-present. Numerous human adversaries remained dangerous in-person or via predatory networks, but innovation leveled the playing field. Private- and public-sector risk mitigators worked more fluidly, identifying looming hazards. Next-generation leadership was relevantly engaged, but the work was never done. Mercedes sipped her Harrar thoughtfully and confidently rose to meet her opening manager and the challenges of a new year.

2020 Antecedents

2010 began ominously with a reversal of fortune in most security measures. The risk landscape was littered with the shortfalls of previous mitigation efforts. Global organized crime, ably chronicled in Moises Naim’s book ILLICIT: How Smugglers, Traffickers and Copycats Are Hijacking the Global Economy proved prophetic. Metrics dashboards turned red despite an estimated trillion dollars spent globally on security since 9/11. Consider the headlines: ■“ Global Retail Loss Up to $45.99B,” 3rd Annual Global Retail Theft Barometer ■ “Supply-Chain Theft Up 67%,” Freightwatch International ■ “U.S. Identity Theft and Fraud $54 Billion,” Javelin Strategy & Research ■ “Global Cyber Crime Estimate: $1 Trillion,” McAfee, Inc. ■ “Officials Warn Terrorism Threat ‘Imminent’,” Wall Street Journal ■ “Consumer Confidence at Record Low,” MarketWatch The going-forward outlook was also bleak. Long-term performance was exacerbated by the combined near-collapse of the financial system and short-term cost-cutting measures. Program reengineering, rightsizing, and downsizing, limited or eliminated onboard analytical talent. Economic constraints curtailed budgets and purchasing, as well as research and development. There were still proven people processes and technologies, but the entire protection ecosystem required reevaluation. |

LPportal.com

Security 2020 “Security 2020” was a call to action for needed change. The decade-long strategic course correction for continuous risk mitigation improvement was announced at The Great Conversation of 2010. Bob Hayes, managing director of the Security Executive Council described the initiative this way: “Board-level risk requirements for people, critical process, and asset protection are increasingly complex and require a new, collaborative, and performance-based approach with practitioners, manufacturers, and service providers.” The needs included: ■ Evaluating security-related products for effectiveness and value, ■ Implementing multi-technology test beds to increase innovation and interoperability, and ■ Providing leadership training for the next generation of security executives. Proponents include Jon Grander, vice president of loss prevention for Brown Shoe, who said, “Loss prevention will evolve from the traditional shrink and safety as primary focuses, to a broader business-intelligence model. Enhancing the in-store tools, where LP is the traditional owner, will revolutionize outputs while creating a differentiator for retail companies. Talent and technology with be the most important drivers to influence the speed at which this transition can be accomplished.” Many previous “promising” solutions had ultimately failed. Some were doomed because they were “siloed” rather than cross-functional. Proponents sometimes lacked imagination, influence, or know-how for successful intra-company or extra-organizational collaboration. Others missed opportunities to demonstrate scalable, interoperable integration, or true value. Still others proved short-term improvements without ongoing operational optimization or ROI. 2020 required proving grounds for enterprise, store, and supply-chain protection.

Store of the Future 2020

The recommended approach for any risk improvement begins with a preliminary all-hazards assessment. What are the man-made and natural risks to the environment that require attention? Typically, physical, logical, accidental, natural, or criminal hazards left unmitigated drive cost and hazard profitability. Related events result in unnecessary cost, damage, disruption, injury, or impairment of people, assets, or dependent business processes. While most align with board-level risk and compliance requirements, successful mitigation may be a strategic plan enabler with multiple “upside” value calculations. Environmental design considerations take into account natural surveillance, lighting, and building materials that assure stakeholder comfort and safety. Security elements are considered for potential integration or process optimization. For instance, existing closed-circuit television may be leveraged for business intelligence, including customer count, merchandise interest, staffing, transaction anomalies, and inventory throughput. “Man-down” and “package left behind” analytic capabilities have a number of security, safety, and operational applications. Multi-purpose design can typically meet and exceed multiple stakeholder needs for less cost than silo projects. Glazing or

All-Hazard Manmade and Natural Risk Assesment

Risk Exception Monitoring and Operational Quality Assurance

Inter-sector Resopnse

Interoperable Controls

Environmental Design

Security 2020™ AND Solution Innovations Enterprise, Facility, Store, Supply Chain of the Future

Point of Sale (POS)

Trusted Agent Authorization

Entertainment Messaging

Smart-Safe Virtual Bank Credit

Inventory Supply Chain

window-film enhancements may hinder smash-and-grab risk while improving HVAC efficiency, without diminishing the merchandise views of passersby, police, or security patrols. Wireless applications similarly simplify installations with eco-friendly results. Diminishing cabling, wiring, and utility requirements for improved carbon footprint and cost efficiency can satisfy stakeholder needs while preserving or repurposing resources. Improved authentication and diligence processes proactively protect. They identify trusted agents and legitimate customers to both deter fraud and identity theft while improving transaction accountability and speed of service. Facial, voice, or other biometric recognitions are viable in both brick-and-mortar and e-retail environments. Employee, service provider, and customer self-authentication may be extended to identity protection for new revenue streams as retailers and others offer preferred pricing for proven security services. The stakeholder experience will predictably improve with integrated, in-store communications, featuring public announcement and video message capabilities. Security camera arrays at opening and closing may change to scheduled day-part entertainment or promotional or social-responsibility content, including just-in-time emergency or public-interest broadcasts like severe weather warnings or Amber Alerts. Timely “shelter in place” or evacuation procedures are invaluable for critical risk outcomes.

LP Magazine | January – February 2011

continued on page 21

Security 2020

Period-Over-Period and Year-Over-Year Measurement Yield Protection Contributions and Roi.

2020 Enterprise Contribution Measures and Value Resources

Accidental Injury and Damage. Number and cost (frequency and severity) of injury and asset damage, events lost days, et cetera calculated with fully loaded cost of personnel, repairs, replacement, and restoration.

Number of events and cost analysis yields consequential operating margin intelligence. Data may reside in peer organizations, such as facilities, HR, risk management, or others.

Brand Reputation. Market-share valuation, customer and stakeholder confidence due to real or perceived unmanaged risks to people, plan, or core processes.

Critical security events impact sales, profits, or service deliverables. Stakeholder confidence may determine share equity of publicly traded entities and contribution viability for non-profits.

Business Interruption. Number and cost of mission, product or service sales opportunity misses due to preventable or mitigable man-made or natural risk events.

Insured and uninsured events may include planned exercises and drills as well as unplanned events. Data may reside in business continuity, risk management, operations, or other business units.

Criminal Injury and Damage. Event number and cost of casualty events, including medical, lost days, turnover, third-party liability, plus mitigation costs, employee assistance, repairs, restoration, and other.

Arson, assault, battery, contamination, disorderly conduct, diversion, embezzlement, extortion, fraud, homicide, identity theft, information alteration or theft, kidnapping, larceny, malicious destruction, robbery, threat, and other.

Compliance. Number and cost of health/safety or regulatory penalties, fines, closure, or suspension of business.

Data may reside in operational and distributed support services, including compliance or other individual business units.

Customer Experience. Staffing efficiency, product or service availability, quality, and throughput.

Typically available from marketing or merchandising data. May include consumer survey data, service snapshots, and helpline metrics.

Environmental. Health, safety, incidents, and cost, plus carbon footprint requirements.

Utility, fuel, or natural resource dependencies for asset protection or dependent services from cabling to audit and maintenance available from facility data.

Insurance. Casualty, workers’ compensation, general liability, property, business interruption, professional liability, crime, marine cargo (supply chain), and special indemnity.

Total claims and insured and uninsured costs are generally available from risk management. Check business unit cost allocations.

Liability. Uninsured cost of non-compliance, quality assurance (recalls), and legal claims.

Total cost of fines, sanctions, mitigation efforts, and legal defense are found in legal, corporate affairs, compliance, or other business unit data.

Other. Any relevant risk or mitigation cost.

Use value experience, frequency, and severity.

Profit and Loss Statements. P&L information for manufacturing, product/service distribution, supplychain logistics, sales, operating costs, and profits.

Business unit operating data is key to determining the efficacy of loss prevention and security risk mitigation operations.

Security. Total cost of ownership for people, process, and technology, including depreciation and service maintenance.

Risk awareness, prevention programming, event reporting, investigations, policy and procedure, systems, third-party services, and other.

Stakeholder Experience. Safety, security, confidence, and engagement.

YOY assessment of churn, turnover, and customer confidence for safety, security, and continuity.

January – February 2011

LPportal.com

Security 2020 STORE OF THE FUTURE continued from page 19

Similar integration of smart devices and optimized services will contribute to superior operating results. Bill validation or other automated capabilities combined with courier services potentially eliminates most, if not all, cash-counting shortages, as well as money-counting and banking labor that may be more profitably applied to customer service. Provisional in-store credit eliminates float cost. Video transaction integration enables traffic and transaction analysis and risk-exception reporting not previously possible. Detection and accountability are virtually more certain to diminish criminal and other risk behaviors that are detrimental to stakeholder interests. Interoperable electronic monitoring and reporting applications may only be limited by our imagination. Interactive lighting, HVAC, and protective exception communications may go to third-party quality assurance monitoring services for audio/video authentication before dispatch to others to preclude false alarms, fines, and unnecessary disruptions. Networked health conditions will augment timely maintenance, service, and component up-times. Out-of-stock messaging will enhance service capability, sales, and bottom line. Qualified supervision and exception reporting may enable extended operating hours, night-time delivery, virtual audits, or other services with similar calculable benefits for customers, operators, and distributed support services. Establishing the value proposition is all important.

Understanding the Cost of Risk and Benefits of Mitigation

Protecting people, product, and dependent processes fundamentally influences the perception of brand reputation. For Greg Halvacs, senior vice president and chief security officer for Cardinal Health, it’s about attending to the essentials: “Innovative risk mitigation is essential to healthcare, wellness, and community. Our ability to discover methodologies that work over time may be our legacy gift to the next generation of internal and external customers.” Service differentiation for a competitive edge may closely follow for the $99-billion-dollar pharmaceutical services company, operating in over thirty countries with 40,000 employees. Proven logical and physical protection practices are additionally anticipated to comprise the curricula for next-generation leaders. Understanding the total cost of risk and the financial benefits of mitigation within one’s own organization is the first step in influencing investment. The C-suite requires us to know our total functional cost of ownership. Our ability to represent fully loaded costs of personnel, services, technology, licenses, and maintenance should impress no one. On the other hand, our ability to have command of that detail as a percentage of historical and anticipated risk will open some eyes. Aggregating the data is job one. It is essential for calculating risk mitigation contribution and ROI. continued on page 23

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First in Solutions. First in Value.

LP Magazine | January – February 2011

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Security 2020 STORE OF THE FUTURE continued from page 21

Period-over-period and year-over-year profit and loss (P&L) statements are a rich data source for measuring solution innovation impacts in a test store(s) against a matched control(s). Not all costs are represented or fully allocated at the unit level. Significant costs, both direct and indirect, may be found in compliance, facilities, human resources, risk management, legal, or other departments. Fully understanding all measures within a program or in context with a test or pilot enables us to persuasively calculate value. Each of the areas depicted in the chart on page 20 pose monetary risk for a company. Improvements likewise will be interpreted as benefits either through savings or cost avoidance. Selecting a respected financial analyst for your cross-functional team is strongly recommended to make your business case for loss prevention and security contribution. Stakeholder confidence may be the Holy Grail of performance measurement. If associates, customers, partners, and the community know that you will do “the right thing,” brand reputation benefits follow, including “benefit of the doubt” even after catastrophe. Drs. Rory F. Knight and Deborah J. Pretty of Oxford Metrica provide support in their landmark research that tracked publicly traded share values after mass-casualty events. On the other hand, unmitigated risks including theft and fraud drive cost, deny sales, and constrain available labor. Only when organizations begin to discern their true total cost of risk and

protection investment will they appreciate the value of effective mitigation. Collecting and aggregating and benchmarking metrics for relevant trend reporting and ROI analysis is strongly recommended.

Cross-Functional Stakeholders and Solution Innovation Partners

Strategically aligning protection to the business plan and board-level risk is essential. Executive champions are relatively easy to find for risk mitigation with strong ROI potential, particularly when the solution is scalable and peer management endorses the plan and performance metrics. The ability to influence others to leverage traditional security technologies for accident prevention (safety or risk management), business intelligence (marketing and operations), compliance (audit), crime prevention (legal), and optimized staffing (human resources) may lie within bonus-able performance measures and management imperatives. Networked, analytical solutions for cash, POS, and inventory will also likely attract beneficial interest from finance, IT and supply chain. Proactively convening crisis-management team members for more strategic risk mitigation is a proven practice for a number of successful brands. Diverse data, functional expertise, and common denominator interest in crisis avoidance typically prevails. Evolving preparedness compliance will move others. Any approach should ultimately be informed by industry segment leader practices with input from trusted product and service providers. continued on page 24

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First in Solutions. First in Value.

LP Magazine | January – February 2011

Security 2020 STORE OF THE FUTURE continued from page 23

Many banking, food-and-beverage, fashion, pharmaceutical, and other retail businesses are calculating or testing smart security technologies and processes. Yet few have vetted multiple providers for layered solutions with trusted oversight for outcomes and metrics. Steve Foley, senior vice president of Verint, an actionable intelligence provider, claims, “The Store of the Future 2020 concept is extremely promising. Engineering collaboration between business operators, manufacturers, protection professionals, and integrators to affordably audition low- or no-cost, ROI-capable innovation is long overdue.” 2020 solution innovation partners agree to provide products and services for trial validation with qualified end-user brands. Performance metrics are subject to validation by the Security Executive Council, but may be anonymous for brand protection. Solution innovation partners to date include ASI, Aronson Security Group, CSIdentity, FireKing, First Response, Garda, Learning Dynamics, Resigilence, SafirRosetti, Schneider Electric, and Verint. 2020 Store of the Future end-user test beds are presently in development for discount, fashion, healthcare, and quick-service food and beverage. Proven products and differentiated services must be amenable to audit, preferential pricing, and ongoing integrity diligence.

Onward

Our future brings both risk and mitigation opportunity. All stakeholders are affected. The data from Clark and Hollinger, Gallup, Oxford Metrica, and others are clear. Cared-for individuals are more engaged, productive, and capable of brand loyalty. Looking-forward strategies will retain talent and renew the customer experience by driving out waste and reapplying finite resources to core processes. Self-funded resilience is arguably reachable for mature, well-planned companies. 2020 is arguably a clear strategic vision for current and next-generation leaders. Look for proven practices here in the months and years to come. Dare to lead. I welcome your interest and input at fdaddario@secleader.com. FRANCIS J. D’ADDARIO is a principal of Crime Prevention Associates. He is also emeritus faculty member for strategic influence and innovation for the Security Executive Council. D’Addario previously served as the vice president of partner and asset protection for Starbucks Coffee from 1997 to 2009. His recognitions include “25 Most Influential” by Security magazine, a CSO Compass award, and National Food Service Security Council lifetime achievement honors. His most recent publication is Not a Moment to Lose: Influencing Global Security One Community at a Time, which is available through the Security Executive Council. Learn more at www.securityexecutivecouncil.com. D’Addario can be reached at 202-730-9984 or fdaddario@secleader.com.

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January – February 2011

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ACADEMIC VIEWPOINT

NRSS Article: “Business Expense” T

he National Retail Security Survey (NRSS) has been conducted by the University of Florida since 1991. This study is an excellent example of a mutually beneficial research relationship between the academic and business worlds. Without conflict of interest or bias, we have been collecting and analyzing data provided anonymously by retail loss prevention executives from the top 100 firms. For nearly two decades the NRSS Final Report, now published on-line, has been a bellwether study that focuses primarily on average shrinkage levels, sources of retail loss, and the use of various loss prevention countermeasures. Both the retail LP community and the university directly benefit from this type of applied research intended to help address a problem of significant financial magnitude and theoretical interest to both communities. Each year I have summarized the major findings from the previous year’s research in my column in LossPrevention magazine. This year I will provide these results in a slightly different manner. The University of Florida publishes a magazine quarterly called Explore that features various research activities among hundreds of faculty members in various disciplines. In the Fall 2010 issue the editor of Explore, Joe Kays, chose to feature the findings of the 2009 National Retail Security Survey and my role in this research. Rather than repeat these numbers in an

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 352-392-1025 x217. © 2011 Richard C. Hollinger

executive summary in this column, instead, I encourage each of you to go to the Explore magazine website and read the story titled “Business Expense.” Not only is the full article provided, but you will also find a PDF file to print out, along with a slide show of related photos that were taken in our local Sears store.

For nearly two decades the NRSS Final Report, now published on-line, has been a bellwether study that focuses primarily on average shrinkage levels, sources of retail loss, and the use of various loss prevention countermeasures. The photo shoot accompanying this article is the result of permission and cooperation provided by Bill Titus and Scott Glenn of the Sears Holdings loss prevention team. They gave me and the photographers from Explore full access to the store, merchandise, management staff, and much of the loss prevention technology available. These photos really help to convey the serious nature of shrinkage, organized retail crime, and loss prevention, making the story much more real to the reader. I want to express my thanks to the Sears Holdings LP team for the opportunity to use this store as the setting for this article. I encourage all of you to go to the following URL to read this most interesting story about what we all have dedicated our careers to—namely, providing asset protection in order to reduce the serious levels of shrinkage and crime in the retail store. www.research.ufl.edu/publications/explore/current/story_5/ If you still have not yet read the 2009 NRSS Final Report, please send me an email at rhollin@ufl.edu, and I will send you the URL link and password. I also want to remind all of the senior LP directors and vice presidents reading this column that data collection for the 2010 NRSS will begin soon after your year-end final inventories have been completed at the end of January. Watch your email in-boxes for the new questionnaire arriving soon.

January – February 2011

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LP Magazine | January – February 2011

Interview

Using Technology and Training to Impact Financial Success LP Magazine | January – February 2011

A Conversation with Food City’s Joe Fryar By James Lee, Executive Editor

Interview EDITOR’S NOTE: Joe Fryar is the director of security and loss prevention for K-VA-T Food Stores, Inc., a supermarket chain operating 106 locations in the tri-state regions of Southeast Kentucky, Southwest Virginia, and Northeast Tennessee. Prior to his twenty-four years with K-VA-T, Fryar worked in loss prevention for Parks-Belk department stores. Fryar holds a bachelor’s degree in criminal justice from East Tennessee State University. He has also earned the designation of certified protection professional (CPP) from ASIS International. Fryar is a member of the National Association of Chiefs of Police and the Virginia Crime Prevention Association. He also serves on the loss prevention committee for the Food Marketing Institute. EDITOR: For our readers who are unfamiliar with Food City, would you describe the company? FRYAR: K-VA-T Food Stores, Inc., the name of our parent company, is the acronym for Kentucky, Virginia, and Tennessee, which is our geographic trade area. K-VA-T does business as Food City with 94 supermarket locations. This is the name by which we are most recognized. Our supermarket format is designed to be full service containing a bakery, deli, floral department, video department, pharmacy, and fuel centers. K-VA-T also operates twelve Super Dollar Discount Foods, which are limited-assortment stores. The company also owns a 1.1-million-square-foot distribution center located in Abingdon, Virginia. The DC also houses a bottling plant for the company’s natural spring that operates as Misty Mountain Spring Water. EDITOR: Is the company still family owned? FRYAR: K-VA-T is a private, family-owned company. I report to the CEO/President, Steve Smith, who is the son of the company founder, Jack C. Smith. The company began back in 1955. The story goes that Mr. Smith went into a grocery store in Grundy, Virginia. Finding the lines backed up, he became frustrated with the lack of service and thought, “What this town needs is a good supermarket.” Mr. Smith, his father Curtis Smith, cousin Ernest Smith, and uncle Earl Smith got together and built their first store in Grundy. He started the company with a simple philosophy—“Run the best store in town.” That first store carried the Piggly Wiggly banner. Over the years, Mr. Smith grew the company by acquisitions of several Piggly Wiggly operations in Southwest Virginia and Eastern Kentucky, along with Quality Foods/ Food City, White Stores, Winn-Dixie, and BI-LO units in eastern Tennessee. In 1984 the company adopted the Food City banner. EDITOR: It doesn’t often happen in retail that the top LP executive reports directly to the CEO. How did that come about? FRYAR: The reporting structure is a result of Food City’s commitment to the loss prevention department. The concept is designed to keep LP as a separate entity, as we could be involved in any area of the organization’s activities. The department was created to support all aspects of the organization with a close working relationship with our operations partners. EDITOR: What are your responsibilities? FRYAR: I direct and coordinate all security and LP functions. This includes adding, developing, and maintaining security and

loss prevention procedures. I am responsible for hiring, training, and evaluating all department personnel, directing the corporate investigations function, and managing the LP portion of our corporate educational development and training program. It is also my responsibility to research, recommend, purchase, and manage the installation of all LP technologies as well as all other LP budget and capital expenditures. My position requires open communication with all senior management and a close working relationship with human resources, information technology, legal risk, and store planning and development. EDITOR: What kind of staff and people resources do you have? FRYAR: Our distribution center is secured by our in-house DC security team and is managed by the DC loss prevention specialist. I have four LP managers who are assigned multiple store districts. The LP managers are responsible for all security and LP activities in their assigned areas, including providing LP specialists who are responsible for the apprehension of suspected shoplifters. We also have a point-of-sale [POS] exception-monitoring team that is responsible for the managing and execution of our XBR incident-reporting software. EDITOR: Are some of your people in uniform in certain locations? FRYAR: We have a limited number of stores where we use off-duty law enforcement officers who are required to be in full uniform. The officers’ main responsibility is to be a visual deterrence to criminal activity. These officers are hired as part-time associates and are not considered contract labor. EDITOR: How did your loss prevention career begin? FRYAR: My career began like that of a lot of LP professionals, chasing shoplifters. While I was attending college at East Tennessee State University studying criminal justice, the CJ department was approached by the regional clothing chain Parks-Belk who was looking to hire students to work shoplifting in their stores. The chain had just made the investment in camera equipment to address a growing shoplifting problem. I was recommended by the university to fill one of these positions. After my graduation, I took a full-time position with them. A short time later Food City launched it own LP department, which at that time was called security. I was asked to interview for an internal investigator position with them and was hired in January, 1987. When Food City acquired the White Stores in Knoxville, Tennessee, I moved to Knoxville as the LP manager for the Southern Division. In 1993 I was promoted to my current position as director. EDITOR: So at a young age, you made the transition from what some would call traditional retailing into the food-retailing business. How did you learn the LP business in that sector? FRYAR: There was a tremendous difference between my duties at Parks-Belk of apprehending shoplifters and my new responsibilities as an investigator at Food City. The courses I had taken in college where now being put to good use. I also quickly realized that I needed a better understanding of the business end of the operation. I spent time in the stores learning how they operated. I felt to be successful I needed to understand everything from how the product is received

