35 minute read
DIGITAL DIALOGUE
A Look Back, a Glimpse Forward
There were many different kinds of stories that dotted the digital landscape in 2014, many highlighting the scope and reach of loss prevention in the new age of retail. Headlines dominating the digital space spanned both the globe and the imagination as loss prevention issues remain a prominent focus of retail dialogue. Some topics were new and fresh, some felt more like repeats of stories past, and still others will ultimately influence the culture and evolution of retail for years to come.
But one constant is that things tend to move quickly in the digital space, which also means that there are times when we may need to slow things down and take a closer look. While the headlines tend to catch our attention, there are often messages in the details that strengthen our resolve and give us insights on what is yet to come. Let’s take a closer look at a couple of those stories from late 2014 and explore some of those key messages.
Data Dilemmas
As might be expected, data breaches were a dominant story in 2014. With cyber-criminals coercing their way into retail data vaults across the globe, these incidents are reshaping not only our protection strategies and the boundaries of loss prevention, but also our very approach to the way that we pay for goods and services. Banks, credit card companies, and retailers alike are searching for more effective ways to protect critical information and the lifeblood of retail commerce. However, perhaps the data breach that will have one of the more impactful long-term influences on the retail industry would not be classified as a retail-specific data breach.
The unprecedented hack of Sony Pictures may be the most damaging cyber breach ever inflicted on an American business. Attacking the core of Sony’s business operations, the fallout forced Sony to cancel the widespread release of a major studio film. But in addition to the financial losses inflicted due to lost box-office revenue, Sony also faces astounding scrutiny as a landslide of sensitive emails and private and confidential documents were released online by the hackers.
The studio’s reputation is in shambles as embarrassing revelations spill from tens of thousands of leaked emails and other company materials. There will be the cost of defending the studio against lawsuits by ex-employees angry over the breach, the impact on moviegoers angered by the quagmire of raw comments and poor decisions, and the potential damages as the result of actors who might refuse to work with the studio. Political tensions have even mounted in the wake of the breach. Sources claim that losses could easily eclipse $200 million as a result of the fallout.
Federal investigators believe there is a direct connection between the Sony hack and the spoof movie The Interview, which is the film debut that was cancelled. The movie features a pair of journalists who are asked by the CIA to assassinate North Korea’s leader Kim Jong Un. While some may argue the “artistic” merits of filming a movie with such a distasteful premise or the intelligence of mocking a proud nation regardless of their political pitfalls, there is very little argument regarding the disastrous result.
By Jacque Brittain, LPC
Brittain is editorial director, digital, for LP Magazine. Formerly a director of learning design and certification, Brittain managed the development of the LPC and LPQ certification programs in collaboration with the Loss Prevention Foundation. Prior to that he was vice president of operations for the industry’s largest executive search and consulting firm. In his thirty-plus years in the LP industry, he has helped build and enhance many learning initiatives and provided career counseling for thousands of industry professionals. Brittain can be reached at jacb@lpportal.com or by phone at 704-246-3143.
What Does This Have to Do with Retail?
The answer lies in the reason for the attack. While the breach resulted in significant financial losses for the studio, the specific reason for the attack was not intended to be for the financial gain of the perpetrators—the incentive was retribution. The alleged hackers, who call themselves “Guardians of Peace,” have also made threats of violence if movie theatres show the film. They claim the film is the reason for the breach.
The crystal clear reminder to the retail community is that those attempting to compromise our information resources may have incentives beyond financial gain. While the protection of financial and payment data is absolutely critical, we cannot afford to lose sight of the value—and potential liability—that can be tied to all of our sensitive information.
It’s certainly not out of the realm of possibilities that a disgruntled customer or employee might attempt to hack into our systems to release sensitive information that could cause significant damage and embarrassment to the organization. That also points to the need to remain diligent with the policies and practices designed to protect us from such insults and maintain critical security perspective in every area of the business.
