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Asset Protection | Profit Enhancement | Retail Performance

Insights A Look Back at Twenty Years of Interviews Workplace Violence Retail Policies Leverage the Strength of Your Loss Prevention Journey

Good For Business

Identifying and Maximizing the Value of Protection May–June 2021 | V20.3 | losspreventionmedia.com

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Contents

May-June 2021 Departments

6 Editor’s Letter

Identifying and Maximizing the Value of Protection

8 Editorial Board 9 Vendor Advisory Board 10 Retail Sponsors 22 Interviewing

Good for Business Identifying and Maximizing the Value of Protection By Garett Seivold, LPM Senior Writer

May–June 2021

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aul Lang was caring for a friend’s apartment in Beverly Hills, California, last month when he heard screaming on the street below. From the third-floor window, he watched as a man struggled with a woman and eventually ripped away several of her shopping bags, including one from Chanel. As Lang recounted what he’d seen to police a few minutes later, he said the officer told him, “It happens a lot.” Apparently, thieves following shoppers from the famed Rodeo Drive to rob them as they walked down neighboring streets had become a common

SeventyFour / Felix Mizioznikov / Shutterstock.com

Good for Business

By Garett Seivold

LossPreventionMedia.com

LPM

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May–June 2021

A Look Back at Twenty Years of Interviews By Jim Lee, LPC, and Jack Trlica

n this, our twenty-year anniversary, it’s appropriate to look back over the years at the many retail professionals and other interesting individuals we have interviewed for the magazine. The vast majority of those interviewed, of course, are loss prevention and asset protection executives, given the nature of this publication. There are others, however, who are on the periphery of loss prevention or outside the industry totally who have made interesting interviews. Here is a sample of some of them. To read the entire interview articles, please visit losspreventionmedia.com. Feature 2 inside look at how Walmart manages technology and operations around the world. His international perspective focuses on developing local teams to manage the business without outside support while still actively integrating into corporate systems and processes. Here are some quotes from the article.

INTERVIEW

WALMART BUILDING CONTINUITY AMONG STRONG LOCAL RETAIL BUSINESSES AROUND THE WORLD

By James Lee, LPC, LPM Executive Editor LP MAGAZINE

SEPTEMBER–OCTOBER 2019

LPM 0919-B.indd 27

9/17/19 3:35 PM

“Powered by Walmart: Building Continuity and Strong Local Retail Businesses Around the World”

In this interview from September–October 2019, Jay Mealing, senior director of global security for Walmart International, gave us an

May–June 2021

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Our overall Walmart International strategy is to utilize our buying power, tools, technology, and subjectmatter expertise with the idea of supporting “strong local retail businesses.” … I don’t want to assume that I know the India market better than my Indian counterparts, for example. Our goal is to give them tools that are effective,

LossPreventionMedia.com

LPM

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efficient, and reliable, so they can do it themselves. As we roll out those tools, we also get more consistency. … You know, I was a country boy from South Carolina, but Walmart allowed me to make mistakes. They allowed me to try the things that may not work. They’ve given me the flexibility and the trust to go build programs when sometimes we didn’t know what we needed to do. And that says a lot about this company. It says a lot about the leadership and the fact that they allowed me to take risks and grow by learning along the way. I didn’t step in with a government security background or expertise. It was Walmart seeing the capacity, seeing the ability, seeing what we could do as a team, that allowed us to get to the level we are today.

Reviewing Current Trends and Moving Forward Together By Kenna Carlsen

ccording to the Centers for Disease Control and Prevention (CDC), retail is one of the highest-risk jobs for workplace violence (WPV). In fact, the Bureau of Justice Statistics reported that retail employees accounted for 13 percent of all WPV between 2005 and 2009, second only to law enforcement at 19 percent. When broken down further into the annual rate of WPV (the number of violent crimes per 1,000 employees), retail placed fourth overall: 5. Medical 6.5%

Other 5.4%

4. Retail sales 7.7%

1. Law enforcement 47.7%

Rudchenko Liliia / ShutterStock.com

3. Transportation 12.2%

2. Mental health 20.5%

LPM

This begs the question: what is it about retail that puts employees at risk? As it turns out, the retail environment often brings together some of the strongest predictors of WPV: working directly with the public, cash handling, and the sale of alcohol all contribute to an increased risk for violence. For some retail verticals, such as convenience or liquor stores, later store hours, fewer staff members, and reduced guardianship also heighten the overall risk of workplace violence. More recently, the COVID-19 pandemic also put retail employees in the line of fire for enforcing mask mandates and social distancing guidelines in-store. With the ever-looming threat of workplace violence, many retailers are taking steps to update and strengthen their WPV policies and programs to better protect their associates. In support of this effort, the Loss Prevention Research Council surveyed our retail members to better understand these policies. In future research, we plan to develop a comprehensive retail “checklist” designed to mitigate the risk of violence in-store.

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How Am I Supposed to Rationalize This? By David Thompson, CFI, and Shane G. Sturman, CFI, CPP

24 LPM Excellence

A Look Back at Twenty Years of Interviews By Jim Lee, LPC and Jack Trlica

LPM Magpie Award: Applauding Excellence Featuring David Lund, LPC, DICK’S Sporting Goods and Kevin Lynch, LPC, Johnson Controls

34 Supply Chain

Supply Chain Fraud and Prescriptive Analytics By Scott Pethuyne, LPC

36 Certification

Home Depot LP Professionals Share Their Insights on Certification Featuring Alex Kohler, LPC, and Stacey Hutchens, LPQ, Home Depot

May–June 2021

Workplace Violence Retail Policies

The Convenience Economy By Jack Trlica

Workplace Violence Retail Policies Reviewing Current Trends and Moving Forward Together By Kenna Carlsen

May–June 2021

48 Technology

What Retailers Need to Know about the Global Chip Shortage By Tom Meehan, CFI

50 Ask the Expert

How to Choose the Right LP Solutions Provider Interview with David Hardeman, CONTROLTEK