January – February 2011

LPportal.com

Interview

to the financial side of the business. I read and studied every policy-and-procedure manual in the company. I was fortunate to be with a company that was progressive and would provide me with the opportunity to attend formal training programs. EDITOR: Are there individuals who have been particularly influential in your career? FRYAR: One of the most important mentors in my career was Jack Smith, Food City’s founder. Mr. Smith loved his people, but expected top performance. When I was promoted to director, he called me to his office, sat me down, and told me, “Let me tell you how to be successful. You hire smart people, surround yourself with them, and then stand back and let them do their job.” He said, “That sounds easy, but the last part is the hard part. You need to let them do their job. Your job is to manage.” Mr. Smith stressed that I learn everyone’s strengths and weaknesses. He said everyone has both. You build on the strengths and work on the weaknesses. Steve Smith, our current president/CEO also had a lot to do with my success. Steve taught me to look ahead for what is coming down the road. Steve stressed that as a leader, you need to manage today’s issues, but not get consumed by them. You must keep your eyes focused on the horizon and look at what is developing next month, next year, and five years in the future. I apply this philosophy when I research and/or plan future activities for our organization, including purchasing new technology. Jesse Lewis, our COO, has also been a big influence in my life. Jesse taught me that you can work with compassion. He once said that “Nobody should be surprised when they lose their job.” When you think about it, that is a deep insight. If your company culture is one of expected honesty, and you are getting that message out and it is understood, a person caught in a dishonest act will know and expect the outcome. The same rule applies to all areas of your organization. EDITOR: What do you see as the challenges of running a major loss prevention program within a big company? FRYAR: One constant challenge is keeping your associates focused on the big picture. By the very nature of what we do, there will always be fires to put out. The challenge is to monitor what you are doing daily to make sure that your priority does not revert back to only putting out fires. You must be proactive and remain focused on long-term goals. As an LP professional your biggest successes are not the number of cases, but the prevention of incidents before they occur. Some LP folks discuss the huge dollar value of apprehensions and the numbers of criminals they have caught each year. This is a culture that is hard to change. If you are proactive, your case value should be declining. Every case should be reverse engineered to determine the break down that created the incident as well as a method for preventing or reducing the loss should a similar incident occur. Big dollar cases are a direct hit to the profitability of an organization and should be used to learn from. LP Magazine | January – February 2011

One constant challenge is keeping your associates focused on the big picture. By the very nature of what we do, there will always be fires to put out. The challenge is to monitor what you are doing daily to make sure that your priority does not revert back to only putting out fires. You must be proactive and remain focused on long-term goals. 31

Interview Technology is advancing in our field. Some of the technology is really nothing new, but a remake of something already on the market. As the lead LP executive you must be knowledgeable of loss prevention products and tools. The responsibility of filtering through and evaluating new technology falls directly on your shoulders. You must determine if this investment would obtain a true ROI.

Prevention is our goal. It has been said that you cannot catch your way to low shrink numbers. Our path involves training and awareness. We spend a lot of energy making sure every associate understands our policy and procedures. The best tool you have in protecting your assets is a well-educated associate.

EDITOR: What are the backbone initiatives of your LP program and the objectives you are trying to accomplish? FRYAR: Prevention is our goal. It has been said that you cannot catch your way to low shrink numbers. Our path involves training and awareness. We spend a lot of energy making sure every associate understands our policy and procedures. The best tool you have in protecting your assets is a well-educated associate. Our loss prevention department is data-driven. A lot of our shrink information comes from automated resources that present accurate profit-and-loss numbers. We use our systems to alert us to shrink activity. Our goal is to catch a problem in its early stage before a large loss is incurred. A lot of time is spent analyzing data looking for loss trends. Our core programs circulate around CCTV. We use CCTV and remote site viewing to monitor stores for performance and adherence to company policy and in store audits. As with any department, to be successful you must implement the basics, which includes POS monitoring; CCTV; physical security such as locks, keys, alarms; access control; and case management software. EDITOR: Can you talk about your approaches to training and educational programs within Food City? FRYAR: The first loss prevention training materials I developed consisted of the common book or manual format. The message was there, but the method of delivery was not the best. Manuals disappear and signature sheets to assure the materials are read are easily lost. Keeping up with associate position changes to assure everyone received the training for their position was almost impossible. It could be said that we were meeting our training needs, but I felt the associates were not getting our message. When our training department received software and equipment to do computer-based training [CBT], I was the first in line. Our CBT goal was to develop programs that were both interesting and informative. Programs were developed for various positions within the store. Different modules where developed to meet different needs. The subject matter in the CBT courses includes everything from the purpose of our POS reporting software to the apprehension of a shoplifter. The training modules are now automatically assigned to an associate as they are slotted into a position. The compliance of the training modules is monitored by the training department. I also wanted to get away from the pamphlet-type awareness program and develop something more modern. So we created an electronic department news page. The news page features a main article every month appropriate to the time of year or some national news event. It also contains a section called “Case-Closed Files,” which shows actual video footage of cases with a brief summary of the incident and the outcome. The faces are blurred using a software editing package. We also like to include a humor section where we will show video clips of humorous criminal activity or dumb-crook news. We developed a loss prevention orientation video that is viewed by every new associate. The video was taped in one of our stores. Our CEO kicks off the video to show his support for our loss prevention program. The orientation video deals with our policy on theft, types of theft, robbery, and technology we use in LP. We invited local law enforcement to participate in the robbery section for realism. EDITOR: What additional training methods do you use? FRYAR: We certify associates to work certain positions. The certifications assure us that the associate is properly trained to execute the duties of the position. EDITOR: What positions require a certification? FRYAR: We have a certification process for store opening and closing personnel who have not completed a store management training module. The certification goes over the basic knowledge to manage a store continued on page 34

January – February 2011

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Interview FOOD CITY continued from page 32

in the absence of a manager and safely open a store in the morning and close it at night. The associate is tested to assure they understand the process. The back door receiver position also requires certification. Anyone receiving product through the direct store delivery process has to pass this certification so they understand the policy and procedure for receiving product. When Food City started installing self-checkouts, the company had a concern with theft from customers at the units, so we developed a training course to certify all associates monitoring the self-checkouts. EDITOR: Earlier you mentioned that your core programs center on CCTV. Talk a little more about that. FRYAR: A lot of thought and pre-planning occurs before we install a CCTV system. When cameras are installed, every camera has a primary and a secondary view. The camera locations are plotted using CAD software. We know what percent of the floor space is covered by the cameras as well as any blind spots. These plans are kept on file should the need arise. Our CCTV is tied into our POS exception-reporting software. When an exception occurs, we have a link on the exception-reporting software that goes directly to the video. This allows us to remotely review the incident. Our LP managers have the ability to view the stores’ CCTV system by remote site viewing. This includes live and archived video. This makes the investigation process more productive and efficient as the majority of the investigation can take place at their office. Travel time for investigations has been reduced dramatically. If we have an incident and we need the ID of a suspect, we will log into the system and pull the needed photo and email the photo to law enforcement agencies or additional stores as needed. This has proven very beneficial in organized retail crime incidents. Our check recovery department also uses CCTV to identify fraudulent check suspects. This is accomplished remotely. Alerts with photos attached are sent out to the store managers. The auditing department uses remote site viewing in the execution of their auditing processes. Again, this saves travel time and you have a more accurate view of the store activities. Our store planning and development team uses the CCTV system to check the progress of store remodels and upgrades. The risk management department will pull the archived video on slip-and-fall cases that occur in the stores. Today, our CEO can look at a store from his office. District managers can look at stores. If they get a customer complaint, instead of calling the store, they can pull up the store on their laptop and look at the incident themselves before responding to the customer. EDITOR: What camera technology you are using? FRYAR: We are currently installing IP camera systems. We use 1.3-megapixel cameras inside the stores and 5-megapixel cameras in the parking lot. There are three main types of IP camera compression technologies, MJPEG, MPEG-4, and H.264. Each has its benefits, but we use H.264 cameras whenever possible as the network traffic

January – February 2011

is less with this type of compression technology. Our CCTV servers are built in-house by our IT department. With the IT department’s purchasing power, we have been able to bring our server cost down. The video management software [VMS] is purchased and then installed by the IT department, which coordinates the physical equipment installation. The final system programming is completed over the network from our corporate headquarters. EDITOR: How long have you had IP technology in your stores? FRYAR: We are going on our fourth year. The whole process was a learning experience. My original concern was that bandwidth requirements would overload our network. I approached the IT department for their assistance, to have them involved from the beginning of the project. IT installed cameras in their lab and completed tests on the network to see if any problems would occur before a store installation. When I discussed the use of the IP camera technology with our CEO, I already had the cooperation of the IT department and the answers to the technical questions. EDITOR: I hear from your peers that you are a strong proponent of IP technology? FRYAR: I am a big proponent of IP camera technology. I did a presentation at FMI [Food Marketing Institute] a few years ago speaking about the implementation of IP camera technology from an end users perspective. CCTV in its simplest form has two main functions—to monitor live video and to retrieve archive video for an incident. If an incident occurs, the clarity of the video can be the difference between a successful resolution or the incident remaining unsolved. The increase in video quality has been very beneficial in the resolution of cases. For example, one of our stores experienced an armed robbery. The suspect wore a ski mask and no clear description of the face could be obtained. However, the suspect had a tattoo on their forearm that was identifiable because of the increase video resolution. This piece of evidence became critical in the apprehension and prosecution in this case. IP technology is evolving at a rapid pace. Our CCTV server can be upgraded as new technology emerges, plus cameras are capable of firmware upgrades. Video analytics that are geared to the retail sector are becoming a reality. New possibilities arise daily with this type of technology. EDITOR: You briefly mentioned organized retail crime. Is ORC an issue for Food City? FRYAR: Definitely. Our geographic trade area puts us where major interstates merge or pass through. Our stores are located in the traffic patterns of ORC gangs as they travel from state to state. We also have a second group that we label as “local ORC.” The local ORC groups are individuals who live in the area where they practice their trade. They fence merchandise locally or use the Internet to sell their stolen goods. EDITOR: What changes in ORC have you seen over the past few years? FRYAR: Over the last ten years I have noticed an increase in ORC. The individuals involved in ORC have become more continued on page 36 |

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Interview FOOD CITY continued from page 34

sophisticated. We are seeing surveillance techniques being used by ORC groups. The ORC rings are now using cell phones to communicate the locations and movements of the store’s LP specialists. ORC rings have a better understanding of the rules of apprehension that LP departments must operate under and use this knowledge to their advantage. As ORC has grown and become more active, so has the awareness and collaboration between law enforcement agencies and retail establishments. The word is getting out that this is not a typical shoplifting issue. The awareness campaigns from the retail sector have taken hold at the local, state, and federal levels. ORC has become recognized for what it is—organized crime. We are now being contacted by law enforcement agencies for assistance when they are working an ORC ring. EDITOR: Do you use particular product-protection technologies or techniques for hot products that are targeted by ORC? FRYAR: We strive to locate an ORC problem at it earliest stages. As ORC activity takes hold in a store, we want to locate that target store as soon as possible. We use our software systems to track movement, looking for discrepancies in purchases verses sales. We also have a concentrated list of items that we track. This list has been compiled from ORC

apprehensions. At the end of every month, we compile a list of all items recovered from all shoplifting apprehensions looking for common items. All of this activity is tracked in our incident management software. Items that are designated as high theft are handled and merchandised differently. We are always looking for new technology to address this issue. EDITOR: Imagine for a moment an 18-year-old person working part-time for Food City stocking shelves comes up to you and says, “Mr. Fryar, someday I would like to have your job. How do I get there?” What do you tell him? FRYAR: To succeed in today’s loss prevention world, first you must have complete honesty and integrity. You should pursue a college education and continually obtain certifications in the loss prevention field. You need a diverse background with a mix of operations and loss prevention. And find a company who understands the benefit of having a strong loss prevention department. EDITOR: After twenty-four years, when you walk into a Food City store, what do you consider your biggest accomplishment? FRYAR: When I walk into a store it is good to know that the policies and procedures, as well as the loss prevention techniques and technologies that I have implemented have played a significant part in the financial success and stability of the company.

All of us at Palmer, Reifler & Associates wish you and your family a happy, healthy and prosperous 2011.

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January – February 2011

LPportal.com

PARTNERING WITH RETAILERS

Can you believe it is 2011 already? We at eBay certainly hope you and your families had a joyous holiday season, and we wish you a prosperous New Year. In the past we’ve utilized this space to update you on eBay’s initiatives to help tackle the stolen goods and organized retail crime issues facing the industry. We are proud of the progress we’ve made and look forward to continuing to work with our retail partners and the NRF, JSA, and FMI to find long-term solutions to these challenges. With the holiday shopping season behind us, we thought this would be a good time to introduce and define the roles of the core teams and key people within eBay’s global asset protection organization, above and beyond the PROACT team. As our partners in loss prevention work with us in 2011, we want everyone to be familiar with the eBay teams driving our trust and safety efforts. We recognize the importance of a good supporting cast with flexibility, technical capability, and strong experience that can approach challenges from all directions. At eBay we’re fortunate to have a group of dedicated professionals whose contributions support the brand objective of “Driving Retail Like Trust.” eBay created the global asset protection (GAP) team last year to centralize our worldwide investigative function and improve the lines of communication among our trust and safety personnel around the globe. The GAP group is led by Jack Christin, a former prosecutor and assistant attorney general, with responsibility over three operating disciplines—data, analytics, and tools; regulatory and policy management; and investigations. The global data, analytics, and tools team conducts in-depth analysis of our site data and produces formalized analytical reports on fraud trends, bad buyer experiences, and other key performance indicators supporting our proactive predictive models. Additionally, this team is responsible for the development of internal tools utilized by asset protection and other members of the legal team, inclusive of those supporting our shift towards leveraging automation, including Law Enforcement Portal (LEP) and our newly released global Law Enforcement eRequest System (LERS). The regulatory and policy group maintains a comprehensive global list of practices, including the prohibited and restricted item policies. The team works with regulatory bodies to ensure our policies are in compliance with applicable laws. They also coordinate and guide customer service functions in managing our system’s filters, rules, and policies. The investigations team led by Paul Jones is focused on protecting the business assets, user community, and brand reputation. From a geographic perspective the team has presence in San Jose, Salt Lake City, Philadelphia, Shanghai, Sydney, and Dublin. We incorporate a dynamic foundation of data mining, highly sophisticated technological resources, advanced linkage technology,

by John Mearls

forensic analysis, and internally built exception reporting. These resources assist with upstream detection and risk identification, allowing us to take appropriate action related to suspected criminal activity, including engaging law enforcement to prosecute offenders. Recoveries of losses are pursued through aggressive restitution efforts. We worked with experts in interrogation techniques from Wicklander & Zulawski Associates to create a specialized training module with an emphasis on phone interviewing techniques. We have already begun to see a return on this personnel development investment.

John Mearls is Senior Manager, Global Asset Protection. Contact him at jmearls@ebay.com.

At eBay we recognize the importance of a good supporting cast with flexibility, technical capability, and strong experience that can approach challenges from all directions.

The fraud investigations team (FIT) has primary responsibility for satisfying law enforcement and regulatory requests for user information. The FIT team satisfied more than 100,000 requests last year. We recently introduced automated technology that allows law enforcement to obtain data supporting criminal investigations. This automation provides significant opportunity to redeploy eBay’s internal talent and transition the team towards a more proactive investigation model. The special investigations group (SIG) specializes in conducting international high-level and sensitive investigations with an emphasis on serious financial crimes, including money laundering and bank fraud. Most members of the SIG team have completed the highly distinguished certified fraud examiner (CFE) program. These professionals conduct forensic analysis, detect and resolve phishing scams, ID theft, stolen financial data, counterfeiting, child pornography, and denial-of-service attempts. They’re regularly invited to participate at the federal level and at banking regulatory conferences. As with any large, global team with an extensive remit, we have experienced some growing pains. Ultimately, we believe that our team is structured to achieve our key objectives—provide exceptional customer experiences; collaborate with our retail and law enforcement partners; and develop the best tools and technologies to identify and eliminate bad actors before they can impact our platform. We look forward to continuing to evolve our overall efforts, strong industry partnerships as well as growing our talented asset protection team. Have a great 2011.

“I’m certified. Here’s why.” William ‘Bill’ Napier, LPC Senior Manager of Corporate Asset Protection, Cabela’s

While I am beginning my twenty-ninth year of retail LP leadership, the LPC helped me benchmark my skills against the best in class to ensure that I am providing my company and team members

what they deserve by my leadership and knowledge. After the word filtered out to our field team that I had successfully completed the LPC program, I received numerous phone calls and

“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.DurhamLossPreventionFoundation.org or call 866-433-5545.

notes describing the motivation this gave them to continue their own learning I had not realized until then, just how powerful it is to see a leader model the way. Recently, the LPQ and LPC certifications were added to our

tuition reimbursement program in HR, which was personally fulfilling as it validated the effort and time I spent learning the materials as well as helps others in our organization who will be continuing their educations. www.losspreventionfoundation.org

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E-RECRUITING FOR LOSS PREVENTION

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Law Enforcement and Retail Partnerships Working Together for Common Goals By Millie Kresevich

LP Magazine | January – February 2011

Partnerships

ollowing is an example of a successful partnership between retail loss prevention and local law enforcement that resulted in the dismantling of an organized retail crime (ORC) operation in one Florida county. While the details are specific to this particular investigation, what is important to the loss prevention industry is that ORC is not just a discussion inside retail. Law enforcement is, in fact, interested in working with loss prevention organizations to proactively prevent crime in our stores and the communities we both serve.

Preparing for an ORC Blitz

As 2010 progressed, organized retail crime activity in Florida was high, resulting in significant losses for Luxottica Retail. Therefore, we decided to do a blitz in Florida to try to halt the losses. As usual practice, we sent invitations to other retailers to join us on this quest to identify and address ORC-related incidents. Macy’s ORC manager, John Morris, accepted the invitation to work with us. Our second step was to solicit help from law enforcement. Our initial calls seemed to generate interest, however no commitments were reached. Time was passing quickly, and we simply couldn’t get the commitments we needed to secure a safe event. With only four days before the scheduled blitz, a call was made to a neighboring county to ask for suggestions on how to move forward with the blitz if we were not able to gain the necessary law enforcement assistance. That call was specifically made to Sergeant James Ostojic of the Polk County Sheriff’s Office. Loss prevention professionals may remember Sergeant Ostojic and the Polk County Sheriff’s Office from 2008 when their investigation of a shoplifting incident led to the identification of a

January – February 2011

multimillion-dollar retail theft ring and fencing operation. At the conclusion of that investigation, eighteen people were arrested and charged with felonies. Later that year, the Florida Retail Federation honored Sergeant Ostojic as the Retail Officer of the Year. The 2008 investigation gave the Polk County Sheriff’s Office much notoriety in the ORC arena and paved the way for how retailers and law enforcement can work together to make great things happen. In recent years Polk County has consistently helped retailers fight the battle against property crimes and ORC. Therefore, it was no surprise that Sergeant Ostojic immediately stepped up to the plate and extended his hand to help with our pending blitz. The first request Sergeant Ostojic asked was to move some or the entire blitz into Polk County, which would give Polk County jurisdiction should any criminal situation be encountered. We met this request and immediately began discussing the specifics of how to coordinate the efforts of both the retailers and law enforcement. Sergeant Ostojic took the plan up the chain of command starting with his immediate supervisor, Captain Andy Ray. Captain Ray in turn received the approval from Sheriff Grady Judd who gave the go ahead to gather how ever many officers would be necessary to carry out the blitz. Sergeant Ostojic hand-selected each officer who would be involved by what they had to offer. In addition to the Polk County Sheriff’s Office, officers were recruited from the Winter Haven Police Department, Lake Wales Police Department, and Lakeland Police Department. In total eight officers would participate in the blitz with Sergeant Ostojic supervising the law enforcement contingent. All the planning and organizing occurred very rapidly over a two-day period. A formal operating plan was generated and delivered to both retailers and law enforcement personnel. Sergeant Ostojic conducted an ORC training session for all participants and assigned each officer to specific duties. The day before the blitz was scheduled, Captain Ray asked to have dinner with the retailers in order to meet and talk with them. It was an enlightening conversation. Captain Ray was clearly excited about the blitz and that the Sheriff’s County Office was playing a pivotal role. The following day a meeting was held to review the plan one last time with everyone involved. At this meeting, participants were partnered to include at least one officer for every retailer, locations were assigned, and everyone went their separate ways.