Customers are looking at retail operations through a more critical eye, which threatens to change spending habits and personal choices in retail providers based on factors beyond the quality of our products. As a result we must always keep in mind that many of the challenges are much more far-reaching when it comes to the protection of our resources and the security of our data. Brand protection has added a new dimension in the face of company response. Customer service takes on a different perspective as well in light of threats that can jeopardize personal bank accounts as well as consumer preferences. All of this will lead to significant changes in
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SYED RAZA, CFI WAS PROMOTED TO LP DIRECTOR OF HOME SERVICES AT SEARS HOLDING CORPORATION - SHAUN GILFOY, CFI WAS NAMED DIRECTOR REGIONAL SECURITY NORTH & SOUTH AMERICA FOR LEVI STRAUSS & CO - EDDIE FOLEY, CFI WAS PROMOTED TO DIRECTOR OF INVESTIGATIONS AND LP OPERATIONS FOR TRACTOR SUPPLY COMPANY - BRANDON MATHEWS, CFI IS NOW PROGRAM DIRECTOR FOR INTERVENTION COMMUNITY CORRECTIONS - GINA GUARDAMONDO, CFI, LPC IS NOW DIRECTOR OF LOSS PREVENTION AT FINISH LINE - BRIAN KIRBY CFI, LPC IS NOW DIRECTOR OF LOSS PREVENTION AT COLUMBIA SPORTSWEAR - DUARTE MONTEIRO, CFI WAS NAMED DIRECTOR OF LOSS PREVENTION AT CATHERINE’S - LISA BENSON, CFI WAS NAMED DIRECTOR, ASSET PROTECTION - INTERNAL INVESTIGATIONS FOR SAKS FIFTH AVENUE - CARMEN DUBOSE, CFI WAS PROMOTED TO REGIONAL VICE PRESIDENT OF LOSS PREVENTION FOR HIBBETT SPORTS - JEREMY BAILEY, CFI WAS PROMOTED TO REGIONAL VICE PRESIDENT OF LOSS PREVENTION FOR HIBBETT SPORTS - BRIAN STROMBERG, CFI IS NOW REGIONAL VICE PRESIDENT OF LOSS PREVENTION, NORTH CENTRAL REGION AT MACY’S - RICHARD ZAPATA, CFI IS NOW PRESIDENT, NEW BUSINESS DEVELOPMENT AT ICON BUILDING SOLUTIONS - JOHNNY CUSTER, LPC, CFI WAS NAMED VICE PRESIDENT, SOLUTIONS RESEARCH AND MARKETING SYSREPUBLIC - JEREMY BAILEY, CFI WAS PROMOTED TO REGIONAL VICE PRESIDENT OF LOSS PREVENTION FOR HIBBETT SPORTS - DON WUCHTER, CFI WAS PROMOTED TO DIRECTOR OF LOSS PREVENTION EASTERN DIVISION FOR SHERWIN-WILLIAMS - GARY MONCUR, CFI WAS NAMED LOSS PREVENTION DIRECTOR FOR COMPASS GROUP - JOSHUA PHILLIPS, CFI WAS PROMOTED TO DIRECTOR OF LOSS PREVENTION FOR LIMITED BRANDS - STEVEN PALUMBO, CFI WAS PROMOTED TO GROUP DIRECTOR SECURITY - OPERATIONS AND MANUFACTURING AT TIFFANY & CO - MICHAEL HAGENBUSH, CFI, CFE WAS PROMOTED TO DIRECTOR OF LOSS PREVENTION - MID-WESTERN DIVISION FOR SHERWINWILLIAMS PAINTS - JOHN GREGG, CFI IS NOW REGIONAL DIRECTOR, SAFETY AND LOSS PREVENTION AT DOMINO’S PIZZA - DION DAVIS, CFI WAS PROMOTED TO DIRECTOR OF LOSS PREVENTION FOR JOS. A. BANK CLOTHIER AND THE MEN’S WEARHOUSE - MARGIE MANTO, CFI WAS PROMOTED ZONE DIRECTOR - LOSS PREVENTION FOR LIMITED BRANDS - JOHN LUBIN, CFI IS NOW ASSET PROTECTION DIRECTOR EUROPE FOR RALPH LAUREN - SERGIO MARTINEZ, CFI IS NOW DIVISION 6 LOSS PREVENTION DIRECTOR AT DOLLAR GENERAL - JEFF MCPIKE, CFI WAS NAMED DIRECTOR OF LABOR AND PROCESSES (OPERATIONS) FOR NIKE INC - PAUL WHYTE, CFI IS NOW INTERNATIONAL ACCOUNT DIRECTOR - EMEA AT SECURITAS AB - ROBERT SANCHEZ JR, CFI WAS NAMED DIRECTOR, OPERATIONS/LOSS PREVENTION FOR AMTEL, LLC - SERGIO MARTINEZ, CFI WAS PROMOTED TO DIVISIONAL LP DIRECTOR FOR DOLLAR GENERAL - CELIA CORTES, CFI, PCI WAS NAMED DIRECTOR OF SECURITY AT BRANDON HALL SCHOOL - MARK REEVES, CFI WAS NAMED DIRECTOR OF LOSS PREVENTION/FIELD AUDIT - NORTH ZONE FOR PAYLESS SHOE SOURCE - TIM LAPINSKI, CFI WAS NAMED DIRECTOR OF LOSS PREVENTION FOR HELZBERG DIAMONDS - STEVE WALKER, CFI WAS PROMOTED TO MARKET LOSS PREVENTION DIRECTOR FOR WALGREENS - TOM STEIN, CFI