58 Cyber Security

Leverage the Strength

of Your Loss Prevention Journey

Leverage the Strength of Your Loss Prevention Journey

By Jennifer Schaefer, MA, LPC

EDITOR’S NOTE: Jennifer Schaefer’s childhood desire to be an oceanographer has been turned on its head. Instead of plunging to new depths, she’s managed to conquer new heights in the loss prevention industry. This article first appeared in the spring edition of LP Magazine Europe. For more articles from the Europe magazine, go to thelpportal.com.

s a teenager, I looked at being an oceanographer or marine biologist. There are definitely many degrees of separation from my initial interests to my expansive career in loss prevention and asset protection. Did I ever believe I’d be working for Fortune 100 and 500 companies in my past and current roles? No. Looking back at the

overarching picture of my life, however, I can see the individual steppingstones and opportunities that presented themselves and led me here. I see my career as a kaleidoscope. When you hold up the eyepiece and look within, you can see vibrant colors layered in facets. One small turn to the left or right changes the colors and shapes,

May–June 2021

Ransomware Thrives in Retail with Focus on COVID By Garett Seivold

By Jennifer Schaefer, MA, LPC | 52 |

LossPreventionMedia.com

LPM

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Trying Harder By Jim Lee, LPC

May–June 2021

62 Product Spotlight 66 People on the Move 70 Resource Guide 72 Advertisers 72 Subscription Form 74 Parting Words

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LossPreventionMedia.com

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Vladitto / ShutterStock.com

EDITOR'S LETTER

Jack Trlica, Managing Editor

The Convenience Economy Pushing the Evolution of Retail

Asset protection organizations are in a great position to not only help but actually lead the evolution of retail. It’s a challenge that many of you have already accepted. If you have not, you should.

he retail industry has been evolving rapidly over the past several years, and the COVID-19 pandemic only accelerated the evolution. What Amazon started with prime delivery of everything from clothes to computers to food has allowed consumers to sit at home and pick up their phones to order whatever they suddenly remembered they were missing with the expectation of two‑day, then one-day, and now same-day delivery. After almost a year of stay-at‑home mandates, so‑designated “essential retailers” rapidly adopted buy‑online, pickup‑in‑store (BOPIS), curb‑side pickup, and free or nearly free home delivery. Even with the pandemic slowly fading into what has been termed a “new normal,” consumer surveys indicate that many of these customer service strategies will remain in use by consumers who have enjoyed the time saving realized with these services. The convenience economy was coined a few years ago as more and more consumers were pushing retailers to help them save time in their everyday busy schedules. Much of this may be driven by tech‑savvy younger generations who seek and “expect” help in all phases of their lives. Just ask their baby-boomer parents

May–June 2021

who have been sometimes not-so-gently coerced into being unpaid caregivers of their grandchildren. The grocery industry is a great example of changing to meet new demands. Fully prepared meals and recipes in a box for preparing at home have grown significantly in recent years. Subscription services for home delivery of meals like Blue Apron and HelloFresh have exploded. With the pandemic, every generation of consumers have taken advantage of ordering groceries online or via store app to have retailers pick the groceries and hold them for curbside pickup or delivery. Retailers talk a lot about enhancing the “customer experience” both in stores and online. The convenience economy is pushing the customer experience strategies that are evolving retail brands. The brands that are agile enough to change quickly are winning the battle for customers over the brands that are slower to respond. As an example, I placed an online order with one of my favorite top-fifty retail brands that has local stores and distribution centers in my city. Normally, I would visit a store to purchase what I was ordering, but for various reasons could not. Their website was easy to use. I found what I needed

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and placed the order for free home delivery. At checkout, the system said delivery was expected in “1–6 business days.” Frankly, that shocked me, but I thought that given the many stores and DCs near me, I would likely get my order sooner rather than later. Wrong. It was four days before I even received notification that my order had shipped for delivery on Monday. It wasn’t. I tracked the order that now said delivery on Tuesday. It wasn’t. It finally arrived on Wednesday, a full week after I placed the order. Do you think I will place another order with that company? Not likely. Do you think their e-commerce business is flourishing? Not likely. Why am I discussing a customer-service and e-commerce issue in a magazine aimed at loss prevention professionals? Our readers are some of the most nimble and accomplished project managers in the retail enterprise. And you are active influencers with your peers; often with the ear of the C-suite. Asset protection organizations are in a great position to not only help but actually lead the evolution of retail. It’s a challenge that many of you have already accepted. If you have not, you should. My guess is the loss prevention executive at the brand referenced above could fix the situation post haste.

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EDITORIAL BOARD

Ray Cloud Senior Vice President, Loss Prevention, Ross Stores

Scott Draher, LPC Vice President, Loss Prevention, Safety, and Operations, Lowe’s

Scott Glenn, EDJ, LPC Vice President, Asset Protection, The Home Depot

Barry Grant Chief Operating Officer, Photos Unlimited

Robert Holm Director, Global Safety & Security McDonald’s

Seth Hughes Director, Asset Protection, Risk & Safety, Internal Audit REI Co-op

Frank Johns, LPC Chairman, The Loss Prevention Foundation

Mike Lamb, LPC Consultant

Michael Limauro, LPC Executive Leader, Asset Protection, Whole Foods Market

David Lund, LPC Vice President, Loss Prevention, DICK’S Sporting Goods

John Matas, CFE, CFCI Director, Global Fraud, Risk, and Compliance Operations Etsy

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

Melissa Mitchell, CFI, LPC Director, Loss Prevention, MAPCO Express

Dan Moren Senior Manager, Starbucks

Richard Peck, LPC Senior Vice President, Loss Prevention The TJX Companies

Joe Schrauder Vice President, Asset Protection, Walmart Stores

Tina Sellers, LPC Vice President, Asset Protection, Rite Aid

Hank Siemers, CFI Vice President, Global Retail Security, Tiffany & Co.