Launching the Blitz

The first day one arrest was made, retail property was recovered, and an individual was charged with possession of marijuana and narcotic paraphernalia. While this may have seemed like a disappointing start, it turned out to be just a warm up session for day two. Day two began with two arrests at a higher end department store. A third arrest at another department store nabbed a female suspect who provided critical information for an ongoing police investigation in Polk County. That suspect decided to cooperate and provided information into other crimes that were occurring in

LPportal.com

Partnerships

Participants in the ORC blitz included (from left) Millie Kresevich, Matt Michel, and Mark Flores of Luxottica; Det. Stephanie Burcham of the Lakeland Police Department; and Sgt. Jim Ostojic, Dep. Eliss Mitchell, Dep. Andres Marin, and Det. Joseph Makal of the Polk County Sheriff’s Office. Not shown is John Morris of Macy’s.

surrounding areas. This is an example of how dealing with retail crime can lead to information regarding other crimes. The grand finale came near the end of day two when the blitz activities concluded by gathering the evidence that led to the destruction of a large fencing operation located in Winter Haven, Florida. It was about 4:30 p.m. on Thursday. The participating loss prevention manager from Macy’s mentions that he has video of a suspect who comes into their store routinely and shoplifts high-dollar gift sets of men’s and women’s cologne. The suspect had not been apprehended thus far because he was in and out of the store very quickly. A second piece of intelligence provided is that the suspect often comes in with another male. Almost on cue, not twenty minutes after revealing this information, the suspected cologne thief is seen standing outside the doors of Macy’s. While he isn’t entering the store, he clearly is interested in something going on inside. Sergeant Ostojic is watching him closely, and I am in the interior of the store. The cologne thief begins to head toward his vehicle when his partner, who was already in the store, exits with a stolen pair of sunglasses in hand from Sunglass Hut. The product is not concealed, just carried out by the accomplice. Once the accomplice reaches the vehicle, both men are approached by officers and asked to step out of the vehicle. The sunglasses are recovered with the tag still affixed. Each suspect is placed into a separate room to be interviewed. The accomplice is completely uncooperative and will not provide any information. The cologne thief, however, decides to cooperate. He tells Sergeant Ostojic and me that the merchandise he steals is sold at a beverage store in Winter Haven. The suspect alleges a female drug dealer who makes a living from selling drugs as well as stealing and selling retail property introduced him to this store. According to the suspect’s information, once employees of the beverage store purchase the product, it is then sent overseas. The cologne thief, now turned informant, is asked if he would be willing to go to the beverage store with an officer, represent product as stolen, and sell it to the individuals he has been dealing

with. With his willing participation, the wheels of motion are put in place. Within a matter of two hours, the entire sting is orchestrated. Macy’s provides two gift boxes of men’s and women’s cologne for the sting. Additional police officers from Winter Haven are brought aboard. An officer and the informant are dropped off in front of the beverage store. The pair walk into the beverage store, ask the person on the other side of the counter if they want to buy the merchandise they just stole, and the transaction takes place. The individual purchasing the stolen goods give the officer and informant $20 for items worth almost $200. While the transaction takes place inside, a car pulls up in front of the beverage store with what appear to be rectangular boxes. As the individuals from the car exit the car with the boxes, they notice the police cars surrounding the store. They immediately jump back into the car and speed away…in reverse. The person who purchased the stolen goods is arrested and taken into custody. Drugs, stolen property, and pornography are found in the store.

The Law Enforcement Perspective

This blitz represents a great example of fantastic police work in partnership with retail loss prevention. Every step was handled meticulously, efficiently, and achieved a final result that was “one up” on the bad guys. Taking down the fence in these sorts of operations is key. If we can’t stop who is buying the product, there will always be the desire to continue stealing it. It becomes much more difficult to unload retail property once the main fencing operation is eliminated in a certain area. Speaking from the loss prevention perspective, we can’t thank Polk County enough for their efforts and diligence in helping retailers in their jurisdiction remove a significant piece of the ORC puzzle. While ORC is often discussed among loss prevention professionals, it is important to hear the following perspectives on ORC from key members of the Polk County Sheriff’s Office [starting on page 44].

LP Magazine | January – February 2011

Partnerships

Sergeant James Ostojic When you received the call about retailers needing help with the Blitz in Florida, what made you extend your hand so quickly? The Polk County Sheriff’s Office has a proactive approach on crime and assisting in the blitz reinforces this philosophy. Over the past several years, I have been involved in several major organized retail crime cases. Similar cases usually begin with something like a shoplifting case then expand to a larger organized investigation. Teamwork and coordination are essential as well as timeliness and accuracy for law enforcement and loss prevention personnel during an operation of this magnitude. Why is the retail partnership important to you and your job? My job is to proactively prevent crime. Shoplifters continue to educate themselves on new and innovative ways to commit criminal acts. Many times the items they steal are used in other crimes. Also, as these types of crimes escalate, they often lead to more violent crimes. Our partnership is beneficial to get information that may help lead to solving these types of crimes. It is important from a consumer perspective to remember the loss of profit for the companies and loss of tax revenues. Our job requires us to educate consumers, company employees, and the community at large to be on the lookout for any unusual activity. Every aspect of the retail partnership is beneficial to me, my job, the businesses, and the community.

warning may not stop the criminal activity. Incarceration will immediately stop the individual from continuing the crime spree. Incarceration many times deters future criminal acts. Retailers can also assist by providing accurate video surveillance with updated equipment to produce the best identification of the offenders. You should continue to monitor the activities of ORC groups and keep the information flowing to law enforcement. Keep in mind, the information provided must be timely and accurate with detailed accounts of each incident involving the same groups to help with prosecution. How can law enforcement gain better understanding of the intricate workings of the criminal enterprise through the interview process? The interview process often leads to information to solve other crimes. It is imperative that a good, solid interview be conducted with each victim, witness, and suspect in every case. This will ensure we are able to evaluate trends and determine if a larger group is involved and their intricate workings. This is important for law enforcement when trying to infiltrate an organized crime group. Many of the criminal activities have wide-spread criminal operations and are often multi-jurisdictional. Often the interview process will lead to a better understanding of the depth of the operation and give us information that is critical to solving the crime as well as identifying leaders in the organization. The better the interview, the easier it is to confirm the information to lead to the arrest of criminal enterprise.

Captain Andy Ray You gave the go ahead for law enforcement participation in the Blitz very quickly, why is that? Because we have been successful in

What can retailers do better to assist law enforcement in combating ORC? Retailers should be consistent in holding shoplifters accountable for their actions. For example, a trespass

January – February 2011

LPportal.com

preventing and controlling crime through our proactive efforts, usually based on our data-driven policing model we refer to as “PROCAP,” which stands for Proactive Community Attack on Problems. We find that those criminals who commit crimes like burglaries and grand thefts in the community are just as likely to commit other criminal acts, including retail theft, whether as an individual or as a participant in a larger organized group. Basically, people who aren’t afraid to commit a felony are just as unafraid to commit a misdemeanor. By arresting individuals involved in retail crime, we are making it clear that we’re serious about crime control in our county, we’re reinforcing that we are paying attention, and we may very likely arrest a criminal before he has the opportunity to commit another crime. Basically, it’s what we do every day, and this is just another opportunity for us to further interrupt criminal activity. You took the time to meet the retailers who were involved in the blitz. You also showed up to the blitz to see how things were going and have conversations with those who were apprehended. Why was this important to you? I see this as an opportunity to meet stakeholders in our community—those being the store managers and loss prevention specialists—and to demonstrate our interest in what’s taking place in the local retail stores. It is also an opportunity to relay to those involved in criminal activity that we take the problem seriously and that their criminality will earn them a ride to jail, rather than just a notice to appear in court. We feel like in order for there to be a deterrent to retail crime, there has to be an immediate consequence that’s not very appealing to them. Polk County along with several other surrounding police departments provided many officers to work as undercovers during the blitz. continued on page 46

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Partnerships ORC Blitz continued from page 44

How would you encourage other police departments to participate in a blitz and provide resources to retailers? First, I have to mention that the municipal police agencies and the sheriff’s office work very well together in Polk County. We don’t have turf issues, and we help each other out. It is very much a team approach. I would simply offer that the people who are stealing items from retailers are, in many cases, the same people that are breaking into cars or homes and committing other crimes. By focusing on the retail crimes and arresting those offenders, there is a good chance that other crimes in the community will be prevented. Additionally, by working with the ORC task force, we are trying to interrupt the groups of criminals who are profiting by stealing large quantities of retail goods. Those thefts create monetary losses for retailers and generally increase the costs for law abiding consumers in the marketplace. Their criminal activity affects everyone. From a big-picture perspective, how does dealing with ORCrelated issues open the door to gain information regarding other crimes? Arrestees who all of a sudden find themselves in a “pinch” are more likely to want to work themselves out of it. If they’re involved in organized retail theft and want to provide information in order to help themselves out, we will listen to them. Now, we won’t offer to let them go on the charge they were just arrested for; they will still have to face the consequences for their actions. On occasion, however, if the information they provide is helpful in solving other crimes, we will share with the prosecutor’s office that the individual provided assistance to us on another case. This may or may not result in less severe sanctions in court. This blitz was a perfect example. The efforts of the ORC task force and local law enforcement resulted

in the identification of a local fence for stolen merchandise. That led to an undercover operation led by the Winter Haven Police Department that resulted in the arrest of a person operating a local convenience store for dealing in stolen property, as well as other charges, including illicit drug charges.

Sheriff Grady Judd The Polk County Sheriff’s Office is looked at as a leader in combating ORC. Can you share a brief synopsis of the county’s voyage on becoming a recognizable advocate for combating ORC? The Polk County Sheriff’s Office’s experience with ORC began a few years ago with what initially appeared to be a single individual stealing merchandise from a retail store. However, as the investigation continued, the detective was able to learn that the suspect was part of a larger organized retail crime ring that was mostly involved in the theft of health and beauty products. As more details were uncovered, the scope of the organized theft ring was revealed. Detectives were assigned full-time to investigate this band of thieves in order to gather enough information on their illegal activities and the identities of the suspects to bring about a successful prosecution. After months of investigation and consultations with our local state attorney and the assistant statewide prosecutor from the Florida Attorney General’s Office, we were able to secure arrest warrants for the members of this group, charging them under the state’s Racketeer Influenced and Corrupt Organization Act (RICO) laws. These statutes are designed for just such an operation and are designed to enhance penalties for the violation of statutes January – February 2011

LPportal.com

by an organized group of criminals. Within months of closing that investigation, deputies discovered another organized group of thieves who were stealing baby formula from retailers. Again, detectives were assigned to this case on a full-time basis in order to connect the dots between the bosses and the thieves in this organization. After a couple of months of gathering important intelligence and evidence, multiple arrest warrants were secured and the suspects involved in that organized retail theft ring were arrested. Because we know there is a continuing problem with simple retail theft and a significant problem with organized retail theft, we are committed to doing what it takes, locally, to provide a deterrent. How much time is devoted to property and retail crimes in your county? A significant amount of time and effort is devoted to the prevention and investigation of property and retail crimes in Polk County. We have thirty-six detectives who are assigned to the General Crimes Units in our patrol districts. Those full-time detectives are responsible for the investigation of property crimes, including organized retail crimes, and felony person’s crimes. However, about 85 percent of their time is dedicated to property crimes. If you break that down, that means that we commit some 60,000 hours per year to the prevention and investigation of property crimes. Many of your deputies are very well versed on ORCrelated crimes. Can you explain the training or education process that takes place? Our detectives are chosen from experienced patrol personnel and receive four weeks of additional training specific to property crimes. They are instructed and trained by experienced property crimes detectives. Our deputies and detectives who are most knowledgeable in continued on page 48

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LP Magazine | January – February 2011

Partnerships

maximize Cash Flow

ORC BLITZ continued from page 46

ORC issues because they have been assigned to investigate the cases as previously mentioned. They have real-world experience and on-the-job training, initially. I am blessed because I have tremendous talent here at the Polk County Sheriff’s Office, and the members of this agency learn quickly. Additionally, those detectives with experience investigating these crimes share their knowledge with other deputies and detectives to increase their understanding of the breadth of the ORC problem.

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What do you envision as movement in the right direction for law enforcement and retailer partnerships in the future? Of course, the people on the front lines of the retail theft and organized retail crime problem are the men and women working directly for retailers in loss prevention positions. The retailers follow their profitand-loss margins closely, and they know the trends that are occurring in their individual stores and in their markets. Formulation of strong partnerships between the retailers and local law enforcement is essential so that when trends are identifiable, that information can be shared in a timely manner so that the two can work together to address those trends in a proactive fashion. Again, this recent blitz is a great example. Trends were identified locally by retail LP and brought to our attention. Deputies and officers in plainclothes worked with members of the ORC task force inside local stores over a two-day period. Those efforts resulted in multiple arrests and the identification and arrest of a local business operator who was buying stolen merchandise and then reselling it for his own profit. This success story underscores the importance of a strong partnership.

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Security » Innovation » Service

January – February 2011

MILLIE KRESEVICH is senior manager of asset protection at Luxottica. She has over sixteen years of experience in big-box, corporate, and specialty loss prevention. Kresevich holds an associate degree in criminal justice and a bachelor degree, summa cum laude, in social psychology. She is active in the industry, including sitting on the legislative committee for the National Retail Federation and serving as legislative chair for the Coalition of Law Enforcement and Retail. Kresevich is a member of a nationwide Organized Retail Crime Task Force and has contributed to the development of certification programs for the Loss Prevention Foundation. In 2008 she was a recipient of the 20 under 40 Security Executive award. She can be reached at 513-765-6000 extension 27517 or mfilipov@luxotticaretail.com. |

LPportal.com

Loss Prevention, Auditing & sAfety ConferenCe 2011 April 11-14 • Gaylord Palms Resort & Convention Center • Orlando, FL

Asked to do more with less, loss prevention executives continue to add value to their companies’ bottom lines. RILA’s Loss Prevention, Auditing & Safety Conference is the only retail-specific LP conference that focuses on The Full Spectrum of LP. The conference will cover the most pressing issues facing LP in both general sessions and six breakout tracks: Leadership & Development, Workplace Safety, Investigations, Operational Audit, Strategy & Planning, and Technology & Innovation. RILA’s interactive sessions give you the opportunity to participate in discussions with leading experts and top retail executives.

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The Full Spectrum of Loss Prevention

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LP Magazine | January – February 2011

Fundamentals

Game Changers in LP O

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.

ne of the Christmas gifts I received was a book—The Games that Changed the Game: The Evolution of the NFL in Seven Sundays by Ron (Jaws) Jaworski. It’s a deep inside football strategy book by a former quarterback and current analyst. The premise is there are seven identifiable strategy changes that impacted how football would be played going forward. He used coaches’ film and exhaustive interviews to determine the how, when, and whys. His assessment started in 1964 and the final change he notes was in 2002. I’m not sure why he went back to 1964, availability of film, or when he first became a fan. [I bet you may be thinking, “Hey, when did this become a book review column?”] Calm down. The book got me to thinking about what have been the game changers in LP. Similar to Jaws, my assessment is limited to my own personal history starting in, say, the mid-eighties…since we have no coaches’ tape; but wouldn’t that be cool if we did?

The book The Games that Changed the Game: The Evolution of the NFL in Seven Sundays got me to thinking about what have been the game changers in LP. Electronic Article Surveillance. The department store chain I worked for had no EAS, nor did our competitors in the Northeast. When EAS was rolled out, there was a reduction in junior’s and young men’s. The impulsive, taking-it-for-me thief was shut down. Grab and runs had to take a few extra seconds to figure out who would chase and how close they were. EAS stopped some theft, and slowed others down.

Exception-Based Reporting. Prior to this technology, there were pages and pages of green bar reports to go through. [Hey, what’s green bar?] Oh, sorry, that was printer paper that had half-inch stripes of white background followed by a half inch of light green background. It made it easier to follow lines across the length of the paper. Exception-based reporting used the power of computing to highlight the concern without having to flip pages and wear out highlighters. I still remember the first vendor demonstration I sat through. There were four or five investigators in the room looking at live data…and writing furiously about their new found thieves. Color CCTV. With color, no longer did you have to make an “educated” guess on whether that was money or something else. Was that blouse green, red, or blue? No longer an issue. Taking guessing out of our world is a good thing. Digital Video Recorders. Not having to worry about recycling video tapes, the age of the tape, or whether a manager will remember to turn on the recorder is all good. But being able to save time on tape review is the real winner. Why scan through dead time, or if your exception-based reporting program is compatible, why not just look at the exceptions instead of everything? Networking. This is a very general term for conferences, blogs, message boards, magazines, and email groups. The ability to share data, concerns, or ideas has increased the mental bandwidth of our industry. The shared positions have improved our ability to change law. On a local level there are police departments that provide near live-time updates on large theft incidents. All of this makes us a better resource. Not making my list are merchant protection statutes, fiber optics, awareness programs, ink tags, RFID, and GPS devices. I should also say that I believe general technology, including voicemail, cell phones, email, and mobile computing, all made a huge impact on what we do. But these are too general for this discussion. I should point out that in Jaworski’s book, offense was the first change, followed by defense, offense, offense, defense, defense, and defense. That’s similar to how we operate if we consider the loss drivers to be playing offense. Next issue I’ll look at the offensive game changers. Different thoughts? I’d love to hear them.

January – February 2011

LPportal.com

2011

Loss Prevention

Resource Guide

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Detex Corporation

Category Access Control Alarm Response Alarms Auditing Case Management Cash Handling Check/Credit Card Fraud Civil Recovery Consulting EAS Education/Certification Emergency Services Employment/Recruiting Exception Reporting Guards/Protective Services Hotline/Data Gathering Services Inventory Investigations Logistics Security Other Personnel Outsourcing Physical Security Pre-employment Screening Product Protection Refund/Returns Management RFID Safety Training/Awareness Video Monitoring

302 Detex, New Braunfels, TX 78130 TELEPHONE: 800-729-3839 FAX: 800-653-3839 CONTACT: Ken Kuehler Email: kk@detex.com Web Site: www.detex.com

For more than a century, Detex has earned the trust of millions of property owners to secure and protect their people and property. From our newest innovations in life safety and security door hardware, integrated door security systems, and guard tour verification technologies to our original Watchman’s clocks, Detex, a USA company, designs, manufactures, markets, and ships our products from New Braunfels, Texas, and is recognized as a best-inclass life safety, security, and security assurance solutions provider worldwide. Call us today to discuss delayed egress, multipoint locks, or one of our many other products that help control shrink.

Direct Source

8176 Mallory Ct, Chanhassen, MN 55317 TELEPHONE: 952-934-8000 FAX: 952-934-8030 CONTACT: Brad Fick Email: sales@directsource.com Web Site: www.directsource.com

Access Control Atlanticom Systems

2140 Highway 88, Brick, NJ 08724 TELEPHONE: 888-845-CCTV CONTACT: Michael Barlow, President Email: lpmag@atlanticom.com Web Site: www.atlanticom.com

As a proven leader in integrated surveillance and security systems, Atlanticom can provide you with the support you need to protect your assets, reduce your losses, and support your investigations no matter what industry you are in. Enterprise Security Technology solutions, from concept to completion, is our specialty. Integrated video surveillance, physical access control, and intrusion detection systems alongside a professional, dedicated staff, and the result is an exceptional security solution experience. Whatever your needs, Atlanticom is your single-source solution for equipment supply, installation, and service for a variety of security technologies...with exceptional service programs to meet your critical needs today and tomorrow.