WAS NAMED DIRECTOR OF RISK MANAGEMENT AND LOSS PREVENTION FOR AREAS USA, INC - DAVID GEORGE, CFE, CFI NAMED VICE PRESIDENT OF ASSET PROTECTION FOR DOLLAR GENERAL CORPORATION - KEVIN GOLLNER, CFI WAS PROMOTED TO VICE PRESIDENT AND CHIEF COMPLIANCE OFFICER FOR RUSH ENTERPRISES - JASON COREN, CFI WAS NAMED DIRECTOR OF LP & SECURITY NORTH AMERICA AT AMAZON - MATT LINCOLN, CFI WAS PROMOTED TO SENIOR DIRECTOR OF LOSS PREVENTION & SAFETY FOR PETSMART - KRISTINA B. FULLERTON, MSCJ, CFI IS NOW DIRECTOR OF USER SERVICES, ITS AT UNIVERSITY OF NEW ENGLAND - GREGG SMITH, CFI WAS NAMED SENIOR DIRECTOR OF LOSS PREVENTION FOR FIVE BELOW, INC - KEVIN ROBINSON, CFI WAS NAMED DIRECTOR OF LOSS PREVENTION FOR ALTAR’D STATE - ERIC CHASE, CFI WAS PROMOTED TO DIVISIONAL DIRECTOR FOR CARMAX SYED RAZA, CFI WAS PROMOTED TO LP DIRECTOR OF HOME SERVICES AT SEARS HOLDING CORPORATION - SHAUN GILFOY, CFI WAS NAMED DIRECTOR REGIONAL SECURITY NORTH & SOUTH AMERICA FOR LEVI STRAUSS & CO - EDDIE FOLEY, CFI WAS PROMOTED TO DIRECTOR OF INVESTIGATIONS AND LP OPERATIONS FOR TRACTOR SUPPLY COMPANY - BRANDON MATHEWS, CFI IS NOW PROGRAM DIRECTOR FOR INTERVENTION COMMUNITY CORRECTIONS - GINA GUARDAMONDO, CFI, LPC IS NOW DIRECTOR OF LOSS PREVENTION AT FINISH LINE - BRIAN KIRBY CFI, LPC IS NOW DIRECTOR OF LOSS PREVENTION AT COLUMBIA SPORTSWEAR - DUARTE MONTEIRO, CFI WAS NAMED DIRECTOR OF LOSS PREVENTION AT CATHERINE’S - LISA BENSON, CFI WAS NAMED DIRECTOR, ASSET PROTECTION - INTERNAL INVESTIGATIONS FOR SAKS FIFTH AVENUE - CARMEN DUBOSE, CFI WAS PROMOTED TO REGIONAL VICE PRESIDENT OF LOSS PREVENTION FOR HIBBETT SPORTS - JEREMY BAILEY, CFI WAS PROMOTED TO REGIONAL VICE PRESIDENT OF LOSS PREVENTION FOR HIBBETT SPORTS - BRIAN STROMBERG, CFI IS NOW REGIONAL VICE PRESIDENT OF LOSS PREVENTION, NORTH CENTRAL REGION AT MACY’S - RICHARD ZAPATA, CFI IS NOW PRESIDENT, NEW BUSINESS DEVELOPMENT AT ICON BUILDING SOLUTIONS - JOHNNY CUSTER, LPC, CFI WAS NAMED VICE PRESIDENT, SOLUTIONS RESEARCH AND MARKETING SYSREPUBLIC - JEREMY BAILEY, CFI WAS PROMOTED TO REGIONAL VICE PRESIDENT OF LOSS PREVENTION FOR HIBBETT SPORTS - DON WUCHTER, CFI WAS PROMOTED TO DIRECTOR OF LOSS PREVENTION EASTERN DIVISION FOR SHERWIN-WILLIAMS - GARY MONCUR, CFI WAS NAMED LOSS PREVENTION DIRECTOR FOR COMPASS GROUP - JOSHUA PHILLIPS, CFI WAS PROMOTED TO DIRECTOR OF LOSS PREVENTION FOR LIMITED BRANDS - STEVEN PALUMBO, CFI WAS PROMOTED TO GROUP DIRECTOR SECURITY - OPERATIONS AND MANUFACTURING AT TIFFANY & CO - MICHAEL HAGENBUSH, CFI, CFE WAS PROMOTED TO DIRECTOR OF LOSS PREVENTION - MID-WESTERN DIVISION FOR SHERWINWILLIAMS PAINTS - JOHN GREGG, CFI IS NOW REGIONAL DIRECTOR, SAFETY AND LOSS PREVENTION AT DOMINO’S PIZZA - DION DAVIS, CFI WAS PROMOTED TO DIRECTOR OF LOSS PREVENTION FOR JOS. A. BANK CLOTHIER AND THE MEN’S WEARHOUSE - MARGIE MANTO, CFI WAS PROMOTED ZONE DIRECTOR - LOSS PREVENTION FOR LIMITED BRANDS - JOHN LUBIN, CFI IS NOW ASSET PROTECTION DIRECTOR EUROPE FOR RALPH LAUREN - SERGIO MARTINEZ, CFI IS NOW DIVISION 6 LOSS PREVENTION DIRECTOR AT DOLLAR GENERAL - JEFF MCPIKE, CFI WAS NAMED DIRECTOR OF LABOR AND PROCESSES (OPERATIONS) FOR NIKE INC - PAUL WHYTE, CFI IS NOW INTERNATIONAL ACCOUNT DIRECTOR - EMEA AT SECURITAS AB - ROBERT SANCHEZ JR, CFI WAS NAMED DIRECTOR, OPERATIONS/LOSS PREVENTION FOR AMTEL, LLC - SERGIO MARTINEZ, CFI WAS PROMOTED TO DIVISIONAL LP DIRECTOR FOR DOLLAR GENERAL - CELIA CORTES, CFI, PCI WAS NAMED DIRECTOR OF SECURITY AT BRANDON HALL SCHOOL - MARK REEVES, CFI WAS NAMED DIRECTOR OF LOSS PREVENTION/FIELD AUDIT - NORTH ZONE FOR PAYLESS SHOE SOURCE - TIM LAPINSKI, CFI WAS NAMED DIRECTOR OF LOSS PREVENTION FOR HELZBERG DIAMONDS - STEVE WALKER, CFI WAS PROMOTED TO