Mark Stinde, MBA, LPC Vice President, Asset Protection, The Kroger Co.

Pamela Velose Vice President, Asset Protection, Belk

May–June 2021

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Asset Protection Profit Enhancement Retail Performance

VENDOR ADVISORY BOARD

Rex Gillette

Vice President of Sales

2120 Crown Centre Dr. Ste 200 Charlotte, NC 28227 | 704-365-5226 office Managing Editor Jack Trlica JackT@LPportal.com Executive Editors James Lee, LPC JimL@LPportal.com

Gene G. Cronin

Medeco XT Product Line Manager

Hedgie Bartol, LPQ, LPC Business Development Manager, Retail

Angie Druley

Vice President, Retail

Merek Bigelow MerekB@LPportal.com Editorial Director Jacque Brittain, LPC JacB@LPportal.com

Stephen B. Longo

Vice President, Strategic Initiatives

Retail Technology Editor Tom Meehan, CFI TomM@LPportal.com Senior Writer Garett Seivold GarettS@LPportal.com

Kris Vece, LPQ

Vice President of Client Relations

Jim Paul

Chief Operating Officer Kevin McMenimen, LPC KevinM@LPportal.com

Director of Sales

Kim Melvin

Head of Global Retail Marketing

Director Of Digital Operations John Selevitch JohnS@LPportal.com

Kim Scott

Special Projects Managers Justin Kemp, LPQ Karen Rondeau

Director of Marketing

Robb Northrup

Director of Marketing Communications & Support

Design & Production SPARK Publications info@SPARKpublications.com

Ken Kuehler

Creative Director Larry Preslar

General Manager

Rhett Asher

Advertising Strategist Ben Skidmore 972-587-9064 office, 214-597-8168 mobile BenS@LPportal.com

Postmaster Send change of address forms to Loss Prevention Magazine P.O. Box 92558 Long Beach, CA 90809-2558

CEO, Global Retail Business Unit

Stuart Rosenthal

Vice President Sales

Contributing Writers Read Hayes, PhD, CPP Walter Palmer, CFI, CFE Ben Skidmore Shane G. Sturman, CFI, CPP David Thompson, CFI

Subscription Services New Or Change Of Address LPMsubscription.com or circulation@LPportal.com

Tony D'Onofrio

Vice President, Strategy

Cita Doyle, LPQ

Vice President, Sales & Marketing

Idan Koren

Vice President of Marketing

Stacy Dean Stephens

EVP and Chief Client Officer

Loss Prevention aka LP Magazine aka LPM (USPS 000-710) is published bimonthly by Loss Prevention Magazine, Inc., 2120 Crown Centre Dr. Ste 200, Charlotte, NC 28227. Print subscriptions are available free to qualified loss prevention and retail professionals in the U.S. and Canada at LPMsubscription.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 circulation@LPportal.com. For questions about subscriptions, contact circulation@LPportal.com or call 888-881-5861. Periodicals postage paid at Chalrotte, NC, and additional mailing offices.

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© 2021 Loss Prevention Magazine, Inc. Loss Prevention, LP Magazine, LP Magazine Europe, LPM, and LossPreventionMedia.com are service marks owned by the publishers and their use is restricted. All editorial content is copyrighted. No article may be reproduced by any means without expressed, written permission from the publisher. Reprints or PDF versions of articles are available by contacting the publisher. Statements of fact or opinion are the responsibility of the authors and do not necessarily represent the opinion of the publishers. Advertising in the publication does not imply endorsement by the publishers. The editor reserves the right to accept or reject any article or advertisement.

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Identifying and Maximizing the Value of Protection

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Good for Business

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May–June 2021

FEATURE Good for Business

Read Hayes

Eric White

occurrence. Gesturing toward the woman—unhurt but disheveled—he added, “I don’t think she’ll be back here shopping anytime soon.” The city has taken notice. In light of rising crime in the area, which included a much-publicized incident in March when a man dining outdoors at an Italian restaurant had a gun placed to his head and a $500,000 watch ripped off his wrist, the city announced that it was hiring twelve armed security guards “for the foreseeable future” to protect and patrol the city’s tony shopping district. Fearful that the city’s reputation as a shopping destination was being tarnished, the security move was an investment in its financial future. “I want the world to know that Beverly Hills is a very safe community,” insisted Beverly Hills Police Chief Dominick Rivetti.

ith many factors already acting as a drag on in‑store purchases, brick-and-mortar retailers can ill afford to have the threat of violence and robbery keep customers away. Nor do they need employees wondering if they’re safe at work, especially with the job market tightening. With many factors already acting as a drag on in-store purchases, brick‑and‑mortar retailers can ill afford to have the threat of violence and robbery keep customers away. Nor do they need employees wondering if they’re safe at work, especially with the job market tightening. As more consumers become accustomed to

May–June 2021

making online purchases, which they can do comfortably from home or other safe spaces, there is now little incentive to brave a feeling of bodily unease to purchase products, noted Read Hayes, PhD, CPP, director of the Loss Prevention Research Council (LPRC). “Intimidation can be a killer to a retail company’s business. It’s a looming issue for retailers.” Armed with options, consumers are likely to become increasingly sensitive and reactive to feelings of vulnerability during in-person shopping, making a store’s physical environment a make‑or-break issue in the battle against online alternatives. The in-store experience determines if a retailer will entice shoppers in or not; it’s not because the selection is better. For several years, industry thought leaders like Hayes have been pushing retailers to expand their view of store security to include the area outside as it directly impacts a consumer’s choice to visit a store. If shoppers don’t feel safe coming and going, it doesn’t matter how secure the store itself is. Safety and sales are fully enmeshed. “Although difficult to prove, there is a strong correlation between the safeness of a store and its productivity as measured by sales,” explained Eric White, executive vice president at Brosnan Risk Consultants and former AP director at The Home Depot. “A lot of it is common sense, but you can see it clearly by looking at the flip side, at the impact on stores when they’re unsafe or if there are purse snatchings, drug activity, or just people hanging around. People aren’t going to go to the store if it’s unsafe in the