Bass Security

26701 Richmond Rd, Cleveland, OH 44146 TELEPHONE: 888-774-3400 FAX: 888-774-3500 CONTACT: Joe Mignone Email: sales@basssecurity.com Web Site: www.bass-security.com Bass Security has been focused on providing turnkey solutions for retailers nationwide for over 34 years. With a customer base of over 100,000 retailers in the United States alone, we are experts at solving problems for the industry. Our offerings include: CCTV solutions Alarm systems Access control EAS Locksmith services Safes Web-based reporting and alarm monitoring C ustomization and installation of door locks and loss prevention hardware doors and frames Facility-wide key control and standardized lock systems A ssistance in construction planning for new facilities or upgrading your current system

Direct Source is a nationwide technology solutions provider for tier-one retail, warehouses, and distribution centers. Specializing in hardware procurement, software development, and deployment services, the company can work with loss prevention professionals to perform an analysis of available technologies. Work alongside Direct Source to perform an analysis to identify a secure solution that is cost-efficient, flexible, scalable, and easy to integrate with current systems and future plans. Examples: Facility access control Camera placement and installation Monitors Encoders and decoders NVRs, DVRs, and storage arrays Video management software Business analytic software Related accessory installations

Genetec

2280 Alfred-Nobel Blvd, Ste 400, Montreal, Quebec H4S 2A4 TELEPHONE: 514-332-4000 FAX: 514-332-1692 Email: info@genetec.com Web Site: www.genetec.com Genetec is a pioneer in the physical security and public safety industry and a provider of world-class IP license plate recognition (LPR), video surveillance, and access control solutions. With Genetec solutions retail organizations can create enterprise-wide video management systems over existing IT networks and integration of POS transaction data for exception reporting. Loss prevention departments can also remotely or locally monitor and manage real-time alarms from the store’s EAS, intrusion, or access control systems all from one easy-to-use interface. For more information, visit genetec.com.

InstaKey Security Systems

7456 W. 5th Ave, Lakewood, CO 80226 TELEPHONE: 303-761-9999 FAX: 303-761-6359 CONTACT: Cita Doyle Email: cdoyle@instakey.com Web Site: www.instakey.com

2011 Loss Prevention Resource Guide

We are committed to making key management simple by saving you time, money, and improving your overall security. When an immediate lock change is required, this system eliminates necessary locksmith expenses by utilizing lock cylinders that can be rekeyed by onsite personnel up to nine times without removing cores or lock hardware. Our system ends the need to rekey when keys are returned by managing restricted serialized keys, and improves keyholder accountability with web-based key control providing audit/ exception reporting that maintains program compliance.

Alarm Response Detex Corporation

302 Detex, New Braunfels, TX 78130 TELEPHONE: 800-729-3839 FAX: 800-653-3839 CONTACT: Ken Kuehler Email: kk@detex.com Web Site: www.detex.com

Kenstan Lock Company

101 Commercial St, Plainview, NY 11803 TELEPHONE: 516-576-9090 FAX: 516-576-0100 CONTACT: Oscar Bosch Email: obosch@kenstan.com Web Site: www.kenstan.com

Kenstan Lock Company manufacturers a full line of high-quality showcase and cabinet locks for commercial, retail, and industrial use. With our commitment to total service, we can assist you with security layouts, keying plans, and customized products to meet your specific security demands.

Niscayah

30 Commerce Way, Woburn, MA 01801 TELEPHONE: 800-582-0113 FAX: 617-568-5130 CONTACT: Paul Baratta Email: paul.baratta@niscayah.us Web Site: www.niscayah.us Niscayah builds partnerships with customers to design and deliver dynamic, innovative security solutions based on a retailer’s specific business requirements. Our Retail Solutions can be customized or standardized across regional, national, and international platforms. Solutions include a full array of our interactive iMPACT SOLUTIONS Suite, monitoring services, customer-care support services, as well as a total systems maintenance program.

Security Door Controls

801 Avenida Acaso, Camarillo, CA 93012 TELEPHONE: 800-413-8783 FAX: 805-494-8861 CONTACT: Sarah Geringer Email: service@sdcsecurity.com Web Site: www.sdcsecurity.com

The SDC Exit Check™ 1511S deters theft and unauthorized egress. Features include verbal warning that security has been alerted, digital countdown display indicating release time, egress confirmation or door was not opened, status outputs, and control inputs. Additional configurations: S6000DE delayed-egress exit devices; 101-DE Series wall-mount delayed-egress controller for magnetic locks with assignable keypad reset, bypass, and access control. Additional SDC products include Standalone and PC-Managed Access Control Systems, Exit Alarms, Magnetic Locks, Electric Strikes, Mechanical and Electrified Cylindrical and Mortise Locksets, Mechanical and Electric Latch Retraction Exit Devices, Standalone Lockets, Battery Back-up Power Supplies, and Mantraps.

For more than a century, Detex has earned the trust of millions of property owners to secure and protect their people and property. From our newest innovations in life safety and security door hardware, integrated door security systems and guard tour verification technologies to our original Watchman’s clocks, Detex, a USA company, designs, manufactures, markets, and ships our products from New Braunfels, Texas, and is recognized as a best-inclass life safety, security, and security assurance solutions provider worldwide. Call us today to discuss delayed egress, multipoint locks, or one of our many other products that help control shrink.

Niscayah

United Security Protective Services, LLC

159 N. Main St, Mullica Hill, NJ 08062 TELEPHONE: 800-978-6063 FAX: 856-456-7108 CONTACT: Kevin Cleary Email: info@unitedguards.com Web Site: www.unitedguards.com

United Security offers onsite verification for alarm response in addition to our comprehensive suite of security and loss prevention solutions. Through our network of approved vendors in the U.S., Canada, and Puerto Rico, United Security will dispatch personnel scrutinized to meet training, insurance, and licensing standards to any alarm activation, avoiding the risk of sending an employee in case of a criminal act. Additionally, United Security completes a site survey preventing costly police presence for false alarms. United Security’s Alarm Response program protects your company’s assets and the safety of employees, while providing a cost-effective alternative to municipal fines.

2011 Loss Prevention Resource Guide

Alarms

Auditing

Ackerman Security

7585-C Ponce de Leon Ave, Atlanta, GA 30340 TELEPHONE: 770-798-0672 FAX: 888-439-2559 CONTACT: Marc Hoffmann Email: marc.hoffmann@ackermansecurity.com Web Site: www.ackermancommercial.com

Jack L. Hayes International, Inc.

27520 Water Ash Dr., Ste 100, Wesley Chapel, FL 33544 TELEPHONE: 813-991-5628 FAX: 813-991-5682 CONTACT: Mark R. Doyle Email: mrd@hayesinternational.com Web Site: www.hayesinternational.com Hayes International is internationally recognized as the foremost inventory shrinkage control consulting firm in the world. For over 30 years, we have assisted retail, distribution, and manufacturing companies become more profitable through effective inventory shrinkage control. We have developed a reputation within the retail area that is second to none. Hayes consultants continuously travel throughout North America conducting third-party loss prevention and safety compliance audits for our clients, while providing practical solutions for unnecessary loss exposures. All Hayes consultants came up in the retail industry and have twenty-plus years of LP experience. Contact us today and experience the difference.

1-866-343-1234 www.ackermansecurity.com

With national monitoring programs starting at $18.95 per month, Ackerman Security Commercial Solutions Group offers a complete line of electronic security products for the retail industry, including intrusion-detection systems, fire alarm systems, video surveillance, and access control. With forty-two years of experience, we are a company dedicated to providing the highest level of customer service in the industry. Our team of sales consultants, design specialists, and project management staff, engineer and design systems that increase operational efficiencies as well as minimize losses.

Carttronics LLC

12310 World Trade Dr., Ste 108, San Diego, CA 92128 TELEPHONE: 858-312-5711 FAX: 858-618-2702 CONTACT: Barry Gallace Email: BarryG@carttronics.net Web Site: www.carttronics.com Shoplifting, ORC, and dishonest and inattentive employees are responsible for 78.0 percent of retail shrink according to the 2009 Global Retail Theft Barometer. Carttronics’ active RF-based solutions attack these causes of shrink in real time to stop loss-producing events now, resulting in reduced shrink and increased profitability beginning day one. CarttronicsBOBS™, POPS™, BASKETTRAK™, and CAPS® are supported by StorePort™, the company’s web-based monitoring and management portal that also serves to deliver valuable business intelligence to our retailer partners to help focus limited resources on high-priority opportunities.

Detex Corporation

302 Detex, New Braunfels, TX 78130 TELEPHONE: 800-729-3839 FAX: 800-653-3839 CONTACT: Ken Kuehler Email: kk@detex.com Web Site: www.detex.com

Loss Prevention Associates, Inc.

9550 Warner Ave, Ste 250, Fountain Valley, CA 92708 TELEPHONE: 888-688-2405 FAX: 888-846-4140 CONTACT: Bradley Kelsheimer Email: BKelsheimer@LPAssociates.com Web Site: www.LPAssociates.com Loss Prevention Associates is a nationwide leader in security consulting, investigations, and business risk services. We specialize in business investigation solutions that will reduce your losses or liability. When our clients need prompt, continued access to a variety of detailed, objective, and often confidential information, we can provide them with a decisive advantage in the business world. Helping to safeguard the integrity of your business, our extensive, nationwide investigative capabilities can provide your organization with sensitive data that might otherwise be difficult to obtain.

LP Innovations, Inc.

37 Birch St, Milford, MA 01757 TELEPHONE: 877-574-6682 FAX: 508-449-3965 CONTACT: David Johnston Email: solutions@lpinnovations.com Web Site: www.lpinnovations.com LP Innovations (LPI) is a leader in providing retailers with nationwide loss prevention solutions focused on earnings improvement. Since 1998 LPI has partnered with retailers of all segments and sizes, demonstrating proven results that dramatically reduce expenses, improve shrink, and increase profitability. Our trusted solutions are used today by many leading retailers either as a complete loss prevention function or a supporting resource to an existing LP department. Our wide range of services include best practice and specialized auditing, exception-reporting analysis, investigative resources, training and awareness programs, mystery and integrity shops, and much more.

LP Software, Inc.

7000 W. 111th St, Ste 305, Worth, IL 60482 TELEPHONE: 708-361-4310 FAX: 708-876-5940 CONTACT: Michelle Michael Email: mmichael@lpguys.com Web Site: www.LPguys.com For more than a century, Detex has earned the trust of millions of property owners to secure and protect their people and property. From our newest innovations in life safety and security door hardware, integrated door security systems, and guard-tour verification technologies to our original Watchman’s clocks, Detex, a USA company, designs, manufactures, markets, and ships our products from New Braunfels, Texas, and is recognized as a best-inclass life safety, security, and security assurance solutions provider worldwide. Call us today to discuss delayed egress, multipoint locks, or one of our many other products that help control shrink.

LP Software, Inc. is a leading supplier of incident management and auditing software solutions. Our powerful reporting tool allows you to analyze data at the click of a mouse. We strive to streamline your company’s loss prevention, operations, employee relations, and risk management departments. Our product suite offers a comprehensive, cost-effective, and highly customizable solution to help protect your company’s bottom line. We are now offering telephone and web hotline services to provide organizations a

2011 Loss Prevention Resource Guide

complete solution to gather information on all of your organization’s incidents. Visit us at www.LPguys.com or call us today to learn more about our suite of services.

Profitect

1601 Trapelo Rd, Ste 286, Waltham, MA 02451 TELEPHONE: 781-290-0009 FAX: 781-290-0076 CONTACT: Lisa Strunin Email: lisa@profitect.com Web Site: www.profitect.com Profitect offers a comprehensive suite of software solutions that targets shrink, waste, and margin loss for increased retailer’s profit through loss prevention, fraud detection, and compliance assurance. The solution shifts your loss prevention process into a profitprotection process, turning knowledge into actions by employing both predictive analytics and pattern-recognition algorithms to pinpoint risk areas and entities, generate actionable alerts, and prescribe corrective actions. Profitect has been consistently delivering a 5 – 8 percent profit increase in less than 12 months at major supermarket, convenience store, department store, specialty, and fashion chains across Europe, Asia, South Africa, and North America.

Case Management Enabl-u Technologies

LP Software, Inc.

7000 W. 111th St, Ste 305, Worth, IL 60482 TELEPHONE: 708-361-4310 FAX: 708-876-5940 CONTACT: Michelle Michael Email: mmichael@lpguys.com Web Site: www.LPguys.com

Cash Handling

One Fairchild Ct, Ste 210, Plainview, NY 11590 TELEPHONE: 877-343-7863 FAX: 516-870-0520 CONTACT: Kevin McMenimen Email: Kevin.McMenimen@enabl-u.com Web Site: www.enabl-u.com

Corporate Safe Specialists

14800 S. McKinley Ave, Posen, IL 60469 TELEPHONE: 800-342-3033 FAX: 708-371-3326 CONTACT: Rosemary Leonard Email: leonarr@corporatesafe.com Web Site: www.corporatesafe.com

Enabl-u Technologies, a division of ISO Crime Analytics, Inc., provides advanced data management solutions that offer the unique advantage of increasing your ability to efficiently manage tasks, streamline communication, issue alerts, generate in-depth reports, perform investigative and comprehensive link analysis, monitor training, track assets, score audits, and much more. Our R&D investment has resulted in cutting-edge enhancements to our APIS system, as well as creating advanced systems applicable to all areas of business operations. Our industry-leading software systems generate results in data management, emergency preparedness, HR modules for pre-employment tracking, and allegation intake and investigation.

Global Compliance

13950 Ballantyne Corporate Place, Charlotte, NC 28277 TELEPHONE: 800-528-5745 FAX: 704-552-5820 CONTACT: Michelle Midkiff Email: michelle.midkiff@globalcompliance.com Web Site: www.globalcompliance.com Global Compliance is a leading global provider of comprehensive ethics and compliance solutions that can help retailers build a culture of integrity, reduce risk, and minimize loss. We serve over 4,000 clients…including over 100 retailers…and their 25-millionplus employees in over 200 countries and territories. Our integrated suite of ethics and compliance solutions, including employee hotline services, training and education, expert advisory services, and performance and benchmarking solutions suit every retail culture, from specialty retailers to department stores to big-box retailers. Visit us at www.globalcompliance.com.

Founded in 1988, CSS is an industry leader providing innovative security solutions to retailers and restaurants globally. CSS safes, smart safes (ACCS), and kiosks feature electronic or biometric locks and can be configured to provide closed-loop cash management processes to improve staff productivity and maximize cash flow while minimizing risk of armed robbery, burglary, and internal theft. CSS offers live 24/7/365 technical phone support and has a U.S. service network that can provide on-site service within four hours. Learn more about CSS and its products at www.corporatesafe.com.

Dunbar Armored, Inc.

50 Schilling Rd, Hunt Valley, MD 21031 TELEPHONE: 800-888-2129 CONTACT: Ed Walsh Email: sales@dunbararmored.com Web Site: www.dunbararmored.com

Dunbar’s comprehensive cash management solutions provide for the safeguarding of valuables by delivering innovative security services. Backed by our nationwide armored logistics network, we provide integrated loss prevention and cash management services. Our comprehensive solutions work in unison to simplify your cash handling processes, improve awareness of cash flow, and expedite funds availability, all while adding an increased layer of security and protection to your employees, customers, and overall business operation. Dunbar—Revolutionizing Cash Logistics

2011 Loss Prevention Resource Guide

Sure ‘N Fast Counterfeit Detector

7900 N. Radcliffe St, Bldg 101A, Bristol, PA 19007 TELEPHONE: 215-547-7110 FAX: 215-547-0842 CONTACT: Norm Siegfried Email: info@daboink.com Web Site: www.SureNFast.com

Consulting Contact, Inc.

700 Matthews-Mint Hill Rd, Ste C, Matthews, NC 28105 TELEPHONE: 770-335-4891 Fax: 704-365-1026 CONTACT: Amber Virgillo Email: amberv@lpportal.com Web Site: www.contactinc.com

Sure ‘N Fast detects counterfeit inks on washed or bleached treasury paper bills. The Sure ‘N Fast Counterfeit Detector is good for testing over 1,000 bills with the large bottle and 200 with the pen size. Sure ‘N Fast Counterfeit Detector is economical and easy to use. The applicator will not dry out even if you lose the cover. It is non-toxic and effective on most all counterfeit bills currently in circulation. The Sure ‘N Fast Counterfeit Detector is highly accurate and substantially more effective than counterfeit detector pens.

Contact, Inc. is a boutique consulting, communication, training, and awareness company specializing in loss prevention. The Contact approach includes: Analyzing systems, operations, and people strategies, Implementing materials to excite and inform associates, and Measuring results using proven tracking systems. Based in Charlotte, NC, Contact is uniquely attuned to improving operating results for retail organizations by providing loss prevention expertise and services designed to lower shrinkage, expense, and loss. Contact’s extensive experience in loss prevention, risk management, operations, and safety enables us to provide the highest quality program with little client effort.

Wilson Safe Company

Jack L. Hayes International, Inc.

3031 Island Ave, Box-5310, Philadelphia, PA 19142 TELEPHONE: 215-492-7100 FAX: 215-492-7104 CONTACT: Bob Kassoff Email: RKassoff@Wilsonsafe.com Web Site: www.wilsonsafe.com Wilson Safe Company is both a manufacturer and distributor of mechanical safes as well as electronic cash-handling equipment. We have been servicing the nation for over 100 years. We provide a team of sales consultants, 24/7 service, and safe move capabilities anywhere in the U.S. and beyond.

Check/Credit Card Fraud Gulfcoast Software Solutions

912 Drew St, Clearwater, FL 33755 TELEPHONE: 727-441-2131 FAX: 813-436-5256 CONTACT: Tim Lindblom Email: sales@gulfcoastsoftware.com Web Site: www.gulfcoastsoftware.com

LP Innovations, Inc.

Gulfcoast Software Solutions’ video and data recorders feature bestin-class video compression, multiple-device mining, and a broad range of real-time, event-driven, local and enterprise tools. With our exception-based tools and alerts, store managers and LP executives complete their routines in just a few minutes each morning, addressing issues in hours, not days or weeks.

Civil Recovery Palmer, Reifler and Associates P.A.

1900 Summit Tower Blvd, Ste 820, Orlando, FL 32810 TELEPHONE: 866-875-6565 FAX: 407-875-0739 CONTACT: Jeff Welch Email: info@civilrecoverylaw.com Web Site: www.civilrecoverylaw.com

37 Birch St, Milford, MA 01757 TELEPHONE: 877-574-6682 FAX: 508-449-3965 CONTACT: David Johnston Email: solutions@lpinnovations.com Web Site: www.lpinnovations.com LP Innovations (LPI) is a leader in providing retailers with nationwide loss prevention solutions focused on earnings improvement. Since 1998 LPI has partnered with retailers of all segments and sizes, demonstrating proven results that dramatically reduce expenses, improve shrink, and increase profitability. Our trusted solutions are used today by many leading retailers either as a complete loss prevention function or a supporting resource to an existing LP department. Our wide range of services include best practice and specialized auditing, exceptionreporting analysis, investigative resources, training and awareness programs, mystery and integrity shops, and much more.

PCG Solutions, Inc.

4101 Tates Creek Ctr Dr., Ste 150, Lexington, KY 40517 TELEPHONE: 888-318-1750 CONTACT: Walter Palmer EMAIL: wpalmer@pcgsolutions.com WEB SITE : www.PCGsolutions.com

Representing many of the nation’s largest retailers for over seventeen years, Palmer, Reifler and Associates continues to expand its client base in recovery for internal and external theft claims. The firm’s approach helps retailers recoup dollars lost from shrink and minimize the costs associated with theft. Our approach follows the law, but also utilizes the best practices and technology of the collection industry. As your civil recovery, restitution hybrid, and returned-checks recovery provider, Palmer, Reifler and Associates strives to deliver professionalism and results that exceed our clients’ expectations. For more information please call us toll free at 866-875-6565.

PCG Solutions is recognized as a leading consulting firm in the retail loss prevention and asset protection market. We provide outside expertise, objective insights, and strategic-level consulting to assist your organization in designing an approach that will produce the results you desire. Whether you are looking for benchmark data on industry practices, strategic maps to guide your organization’s efforts, exploring international expansion, or want to improve the capabilities of your staff, contact us to find out why leading retail organizations work with PCG and how they find value in our services.

2011 Loss Prevention Resource Guide

The Shulman Center for Compulsive Theft & Spending

Best Security Industries

P.O. Box 250008, Franklin, MI 48025 TELEPHONE: 248-358-8508 FAX: 248-358-8508 CONTACT: Terrence Daryl Shulman, JD, LMSW, ACSW, CAAC, CPC Email: terrenceshulman@theshulmancenter.com Web Site: www.theshulmancenter.com Terrence Shulman has been a leader in theft prevention, education, and treatment since 1992. An attorney, therapist, and consultant, Shulman has authored several books, including Something for Nothing: Shoplifting Addiction and Recovery, Biting the Hand That Feeds: The Employee Theft Epidemic, and B ought Out and $pent! Recovery from Compulsive $hopping and $pending. He also founded C.A.S.A. (Cleptomaniacs and Shoplifters Anonymous). Shulman has appeared on over 100 TV shows and has been quoted in over 100 articles. He has organized two international conferences and presented at many others.

EAS ADT

One Town Center Dr., Boca Raton, FL 33486 TELEPHONE: 561-981-4275 CONTACT: Lee Pernice Email: lpernice@adt.com Web Site: www.adtbusiness.com/retail

We stock and immediately ship all forms of EAS loss prevention tags, labels, detachers, deactivators, and systems. Our own BSI RF system is unparalleled in ease of installation and performance. We buy and sell all Checkpoint and Sensormatic systems and stock CCTV solutions for public-view monitoring and digital recording. Business radios, counterfeit currency detection, and covert video investigation kits are now available as well. Our customer service and reliable shipping are second to none.

Catalyst Tags, Inc.