MARKET LOSS PREVENTION DIRECTOR FOR WALGREENS - TOM STEIN, CFI WAS NAMED DIRECTOR OF RISK MANAGEMENT AND LOSS PREVENTION FOR AREAS USA, INC - DAVID GEORGE, CFE, CFI NAMED VICE PRESIDENT OF ASSET PROTECTION FOR DOLLAR GENERAL CORPORATION - KEVIN GOLLNER, CFI WAS PROMOTED TO VICE PRESIDENT AND CHIEF COMPLIANCE OFFICER FOR RUSH ENTERPRISES - JASON COREN, CFI WAS NAMED DIRECTOR OF LP & SECURITY NORTH AMERICA AT AMAZON - MATT LINCOLN, CFI WAS PROMOTED TO SENIOR DIRECTOR OF LOSS PREVENTION & SAFETY FOR PETSMART - KRISTINA B. FULLERTON, MSCJ, CFI IS NOW DIRECTOR OF USER SERVICES, ITS AT UNIVERSITY OF NEW ENGLAND - GREGG SMITH, CFI WAS NAMED SENIOR DIRECTOR OF LOSS PREVENTION FOR FIVE BELOW, INC - KEVIN ROBINSON, CFI WAS NAMED DIRECTOR OF LOSS PREVENTION FOR ALTAR’D STATE - ERIC CHASE, CFI WAS PROMOTED TO DIVISIONAL DIRECTOR FOR CARMAX SYED RAZA, CFI WAS PROMOTED TO LP DIRECTOR OF HOME SERVICES AT SEARS HOLDING CORPORATION - SHAUN GILFOY, CFI WAS NAMED DIRECTOR REGIONAL SECURITY NORTH & SOUTH AMERICA FOR LEVI STRAUSS & CO - EDDIE FOLEY, CFI WAS PROMOTED TO DIRECTOR OF INVESTIGATIONS AND LP OPERATIONS FOR TRACTOR SUPPLY COMPANY - BRANDON MATHEWS, CFI IS NOW PROGRAM DIRECTOR FOR INTERVENTION COMMUNITY CORRECTIONS - GINA GUARDAMONDO, CFI, LPC IS NOW DIRECTOR OF LOSS PREVENTION AT FINISH LINE - BRIAN KIRBY CFI, LPC IS NOW DIRECTOR OF LOSS PREVENTION AT COLUMBIA SPORTSWEAR - DUARTE MONTEIRO, CFI WAS NAMED DIRECTOR OF LOSS PREVENTION AT CATHERINE’S - LISA BENSON, CFI WAS NAMED DIRECTOR, ASSET PROTECTION - INTERNAL INVESTIGATIONS FOR SAKS FIFTH AVENUE - CARMEN DUBOSE, CFI WAS PROMOTED TO REGIONAL VICE PRESIDENT OF LOSS PREVENTION FOR HIBBETT SPORTS - JEREMY BAILEY, CFI WAS PROMOTED TO REGIONAL VICE PRESIDENT OF LOSS PREVENTION FOR HIBBETT SPORTS - BRIAN STROMBERG, CFI IS NOW REGIONAL VICE PRESIDENT OF LOSS PREVENTION, NORTH CENTRAL REGION AT MACY’S - RICHARD ZAPATA, CFI IS NOW PRESIDENT, NEW BUSINESS DEVELOPMENT AT ICON BUILDING SOLUTIONS - JOHNNY CUSTER, LPC, CFI WAS NAMED VICE PRESIDENT, SOLUTIONS RESEARCH AND MARKETING SYSREPUBLIC - JEREMY BAILEY, CFI WAS PROMOTED TO REGIONAL VICE PRESIDENT OF LOSS PREVENTION FOR HIBBETT SPORTS - DON WUCHTER, CFI WAS PROMOTED TO DIRECTOR OF LOSS PREVENTION EASTERN DIVISION FOR SHERWIN-WILLIAMS - GARY MONCUR, CFI WAS NAMED LOSS PREVENTION DIRECTOR FOR COMPASS GROUP - JOSHUA PHILLIPS, CFI WAS PROMOTED TO DIRECTOR OF LOSS PREVENTION FOR LIMITED BRANDS - STEVEN PALUMBO, CFI WAS PROMOTED TO GROUP DIRECTOR SECURITY - OPERATIONS AND MANUFACTURING AT TIFFANY & CO - MICHAEL HAGENBUSH, CFI, CFE WAS PROMOTED TO DIRECTOR OF LOSS PREVENTION - MID-WESTERN DIVISION FOR SHERWINWILLIAMS PAINTS - JOHN GREGG, CFI IS NOW REGIONAL DIRECTOR, SAFETY AND LOSS PREVENTION AT DOMINO’S PIZZA - DION DAVIS, CFI WAS PROMOTED TO DIRECTOR OF LOSS PREVENTION FOR JOS. A. BANK CLOTHIER AND THE MEN’S WEARHOUSE - MARGIE MANTO, CFI WAS PROMOTED ZONE DIRECTOR - LOSS PREVENTION FOR LIMITED BRANDS - JOHN LUBIN, CFI IS NOW ASSET PROTECTION DIRECTOR EUROPE FOR RALPH LAUREN - SERGIO MARTINEZ, CFI IS NOW DIVISION 6 LOSS PREVENTION DIRECTOR AT DOLLAR GENERAL - JEFF MCPIKE, CFI WAS NAMED DIRECTOR OF LABOR AND PROCESSES (OPERATIONS) FOR NIKE INC - PAUL WHYTE, CFI IS NOW INTERNATIONAL ACCOUNT DIRECTOR - EMEA AT SECURITAS AB - ROBERT SANCHEZ JR, CFI WAS NAMED DIRECTOR, OPERATIONS/LOSS PREVENTION FOR AMTEL, LLC - SERGIO MARTINEZ, CFI WAS PROMOTED TO DIVISIONAL LP DIRECTOR FOR DOLLAR GENERAL - CELIA CORTES, CFI, PCI WAS NAMED DIRECTOR OF SECURITY AT BRANDON HALL SCHOOL - MARK REEVES, CFI WAS NAMED DIRECTOR OF LOSS PREVENTION/FIELD AUDIT - NORTH ZONE FOR PAYLESS SHOE SOURCE - TIM LAPINSKI, CFI WAS NAMED DIRECTOR OF LOSS PREVENTION