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parking lot; and then the mirror to that is, if it is safe, then they will shop there and buy more. There is a substantial ROI.” It still matters. Online sales are booming, but retailers are still trying to make this in-store thing work. As of April, US retailers opened more than 3,000 stores while closing 2,500, according to data from Coresight Research drawn in part by retail real estate opportunities. In a survey by Glossy and Modern Retail, 34 percent of brands and retailers say they will increase physical retail spending over the next year with just 20 percent saying they will decrease investment. Additionally, several chains that have previously leaned on mall operators for the safety of its shoppers’ experiences are now venturing out on their own. Gap, for example, aims to have 80 percent of its stores outside of malls by 2023, a model that Macy’s, Bath & Body Works, and Sephora are also trending toward. These and other retailers will need to deliver safe shopping environments to a public already conditioned to feel vulnerable during the in-store experience because of the coronavirus pandemic. The LPRC started a violent crime working group several years ago, and it quickly became the second‑largest working group of the seven it has. Their research work includes breaking down member-submitted videotape like football coaches to understand patterns and placing that alongside empirical data to better understand the environmental and establishment characteristics that are—and are not—associated with violence and robberies. “One thing I would say that we’ve learned is the extent that feeling intimidated drives a customer’s relationship to a retailer,” Dr. Hayes said. “Fear

Taking Stock Interviews with LP leaders reveal that a store risk model remains a popular approach to implementing and targeting safety and security tools. Shrink, area crime data, store audits, and organized retail crime activity are all measures retail stores commonly use to identify where interventions are most needed. When dealing with a store where security clearly needs to be stepped up, retailers need to make appropriate treatments based on what threats exist and what countermeasures are already present. “If you then find the after-dark foot count is up, that is a good indicator that the treatment is having a positive impact, with more people translating into more sales,” explained White. He said after‑dark foot traffic is a particularly good metric because it more directly correlates to shoppers’ sense of safety than daytime shopper volume. Footfall doesn’t always translate into sales, but it is a good top-line indicator of how customers feel about a store’s safety, agreed Hedgie Bartol, LPQ, LPC, retail segment development manager at Axis Communications. It’s also a good problem indicator. “If you have a drop in foot traffic, that is a good reason to conduct a triggered audit for that store,” he said. “Another way to know if you’re creating a safer store is if you see your basket size go up,” said White. Shoppers may not be deterred from picking up a prescription after work for their child, but if the store has a chaotic presentation, or if

people are hanging around the parking area, they are unlikely to linger and shop. “So when you see basket size creep up, you’re seeing the perception of store safety improving.” Not every shopper has the same idea about what is and is not safe, however. Communities tend to differ in their perception of an “unsafe shopping environment.” So targeting security measures is likely to yield a quicker payback for a retailer’s total security investment. “You should have a baseline philosophy that drives your operations from a store safety perspective, which will depend on who you are. But moving on from there, countermeasures should be about the specific location,” said White. There is crime data to be collected, of course, but understanding a store’s customer base is also important: What do they think are the risks? What level of security must they see to feel safe? For that, White said retailers that communicate effectively with their employees are well-positioned: “You can get a good sense of your customer base from your employees who work in the stores, so if you do a good job understanding your workers, then you’ll know the tolerance of area shoppers.” The marketing department is another critical source of intelligence. “You don’t have to reinvent the wheel, or run a specific LP survey,” explained White. “The marketing department knows the customers. It’s how they run their displays and promotions, so you can connect with the marketing group to better understand the safety needs of the store.” Rather than being a one‑way street, White says LP departments typically have data that marketing finds useful, so there can be a mutually beneficial exchange

LPM

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ot every shopper has the same idea about what is and is not safe, however. Communities tend to differ in their perception of an “unsafe shopping environment.” So targeting security measures is likely to yield a quicker payback for a retailer’s total security investment.

ESB Professional / Shutterstock.com

of crime is a large problem for retailers.” But how do you know if you’re doing enough? Getting what you pay for? Meeting public expectations? Aligned with current threats? If protection is making any difference at all?

of information that includes marketing teams exploring shoppers’ attitudes toward existing store security as part of their routine work. “It doesn’t have to be presented as an LP program. It can be just one or two questions asked in normal marketing surveys conducted for insight, such as whether shoppers would rather shop when it’s busy or if they shop at night,” White said. Marketers and LP teams can also share store technology.

May–June 2021

Hedgie Bartol

FEATURE Good for Business

ustomer feedback may be an incomplete barometer of store safety, but it is often a good indicator of whether a retailer’s efforts to weave safety into store operations are on the right track. Though anecdotal, customer reports can provide valuable intelligence, alerting corporate teams to potential problems or offering proof of the value of store safety programs. Camera analytics can produce heat maps and conduct dwell-time analysis to give marketers insight into customer preferences, and LP can utilize the same system to learn if groups have started loitering in the store parking lot after dark or if employees are meeting hourly targets for marshalling shopping carts. And the use case can go even further, beyond marketing and security to address safety issues, by revealing heavily trafficked parts of a store that require additional cleaning under pandemic protocols or if unattended boxes are blocking fire exits. Such applications remain rare in retail, but they are developing and fit neatly with LP’s directive to do more with less, according to Bartol who said, “Once you know what the tools you have can do, you can apply the solutions.”