9180 Boggy Creek Rd, Ste 5, Orlando, FL 32824 TELEPHONE: 407-440-2867 FAX: 407-641-8847 CONTACT: Larry Ford Email: lf@catalyst-direct.com Web Site: www.catalyst-direct.co.uk/catalyst_us/

ADT Worldwide is a leading supplier of electronic security for the retail industry, providing retailers with business intelligence tools to improve operations and profitability. The company offers a variety of tools, including everything from advanced anti-theft systems, such as electronic article surveillance (EAS), to sophisticated integrated systems with point-of-sale and data analytic features. Visit www.adt.com for more information.

Bass Security

755 NW 17th Ave, Delray Beach, FL 33445 TELEPHONE: 561-900-2744 FAX: 561-900-2747 CONTACT: Eric Brotherhood Email: ebrotherhood@bsi-eas.com Web Site: www.bsi-eas.com

26701 Richmond Rd, Cleveland, OH 44146 TELEPHONE: 888-774-3400 FAX: 888-774-3500 CONTACT: Joe Mignone Email: sales@basssecurity.com Web Site: www.bass-security.com Bass Security has been focused on providing turnkey solutions for retailers nationwide for over 34 years. With a customer base of over 100,000 retailers in the U.S. alone, we are experts at solving problems for the industry. Our offerings include: CCTV solutions Alarm systems Access control EAS Locksmith services Safes Web-based reporting and alarm monitoring C ustomization and installation of door locks and loss prevention hardware doors and frames Facility-wide key control and standardized lock systems A ssistance in construction planning for new facilities or upgrading your current system

Catalyst Tags, Inc. is your complete provider of EAS security solutions. We have been a leading provider of EAS solutions to retailers around the world for over seven years. Our offering includes complete EAS systems to fit any need, and a complete selection of RF and AM tag solutions, including our innovative Bottlelox. Our Catalyst exclusive CSTR (Catalyst Source Tag Recycling) program is now in use at major retailers around the world, providing significant cost savings. We are ready to provide value to your organization through our wide product offering, competitive pricing, and prompt stock delivery.

Checkpoint Systems, Inc.

101 Wolf Dr., Thorofare, NJ 08086 TELEPHONE: 800-257-5540 Email: marketingleads@checkpt.com Web Site: www.CheckpointSystems.com Checkpoint Systems is a global leader in shrink management, merchandise visibility, and apparel-labeling solutions. Checkpoint partners with retailers and their suppliers to reduce shrink, increase shelf availability, ensure labeling consistency, and achieve operational excellence. Checkpoint’s solutions enable retailers to enhance the shopping experience for consumers and grow their businesses profitably.

2011 Loss Prevention Resource Guide

Retailers Advantage, Inc.

2255B Queen St E, Unit 150, Toronto, ON M4E 1G3 TELEPHONE: 416-691-4730 FAX: 416-691-7725 CONTACT: Sheila Barry Email: shelia@retailersadvantage.com Web Site: www.retailersadvantage.com

Retailers are reporting a 40 to 60 percent reduction in shrink by using our a3tag compared to traditional EAS tags. The financial savings are being proven mathematically. Our Reusable Intelligent a3tag is the pathway to developing a complete management tool to control internal theft, inventory control, distribution, marketing, and more. Our new a3tag is fully compatible with your existing EAS systems. For more information please call Sheila Barry at 416-691-4730.

WG Security Products Inc.

3031 Tisch Way, Ste 602, San Jose, CA 95128 TELEPHONE: 408-241-8000 CONTACT: Alisyn Gularte Email: agularte@wgspi.com Web Site: www.wgspi.com

Food Marketing Institute

2345 Crystal Dr., Arlington, VA 22202 TELEPHONE: 202-452-8444 FAX: 202-220-0878 CONTACT: Amanda Bond-Thorley Email: abondthorley@fmi.org Web Site: www.fmi.org

The Food Marketing Institute (FMI) provides a wide range of resources for asset protection professionals in the food retail industry. A sset Protection Conference, March 6 – 9, 2011, Orlando, Florida (incorporating FMI’s previous separate loss prevention and risk, insurance, and safety management conferences) F ederal and state lobbying on key issues, including organized retail crime Cutting-edge research on shrink trends Thought leadership on industry issues

The Loss Prevention Foundation

700 Matthews-Mint Hill Rd, Ste C, Matthews, NC 28105 TELEPHONE: 704-837-2521 FAX: 303-761-6359 CONTACT: Gene Smith Email: gene.smith@losspreventionfoundation.org Web Site: www.losspreventionfoundation.org

Headquartered in the heart of Silicon Valley, WG Security Products Inc. has established itself as a leading designer and developer of loss prevention solutions with products ranging from electronic article surveillance (EAS) systems and tags to our intelligent asset protection “Wave” product line. The company’s growth is reflective of our ability to hear the voice of our customers and translate their needs into revolutionary security products that deliver value to our customers.

Education/Certification Center for Interviewer Standards & Assessment, Ltd

4932 Main St, Downers Grove, IL 60515 TELEPHONE: 866-616-5800 FAX: 630-852-7081 CONTACT: Wayne Hoover Email: whoover@w-z.com Web Site: www.certifiedinterviewer.com

Our mission is to advance the loss prevention profession by providing relevant, convenient, and challenging educational resources. We support this mission through a variety of ever-expanding initiatives, including two certification programs (LPQ and LPC), on-line educational resources, a career-oriented membership program, student scholarships, and a college and university program. Our certification programs are designed to give individuals the opportunity to gain valuable knowledge about retail, business, leadership, and loss prevention. A unique and powerful networking engine as the industry’s first and only professional membership program, the Foundation provides LP professionals of all levels the resources to excel in their careers.

Northern Michigan University

1401 Presque Isle Ave, Marquette, MI 49855 TELEPHONE: 906-227-2660 FAX: 906-227-1754 CONTACT: Prof. Bob Hanson Email: bhanson@nmu.edu Web Site: www.nmu.edu/LP

Certified Forensic Interviewer (CFI), an internationally recognized professional designation for the field of interview and interrogation, is focused on advancing professionalism and establishing recognized standards of excellence. It is more important now than ever to be sure the skills an interviewer uses are as up-to-date and legally sound as possible. To achieve this, the CFI designation has created a global standard for an objective set of standards to evaluate, measure, and certify the skill level of professional interviewers.

Don’t let that next promotion pass you by because you need a college degree. Our online Bachelor of Science degree in loss prevention management provides skills for the real world and access to a network of colleagues. We are an accredited institution that does not charge out-of-state tuition for web courses. This program was created with LP professionals from highly respected companies. We have a generous transfer policy and will work with you to maximize your potential. Check our website or call for information. This degree is relevant, online, and respected.

2011 Loss Prevention Resource Guide

Wicklander-Zulawski & Associates, Inc. 4932 Main St, Downers Grove, IL 60515 TELEPHONE: 800-222-7789 FAX: 630-852-7081 CONTACT: Shane Sturman Email: ssturman@w-z.com Web Site: www.w-z.com

type of emergency that occurs, our proprietary network of affiliates are licensed, insured, and available to meet your needs. Client relation specialists are available 24 hours a day, 7 days a week, 365 days a year. Realize the peace of mind and ease of utilizing a fullservice security personnel and loss prevention specialist by calling United Security today.

Employment/Recruiting Jennings Executive Recruiting

4800 SW Meadows Rd, Ste 300, Lake Oswego, OR 97035 TELEPHONE: 503-534-3604 CONTACT: Denise Jennings Email: denise@jenningsrecruiting.com Web Site: www.jenningsrecruiting.com Wicklander-Zulawski & Associates provide the most up-to-date training on interviewing techniques. Seminars include: I nterview and Interrogation Techniques A dvanced Workshop on Interview and Interrogation Techniques T elephone Interviewing I nterviewing Techniques for the Auditor P re-employment Interviewing Webinars include: I nterviewing Techniques for Non-Loss Prevention Personnel I nterviewing for Title 7 Infractions C ertified Forensic Interviewer (CFI) Preparation Course O nline classes at www.wzcampus.com

Emergency Services

Jennings Executive Recruiting executive search firm focuses on retail loss prevention throughout North America. Our specialty is focused on providing superior customer service to both client companies and candidates. Unlike many larger firms who try to do many things, we intend to stay focused on our core offering, which is identifying and securing talent for our clients. We search for passive candidates to match the opportunity. We pride ourselves in evaluating talent, making successful placements, and continual follow up before and after each search. Our approach is a personalized one. A refreshing approach in loss prevention recruiting.

LexisNexis

1000 Alderman Dr., Alpharetta, GA 30005 TELEPHONE: 800-590-8535 FAX: 770-752-6062 CONTACT: Joe Metro Email: joe.metro@lexisnexis.com Web Site: www.lexisnexis.com/screening

Security Resources

1155 Marlkress Rd, Cherry Hill, NJ 08003 TELEPHONE: 877-477-9638 FAX: 856-310-9192 CONTACT: Kristine Vece Email: kvece@securityresources.biz Web Site: www.securityresources.biz

Whether at one location or at hundreds, with one phone call our trademarked XpressGuard® service provides on-demand security guard services anywhere in the U.S., Canada, and Puerto Rico in four hours or less, guaranteed. Our “All-Star Team,” consisting of over seven hundred of the top-ranked security providers, responds ondemand when you need them, all through a single point of contact. All of our partners are fully licensed and insured with a proven track record meeting our clients’ needs. Whether for physical safety or natural disasters, such as hurricanes, you can rely on us any time in four hours or less.

United Security Protective Services, LLC

159 N. Main St, Mullica Hill, NJ 08062 TELEPHONE: 800-978-6063 FAX: 856-456-7108 CONTACT: Kevin Cleary Email: info@unitedguards.com Web Site: www.unitedguards.com

LexisNexis® brings clarity to your hiring decisions with innovative screening solutions developed from over thirty years supporting some of the largest companies worldwide. Our Retail Theft Contributory Database helps employers quickly identify applicants with a history of theft and/or fraud before a hiring decision is made. Participating employers contribute their own cases and use the database as needed to help make faster hiring decisions. Using the LexisNexis® Retail Theft Contributory Database as the first step in your screening process allows you to quickly and cost-effectively eliminate candidates from the hiring process that don’t meet your standards.

Loss Prevention Recruiters

9748 Andrea Dr., Concord Twp., OH 44060 TELEPHONE: 440-210-1867 FAX: 440-210-1358 CONTACT: Chris O’Leary Email: chriso@lprecruiters.com Web Site: www.lprecruiters.com

Loss Prevention Recruiters HELPING YOU MAKE INFORMED DECISIONS

United Security provides emergency response in five hours or less guaranteed, anywhere in the U.S., Canada, and Puerto Rico. Alarm malfunctions, infrastructure failures, criminal mischief, physical security concerns, employee safety, natural disasters, and any other

A leading national retail loss prevention recruiting solutions provider. O ur reputation is based upon providing sound advice and ethical behavior. W e will provide you with the level of customer service that you expect. H iring the wrong person will result in missed opportunities for profit improvement. Y ou will never be viewed as human capital. Y our confidentiality will never be compromised.

2011 Loss Prevention Resource Guide

LPjobs.com

MICROS-Retail

7868 Rea Rd, Ste F-302, Charlotte, NC 28277 TELEPHONE: 704-405-1415 FAX: 704-365-1026 CONTACT: Jim Lee Email: info@lpjobs.com Web Site: www.lpjobs.com

1800 West Park Dr., Westboro, MA 01581 TELEPHONE: 888-328-2826 FAX: 508-647-9495 CONTACT: Sales Email: info@micros-retail.com Web Site: www.micros-retail.com

LPjobs.com is the premier Internet site for recruiting loss prevention professionals. Thousands of LP professionals from store-level to executives search the LPjobs site monthly looking for opportunities to advance their careers. With affordable corporate memberships, LPjobs can provide your organization with a cost-effective method for targeting your recruiting efforts and avoiding the high costs and inefficiencies of search firms, newspaper advertising, and generic Internet web sites. Go online to see why retailers large and small use LPjobs.com to recruit quality LP professionals.

Exception Reporting

XBR® Loss Prevention and Store Analytics is an industry-leading, exception-based loss prevention system developed by MICROSRetail. A central application that allows you to quickly mine transaction data, XBR is the one business tool that can help you dramatically reduce shrink for immediate savings, greater productivity, and faster ROI…often in as little as three months. Focusing on exception-based reporting methods, XBR easily identifies, tracks, manages, and resolves issues, such as fraudulent transactions, productivity concerns, and training or compliance issues. The robust analysis features and multiple report types make it easier to use than the traditional in-house reporting systems.

StopLift Checkout Vision Systems

185 Alewife Brook Pkwy, Ste 401, Cambridge, MA 02138 TELEPHONE: 866-426-2479 FAX: 509-352-6048 CONTACT: Peter Parcellin Email: info@stoplift.com Web Site: www.stoplift.com

Gulfcoast Software Solutions

912 Drew St, Clearwater, FL 33755 TELEPHONE: 727-441-2131 FAX: 813-436-5256 CONTACT: Tim Lindblom Email: sales@gulfcoastsoftware.com Web Site: www.gulfcoastsoftware.com

CHECKOUT VISION SYSTEMS

InstaKey Security Systems

7456 W. 5th Ave, Lakewood, CO 80226 TELEPHONE: 303-761-9999 FAX: 303-761-6359 CONTACT: Cita Doyle Email: cdoyle@instakey.com Web Site: www.instakey.com

StopLift’s ScanItAll software is the fastest growing technology in loss prevention. Thousands of checkouts are right now having their video (from existing overhead cameras) automatically analyzed every moment by StopLift’s software to detect shrink visually, even when it leaves no data-trail, including: S weethearting between cashiers and customers B ottom-of-basket (BOB) and middle-of-basket (MOB) loss S elf-checkout loss O perational error, refund fraud, void fraud, and others Major chains are utilizing StopLift to significantly reduce shrinkage, deter future theft, and boost profitability. See video of actual detected incidents at www.stoplift.com. Call or email today to schedule a live web demonstration.

Guards/Protective Services Global Elite Group

825 East Gate Blvd, Ste 301, Garden City, NY 11530 TELEPHONE: 516-414-0487 FAX: 516-414-0488 Email: GSASales@globaleliteinc.com Web Site: www.globaleliteinc.com We are committed to making key management simple by saving you time, money, and improving your overall security. When an immediate lock change is required, this system eliminates necessary locksmith expenses by utilizing lock cylinders that can be rekeyed by onsite personnel up to nine times without removing cores or lock hardware. Our system ends the need to rekey when keys are returned by managing restricted serialized keys, and improves keyholder accountability with web-based key control providing audit/ exception reporting that maintains program compliance.

LP Innovations, Inc.

37 Birch St, Milford, MA 01757 TELEPHONE: 877-574-6682 FAX: 508-449-3965 CONTACT: David Johnston Email: solutions@lpinnovations.com Web Site: www.lpinnovations.com LP Innovations (LPI) is a leader in providing retailers with nationwide loss prevention solutions focused on earnings improvement. Since 1998 LPI has partnered with retailers of all segments and sizes, demonstrating proven results that dramatically reduce expenses, improve shrink, and increase profitability. Our trusted solutions are used today by many leading retailers either as a complete loss prevention function or a supporting resource to an existing LP department. Our wide range of services include best practice and specialized auditing, exceptionreporting analysis, investigative resources, training and awareness programs, mystery and integrity shops, and much more.

The Global Elite Group consists of four major service divisions that can accommodate a wide variety of client needs. We provide services in eight major domestic locations and multiple international locations. Global Security Associates, the founding division in 2002, covers a wide range of assignments from standing guard posts to executive protection and special events. Global Aviation Management provides security in both commercial and general aviation. Global Emergency Management covers emergency planning, response, and recovery needs and has deployed teams for Hurricanes Katrina, Gustav, and Ike. Global Consulting Services offers a wide range of services from business-continuity planning to threat assessment and security audits.

2011 Loss Prevention Resource Guide

United Security Protective Services, LLC

159 N. Main St, Mullica Hill, NJ 08062 TELEPHONE: 800-978-6063 FAX: 856-456-7108 CONTACT: Kevin Cleary Email: info@unitedguards.com Web Site: www.unitedguards.com

United Security Protective Services, LLC, proudly provides security and loss prevention professionals to suit client needs for temporary or permanent coverage of any site. United Security works with a nationwide network of approved providers scrutinized to meet training, insurance, and licensing standards in all 50 states, Canada, and Puerto Rico to ensure coverage of your site in five hours or less. A representative from United Security is your sole contact for anything from single-site alarm issues to nationwide remodels. One call to United Security Protective Services initiates a comprehensive solution tailored to your loss prevention and store facilities needs.

Hotline/Data Gathering Services Global Compliance

INFORM Applications, Inc.

888 Veterans Memorial Hwy, Hauppauge, NY 11788 TELEPHONE: 631-851-0222 FAX: 631-851-1769 CONTACT: Michael Jank Email: Michael_jank@ibi.com Web Site: www.informrmis.com

LP Software, Inc.

7000 W. 111th St, Ste 305, Worth, IL 60482 TELEPHONE: 708-361-4310 FAX: 708-876-5940 CONTACT: Michelle Michael Email: mmichael@lpguys.com Web Site: www.LPguys.com

Inventory Hart Systems

60 Plant Ave, Hauppauge, NY 11788 TELEPHONE: 800-252-2818 FAX: 631-439-8270 CONTACT: Susan Smith Email: sales@hartsystems.com Web Site: www.hartsystems.com

Hart Systems is a leading provider of technology-driven, physical inventory management solutions to the retail industry. Our solutions enable clients like Best Buy, Whole Foods, TJ Maxx, and others to conduct highly accurate and cost-effective physical inventories throughout their retail outlets. Hart delivers leading-edge scanning devices and integrated client-specific application software that, when in the hands of a retail client’s in-store associates, results in greater accuracy, more control, and significant cost savings as compared to an outsourced inventory service. Hart’s web-based portal provides your management team virtual oversight of your physical inventory while it is occurring.

RGIS

2000 E. Taylor Rd, Auburn Hills, MI 48326 TELEPHONE: 800-551-9130 CONTACT: Dale Huggins Email: sales@rgis.com Web Site: www.rgis.com INFORM Applications offers award-winning, web-based software solutions to support risk management and loss prevention professionals’ needs for data collection, consolidation, and reporting. Our products include a web-based incident reporting system, incident management/investigation system, and our #1-rated Risk Management Information System. Our technology is scalable to fit the diverse needs of our client base, which ranges from Fortune 50 to non-profits. Our products enable you to access your risk and loss prevention data on a 24/7 basis. Visit our web site at www.informrmis.com

RGIS is a market leader in supply-chain, inventory, insights, merchandising, and optimization solutions. Our services include, but are not limited to, inventory, supply-chain, compliance audits, store mapping, merchandising, resets, staffing solutions, and store optimization. We deploy employees in more than 40 countries, offering our customers unsurpassed geographic coverage and unique tools and processes to ensure accuracy, reliability, and efficiency.

2011 Loss Prevention Resource Guide

Investigations

Dunbar Armored, Inc.

Loss Prevention Associates, Inc.

LP Innovations, Inc.

37 Birch St, Milford, MA 01757 TELEPHONE: 877-574-6682 FAX: 508-449-3965 CONTACT: David Johnston Email: solutions@lpinnovations.com Web Site: www.lpinnovations.com

50 Schilling Rd, Hunt Valley, MD 21031 TELEPHONE: 800-888-2129 CONTACT: Ed Walsh Email: sales@dunbararmored.com Web Site: www.dunbararmored.com

Dunbar’s comprehensive cash management solutions provide for the safeguarding of valuables by delivering innovative security services. Backed by our nationwide armored logistics network, we provide integrated loss prevention and cash management services. Our comprehensive solutions work in unison to simplify your cashhandling processes, improve awareness of cash flow, and expedite funds availability, all while adding an increased layer of security and protection to your employees, customers, and overall business operation. Dunbar—Revolutionizing Cash Logistics

ENFORCER Transport Security, Inc.

LP Innovations (LPI) is a leader in providing retailers with nationwide loss prevention solutions focused on earnings improvement. Since 1998 LPI has partnered with retailers of all segments and sizes, demonstrating proven results that dramatically reduce expenses, improve shrink, and increase profitability. Our trusted solutions are used today by many leading retailers either as a complete loss prevention function or a supporting resource to an existing LP department. Our wide range of services include best practice and specialized auditing, exception-reporting analysis, investigative resources, training and awareness programs, mystery and integrity shops, and much more.

Logistics Security

820 S. Pine St, Waconia, MN 55387 TELEPHONE: 952-442-5625 CONTACT: Nick Erdmann Email: nick@transportsecurity.com Web Site: www.transportsecurity.com

Transport Security, Inc. has been providing cargo security solutions for over 30 years. The ENFORCER® product line includes king pin locks, which have prevented numerous trailer thefts; Air Cuff® locks, which prevented numerous attempted thefts of trucks in 2009; rear door trailer and container locks; C-TPAT compliant security seals; ABLOY® High-Security Padlocks; and The ENFORCER® Covert GPS Tracking Technology, which is a portable, web-based application that monitors assets covertly inside of trailers, containers, and sealed packages.