FOR HELZBERG DIAMONDS - STEVE WALKER, CFI WAS PROMOTED TO MARKET LOSS PREVENTION DIRECTOR FOR WALGREENS - TOM STEIN, CFI WAS NAMED DIRECTOR OF RISK MANAGEMENT AND LOSS PREVENTION FOR AREAS USA, INC - DAVID GEORGE, CFE, CFI NAMED VICE PRESIDENT OF ASSET PROTECTION FOR DOLLAR GENERAL CORPORATION - KEVIN GOLLNER, CFI WAS PROMOTED TO VICE PRESIDENT AND CHIEF COMPLIANCE OFFICER FOR RUSH ENTERPRISES - JASON COREN, CFI WAS NAMED DIRECTOR OF LP & SECURITY NORTH AMERICA AT AMAZON - MATT LINCOLN, CFI WAS PROMOTED TO SENIOR DIRECTOR OF LOSS PREVENTION & SAFETY FOR PETSMART - KRISTINA B. FULLERTON, MSCJ, CFI IS NOW DIRECTOR OF USER SERVICES, ITS AT UNIVERSITY OF NEW ENGLAND - GREGG SMITH, CFI WAS NAMED SENIOR DIRECTOR OF LOSS PREVENTION FOR FIVE BELOW, INC - KEVIN ROBINSON, CFI WAS NAMED DIRECTOR OF LOSS PREVENTION FOR ALTAR’D STATE - ERIC CHASE, CFI WAS PROMOTED TO DIVISIONAL DIRECTOR FOR CARMAX WHAT DO THEY ALL HAVE IN COM WHAT DO THEY ALL HAVE IN COM WHAT DO THEY ALL HAVE IN COMM M MON? ON? ON? 41 CFI’s promoted to Vice President or Director in the past 12 months 41 CFI’s promoted to Vice President or Director in the past 12 months 41 CFI’s promoted to Vice President or Director in the past 12 months WHAT ARE YOU DOING TO MAKE THIS LIST? WHAT ARE YOU DOING TO MAKE THIS LIST? WHAT ARE YOU DOING TO MAKE THIS LIST?
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business ideologies, performance models, and company planning and structure as businesses respond.
Looking at how this will potentially impact the evolution of the loss prevention profession, it becomes critical that we are active participants in the solutions process. Rather than simply reacting to decisions, we should seek out ways to proactively contribute to the process as such decisions are being developed. Whether this involves reaching out and improving our partnerships, improving our base of knowledge, learning new skills, taking on new responsibilities, or simply sharing our thoughts and ideas, we will be expected to step up to the plate. It’s always better to prepare and lead the way rather than to wait and hope for the best.
Ferguson, Missouri
The recent events in Ferguson, Missouri, have resulted in debates all over the world and sparked many demonstrations and subsequent protests against racial injustice. To briefly summarize, a police officer attempted to stop two young men suspected of being involved in a strong-arm robbery at a local store. The situation quickly escalated resulting in a confrontation between the officer and one of the suspects, and a young man was killed. The young man was African-American and unarmed. The veteran police officer was Caucasian.
In the months since the incident, we have heard conflicting accounts of what happened, how it happened, and why it happened. There have been heated discussions regarding the motives of the parties involved, the actions and intentions of the young men who were stopped, and the reactions of the police officer who responded to the scene.
In November a grand jury failed to indict the involved officer as a result of the incident, leading to additional tensions and response. While some chose to protest peacefully, others chose a different course. Retail malls have been the target of many protests. Retail shopping was disrupted on Black Friday. Unfortunately, discord spilled into the streets of Ferguson, escalating to incidents of violence, destruction of property, looting, and other acts of impropriety. In New York, a gunman recently ambushed and murdered two police officers, allegedly a revenge killing as a result of the incident in Ferguson and another incident in New York.