Speed Counts Beatrice Girmala

Demonstrating a positive return for security training or store hardening is a lagging metric, so typically you’ve already done the hard work of securing top management’s

May–June 2021

buy-in, explained the global security director for a national quick-serve food chain. But collecting data to show the continued need for a program and assessing its performance is a persistent priority for him—critical for identifying gaps or trends that may require additional training or an adjustment to security, he said. Speed and agility, in both data collection and security deliverables, has become central to the value of a retail security program, he suggested. Case in point: since the creation of pandemic‑inspired mask policies, the restaurant chain has been measuring instances related to complaints and altercations. The chain still requires employees and customers to wear masks while inside their restaurants, regardless of whether the state mandates them or not, and has been doing so since May 2020. “We measure reported instances when customers complain about our employees or other customers not wearing a mask properly or not wearing a mask at all,” he explained. “We also collect data if an altercation ensues related to masks.” The chain collects the data through various sources, including social media, a customer 800-number, its business conduct hotline, and its claims center. “We measure it daily and report to leadership monthly or in real‑time if the incident warrants it, like by creating a brand exposure [issue].” By swiftly implementing the new data collection effort, the chain secured rapid visibility into the issue, monitored when and where problems were occurring, and understood how to best target employee education to get the most from its efforts to reduce employee exposure to harm and improve customers’ sense of safety. This agility in developing security-risk measures is

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an important element of a security-data collection program, additive to intelligence from more routine store audits and security-risk assessments that identify fixed risks. For example, White noted that if a store is located near a new public transportation hub, it is “an environmental factor that will be with you for long time.” A Los Angeles example is instructive of how trends in crime data must also be quickly reflected in store‑security measures. Brazen daylight robberies involving guns are up sharply in Los Angeles, as well as in select other metro areas in the country. Compared to a single robbery shooting during the first two months of 2020, Los Angeles saw eighteen in 2021, a “disturbing trend” according to Los Angeles Police Department Assistant Chief Beatrice Girmala. While many have occurred on streets, shootings during robberies have included marijuana businesses, a music studio, gas stations, and other retail businesses, Girmala said. With the risk of gun violence and robberies on the upswing, local experts warned that it needed to be matched by retailers’ security programs. The measures they suggested aren’t novel‑tell local law enforcement what assistance they you need, ensure cash-handling and security protocols are being followed, ensure store security technology is fully operational—but they show how the true value of a retailer’s protection program is whether good practices are being followed at stores that need them, when they need them. Carefully crafted protection policies are only worthwhile if frontline workers in stores follow them. Targeted monitoring of store activity in areas hit with crime, which

as comfortable as possible,” wrote the family in their letter to AEO. “Thank you and the Aerie Offline staff for their procedures and handling of a terrible situation.” Scott McBride, chief global Collecting Input asset protection officer for AEO Inc., said the company’s Customer feedback may global security operations be an incomplete barometer center (GSOC) takes in 67,000 of store safety, but it is often reports annually from its 1,050 a good indicator of whether a retailer’s efforts to weave safety stores worldwide, and public into store operations are on the feedback on how incidents are handled can act as the right track. Though anecdotal, “canary in the coal mine.” A customer reports can communication flow that provide valuable intelligence, allows feedback to “bubble alerting corporate teams to up” into appropriate channels potential problems or offering can be a source of useful proof of the value of store intelligence, especially as safety programs. strategies, associate training, AEO Inc., for example, and procedures to ensure recently received the kind of the safety of customers are validation LP teams dream often unknown to customers about. Feedback arrived until violence occurs and following an active-shooter teams have an opportunity incident in November 2020 at to safeguard them. “We the Mayfair Mall in Wauwatosa, Wisconsin, which forced several have received tremendous, positive feedback from many mall patrons to shelter inside customers in the form of social the back storage room of an media posts and direct email Aerie Offline store. One man messages that reinforce that who took refuge there with his our procedures make everyone daughter wrote to praise the feel extremely safe in tough actions of store employees. situations,” he said. The letter expressed As at many retailers, value gratitude for how staff efficiently measures don’t drive efforts to directed customers to its improve store safety at AEO; back storage room, quickly they do it because it’s the locked and barricaded the right thing to do. But feedback door, successfully calmed shared with store teams a customer who was can be a strong motivator having a panic attack, and and is an important part of communicated with their a continuous improvement corporate security team and program. “We built a program mall security to stay abreast around a 360-feedback of developments. It also noted loop,” said McBride, adding how backroom monitors that communication with of store security cameras stores around safety issues provided security and peace can lead to important safety of mind, informing them of the improvements for which the SWAT team’s arrival and when value may not become evident they could safety evacuate. until a crisis event happens. “During the four hours of For example, several shelter-in-place in the storage years prior to the Mayfair room, your staff made the best Mall incident, to facilitate of a very stressful situation in shelter‑in‑place procedures, a less than ideal environment AEO made an investment … was very professional, calm, to supply all its stores and courteous to ensure our with a $200 door bar for safety while trying to make us technology now makes it possible to do remotely, can inform LP teams whether or not the store procedures workers are using are those specified in its directives.

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barricading safe rooms and with training on using it. That critical investment came after reviews of employee feedback, after-action reports, and conversations with store managers, noted McBride. Technology is making it easier than ever to gather public feedback. Many retailers are using real-time information platforms to monitor social media posts to improve crisis response and facilitate timely and informed decisions about issues with financial ramifications, such as protests, natural disasters, and active‑shooter events. These social media monitoring tools can also be used to provide more routine insight to in-store conditions, explained Ryan Mason, corporate investigator at Big Lots, at a recent NRF Protect conference. The company tracks public postings in which their store’s name is mentioned, something that can provide a regular source of feedback on store safety. For example, in one post, a Big Lots customer took a picture of a calcified sprinkler head and posted it on Instagram. It triggered an alert to the asset protection team, which was able to track down the store’s location through the user’s account and then notify the operations team of the safety issue, which was able to quickly correct it.