CargoNet

545 Washington Blvd, Jersey City, NJ 07310 TELEPHONE: 888-595-2638 FAX: 201-469-2027 CONTACT: Richard Kirk Email: rkirk@cargonet.com Web Site: www.cargonet.com

Sentry Technology Corporation

1881 Lakeland Ave, Ronkonkoma, NY 11779 TELEPHONE: 800-461-2803 FAX: 416-674-5075 CONTACT: Dave Rosen Email: drosen@sentrytechnology.com Web Site: www.sentrytechnology.com CargoNet helps prevent cargo theft and increases recovery rates through secure and controlled information sharing between theft victims and their business partners and law enforcement. CargoNet is centered on a national database and information-sharing system managed by crime analysts and subject-matter experts. CargoNet applies an integrated, layered approach that exploits the weakness of cargo thieves at multiple points and includes integrated databases, a theft-alert system, task force and investigations support, a tractor/trailer theft-deterrence program, the TruckStopWatch program, driver education and incentives, secondary-market monitoring and interdictions, crime trend analysis and loss control services, and training and education.

Sentry Technology manufactures the SentryVision® SmartTrack that uses patented technology to transmit video images from one or two PTZ cameras traveling on a carriage, along an aluminum rail mounted on the ceiling or wall of any facility. The camera provides unobstructed views of people and events that are not possible with conventional camera systems. SmartTrack can be operated using a conventional CCTV joystick console, a wireless PDA, and over the web. Sentry develops and sells OperationalVideo, which is a browser-based video application to assist retailers with real-time management of security, merchandising audits, and employee procedure compliance.

2011 Loss Prevention Resource Guide

Other

Detex Corporation

Carttronics LLC

Personnel Outsourcing LP Innovations, Inc.

37 Birch St, Milford, MA 01757 TELEPHONE: 877-574-6682 FAX: 508-449-3965 CONTACT: David Johnston Email: solutions@lpinnovations.com Web Site: www.lpinnovations.com

302 Detex, New Braunfels, TX 78130 TELEPHONE: 800-729-3839 FAX: 800-653-3839 CONTACT: Ken Kuehler Email: kk@detex.com Web Site: www.detex.com

For more than a century, Detex has earned the trust of millions of property owners to secure and protect their people and property. From our newest innovations in life safety and security door hardware, integrated door security systems and guard-tour verification technologies to our original Watchman’s clocks, Detex, a U.S. company, designs, manufactures, markets, and ships our products from New Braunfels, Texas, and is recognized as a best-inclass life safety, security, and security assurance solutions provider worldwide. Call us today to discuss delayed egress, multipoint locks, or one of our many other products that help control shrink.

InstaKey Security Systems

Physical Security American Integrated Security Group Inc. 15-01 132nd St, College Point, NY 11356 TELEPHONE: 718-576-1471 FAX: 718-785-3213 CONTACT: Dave Sherer Email: dsherer@aisg-online.com Web Site: www.aisg-online.com

AISG is a full-service security consultant and integrator dedicated to providing leading-edge security solutions customized to fit the exact requirements and budget of each client. Our services include: I P video surveillance with 2-way audio R emote video monitoring C entral station video/burglary monitoring A nalog CCTV A ccess control systems I ntrusion alarm systems I nteractive central video monitoring D ata and networking U narmed/armed officers

7456 W. 5th Ave, Lakewood, CO 80226 TELEPHONE: 303-761-9999 FAX: 303-761-6359 CONTACT: Cita Doyle Email: cdoyle@instakey.com Web Site: www.instakey.com

Next Level Security Systems

6353 Corte del Abeto, Carlsbad, CA 92011 TELEPHONE: 760-444-1410 CONTACT: Jumbi Edulbehram Email: sales@nlss.com Web Site: www.nlss.com

Next Level Security Systems is a physical security company focused on developing a new breed of networked security solutions. Next Level’s products and solutions combine the performance, sophistication, and functionality of enterprise-class security systems into a compact, unified solution. Led by a team of seasoned security executives and world-class engineers, Next Level is built around the core belief that exceptional performance and advanced technology should be both easy to use and affordable. The company’s flagship solution, the NLSS Gateway, combines video management, access control, video analytics, intrusion detection, and two-way audio into a single appliance.

2011 Loss Prevention Resource Guide

Pivot3

LexisNexis

6605 Cypresswood Dr., Spring, TX 77379 TELEPHONE: 281-516-6000 CONTACT: Lee Caswell Email: sales@pivot3.com Web Site: www.pivot3.com

1000 Alderman Dr., Alpharetta, GA 30005 TELEPHONE: 800-590-8535 FAX: 770-752-6062 CONTACT: Joe Metro Email: joe.metro@lexisnexis.com Web Site: www.lexisnexis.com/screening

Pivot3 was founded in 2003 on the idea that revolutionary, scale-out architecture with integrated server and storage virtualization could deliver higher availability in a cost-effective, simpler way than traditional, proprietary products that treat servers and storage as separate technologies. The Pivot3 Scale-Out Application Platform reduces cost by consolidating server and shared-storage functionality in a common appliance, and features application failover to protect both storage and VMS applications in the event of a failure. The award-winning innovation of hosting servers in an iSCSI SAN eliminates the need for standalone physical servers resulting in 40 percent reductions in power, cooling, rack space, and cost.

Verint Video Intelligence Solutions 12110 N. Pecos St, Ste 300, Denver, CO, 80234 TELEPHONE: 303-450-5900 FAX: 303-450-5950 CONTACT: Cortney Jaret, Marketing Director Email: marketing.vis@verint.com Web Site: www.verint.com/video_solutions

Verint® Video Intelligence Solutions™ is a leading global provider of networked video solutions designed to enhance the security of people, property, and assets. Its award-winning Nextiva® portfolio features IP video management software, integrated analytics, encoders, cameras, wireless devices, and intelligent DVRs for use across a variety of vertical market environments. Open, standardsbased, and IT friendly, Verint solutions help organizations realize the benefits of IP video, leveraging their legacy video investments.

Loss Prevention Associates, Inc.

Product Protection

Visionhitech Americas, Inc.

4020 Birch St, Ste 102, Newport Beach, CA 92660 TELEPHONE: 949-660-1412 FAX: 949-660-1185 CONTACT: Scott Hamasaki Email: info@vhtamericas.com Web Site: www.vhtamericas.com

Visionhitech is a security manufacturer of CCTV surveillance equipment specializing in dome cameras, bullet cameras, infrared cameras, and digital video recorders. Visionhitech has created many “world’s first” and “world’s smallest” innovations for almost 15 years, acquiring 47 significant patents along the way. This achievement is obtained by a forward-thinking philosophy. This philosophy will position Visionhitech as a pioneer in intelligent video solution technology that is a proactive surveillance system that acknowledges potential incidents in advance and prevents them from happening.

Pre-employment Screening Certifinder, LLC

460 N. University Ave, Ste 201, Provo, UT 84601 TELEPHONE: 801-373-5770 FAX: 801-373-8861 CONTACT: Brad Moss Email: brad.moss@certifinder.com Web Site: www.certifinder.com Certifinder® provides a full suite of employment screening solutions that are delivered by a dedicated team of people that understand your industry and care about your business. All of our solutions are best-in-class, available worldwide, and specifically designed to reduce the time and cost associated with the employment screening process.

Alpha

10715 Sikes Place, Ste 200, Charlotte, NC 28277 TELEPHONE: 704-206-7849 FAX: 704-845-2932 CONTACT: Carlos Perez Email: carlosperez@alphaworld.com Web Site: www.alphaworld.com

High Theft Solutions For over 30 years, Alpha has provided retailers with the most innovative and technically advanced products engineered to protect high-theft merchandise. Every Alpha product is designed to defend your bottom line by helping your business reduce theft and increase sales, delivering uncompromising security, ease-of-use for your store associates, aesthetics that complement the merchandise it protects, and an ROI in under twelve months. Give us a call and see how Alpha’s high-theft solutions may help your business today.

Carttronics LLC

2011 Loss Prevention Resource Guide

and management portal that also serves to deliver valuable business intelligence to our retailer partners to help focus limited resources on high-priority opportunities.

ILP Intelligent Loss Prevention

1400 Eddy Ave, Rockford, IL 61103 TELEPHONE: 800-747-4384 FAX: 815-877-6563 CONTACT: Lori Yone Email: sales@intelligentlossprevention.com Web Site: www.intelligentlossprevention.com

ILP Intelligent Loss Prevention is the consultative security division of Southern Imperial, Inc., a leading manufacturer of retail displays and fixtures for over 50 years. ILP helps retailers “rethink shrink” with innovative displays that revolutionize the traditional approach to loss prevention. Our OPEN Merchandising System is a shopper-friendly product facing system with built-in security features that allows high-theft items to be openly merchandised. Let ILP customize a unique solution for your critical areas of loss and also help you manage basic security needs with Southern Imperial’s complete line of EAS tags, line security, safe cases, wraps, locking fixtures, and more.

Sennco Solutions Canada

2770 Matheson Blvd E., Mississauga, ON L4W 4M5 TELEPHONE: 416-648-6486 FAX: 905-238-6890 CONTACT: Steffen Schenk Email: steffen.schenk@sennco.ca Web Site: www.sennco.ca

We understand that you have a choice when it comes to retail security. We have built our business from the ground up to continually provide the industry’s leading and most comprehensive retail security solutions. We understand that standard off-the-shelf retail security products do not always provide the optimum solution. In fact, most of the commonly used products we offer today evolved from customized solutions that were developed for specific needs. That continual product innovation continues today as we integrate the latest technologies into our new designs. Please contact us for more information.

Refund/Returns Management Inmar Solutions

2601 Pilgrim Ct, Winston-Salem, NC 27106 TELEPHONE: 866-440-6917 FAX: 336-770-1939 Email: solutions@inmar.com Web Site: www.inmar.com

S upply-Chain Analysis—Returns prevention, reduction, and avoidance I nformation Intelligence—Web-based information with analytics Inmar also provides promotion management services, pharmaceutical services, technology solutions, and information and document management.

FID

The Retail Equation

6430 Oak Canyon, Ste 250, Irvine, CA 92618 TELEPHONE: 888-371-1616 FAX: 949-262-5110 CONTACT: Tom Rittman Email: web_sales@theretailequation.com Web Site: www.theretailequation.com

The Retail Equation optimizes retailers’ revenue and margin by shaping behavior in every customer transaction. The company’s solutions use predictive analytics to turn each individual shopper’s purchase or return 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-aService applications operate in more than 15,000 stores in North America, supporting a diverse retail base of specialty apparel, footwear, hard goods, department, big box, auto parts, and more.

RFID Best Security Industries

755 NW 17th Ave, Delray Beach, FL 33445 TELEPHONE: 561-900-2744 FAX: 561-900-2747 CONTACT: Eric Brotherhood Email: ebrotherhood@bsi-eas.com Web Site: www.bsi-eas.com

Carttronics LLC

12310 World Trade Dr., Ste 108, San Diego, CA 92128 TELEPHONE: 858-312-5711 FAX: 858-618-2702 CONTACT: Barry Gallace Email: BarryG@carttronics.net Web Site: www.carttronics.com

Inmar is an industry-leading provider of technology-driven reverselogistics and supply-chain solutions for the consumer goods and healthcare markets. Our solutions include: R eturns Management—Single-source solution from authorization to disposition A sset Recovery—Invoice processing and payment to value-added liquidation R isk Management—Regulatory compliant disposition and recall management

Shoplifting, ORC, and dishonest and inattentive employees are responsible for 78.0 percent of retail shrink according to the 2009 Global Retail Theft Barometer. Carttronics’ active RF-based solutions attack these causes of shrink in real time to stop loss-producing events now, resulting in reduced shrink and increased profitability beginning day one. CarttronicsBOBS™, POPS™, BASKETTRAK™, and CAPS® are supported by StorePort™, the company’s web-based monitoring and management portal that also serves to deliver valuable business intelligence to our retailer partners to help focus limited resources on high-priority opportunities.

2011 Loss Prevention Resource Guide

Checkpoint Systems, Inc.

management, operations, and safety enables us to provide the highest quality program with little client effort.

101 Wolf Dr., Thorofare, NJ 08086 TELEPHONE: 800-257-5540 Email: marketingleads@checkpt.com Web Site: www.CheckpointSystems.com

Enabl-u Technologies

Checkpoint Systems is a global leader in shrink management, merchandise visibility, and apparel-labeling solutions. Checkpoint partners with retailers and their suppliers to reduce shrink, increase shelf availability, ensure labeling consistency, and achieve operational excellence. Checkpoint’s solutions enable retailers to enhance the shopping experience for consumers and grow their businesses profitably.

One Fairchild Ct, Ste 210, Plainview, NY 11590 TELEPHONE: 877-343-7863 FAX: 516-870-0520 CONTACT: Kevin McMenimen Email: Kevin.McMenimen@enabl-u.com Web Site: www.enabl-u.com

Retailers Advantage

2255B Queen St E., Unit 150, Toronto, ON M4E 1G3 TELEPHONE: 416-691-4730 FAX: 416-691-7725 CONTACT: Sheila Barry Email: shelia@retailersadvantage.com Web Site: www.retailersadvantage.com

Safety Jack L. Hayes International, Inc.

27520 Water Ash Dr., Ste 100, Wesley Chapel, FL 33544 TELEPHONE: 813-991-5628 FAX: 813-991-5682 CONTACT: Mark R. Doyle Email: mrd@hayesinternational.com Web Site: www.hayesinternational.com Hayes International is internationally recognized as a foremost inventory shrinkage control consulting firm. For over 30 years, we have assisted retail, distribution, and manufacturing companies become more profitable through effective inventory shrinkage control. We have developed a reputation within the retail area that is second to none. Hayes consultants continuously travel throughout North America conducting third-party loss prevention and safety compliance audits for our clients, while providing practical solutions for unnecessary loss exposures. All Hayes consultants came up in the retail industry and have twenty-plus years of LP experience. Contact us today and experience the difference.

Training/Awareness Contact, Inc.

700 Matthews-Mint Hill Rd, Ste C, Matthews, NC 28105 TELEPHONE: 770-335-4891 Fax: 704-365-1026 CONTACT: Amber Virgillo Email: amberv@lpportal.com Web Site: www.contactinc.com

Global Compliance

LP Innovations, Inc.

Contact, Inc. is a boutique consulting, communication, training, and awareness company specializing in loss prevention. The Contact approach includes: A nalyzing systems, operations, and people strategies, I mplementing materials to excite and inform associates, and Measuring results using proven tracking systems. Based in Charlotte, NC, Contact is uniquely attuned to improving operating results for retail organizations by providing loss prevention expertise and services designed to lower shrinkage, expense, and loss. Contact’s extensive experience in loss prevention, risk

2011 Loss Prevention Resource Guide

National Association for Shoplifting Prevention

380 N. Broadway, Ste 306, Jericho, NY 11753 TELEPHONE: 800-848-9595 FAX: 516-932-9393 CONTACT: Barbara Staib Email: bcstaib@shopliftingprevention.org Web Site: www.shopliftingprevention.org

NASP helps retailers increase the ROI on juvenile shoplifting apprehensions using the same intervention utilized to reduce repeat offenses in 500 courts in 48 states. Establishing a Juvenile Shoplifter Accountability Program will also enhance parent/community relations and allow you to gather information directly from offenders. A King County, WA, study of juvenile offenders found that the Y.E.S. Program is not only an “extraordinarily effective intervention” for shoplifting, it is “effective in reducing criminal behavior in general.” Program tuition fees are offender-paid.

Wicklander-Zulawski & Associates, Inc. 4932 Main St, Downers Grove, IL 60515 TELEPHONE: 800-222-7789 FAX: 630-852-7081 CONTACT: Shane Sturman Email: ssturman@w-z.com Web Site: www.w-z.com

Atlanticom Systems

2140 Highway 88, Brick, NJ 08724 TELEPHONE: 888-845-CCTV CONTACT: Michael Barlow, President Email: lpmag@atlanticom.com Web Site: www.atlanticom.com

As a proven leader in integrated surveillance and security systems, Atlanticom can provide you with the support you need to protect your assets, reduce your losses, and support your investigations no matter what industry you are in. Enterprise security technology solutions from concept to completion is our specialty. Integrated video surveillance, physical access control, and intrusion detection systems alongside a professional, dedicated staff, and the result is an exceptional security solution experience. Whatever your needs, Atlanticom is your single-source solution for equipment supply, installation, and service for a variety of security technologies...with exceptional service programs to meet your critical needs today and tomorrow.

Axis Communications

100 Apollo Dr., Chelmsford, MA 01824 TELEPHONE: 800-444-2947 FAX: 978-614-2100 CONTACT: Jackie Andersen Email: jackie.andersen@axis.com Web Site: www.axis.com

Wicklander-Zulawski & Associates provide the most up-to-date training on interviewing techniques. Seminars include: I nterview and Interrogation Techniques A dvanced Workshop on Interview and Interrogation Techniques T elephone Interviewing I nterviewing Techniques for the Auditor P re-employment Interviewing Webinars include: I nterviewing Techniques for Non-Loss Prevention Personnel I nterviewing for Title 7 Infractions C ertified Forensic Interviewer (CFI) Preparation Course O nline classes at www.wzcampus.com

Video Monitoring ADT

One Town Center Dr., Boca Raton, FL 33486 TELEPHONE: 561-981-4275 CONTACT: Lee Pernice Email: lpernice@adt.com Web Site: www.adtbusiness.com/retail

Whether you run a single shop or a whole chain of malls, network video makes a noticeable improvement in your bottom line. The introduction of network video has revolutionized the way retail professionals work with loss prevention, store optimization, fraud detection, security, and customer service. Overall, network video provides a whole new set of tools to reach operational excellence. For more information on Axis loss prevention solutions visit www.axis.com/lp. Axis is an IT company offering network video solutions for professional installations. The company is a global market leader in network video. Axis products and solutions focus on security surveillance and remote monitoring.

Bass Security

26701 Richmond Rd, Cleveland, OH 44146 TELEPHONE: 888-774-3400 FAX: 888-774-3500 CONTACT: Joe Mignone Email: sales@basssecurity.com Web Site: www.bass-security.com Bass Security has been focused on providing turnkey solutions for retailers nationwide for over 34 years. With a customer base of over 100,000 retailers in the U.S. alone, we are experts at solving problems for the industry. Our offerings include: C CTV solutions A larm systems A ccess control E AS L ocksmith services S afes W eb-based reporting and alarm monitoring C ustomization and installation of door locks and loss prevention hardware doors and frames F acility-wide key control and standardized lock systems A ssistance in construction planning for new facilities or upgrading your current system

2011 Loss Prevention Resource Guide

Best Security Industries

Digital IDView

755 NW 17th Ave, Delray Beach, FL 33445 TELEPHONE: 561-900-2744 FAX: 561-900-2747 CONTACT: Eric Brotherhood Email: ebrotherhood@bsi-eas.com Web Site: www.bsi-eas.com

12000 Ford Rd, Ste 110, Dallas, TX 75234 TELEPHONE: 972-247-1203 FAX: 972-274-1291 CONTACT: Sandy Lee Email: sandy@idview.com Web Site: www.idview.com

Carttronics LLC

12310 World Trade Dr., Ste 108, San Diego, CA 92128 TELEPHONE: 858-312-5711 FAX: 858-618-2702 CONTACT: Barry Gallace Email: BarryG@carttronics.net Web Site: www.carttronics.com

Digital IDView provides a broad range of capabilities in video surveillance by manufacturing both analog and IP cameras. Based in Dallas, Texas, we offer 24-7 technical support from our local technicians. Our project managers are always available at your fingertips to aide in design. Our 1- and 12-channel encoders enable you to build integrated physical security systems while preserving your existing investments. Our eView video surveillance software provides excellent scalability, reliability, and bandwidth management, showcasing our feature-rich IP cameras’ superior performance. It has always been our prerogative to make high-end products at an affordable cost, with efficient support to back up our customers.

Direct Source

8176 Mallory Ct, Chanhassen, MN 55317 TELEPHONE: 952-934-8000 FAX: 952-934-8030 CONTACT: Brad Fick Email: sales@directsource.com Web Site: www.directsource.com

Direct Source is a nationwide technology solutions provider for tier-one retail, warehouses, and distribution centers. Specializing in hardware procurement, software development, and deployment services, the company can work with loss prevention professionals to perform an analysis of available technologies. Work alongside Direct Source to perform an analysis to identify a secure solution that is cost-efficient, flexible, scalable, and easy to integrate with current systems and future plans. Examples: F acility access control C amera placement and installation M onitors E ncoders and decoders N VRs, DVRs, and storage arrays V ideo management software B usiness analytic software R elated accessory installations

ClickIt Inc.

Envysion

185 Central Ave, Bethpage, NY 11714 TELEPHONE: 516-733-7516 FAX: 516-827-4374 CONTACT: Jim Paul Email: jpaul@clickitinc.com Web Site: www.clickitinc.com

400 Centennial Pkwy, Louisville, CO 80027 TELEPHONE: 303-381-4781 FAX: 877-861-3249 CONTACT: Brad Van Parys Email: bvanparys@envysion.com Web Site: www.envysion.com

ClickIt Inc. is a leading provider of intelligent video solutions designed to bring value throughout the entire retail organization. Our Smart Analytics package provides traffic counting, dwell analysis, and path analysis. Actionable information can now be derived from your existing CCTV assets benefiting such departments such as advertising, marketing, operations, and loss prevention. ClickIt’s video solutions also provide for fully integrated access control, 360 camera support, and comprehensive central management to monitor the health and well being of your video systems. ClickIt’s video solutions range from smaller store DVRs to the largest NVR implementations supporting both analog and megapixel IP cameras. Visit www.clickitinc.com for more information.