What led to the incidents that took place? Was it racism? Was it a lack of respect for the legal authority and a failure to appropriately respond to an officer simply trying to do his job? Was it an overzealous response by the officer or the overly aggressive behavior of the young man? Was the officer trying to protect himself? Was the young man trying to surrender? Was it anger or panic? If so, who was angry and who panicked? Regardless of personal beliefs and public opinions, there are some definitive facts—everyone involved made some extremely poor decisions, and a young man was tragically killed as a result.
For those who believe that the response of the officer wasn’t justified in this and other recent events, is it right to hold the entire law enforcement community responsible for the poor decisions of a few misguided individuals? For those condemning the actions of a few thugs that use these tragic incidents as an excuse to pillage, steal, and abuse their communities, is it right to hold those that are simply mounting peaceful demonstrations seeking awareness and change in the same light? Aren’t the answers to those questions similar to the ones that brought us here in the first place?
When it comes to managing incidents in our stores, there are reasons why we have policies and practices regarding how to handle these situations. There are reasons why we don’t want our employees confronting shoplifters. There are reasons why we tell our employees that there is nothing in the store worth someone getting hurt. Is that a stretch? Ask Officer Darren Wilson or the family of Michael Brown.
Taking It Full Circle
On Saturday, August 9, 2014, two young men were allegedly involved in a shoplifting incident for the theft of cigarillos from a Ferguson, Missouri, convenience store. The incident quickly escalated to a strong-arm robbery when the men were confronted by a store manager, and the manager was assaulted as they left the store with the stolen items. This simple, foolish act is what set the events in motion. Fifteen minutes later, a young man is dead, a family shattered, a community in turmoil, and a nation still looking for answers.
It seems like insanity to imagine that shoplifting a couple of dollars’ worth of tobacco products could be at the heart of such a tragic series of events; yet here we are. What does it mean? Who knows? But it does serve as a stern reminder that every incident that occurs in our stores can lead to unpredictable results. There is no such thing as a “routine” encounter with a shoplifter, and there are no limits to how quickly things can get out of hand.
Clearly, many of the issues are much more deeply rooted, and there are no easy answers or quick fixes to the problems that face our society as a whole. The best that we can hope for is to make smart decisions and stand by our own principles.
But when it comes to managing incidents in our stores, there are reasons why we have policies and practices regarding how to handle these situations. There are reasons why we don’t want our employees confronting shoplifters. There are reasons why we tell our employees that there is nothing in the store worth someone getting hurt. Is that a stretch? Ask Officer Darren Wilson or the family of Michael Brown.
WINNING THE SUPER BOWL
OF ALARM CONVERSIONS
RITE AID CONVERTS NEARLY 4,600 STORES IN SIX MONTHS
By Lee A. Pernice, LPC
Headquartered in Camp Hill, Pennsylvania, Rite Aid is the third-largest drugstore chain in the US. It operates nearly 4,600 stores in 31 states and the District of Columbia and employs more than 89,000 associates. The retailer recently embarked on a project to convert many of its locations into Wellness Stores as part of its continuing transformation into a growing, retail healthcare company.
The drugstore chain grew in part through acquisitions resulting in diverse security platforms and system configurations with multiple product manufacturers. When Rite Aid set out to convert its outdated intrusion alarm systems in all of its locations, Rite Aid’s Group Vice President of Asset Protection Bob Oberosler and his team knew it would be a challenging project.
“We recognized the fact that over the footprint of our organization, we had as many as ten to twelve different alarm panels, many of which were obsolete and no longer supported by the manufacturer and at risk of not being actively monitored,” stated Oberosler. “Because we are a highly regulated industry, if the alarm systems failed, that would mean we could not operate our pharmacies without deploying guard services. We knew we had to upgrade and standardize our approach, and we needed to do it soon.”
The drugstore industry has stringent guidelines and regulations in place as it relates to security systems. Some states’ boards of pharmacy will not allow a pharmacy to operate without a working security system. This industry is not only responsible for the safety and security of its customers and employees, it must also safeguard high-demand, high-dollar controlled substances and confidential information, including patient medical records, prescription histories, credit card numbers, and insurance information. Furthering the demand on the security systems, the pharmacies are often targets of burglaries and robberies.
The competitive retail environment posed an added complexity to this large-scale, physical-security project. Drawing customers into the stores and providing a positive customer experience needed to be maintained while executing a quick and seamless conversion of the systems.
Rite Aid’s growth attributed in part to acquisitions resulted in a cornucopia of intrusion alarm panel types and brands. More than one-third of the intrusion detection systems were legacy systems that were no longer manufactured or would no longer have the capability of being monitored or supported.
With the drugstore chain’s large footprint and accelerated installation timelines, the asset protection team needed a partner who could provide them with a strategy to accomplish this without sacrificing quality and customer experience.
Bob Oberosler
The Six-Month Challenge
With the objective of undertaking this nationwide conversion program to suit both immediate and long-term needs, Rite Aid engaged Protection 1 Security Services. Prior to executing the contract, Oberosler and his team held numerous meetings with the solution provider’s executive staff and team members from all parts of the organization to fully vet the project and agree on an execution plan.
“The executive staff, including CEO Tim Whall, took the time to personally meet with me and my team to fully understand our goals and our technology roadmap for the future,” said Oberosler. “They made a commitment to being a partner and building a program that could capitalize on the technology that our asset protection team was investing in.”