Bang for Your Buck By leveraging its members’ substantial store counts, the LPRC can experimentally examine the impact from implementing different security measures, something that large chain stores can also do to make informed decisions about security countermeasures most likely to make a difference. For example, numbers from test stores will suggest whether making changes in parking lot lighting, adding human or mobile unit patrols, or increasing the frequency of May–June 2021

Scott McBride

Ryan Mason

FEATURE Good for Business

store associates collecting carts has a measurable impact on number of incidents or shopper traffic. Among the lessons learned, where evidence has followed logic, is that value can be had from quality, sufficient lighting, especially for reducing vehicle break‑ins that destroy customer relationships with retailers; minimizing shadows, especially important to female shoppers; and keeping shrubs and vegetation trimmed to prevent a fear response among shoppers of being ambushed. Tests are now being done to see whether lighting strobes on surveillance cameras, which mimic police lights, might be used effectively as a deterrent, and some retail chains are evaluating if providing designated parking spaces for police vehicles might enhance the perception that an area is under surveillance even when officers aren’t using them.

oming soon is LPRC research using a virtual reality platform, which will permit testing site features that can’t safely or easily be conducted in the real world, like measuring how the perception of safety might vary with different size and angle of parking spaces under variable lighting conditions. Coming soon is LPRC research using a virtual reality platform, which will permit testing site features that can’t safely or easily be conducted in the real

May–June 2021

world, like measuring how the perception of safety might vary with different size and angle of parking spaces under variable lighting conditions. “We can adjust settings. Let’s make it darker, and see what that looks like,” explained Hayes. “That’s something you can only do on a virtual platform.” Retailers with less scale don’t have a capability to run tests and seem to pay a heavy price for it, including a disproportionately high number of retail robberies and burglaries. Studies on crime and small retail organizations have found multiple reasons why, despite the risk of substantial loss and even business closure, they often neglect safety measures: believing that meeting safety requirements imposed by municipal regulations and ordinances are sufficient to protect them; a lack of publicity around the economic consequences of crime on small retailers; failing to investigate collective solutions to security threats; and a mistaken belief that security is hostage to the type of business they operate and their location, meaning there is not much they can do to mitigate their risk. Ultimately, the best answer to which security measures these retailers should implement could be “whatever you can,” according to White. “In terms of which measure you choose, the decision you make in selecting one over another—is it enhanced lighting or a security guard—my response is you’re probably all correct,” he said. However, the industry has learned in recent years that the “more visible a security treatment is, the more likely it is to have an effect, and the more people understand the intent of the measure, the more it will have an effect,” said White. That goes for measures to both make “green

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shoppers” feel more at ease and make “red shoppers” more uncomfortable, he added. Too much security is a complicating factor that LP leaders must weigh, possibly giving some shoppers a negative impression of an environment. “The obvious example is if you’re doing something that is preventing shopping instead of preventing loss,” said White. Retailers should ensure that their store’s visible security is aligned with its surroundings. “If I’m at Louis Vuitton on Rodeo Drive and my store’s security is exceptionally out of line with other stores, in a place where shoppers are likely to be going door to door, that can create a mismatch that could be problematic.” It’s helpful that simple operational improvements often make an outsize impact on shoppers’ sense of their surroundings. “I think it’s important that when you have a store that is clean, neat, and full—everything that an operator wants to see—then you’re going to have a safer store,” said White. “Because crime thrives in chaos. If shelves are messy, then crime will be worse, and you’re going to have more theft. That’s been scientifically proven. If the impression is that you don’t care about it, then they won’t care about it. I do think all of that matters.” As suggested by the opening anecdote, joining with other retailers and public-private security partnerships represents another opportunity for stores to enhance safety to lift sales. Business watch programs and business improvement districts are hardly new concepts, but they’ve not yet reached their potential, according to White. “The idea has not fully matured yet,” he said. “During the pandemic, everything shut

down, but as we wiggle our way out of it and move into ‘retail-tainment,’ you’re going to see those collaborative efforts reinvigorated.” He continued, “It can be either landlord-driven or simply stores banding together, but it’s valuable to say, ‘Let’s tamp down perceived risks and crime in a two-block radius to lift all boats.’ I think we’ll see a resurgence in that.” James Pastor, PhD, JD, CPP, saw it coming. A security consultant and author of an excellent and prescient analysis, The Privatization of Police in America, Pastor foresaw police disappearing from street corners and becoming less responsive to alarms. Long ago, he predicted growth in arrangements like the one Beverley Hills is embarking on today, of more security technology in the public

domain and of a trend toward more private resources for public safety. If private policing of public spaces grows—and it’s easy to think it may in an era when many communities are rethinking police response to calls-for-service and chants of defunding persist—security leaders will need to act as effective liaisons between the business community and law enforcement. “Security leaders need to call their chambers of commerce, work to form coalitions, and say, ‘Here are our problems; these are our concerns,’” Pastor said when making his prediction. It’s a job best done by security leaders. “Security directors need to be the movers and shakers in any new policing arrangement because they have the respect of both business groups and law enforcement as subject-matter experts.” If security directors

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don’t stay on top of the trend, then administrators, who don’t have the respect of law enforcement or knowledge of security, will make decisions on how to complement police or fill the void created by their absence. “But if the right policing arrangement takes place, security leaders will get to interact more directly with police, expand their perimeter, and increase their influence,” Pastor added. Administrators are necessary to work out contracts and extract whatever tax benefits may be available for putting funds toward collective security initiatives, but strategic issues should be left to LP leaders. The model can give retailers greater influence over the provision of security services in the public domain and foster a cohesive business district that can improve the business climate, but it only provides benefit if retail