Envysion’s Managed Video as a Service (MVaaS) enables multi-unit operators to easily leverage remote video to gain valuable business insights that will improve operations and deliver demonstrated 10 to 15 percent profitability improvements. Our highly scalable and easy to manage MVaaS platform puts the power of video into the hands of a customer’s entire organization, reaching across departments to thousands of users without straining its IT department or network. Through Envysion’s Insight Marketplace, a revolutionary new approach to managed video, customers can select from a variety of specialized loss prevention, safety and security, risk mitigation, operational efficiency, and marketing services.

EverFocus Electronics Corp.

1801 Highland Ave, Unit A, Duarte, CA 91010 TELEPHONE: 888-884-9154 FAX: 626-844-8838 CONTACT: Rodney Guinto, Sr. Email: rodney.guinto@everfocus.com Web Site: www.everfocus.com

EverFocus Electronics Corp. is a global true CCTV surveillance manufacturer in high-definition, analog, IP/networking, and mobile monitoring and recording. With the power of high-definition resolution, EverFocus HD digital video recorders offer real-time recording and playback in megapixel video quality with your existing

2011 Loss Prevention Resource Guide

coaxial cables. We offer 1080i or 720p HD cameras with six times the resolution of a traditional camera, giving you the “zoom with clarity” HD images for more cash register coverage. EverFocus is your surveillance solution provider to reduce your losses. For more information, visit www.everfocus.com.

Mobotix

110 Wall St, Floor 22, New York, NY 10005 TELEPHONE: 212-385-6126 FAX: 212-385-6129 CONTACT: Steve Gorski Email: steve.gorski@mobotix.com Web Site: www.mobotix.com

Genetec

2280 Alfred-Nobel Blvd, Ste 400, Montreal, Quebec H4S 2A4 TELEPHONE: 514-332-4000 FAX: 514-332-1692 Email: info@genetec.com Web Site: www.genetec.com Genetec is a pioneer in the physical security and public safety industry and a provider of world-class IP license plate recognition (LPR), video surveillance, and access control solutions. With Genetec solutions, retail organizations can create enterprise-wide video management systems over existing IT networks and integration of POS transaction data for exception reporting. Loss prevention departments can also remotely or locally monitor and manage real-time alarms from the store’s EAS, intrusion, or access control systems all from one easy-to-use interface. For more information, visit www.genetec.com.

Gulfcoast Software Solutions

912 Drew St, Clearwater, FL 33755 TELEPHONE: 727-441-2131 FAX: 813-436-5256 CONTACT: Tim Lindblom Email: sales@gulfcoastsoftware.com Web Site: www.gulfcoastsoftware.com Gulfcoast Software Solutions’ video and data recorders feature bestin-class video compression, multiple-device mining, and a broad range of real-time, event-driven, local, and enterprise tools. With our exception-based tools and alerts, store managers and LP executives complete their routines in just a few minutes each morning, addressing issues in hours, not days or weeks.

HiRes Video Innovations—MOBOTIX AG is a global market leader in high resolution megapixel IP cameras. We see ourselves as a software company with in-house hardware development in the area of digital, high-resolution, and network-based video security solutions. The company focuses on the development of complete system solutions. The publicly traded company with headquarters in Langmeil, Germany, is known as a leading pioneer in network camera technology since its founding in 1999, and its decentralized concept has also made high-resolution video systems cost-efficient. From 2010 onwards, MOBOTIX will extend its product range to include intelligent home automation products that are developed in-house.

Niscayah

30 Commerce Way, Woburn, MA 01801 TELEPHONE: 800-582-0113 FAX: 617-568-5130 CONTACT: Paul Baratta Email: paul.baratta@niscayah.us Web Site: www.niscayah.us Niscayah builds partnerships with customers to design and deliver dynamic, innovative security solutions based on a retailer’s specific business requirements. Our retail solutions can be customized or standardized across regional, national, and international platforms. Solutions include a full array of our interactive iMPACT SOLUTIONS Suite monitoring services, customer care support services, as well as a total systems maintenance program.

Milestone Systems, Inc.

8905 SW Nimbus Ave, Beaverton, OR 97008 TELEPHONE: 503-350-1100 FAX: 503-350-1199 CONTACT: Hedgie Bartol Email: sales@milestonesys.com Web Site: www.milestonesys.com

Sentry Technology Corporation

1881 Lakeland Ave, Ronkonkoma, NY 11779 TELEPHONE: 800-461-2803 FAX: 416-674-5075 CONTACT: Dave Rosen Email: drosen@sentrytechnology.com Web Site: www.sentrytechnology.com

Founded in 1998, Milestone Systems is a global industry leader in open-platform IP video management software. The XProtect® platform delivers powerful surveillance that is easy to manage, reliable, and proven in thousands of customer installations around the world. With support for the widest choice in network hardware and integration with other systems, XProtect provides best-of-breed solutions to “video enable” organizations—managing risks, protecting people and assets, optimizing processes, and reducing costs. XProtect seamlessly integrates with your point-of-sale system to catch shoplifting, vandalism, or theft. Combined with transaction data, XProtect helps you resolve errors and fraud at the checkout.

Sentry Technology manufactures the SentryVision® SmartTrack that uses patented technology to transmit video images from one or two PTZ cameras traveling on a carriage, along an aluminum rail mounted on the ceiling or wall of any facility. The camera provides unobstructed views of people and events that are not possible with conventional camera systems. SmartTrack can be operated using a conventional CCTV joystick console, a wireless PDA, and over the web. Sentry develops and sells OperationalVideo which is a browserbased video application to assist retailers with real-time management of security, merchandising audits, and employee procedure compliance.

2011 Loss Prevention Resource Guide

StopLift Checkout Vision Systems

185 Alewife Brook Pkwy, Ste 401, Cambridge, MA 02138 TELEPHONE: 866-426-2479 FAX: 509-352-6048 CONTACT: Peter Parcellin Email: info@stoplift.com Web Site: www.stoplift.com

CHECKOUT VISION SYSTEMS StopLift’s ScanItAll software is the fastest growing technology in loss prevention. Thousands of checkouts are right now having their video (from existing overhead cameras) automatically analyzed every moment by StopLift’s software to detect shrink visually, even when it leaves no data-trail, including: S weethearting between cashiers and customers B ottom-of-basket (BOB) and middle-of-basket (MOB) loss S elf-checkout loss O perational error, refund fraud, void fraud, and others Major chains are utilizing StopLift to significantly reduce shrinkage, deter future theft, and boost profitability. See video of actual detected incidents at www.stoplift.com. Call or email today to schedule a live web demonstration.

S-TRON

43 Werman Ct, Plainview, NY 11803 TELEPHONE: 877-887-8766 CONTACT: Tina Dunn Email: tinad@s-tron.com Web Site: www.s-tron.com

S-TRON Security Electronics is one of the fastest growing security and integration companies in the U.S., providing peace of mind to our customers across the country. It’s not simply that our customers demand fast, reliable service—they depend on it. Every aspect of our business must work quickly, efficiently, and expertly. Through technology expertise, stability, and innovation, S-TRON has become a trusted leader in electronic security services. Let us show you how we can provide you with exceptional service and installation for all your security electronic needs—GUARANTEED. For more information on discounted pricing or to inquire about a free service call, please visit our website www.s-tron.com or call 877-887-8766.

Verint Video Intelligence Solutions 12110 N. Pecos St, Ste 300, Denver, CO, 80234 TELEPHONE: 303-450-5900 FAX: 303-450-5950 CONTACT: Cortney Jaret Email: marketing.vis@verint.com Web Site: www.verint.com/video_solutions

Index Ackerman Security Systems, 4 ADT, 7, 17 Alpha, 14 American Integrated Security Group, 13 Atlanticom Systems, 12, 17 Axis Communications, 17 Bass Security Services, Inc., 2, 7, 17 Best Security Industries, 7, 15, 18 CargoNet, 12 Carttronics, 4, 13, 14, 15, 18 Catalyst Tags, Inc., 7 Center for Interviewer Standards & Assessment, Ltd., 8 Certifinder, 14 Checkpoint Systems, 7, 16 ClickIt Inc., 18 Contact, Inc., 6, 16 Corporate Safe Specialists, 5 Detex, 2, 3, 4, 13 Digital IDView, 18 Direct Source, 2, 18 Dunbar Armored, Inc., 5, 12 Enabl-u Technologies, 5, 16 ENFORCER Transport Security, 12 Envysion, Inc., 18 EverFocus Electronics Corp., 18 Food Marketing Institute, 8 Genetec, 2, 19 Global Compliance, 5, 11, 16 Global Elite Group, 10 Gulfcoast Software Solutions, 6, 10, 19 Hart Systems, 11 ILP Intelligent Loss Prevention, 15 INFORM Applications, 11 InstaKey Security Systems, 2, 10, 13 Jack L. Hayes International, Inc., 4, 6, 16 Jennings Executive Recruiting, LLC, 9 Kenstan Lock Company, 4 LexisNexis, 9, 14 Loss Prevention Associates, Inc., 4, 12, 14 Loss Prevention Foundation, 8 Loss Prevention Recruiters, 9 LP Innovations, Inc., 4, 6, 10, 12, 13, 16 LPjobs.com, 10 LP Software, Inc., 4, 5, 11 MICROS-Retail, 10 Milestone, 19 Mobotix, 19 National Association for Shoplifting Prevention, 17 Next Level Security Systems, 13 Niscayah, 3, 19 Northern Michigan University, 8 Palmer, Reifler and Associates P.A., 6 PCG Solutions, Inc., 6 Pivot3, 14 Profitect, 5 Retailers Advantage, 8, 16 RGIS, 11 Security Door Controls, 3 Security Resources Inc., 9 Sennco Solutions Canada, 15 Sentry Technology Corporation, 12, 19 StopLift Checkout Vision Systems, 10, 20 S-TRON, 20 Sure ‘n Fast Counterfeit Detectors, 6 The Retail Equation, 15 The Shulman Center for Compulsive Theft, 7 United Security Protective Services, 3, 9, 11 Verint, 14, 20 Visionhitech America, Inc., 14 Wicklander-Zulawski & Associates, Inc., 9, 17 Wilson Safe Company, 6 WG Security Products, 8

2011 Loss Prevention Resource Guide

LP Magazine | January – February 2011

Associations in Action

Risks from Shoplifter Apprehensions: Part II I

n the last issue I identified some of the more popular causes of action typically filed by shoplifters turn plaintiffs, dissected the merchant detention statute (aka shopkeeper’s privilege) that can act as a defense for retailers, and discussed the risk of brand damage in the context of external apprehensions. This article will focus on two other “favorite” claims of plaintiffs—malicious prosecution and defamation—as well as best practices that can help minimize liability and consequential brand damage.

Malicious Prosecution and Defamation

To prevail on a claim for malicious prosecution and defamation, a plaintiff must prove each of the elements identified below: ■ Malicious Prosecution—Plaintiff must prove (a) the retailer commenced a criminal proceeding against plaintiff, (b) the proceeding terminated in plaintiff’s favor, (c) an absence of probable cause, and (d) the retailer was motivated by malice or improper motive. ■ Defamation—Plaintiff must prove (a) the retailer made a statement about plaintiff, (b) the statement was published or communicated, (c) the statement was false, and (d) the statement tarnished the person’s reputation.

by Lisa LaBruno Lisa LaBruno leads the asset protection offerings in the areas of loss prevention, retail crime, workplace safety, disaster recovery, operational audit, research, and benchmarking for the Retail Industry Leaders Association. RILA members include more than 200 retailers, product manufacturers, and service suppliers, which together account for more than $1.5 trillion in annual sales, millions of American jobs, and more than 100,000 stores, manufacturing facilities, and distribution centers domestically and abroad. LaBruno can be reached at 703-600-2024 or lisa.labruno@rila.org.

The merchant detention statute is generally not a defense to a malicious prosecution claim, and it is never a defense to a defamation claim. However, retailers can take steps to mitigate risk. As a general concept, it is useful to develop policies or best practices designed to rebut specific elements of civil causes of action. For example, the judge presiding over plaintiff’s civil claim against a retailer for malicious prosecution may find as a matter of law that the underlying shoplifting case “terminated in plaintiff’s favor” after the LP professional failed to appear in criminal court, and the charges were dismissed against plaintiff without adjudication. A policy requiring LP professionals to monitor their criminal cases and appear in court when noticed or face disciplinary action for their failure to appear could result in fewer criminal case dismissals, thereby mitigating civil exposure on a malicious prosecution claim. Malicious Prosecution Best Practices. Other policies or best practices that can help disprove the elements of a malicious prosecution claim include the following: ■ Conduct a thorough investigation and follow-up on any reasonable explanations offered by the subject to justify his actions. ■ When practical, defer to law enforcement’s assessment regarding the weight of the evidence when determining whether to file criminal charges. ■ Don’t misrepresent, mischaracterize, or exaggerate the evidence. ■ A decision to refer a case to law enforcement should be based solely on the evidence, free of prejudice and bias and not based on any grudge or other ill-motive against a subject. ■ Refer to law enforcement only those subjects whose guilt can be proven beyond a reasonable doubt. ■ Prepare for all criminal court hearings, appear in court when required, be professional, and testify truthfully. ■ Immediately disclose to police/prosecutor exculpatory evidence (evidence tending to prove innocence) and request a dismissal of charges when warranted by any newly discovered evidence.

January – February 2011

LPportal.com

I f you made a mistake in your investigation, own up to it immediately. Don’t make matters worse by trying to cover your tracks. Minimizing Exposure to Defamation Claims. You can also do your part to minimize exposure to defamation claims by following some fundamental guidelines: ■ Be as discreet as possible when engaging with a subject. ■ Take reasonable steps to prevent situations from escalating. ■ Escort the subject out of public view as quickly as possible. ■ Minimize the use of handcuffs. ■ Do not parade the subject through the store. ■ Maintain the subject’s privacy to the extent possible. ■ Discuss the case only with those having a need to know. ■

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Mitigating Risk

An LP department with a robust external apprehension program can expose their company to the risk of civil liability and consequential brand damage. As an LP professional you should strive to do your part to mitigate that risk every time you approach an external subject. From a corporate perspective a good start is to have policies in place and a comprehensive training program that addresses the elements of the causes of action most commonly initiated by individuals apprehended for theft. From an individual perspective, if you act with integrity, demonstrate respect for others, and exercise restraint, you will do your part to mitigate risk.

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We’ll provide lots of great ideas and helpful materials to get you started. Just request your Passionately Pink kit at passionatelypink.org. ©2009 Susan G. Komen for the Cure® The Running Ribbon is a registered trademark of Susan G. Komen for the Cure. This space provided as a public service.

LP Magazine | January – February 2011

Certification

Retailers Benefit from Solution Providers Scholarships Applications Due in February

2011

is already shaping up to be full of opportunities for retailers to expand their education and loss prevention skills with the Loss Prevention Foundation (LPF). Vector Security recently announced they would increase their LPQualified (LPQ) and LPCertified (LPC) scholarships for retailers from twenty last year to thirty this year. The scholarships include all course and exam certification fees. This increase was primarily due to the overwhelming response and interest they received from retailers about completing their certification through LPF.

by Amber Virgillo Virgillo is a contributing editor for LossPrevention. She can be reached at 770-335-4891 or via email at AmberV@LPportal.com.

managers, leaders, educators, social scientists, accountants, statisticians, high-level executives, and, of course, investigators.”

Scholarship Recipients

Several retailers have taken advantage of the scholarships from Vector as well as from other solution provider partners of LPF, including LexisNexis, ADT, eBay, KPMG, IBM, Iverify, InstaKey, Stanley, The Zellman Group, Agilence, Security Resources, Wonderlic, and Palmer, Reifler & Associates. Jeffrey Levitt, Panera Bread. “I am very impressed when a private organization looks beyond increasing profits and supports an organization like LPF and identifies individuals like myself, who are not even current Vector customers, to assist them in furthering their personal development,” said Jeffrey Levitt, CPP, senior manager, asset protection for Panera Bread/Paradise Bakery. “I believe this has long lasting impact on the industry. While I have not yet completed the LPC, I have communicated within my organization that I received the scholarship and proudly advertise, even on my business card that I am a member of LPF.

“I am very impressed when a private organization looks beyond increasing profits and supports an organization like the LP Foundation and identifies individuals like myself, who are not even current Vector customers, to assist them in furthering their personal development.”

Vector Security Increases Scholarships

“When we began our scholarship program three years ago, we did so with two clear intentions in mind,” said Michael T. Grady, executive vice president of Vector Security. “First, we wanted to support an educational process that would create additional value to the LP profession. Second, we wanted to offer LP professionals a funding source to achieve either certification, without the need for the funding to come from them personally or from their employers “Launching any professional certification program requires a lot of funding, time, and effort,” Grady explained. “Many fail due to lack of sincere continuous support and interest. Knowing the long-term value of this endeavor, we wanted to continue to support the program in any way possible to help guarantee its viability and prove its worth in the eyes of the retail industry.” “Mike and his team have worked hard to promote and help validate our programs,” said Gene Smith, president of the Loss Prevention Foundation. “They have been there from the start and are a remarkable example of how a solution provider who serves the retail LP industry can make a difference to the people who work within it. Vector gets it. They realize that today’s LP professionals are expected to be sharp, technically savvy business

- Jeffrey Levitt, CPP, Senior Manager, Asset Protection, Panera Bread/Paradise Bakery “I am a huge believer in the Foundation,” continued Levitt. “I am a charter member and proud be a part of a group with such a prestigious membership. While I also have a CPP, I believe my association with the LPF is more focused and relative to what I do on a daily basis.” Adrian Nowalk, Radio Shack. “Being an LPQ Vector scholarship recipient has greatly helped in my career,” said Adrian Nowalk, CFI, regional LP manager for Radio Shack.

January – February 2011

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“I am very dedicated to my education. This certification has added to my knowledge base tremendously. I believe that this certification did play a role in acquiring my new position with RadioShack. By showing my dedication to my education, I believe that it has showed my employer my overall dedication to my career. Finally, I truly believe that the LPQ certification has added greatly to me becoming a well rounded business professional.” Shawn Abernathy, Target. “Today’s retail environment for the asset protection and loss prevention professional is ever-changing and presents new challenges and opportunities,” said Shawn Abernathy, investigations team leader, Group 397, Target. “The LPC program offers enhanced education and skill development for today’s loss prevention personnel. My experience with the LPC scholarship program has been outstanding. “I was honored to receive a Vector Security LPC scholarship this year,” continued Abernathy. “I am taking full advantage of the in-depth and expert training. The online course allows for self-paced learning and is fantastic for the full-time professional. It has been a great investment of my time and has enhanced my core competencies in my field. Through the course, I have expanded my knowledge of the business and been challenged to consider new perspectives, which have allowed me to be more effective in my current role. By obtaining the LPC certification, I will demonstrate my commitment to further education and understanding that is critical to our profession. This is a great investment in your education and will definitely propel you to greater career opportunities in the future.”

Commitment to the Industry

Other solution providers that are dedicated to the loss prevention industry have been instrumental in the advancement of loss prevention practitioners’ careers, including ADT. “There is no better vehicle for showing a vendors’ commitment to the loss prevention industry than sponsoring a young talented person with a Foundation scholarship,” said Kevin Lynch, executive director at ADT. “Everyone whose career is tied into retail loss prevention has a stake in increasing the level of professionalism within the industry,” agreed Vector’s Grady. “Better educated people can bring about greater results, create better LP programs, and even better deploy new LP technologies within their organizations. Curbing losses due to shrinkage is the only free money left on retailers’ tables. They don’t need to discount it, promote it, advertise it, or stay open late to create it. Better educated and trained LP departments are the reason why that money can fall right to the bottom line.” Retailers can apply for Vector’s 2011 scholarship program by visiting Vector’s web site and through the Loss Prevention Foundation. Applications will be accepted throughout February 2011 and the winners will be announced in March. Inquires can also be made directly to Vector Security to Debbie Fisher at 724-779-8810 extension 1206 or by email at dkfisher@vectorsecurity.com.

We Do Retail And We Do It Well! In today's difficult economy, finding a partner who provides high quality service with value based pricing is a top priority for all retailers. At Bass Security, we have worked hard to achieve this motto for over 35 years. Retailers in North America have found that whether they need mechanical security solutions for locks, keys, safes and panic hardware, or electronic security solutions for CCTV, EAS, Alarms, and Biometrics, price and quality are important to them. At Bass Security, we are dedicated to delivering value pricing along with high quality service.

sales@bass-security.com www.bass-security.com Your Single Source for Mechanical and Electronic Security Services

LP Magazine | January – February 2011

Industry News

Global Shrinkage Drops to 2007 Levels A

ccording to recently released results from the 4th Annual Global Retail Theft Barometer (GRTB) for the twelve-month period ending June 2010, total global shrinkage cost respondent retailers $1.07 billion, or an average of 1.36 percent of retail sales. The results are 5.6 percent lower than last year’s 1.44 percent, and match the level reached when the report went “global” in 2007. All four geographic data subsets covered by the survey recorded reductions over last year as shown in the chart below.