Oberosler’s goal was to complete the conversion in a timeframe of six months, within budget, and with no disruption to store operations.
“I needed this project done as quickly as possible to minimize the impact on our stores,” stated Oberosler. “That is when I put forth the challenge—or more succinctly, the requirement—to complete the conversion in six months.”
A project of this magnitude would typically take upwards of twelve months’ time, but in order for the stores to maintain active monitored systems, the timeline needed to be cut in half. Once the two companies reached an agreement, both acknowledged they would have to define a different approach in order to support the project from an installation and deployment perspective to complete the conversion in the timeframe defined by Rite Aid.
Jim Shepherd, Protection 1’s national account manager, said of the challenge,
“We knew we would have to do something different in our approach in order to meet the deadline and maintain the level of service committed to Rite Aid.”
Expect the Unexpected
While the immediate concern was ensuring all intrusion systems were operable and current, the security team also considered future needs beyond alarm systems. If they could stretch the operating budget expenditure to provide future scalability and the capability to integrate other systems, that would be an important incremental benefit.
Completing the conversion without any disruption to store operations and processes was of utmost concern to Rite Aid. Store employees needed to focus on servicing customers, and work being done on the premises could have served as a distraction.
As the project commenced, Oberosler identified a number of challenges or complexities that the team would have to take into consideration and overcome. These complexities are important factors that any LP executive should take into consideration when taking on a transition of technology of this magnitude in a short amount of time. Oberosler’s message to his fellow LP colleagues was simple—“Expect the unexpected.”
The first step in the process was to categorize the conversion into three parts: ■ Those stores that could be reprogrammed electronically, ■ Those that needed their keypads and panels changed out by an on-site technician, and ■ Those locations that needed a total replacement.
Adding to the first set of complexities, due to the age of some of the alarm systems, the master codes to reprogram the panels were no longer available. This required a more complex approach to handle these locations.
The next priority was to upgrade approximately 500 stores that were running on an outdated server that was at risk of failure. If the servers failed, those locations would not have a working security system and would not be able to operate without a manned guard service. The installation team had a forty-five-day window to complete the conversion in these stores.
Inception of the Seal Team
Quality, consistency, and speed were key factors in the success of the conversion. Protection 1 decided to train a designated group of experienced technicians to execute the Rite Aid project. It recognized that in order to accomplish the installation in nearly 4,600 locations in a six-month window and, more importantly, convert the approximately 500 at-risk locations in
forty-five days, a different approach would be required to be successful.
This group was given the name “Seal Team” in recognition of the need to be quick, efficient, and mobile to accomplish the task. The installation team was brought together and trained specifically on all Rite Aid profiles so it could deliver an installation experience that was uniform across Rite Aid’s footprint.
The Seal Team was furnished with a new fleet of trucks to support the rapid mobility from city-to-city and state-to-state. To meet the needs of Rite Aid, the team was able to deploy quickly to any area, at any time, oftentimes working on weekends and odd hours. This unique operation essentially gave Rite Aid a dedicated installation technician team, tailored to meet the unique needs of the project.
Project Implementation
Customization became a common recurring theme during every step of the project. Rite Aid required a comprehensive strategic plan for the conversion that included constant communication and personalized execution to ensure the project would be completed on time and within budget.
Training. Once the Seal Team was chosen, it traveled to Detroit where a high concentration of Rite Aid stores existed, to undergo intensive training and preparation for the project. The team learned about every existing legacy alarm model that it would encounter, how to reprogram the systems, and how to ensure they would integrate with other existing systems, such as lighting, HVAC, and fire systems.
At the same time the conversions would be taking place, Rite Aid was remodeling several stores to feature its new Wellness Stores format, which included investments in new technology that would have to integrate with the alarm systems. This would require the Seal Team to have a good grasp of the dynamics of each location so that the end result was a fully integrated system. Hands-on training allowed the team members to model the work that would be required to be performed in the stores. Rite Aid deploys separate alarm panels in its pharmacy suite. The pharmacy often operates hours independent from the store, for example closing at an earlier time. Rite Aid needed to have the ability to activate the alarm in the pharmacy without turning off store lighting.
Conversion. A test team was deployed to Kentucky to complete twenty-eight sites. After a successful run, the remainder of the team was initiated, and over 500 sites were converted in the first month.
During the inspection process, the Seal Team found that some stores’ systems did not require replacement as initially presumed. Some existing panels had the capability to be reprogrammed, so only a fraction of the alarm systems required full replacement. At these sites the installation technicians performed the necessary reprogramming work, helping Rite Aid avoid unnecessary system replacement and realize cost savings to the bottom line.
Customization. Each system was customized to meet the needs of the individual store, requiring additional programming and technical work from the Seal Team. Some systems had multiple communication paths for the intrusion system. Because a majority of stores participate in a green program, which negotiates lower electric bills for stores that have lighting controls activated with arming and disarming of the alarm system, the intrusion-detection systems also required integration with the lighting systems.
“We chose a Digital Monitoring Products (DMP) solution for stores that required an alarm-panel replacement,” explained Shepherd. “We worked with the manufacturer to customize the panel to provide a number of personalized capabilities, including the capability of PIN-code management via an online data management portal application.”