May–June 2021

James Pastor

FEATURE

John Roman Images / Shutterstock.com

Good for Business

f private policing of public spaces grows—and it’s easy to think it may in an era when many communities are rethinking police response to calls‑for-service and chants of defunding persist—security leaders will need to act as effective liaisons between the business community and law enforcement. security representatives are on the front lines to shape it, improve it, and make sure their unique interests are part of the consideration. Potential benefits include: ● Expanding a store’s security perimeter beyond the building’s four corners and farther away from the assets they’re trying to protect. ● Greater influence over how surrounding areas are policed. ● Improvement in the general safety of areas around stores or facilities. ● Economies of scale. When several retailers pool resources to support patrols May–June 2021

and security services, they can do so more cost-effectively than as a single entity. Private security’s expansion into public spaces has its roots in the business improvement districts, and some experts foresee them growing in popularity. But do they work? They certainly have the potential to benefit retail businesses—but do they in actuality? Yes and no, according to a study of business watch programs by the Australian Institute of Criminology. The conclusion: a retailer may realize a security benefit from participating in a local business watch or joint security program, but it hinges on the program’s design and administration. Retailers can waste staff time coordinating security efforts when programs have design flaws, the study warned. Based on close examination of programs that failed to yield lower area crime rates, the following questions can help a store assess whether a joint security program is worth participation: ● Are the program’s elements fully explained and clearly road mapped? ● Is it adequately promoted to area businesses and sufficiently advertised to engender enthusiasm among participants? ● Is it sufficiently publicized to the public, and is it highly visible? ● Does the program’s plan outline clear objectives and strategies for achieving them?

Expanding measures LP professionals are experts in data collection and analysis. On finding patterns, identifying problematic trends, implementing solutions, and calculating improvement. But not every priority lends itself as easily

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to calculations as theft and shrink. Recruitment and retention of employees is an example. Retail organizations are unlikely to know of job seekers who chose not to apply because they felt a job might put them at risk. Nor are they likely to find out if fear of crime was a reason why a good employee chose to leave. In this way, a lack of security investment can have a damaging yet invisible cyclical effect. Stores that suffer employment churn because of a negative perception of safety do not get as many job applicants for job openings. This shortage results in having fewer applicants to choose from and may result in hiring dishonest and less‑diligent employees. This contributes to even more loss and a worsening environment down the road. It’s often said that the problem in retail today isn’t a lack of data but too much. Still, some aspects of store safety don’t easily lend themselves to data collection but are nonetheless worth trying to understand and track over time to both gauge improvement and understand payback. Safety training programs, for example, are easier to pay for when an organization appreciates what it gets in return. Retailers should strive to move beyond anecdotal or inconsistent measures to creatively capture the business benefits of store security and safety. An incident of store violence, either between employees or from an outside source, has clear direct costs but less obvious “soft” costs, such as increased absenteeism and lower morale and productivity. It may cause someone to quit, which requires hiring temps, paying overtime to remaining workers, and incurring the

HOW MUCH WILL YOU SPEND REKEYING LOCKS THIS YEAR?

substantial expense of hiring a replacement. It may cause employees with institutional knowledge to quit or retire early. How do you attach a cost to these factors? Who decides what to include, what to ignore, and what the price tag is? Is there a consensus on how to do it and what to include? Similarly, while security investments often boost sales, they don’t always create collateral benefits automatically. Often, they create the opportunity for a business benefit either through a new capability, a new process, or a different business condition, which can then be used to create a collateral benefit, according to a study by the Massachusetts Institute of Technology. To actualize collateral security benefits, LP executives first must specifically identify what they are and articulate a plan for connecting the security investment to the collateral benefit. A security investment to reduce the risk of cargo theft provides a simple illustration of this idea. By doing so, a store reduces supply chain uncertainty, which permits it to reduce its stock on hand to lower operating costs and reduce its amount of contract stock space, among other benefits. But if a retailer were to take no action based on its lower risk, then it wouldn’t fully capitalize on the collateral benefits of its security investment. LP teams should similarly identify the opportunities for business benefit from store safety improvements and offer a roadmap to their organization for how it can take advantage of them. The industry seems to be getting it. “There is a transition going on,” according to the LPRC’s Read Hayes. “They don’t just want to run off and do something because a consultant said they should. They don’t just want to do stuff; they want it to make an impact.” He sees it reflected in the growing interest in LPRC’s research and in a greater desire for evidence and understanding about how safety measures, consumers, and bad guys interact. Recently, a representative from major retailer asked Hayes if there was “something, anything,” that would have dissuaded the murderer who recently shot his way into a Colorado grocery store from the parking lot. In an individual case, that is “unknown and unknowable,” said Hayes, but to make the shopping journey safer, there is evidence on what works, metrics for stores to measure, feedback to collect, and more experiments to do and hypotheses to test. Importantly, there is recognition among retailers that the journey starts before a customer enters a store and that the public’s perception of safety is as relevant to their decision to shop as the products that a store carries.

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Garett Seivold is senior writer for LPM. A trained journalist, he has spent the majority of his career writing about security, risk management, supply chain, and loss prevention topics. He can be reached at GarettS@LPportal.com.

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May–June 2021

INTERVIEWING

Shane G. Sturman, CFI, CPP

ArtFamily / iQoncept / Shutterstock.com

David Thompson, CFI

Thompson is the president and partner of Wicklander-Zulawski & Associates, providing investigative interview and interrogation training to a global audience. He has served as a subject-matter expert in developing curriculum and providing consultation to investigators, attorneys, and the academic community. He can be reached at dthompson@w-z.com. Sturman is the CEO and senior partner of Wicklander-Zulawski & Associates and has led this international training organization for over a decade. Sturman has provided training for WZ for a variety of clients over the last twenty years. He is also a member of ASIS International’s Retail Loss Prevention Council. He can be reached at 800-222-7789 or at ssturman@w-z.com. © 2021 Wicklander-Zulawski & Associates, Inc.

How Am I Supposed to Rationalize This? S

howing empathy to a subject during an interview can sometimes be a difficult and confusing task for the interviewer. Done the wrong way, it can lead to potential justification of a subject’s actions or damage the credibility of the interviewer. If empathy is projected appropriately, however, it builds a stronger foundation of human connection and allows the subject to disclose information in a more comfortable environment.

Rationalization stories that parallel the actual crime may contaminate a confession provided by the subject.