Region

2009

2010

% Change

North America

1.60%

1.49%

-6.9%

Europe

1.33%

1.27%

-4.5%

Asia-Pacific

1.24%

1.16%

-6.5%

Latin America

1.67%

1.60%

-4.2%

Global Total

1.44%

1.36%

-5.6%

Europe and North America are the largest components. A five-year look back indicates that the sharp increase in shrinkage in 2009, no doubt caused by the global recession, may have been an anomaly. This year’s drop places the region averages at 2006 to 2008 levels. This is the third consecutive year that Latin America has recorded the highest shrinkage as a percentage of sales. However, the trend for Latin America matches those of Europe and North America, which is relatively stable aside from the 2009 spike. The Asia-Pacific five-year trend differs in that the general direction of shrinkage is downward, again, excluding the spike in 2009. The countries with the highest rates of shrink as a percentage of sales were India (2.72%), Morocco (1.64%) and Brazil (1.64%). The lowest rates of shrinkage were found in Taiwan (0.87%), Hong Kong SAR (0.91%), and Austria (0.97%). Twenty-two countries posted shrinkage rates that exceeded the global total, and twenty countries posted lower rates. The top ten countries in terms of the highest dollar loss are the U.S. ($39.3 billion), Japan ($9.3 billion), United

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.

Kingdom ($6.6 billion), Germany ($6.1 billion), France ($5.8 billion), Italy ($3.9 billion), Canada ($3.5 billion), Russia ($3.3 billion), Spain ($3.3 billion), and Mexico ($2.8 billion). Those ten countries reported losses of $83.9 billion, or 78 percent of the global total.

Scope of the Project

Funded by a grant by Checkpoint Systems, the GRTB is the most comprehensive study of its kind. The data is gathered from a survey prepared by the Nottingham, England-based Centre for Retail Research, under the guidance of its director, Dr. Joshua Bamfield, a well-known expert in retail crime issues. This year the survey was sent to 4,900 of the world’s largest retailers, and usable responses were received from 1,103 companies with combined retail sales of $873.8 billion representing a cross section of vertical markets in 42 countries, including Russia reporting for the first time. There are currently two countries, Morocco and South Africa, representing the Middle East/Africa. Plans call for an expansion in this area of future growth. In addition to reporting on the magnitude and trends of shrinkage, the survey attempts to gather useful information about a wide array of important topics, including: ■ C auses of shrinkage, with a percentage breakdown by type and magnitude, ■ L ist of most-stolen merchandise by vertical market, ■ M ethods used to combat shrinkage, with a breakdown by type, and information about future implementation, ■ R etail loss prevention and security spending, with a percentage breakdown by type and a calculation of total spending as a percentage of sales, and ■ T he global cost of retail crime.

Causes of Shrinkage

Globally, customer theft, including shoplifting and organized retail crime (ORC), was thought to cause the greatest shrinkage in most countries—42.4 percent of total shrinkage, compared with 42.5 percent in 2009. Dishonest employees were estimated to be responsible for 35.3 percent of total shrinkage, compared with 35.5 percent in 2009. Internal error and administrative failure, such as pricing, process, or accounting mistakes, accounted for 16.9 percent of total shrinkage, compared with 16.4 percent in 2009.

January – February 2011

LPportal.com

Supplier/vendor fraud was 5.4 percent of total shrinkage, compared with 5.6 percent in 2009. As in the previous years there is an interesting divergence of opinion among respondent groups over the sources of shrinkage. North American and Latin American retailers regarded dishonest employees as the biggest problem (47.3 and 43.1 percent respectively). Shoplifters and ORC accounted for 35.0 and 32.2 percent respectively. North American retailers have focused vigorously on ORC issues over the past few years. European and Asian retailers, on the other hand, identified customer theft as the largest shrinkage component (52.9 and 47.8 percent respectively). Dishonest employees accounted for an estimated 29.8 and 23.3 percent respectively.

Most Stolen Merchandise

The study asked retailers for specific information about the average shrinkage rate of “high-risk” product lines in grocery and food, apparel/clothing and fashion, and health and beauty (first year). Many of the most-stolen product lines are expensive, major national brands and retailers reported that between 10 and 30 percent of the most stolen lines are new to the market in the last two years. This was particularly true of apparel and clothing and health and beauty. For food and grocery items the highest shrinkage was reported in fresh meat (2.86%), which was more than double the global shrinkage rate of 1.22 percent for

supermarkets/hypermarkets/large grocery stores. Other high loss categories were alcohol, cheese, candy, and infant formula. Infant formula is a source used to dilute illegal drugs, so its inclusion is no surprise. The highest shrinkage losses in the apparel/clothing and fashion categories were seen in accessories (3.84%), children’s wear (2.97%), and in fashion/tailored clothing (2.81%). Last year, these three categories were the highest risk in every region, but in 2010 this is only true for North America and Europe. Health and beauty product lines are sold by many different types of stores. The highest losses were found in shaving products (3.57%), perfume/fragrances (2.73%) and lipsticks, glosses, and lip liners (2.60%). The study also includes a table listing the top seven stolen merchandise categories in ten of the most prominent business categories or vertical markets. The results indicate that high-risk merchandise knows no geographical boundaries as meat, apparel/accessories, jewelry, health and beauty, entertainment electronics, and infant formula are targets the world over.

Relationship between LP Budgets and Shrinkage

GRTB researchers used ten years of Western European statistics to test whether changes in one or more of the components in loss prevention spending were related to changes in shrinkage. The idea was to use regression analysis to see if there is a relationship between increased

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LP Magazine | January – February 2011

Calendar loss prevention spending and lower shrink, and between reductions in loss prevention spending and higher shrink. The analysis, based on a basic function called the Cobb-Douglas model, showed that that increases in loss prevention spending on manpower, equipment, and services are associated with reduced shrinkage levels and vice versa. More information on the GRTB can be obtained from the Centre for Retail Research (www.retailresearch.org) or by watching an archived webinar on the subject at the magazine website, www.LPportal.com/webinar.

Continued Growth Forecasted for the Security Market

World market demand for security equipment is projected to climb 7.4 percent annually through 2014 to about $100 billion, according to a recently released annual study from the Freedonia Group. The strongest gains will be posted in the developing parts of the world, including Asia, sub-Saharan Africa, the Middle East, and Latin America. North America is also expected to see total gains well above the global average through 2014. Security equipment spending will benefit from a strong cyclical rebound in construction and capital investment spending. The study notes that as of 2009, the top six security equipment manufacturers accounted for approximately 25 percent of all product sales value. They are ASSA ABLOY (Sweden), United Technologies (U.S.), Honeywell International (U.S.), Tyco International (Switzerland), Bosch (Germany), and Ingersoll-Rand (Ireland). In a related study featuring demand in the U.S., Freedonia reports that electronic security product sales are expected to increase by 9.3 percent per year to $1.7 billion in 2014. Access controls represent the largest and fastest growing segment with a 12.8 percent annual growth rate. Advances will be driven by interest in automating security, reducing the need for traditional alternatives, such as keys and manpower. The other main categories are predicted to grow by between 6.2 percent annually (electronic article surveillance) to 7.2 percent annually (alarms, automotive security, and other). Closed-circuit video demand is pegged at 7.0 percent growth per year. The Freedonia Group (www.freedoniagroup.com) is a leading international business research company, publishing over 100 reports annually. While the cost of these reports in their entirety is significant, Freedonia has recently started to price the data by segment, encouraging a broader reach of potential customers wishing to focus research investment dollars more sharply. Statement of Ownership Publication title: LossPrevention Filing date: 09/24/2010 Issue frequency: bi-monthly No. of issues annually: 6 Mailing address of office of publication: 700 Matthews Mint Hill Rd, Ste C, Matthews, NC 28105 Mailing address of headquarters: same Name and address of publisher, editor, and managing editor: Jack Trlica, same address as above Corporate owner: Loss Prevention Magazine, Inc., 10433 Pullengreen Dr., Charlotte, NC 28277 Stockholders: Jim Lee, 10433 Pullengreen Dr., Charlotte, NC 28277; Jack Trlica, 7436 Leharne Dr., Charlotte, NC 28270 Publication title: LossPrevention Issue date of circulation data below: July-August 2010 Avg. No. Copies No. Copies of Single Each Issue During Issue Published Preceding 12 Months Nearest to Filing Date Total no. of copies 23,333 23,000 Outside county paid/requested subscriptions 14,770 15,837 In-county paid/requested subscriptions 0 0 Other paid/requested distribution outside USPS 6,847 5,658 Requested copies distributed by other mail classes through USPS 99 214 Total paid and/or requested circulation 21,716 21,709 Outside county nonrequested copies 173 0 In-county nonrequested copies 0 0 Nonrequested copies distributed by other mail classes through USPS 0 0 Nonrequested copies distributed outside the mail 899 390 Total nonrequested distribution 1,072 390 Total distribution 22,789 22,099 Copies not distributed 554 901 Total 23,342 23,000 Percent paid and/or requested circulation 95 98 Name and title of publisher: Jack Trlica, Editor and Publisher Date: 09/24/2010

January – February 2011

LPportal.com

January 9 – 12, 2011 National Retail Federation 100th Annual Convention & Expo Jacob K. Javits Convention Center New York, NY www.nrf.com February 9 – 11, 2011 Hospitality Law Conference Houston, TX www.hospitalitylawyer.com February 13 – 15, 2011 TechSec Solutions 2011 IP-Based Technology Conference Delray Beach (FL) Marriott www.techsecsol.com March 6 – 9, 2011 Food Marketing Institute 2011 Asset Protection Conference Buena Vista Palace Hotel & Spa Lake Buena Vista, FL www.fmi.org March 22 – 24, 2011 Merchant Risk Council e-Commerce Payments & Risk Conference Wynn Resort, Las Vegas, NV www.merchantriskcouncil.org April 11 – 14, 2011 Retail Industry Leaders Association LP, Auditing & Safety Conference 2011 Gaylord Palms Resort, Orlando, FL www.rila.org June 13 – 15, 2011 National Retail Federation 2011 LP Conference and EXPO Gaylord Texan Resort, Dallas, TX www.nrf.com August 7 – 10, 2011 National Food Service Security Council 32nd Annual Meeting Hyatt Grand Champions, Indian Wells, CA www.nfssconline.org September 19 – 22, 2011 ASIS International 57th Annual Seminar and Exhibits Orange County Convention Center Orlando, FL www.asisonline.org

People on the move

Brian Fitzpatrick has been promoted to VP Operational Effectiveness & Asset Protection for A&P. Dave Thompson was appointed Regional LP Manager for Abercrombie & Fitch.

Wayne Barnes was appointed LP Manager U.S. and Art Siva has been promoted to VP – Head of Operations North America for Esprit.

Sara Ketelhut was appointed LP Store Investigator for ACO Inc.

GameStop has announced the following changes: Michael Brookshire to LP Analyst and David Henger, Dale Jackson, and Kevin Thelan to Regional LP Managers.

Marlene Kusumoto was named Director of LP for Anna’s Linens.

Bill Nash was named Chief Operating Officer for Genetec.

Jason Ploof, CFI has been promoted to Regional LP Director for Armani Exchange.

Kevin Price has been promoted to Director of Field LP for GUESS.

Rick Pennington was appointed Director, Risk Services for Axcess Financial. Marcella Coppola was named Director of LP for Bath & Body Works. James Russell, CFI was appointed to District LP Manager for Big Lots. Lawrence Hartman, CFI and Lori Tobin were appointed Regional LP Managers for Burlington Coat Factory. David Homolka has been promoted to VP of U.S. Retail Operations for Cabela’s. Chief Anthony Canale was named Director of Operations and Investigations for CargoNet. Leo Anguiano was appointed VP LP and Risk Management for Central Parking. Douglas Martinez was named Regional LP Manager for Charming Shoppes. Kirk Luke was appointed Director of LP for CKE Restaurants, Inc. Barry Grant has been promoted to Senior VP of LP & Operational Support for CPI Corp. CVS has announced the following changes: Randy Hall, CFI and Juan Madrid to Regional LP Managers, and Freddy Torres to Director LP Financial Analysis. Ryan O’Hara has been promoted to LP Analyst for Destination Maternity Corp. Sergio Martinez, CFI was named Regional LP Manager and Kelly Moye, CFI was appointed Regional Investigations Manager for Dollar General.

Marco Sanchez has been promoted to LP Manager for HEB. Mike Combs has been promoted to Director, AP Supply Chain for Home Depot. Sean Manion was named VP of Sales & Operations, North America for IDM Software, Ltd. Mike Korcuba was appointed Business Development Manager for Iverify. Marcella Coppola, CFI was appointed Director of LP for Limited Brands. Raj Rakkar was named Director of Security for Loss Prevention Services. Jason Lotts was named LP Zone Partner for Lumber Liquidators. Navy Exchange announced the following promotions: Kevin MacKenzie to District LP/S Manager, Hawaii; Danita Brown to District LP/S Manager, Guam; Ron Gillenberg to District LP/S Manager, Japan; LeVern Hayes to LP/S Manager, NEX Atsugi, Japan; Brian Nowlan to LP/S Manager, NEX Bahrain; Alex Bedoya to LP/S Manager, NEX Naples, Italy; Adam Porter to LP/S Manager, NEX Portsmouth; Eric Miller to LP/S Manager, NEX Oceana; and Velvia West to Assistant Security Manager. New appointments include Stanley King as LP/S Manager at NEX Charleston; Tony Rowland as LP/S Manager, NEX Bangor; and James Hyatt as Command Security Manager. Joseph Young was appointed Area LP Supervisor for Neimann Foods. Tom Doyle was appointed Senior LP Auditor for Oakley International. Dave Sacramone has been promoted to Regional Manager of LP &

LP Magazine | January – February 2011

Safety – Supply Chain BSD for Office Depot. Priya Kamath has been promoted to District LP Manager, and Bryan Kling was appointed Associate Director for Polo Ralph Lauren. Janette Murray and Sam Reichman, CFI were named Investigations Managers for RadioShack. Andrew Grant was named Director, AP for Raley’s. Ross has announced the following changes: Kevin Atkinson to Senior Manager of LP Programs & Compliance, Adam Eaton and Steve Ecsedy to Area LP Managers, and Jean Luma to LP Supervisor. John Holubowicz was appointed Director of AP for Saks Fifth Avenue. Anna Gunther has been promoted to Director of LP, Home Services & Outlet Stores for Sears Holding Corp. Mike Truax was appointed LP Investigations/Process Manager for Sephora. Andrew Martino and Charles Scott were named Area LP Managers for Stein Mart, Inc. Dan Patasnik was named LP Director for Swatch Group U.S. Mike Tadros was appointed to Director of Security for Time Warner. Josh Machtinger was named AP Process Improvement Analyst for Toys “R” Us. Gary Fraser was appointed Director of North American Sales for Vector Security. George Hines, CFI was appointed Manager of Security Systems for Yale University.

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.

ADVERTISERS ADT....................................................... 84 www.adtselectview.com Alpha.............................................. 21, 23 www.alphaworld.com Axis Communications........................... 16 www.axis.com/hotspot Bass Security........................................ 75 www.bass-security.com CargoNet............................................... 45 www.cargonet.com CISA...................................................... 22 www.certifiedinterviewer.com ClickIt Inc.............................................. 25 www.clickitinc.com Contact................................................. 28 www.contactinc.com Corporate Safe Specialists.................... 48 www.corporatesafe.com Enabl-u Technologies............................ 45 www.enabl-u.com Evolution Robotics Retail...................... 47 www.evoretail.com Food Marketing Institute....................... 35 www.fmi.org/events Gulfcoast Software Solutions.................. 3 www.gulfcoastsoftware.com i3International......................................... 7 www.i3international.com/lp InstaKey................................................ 47 www.instakey.com Kenstan Lock........................................ 33 www.kenstan.com LexisNexis.............................................. 2 screening@lexisnexis.com The Loss Prevention Foundation........... 38 www.losspreventionfoundation.org LPjobs.com........................................... 40 www.lpjobs.com Merchant Risk Council.......................... 71 www.merchantriskcouncil.org Milestone.............................................. 24 www.milestonesys.com/future Northern Michigan University............... 15 www.nmu.edu/lp Palmer, Reifler & Associates................. 36 www.palmerreifler.com Pink for the Cure................................... 73 www.passionatelypink.org The Retail Equation................................. 5 www.theretailequation.com RILA...................................................... 49 www.rila.org/lp Security Resources............................... 83 www.securityresources.biz S-TRON................................................. 27 www.s-tron.com TechSec Solutions................................. 77 www.techsecsol.com The Vitamin Shoppe.............................. 27 www.vitaminshoppe.com WG Security Products............................ 9 www.wgspi.com

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Vendor Sponsors

High Theft Solutions

Vendor Advisory board ADT Retail Solutions Kevin E. Lynch Executive Director

ClickIt Inc. Jim Paul Director of Sales

InstaKey Security Systems Cita Doyle Director of Sales & Marketing

Palmer, Reifler & Associates Jeff Welch Executive Director

Alpha Carlos Perez Director of Marketing

Corporate Safe Specialists Ed McGunn President/CEO

Kenstan Lock David G. Allen National Sales Representative

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

The Retail Equation Tom Rittman Vice President, Marketing

Evolution Robotics Colleen Lindsey Marketing

Milestone Hedgie Bartol Retail Sales Manager

WG Security Products Ed Wolfe Vice President, Business Development

Bass Security Services Joe Mignone Vice President Sales and Marketing

Gulfcoast Software Solutions Tim Lindblom Executive Vice President LP Magazine | January – February 2011

Parting Words

To Be Young Again

Jim Lee Executive Editor

speak from experience when I tell you that as you get older, there are things you can’t do at all or can’t do as well as you did when you were younger. I was told over and over by my elders that this would happen, but I refused to believe it could happen to me. Physically you just begin to wear down. The body changes in many ways—ankles, shoulders, knees, feet, hips, eyes, weight. Heck, in my case I think I am shorter than when I was 21. Then there are the internal breakdowns. High blood pressure, diabetes, cancers, and the list goes on and on. Haven’t you heard it before, “If I knew I was going to live this long, I would have taken better care of myself.” The medical experts will tell you that staying fit physically will keep many of those aging ailments away or at least delay them.

To be young again in today’s loss prevention environment is certainly different…maybe better, maybe not. I’m not sure I would want to be young again starting a career in loss prevention.

training manuals and training classes. You likely would be observing and following around other experienced LP associates for a period of time until you figured out the functions of the job. Often the most critical component of the job was apprehending a shoplifter. You had a trial period to go through before you were cut loose on your own with shoplifters. The significant piece of your training was that there were other partners in LP in your store that you could turn to or talk with or learn from on a daily basis. Working with experienced people or having a “coach” on site was the norm, and you matured fast and became engaged early on in investigations. The more you did, the more you got noticed. Getting noticed created the chance for advancement and stability.

What about Today?

There are differences today. Some may get the opportunity to start their careers in a big box and experience an even better and faster learning curve. Many others starting out today do not have that opportunity. After initial training, you likely will be given an assignment working alone. You will be asked to perform the non-investigative responsibilities and can learn and do them well fairly quickly. But, how are you on the investigation piece? How are you on observing and apprehending a shoplifter? How much mentoring and coaching and hands-on training have you had from others in learning a very critical, dangerous, and potentially libelous action? Some people are certainly trying. It is impressive to go to a meeting How long will it be before you are allowed to become involved or conference and see so many in the fitness center or outside running in employee theft investigations? When does the training start? Who or walking. I know some LP executives who actually look better will be there to show you, teach you, and allow you to observe the today than they did ten years ago. interviews? How do you get noticed today? That question is often asked Looking Back by young people today. How do you get noticed and create an opportunity for advancement? Have you ever said to yourself, “If I was only younger again I To be young again in today’s loss prevention environment is could....” or “When I was younger I could....” Oh yes, to find that certainly different…maybe better, maybe not. What do you think? If fountain of youth and be young again! you are at a level above store detective, do you go out of your way to What if you were 21 years old again and starting out in the loss help understand what today’s entry-level person is thinking, desiring, prevention business? Is anything different today for young people hoping, and needing help on to achieve success? Do you tell or show than twenty-five years ago? Is it better? Is it easier to move along in the young how to perform? your career? At any given time there are several thousand job openings for The party line answer to that question is that many things are entry-level loss prevention associates. Do many jump from one job to different, and it is so much better today. For the young person another or leave the field altogether because they are alone in a store today there are training programs, internships, certifications, many and don’t feel the love? I’m not sure I would want to be young again information sources, technology, better acceptance of the function, starting a career in loss prevention. more money, and opportunities galore…the sky’s the limit. On second thought, yes I would. Well, let’s see. Let’s look back oh so many years ago to the position of store detective or agent or LP associate just starting out in the business with little or no experience. You likely would be in a big box working with several other detectives and a manager. There would be

January – February 2011

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January - February 2011

Articles inside

FUNDaMENTaLS

INDUSTRY NEWS

aSSOCIaTIONS IN aCTION

CERTIFICaTION

PaRTING WORDS

aCaDEMIC VIEWPOINT

PEOPLE ON THE MOVE

PUBLISHER’S LETTER