This online portal allows Rite Aid to manage security data for all of their stores, such as viewing open/close schedules and reports, viewing incidents and alarm activity, and running custom exception reports.
Rite Aid deploys separate alarm panels in its pharmacy suite. The pharmacy often operates hours independent from the store, for example closing at an earlier time. Rite Aid needed to have the ability to activate the alarm in the pharmacy without turning off store lighting. This
problem was solved by working with DMP to customize the panel software and design a system that could arm the pharmacy alarm independent from lighting controls.
As the conversions proceeded, Oberosler added additional requirements to the project. While the stores were being converted, he wanted to review the alarm history at each location for false-alarm activity and fines. This information gave the installation team an opportunity to change the basic layout of the systems to improve performance.
“We also found along the way, that in most locations, we lacked documentation or diagrams for the existing systems, further adding to the complexities of the project,” noted Oberosler, “As the team continued with the installations, they were also generating the documentation for each location such as users guides and operating procedures for future use.”
Constant Communication. A key reason the project was successful was the constant and proactive communication. Protection 1 assigned dedicated project team members at their National Account Operations Center (NAOC) in Dallas to communicate daily with the Seal Team to receive project status updates, timely plan subsequent store conversions, and resolve issues. This center was created specifically to support large, complex deployments for national customers.
“One of my top priorities was weekly status meetings between the implementation team and the key stakeholders from Rite Aid,” said Oberosler. “This was not just an asset protection project, but one that touched many different factions of our company. We needed to make sure we had clear communications between areas that ranged from our network staff to field and store managers.”
During the calls, the two teams would go through a detailed check list of action items that needed to be addressed.
“I also received an updated project management report on my desk every
morning that provided me with a detailed status of the roll-out up to three weeks out,” continued Oberosler. “There were a few stumbles at the beginning, but the bugs were quickly worked out, and at any given day I knew exactly where we were in the process.”
Rapid Progress Yields Results
After just the first month, the installation team was able to covert over 500 sites. The peak number of systems converted in one month reached 740. Within four months, over 2,000 sites were completed. As of January 31, 2014, a total of nearly 4,500 store conversions had been completed and are actively monitored. More than 380 stores that were originally classified as locations that could not be converted due to outdated technology were also updated with new equipment in the conversion. The project was completed and delivered within the budget and timelines promised.
“With the size, scope, and timelines of the project, we had to get creative to ensure we met expectations. It was a good experience for all of us involved that really expanded our thinking in how to approach such large-scale conversions in the future,” observed Brenden Smith, Protection 1’s vice president of customer installation.
“I was pleased with the efforts of everyone involved in the conversion, including my team who really stepped up to the plate to make this happen. I have no reference, but I certainly feel that this conversion was done better than any other in the history of the alarm industry,” said Oberosler. “Not only was the project done on time, but it actually came in under budget even with the added layers of complexities that were discovered as the project evolved. To sum it up, the installation team won the Super Bowl of conversions.”
Future Improvements
At the outset of the project, while the immediate concern for Rite Aid was ensuring all intrusion systems were operable and current, the security team also wanted the new systems to be scalable, to accommodate the retailer’s future needs beyond alarm systems.
Shepherd explained, “Because we planned for the capability of integrating with systems, such as video and access control, Rite Aid has the potential to realize further benefits, such as protection against internal theft and inventory shrinkage, as well as making progress towards thwarting organized retail crime.
“We are working with Rite Aid to beta test a video integration project that would allow a central station operator to ‘voice down’ or communicate with the premises remotely, which could help a retailer mitigate losses, reduce shrinkage, and enhance ROI for the overall security investment,” Shepherd said.
“The project went way beyond a ‘simple’ upgrade of our electronic security system. Now we have the foundation to integrate new technologies such as remote monitoring, temperature control on an enterprise level, and integration of our camera technology,” added Oberosler.
Common occurrences in the drugstore industry are audits from outside agencies, including state pharmacy boards and other government agencies. With consistent reporting capabilities, Rite Aid is able to quickly access information from the security system that provides detailed accounts of what occurred should a question arise during the review period.
The Results
Now that the conversion is complete, Rite Aid is reaping the benefits from the project. Its security systems are now up-to-date, and this has translated into lower false alarms and the resulting reduction in false alarm fees across its footprint.
Because the systems are more uniform, the data extracted can be used across a number of departments and projects. Common occurrences in the drugstore industry are audits from outside agencies, including state pharmacy boards and other government agencies. With consistent reporting capabilities, Rite Aid is able to quickly access information from the security system that provides detailed accounts of what occurred should a question arise during the review period. Administering the new security system also provides Rite Aid with cost savings through reduced labor and associated costs.
But perhaps the biggest benefit is the ability to provide a safe, secure, and protected environment for Rite Aid’s customers and associates.
LEE A. PERNICE, LPC is a freelance writer with more than twenty years’ experience in the retail loss prevention industry. She has held director-level positions with leading high-tech and security solutions providers specializing in the areas of communications and marketing. Pernice is LPC certified and has a thorough understanding of the technologies used to reduce shrink and improve profits for retailers. She can be reached by email at leepernice@gmail.com or 954-682-8551.