It is imperative that an interviewer be respectful and show empathy and understanding to provide a venue for these discussions. It is also important that this is done in a way that preserves intent, does not minimize the consequences, and prevents the likelihood of contaminating a confession.

escape the room. The removal of intent through the interview process could also impact the ability to suspend, terminate, or prosecute the subject. The Struggles This is often seen in cases where the words “mistake” We have seen that or “accident” are included interviewers often struggle in a subject’s statement, with this balance of projecting which most likely came from empathy without suggesting the interviewer’s attempt to leniency. If a rationalization rationalize. Ultimately, showing is presented in a way that understanding for the subject’s suggests consequences are minimal, or the subject’s actions situation must be different than are justified, the interviewee may demonstrating justification for their actions. feel that they can confess to a It is also apparent that many crime without any punishment. interviewers have a difficult This perception of leniency time identifying an appropriate has led to several problems, story to share that resonates including false confessions with the subject for serious and wrongful terminations crimes. Interviewers struggle when a subject is incentivized when tasked with attempting to admit to something just to

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to show understanding for a subject who committed a crime that we are unable to relate to or have empathy for. In the law enforcement setting, this could be a sexual assault or child abuse case, and in the private sector, it may be a case of discrimination or sexual harassment. Attempting to have empathy for a person who has been engaging in these behaviors feels like an impossible task. An interviewer stating, “Sure, you’ve been harassing employees and making discriminatory jokes, but I understand” isn’t the most authentic or truthful statement. Rationalization stories that parallel the actual crime may contaminate a confession provided by the subject.

Sharing a story of a prior case in which a subject committed refund fraud may indirectly provide details about the current investigation to the subject. Later, if a confession is obtained, it will be hard to determine if the subject knew details of the crime because they committed it or if they just reiterated information from the rationalization story.

The Goals In “Jail Inmates’ Perspective on Police Interrogation” (Journal of Psychology, Crime & Law, 2019), Hayley Cleary and Ray Bull shared two specific areas that suggest the importance of showing empathy: sympathy/ perspective-taking and humanity/integrity. Similar to our practical experience, there is a profound positive impact during an interrogation when an interviewer develops a foundation of rapport and builds a human connection with the subject. Ideally, the interviewer should be genuine and sincere in their dialogue with the subject while showing empathy and understanding for the difficulties the interviewee may be facing. We want the subject to be able to disclose information that may be embarrassing or pose serious potential consequences. It is imperative that an interviewer be respectful and show empathy and understanding to provide a venue for these discussions. It is also important that this is done in a way that preserves intent, does not minimize the consequences, and prevents the likelihood of contaminating a confession.

The Solution We have created a strategic approach to identify the appropriate stories to tell. Considering that the goals of creating rationalization stories are to preserve intent, project empathy, and prevent contamination, it is imperative

that we empathize relative to the motive and not the crime. Reasons. The first step in this structured process is to identify what potential reasons the subject may provide for their wrongdoing. These should not be excuses or explanations for the evidence, but rather what their personal rationalization may be. For example, in an embezzlement case, the subject may eventually confess and state, “The company should have paid me more in the first place,” or “It was just too easy; nobody ever paid attention to those accounts.” Maybe we have a sexual harassment investigation, and we anticipate the subject telling us, “I didn’t think it would offend anyone,” or “I just got caught up in the moment and regretted it immediately.” Rationalization Topic. Now that we have anticipated the potential reasoning for the crime, we need to break each of these down to the core topic. Ignoring the actual crime and focusing on the rationale will be a major separation between rationalizing the motive and the act itself. Let us refer back to our two case examples: embezzlement and sexual harassment. Reason: “The company should have paid me more in the first place.” Topic: disgruntled or underappreciated Reason: “It was just too easy; nobody ever paid attention to those accounts.” Topic: opportunity Reason: “I didn’t think it would offend anyone.” Topic: misplaced humor Reason: “I just got caught up in the moment.” Topic: Impulse Story Prompts. The final part of our process is to identify stories that relate

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Empathy, human connection, and showing compassion are essential elements of any sensitive conversation, an interview serving as a prime example. to the rationalization topics. Investigators should no longer be focused on the crime itself or the reasoning, but rather should identify rationalizations relative to the core topic. If we use the same examples, interviewers should develop rationalization stories for the following: disgruntled, opportunity, misplaced humor, and impulse. The stories are now directly related to the topics and should not contain elements of the actual incident. In fact, once an interviewer identifies appropriate stories that discuss “impulse,” they should be able to use that same story in a different case but with the same topic. Now, a rationalization story that discusses how a person made an impulsive decision to go on an expensive vacation may relate to the embezzlement suspect who impulsively stole money from their company. Ideally, this strategy to identify appropriate rationalization stories should help interviewers remove the concept of having to relate directly to the crime. Regardless of the severity of the case, the interviewer should attempt to have empathy for the pressures or feelings the subject felt. It is of upmost importance, however, that interviewers do not justify the offense or suggest that the rationale serves as an excuse and removal of consequences. Empathy, human connection, and showing compassion are essential elements of any sensitive conversation, an interview serving as a prime example. May–June 2021

Considering that the goals of creating rationalization stories are to preserve intent, project empathy, and prevent contamination, it is imperative that we empathize relative to the motive and not the crime.

LPM EXCELLENCE

LPM Magpie Awards

Applauding Excellence Excellence in Leadership

David Lund, LPC

Vice President of Loss Prevention, DICK’S Sporting Goods

Excellence in Partnerships

Kevin Lynch, LPC

Executive Director of Business Development, Johnson Controls Retail Solutions Group

The LPM “Magpie” Awards offer a means to celebrate industry accomplishments recognizing the loss prevention professionals, teams, solution providers, and law enforcement partners that demonstrate a stellar contribution to the profession. Please join LPM in celebrating the accomplishments of our latest honorees.

“The best leaders in our industry do a great job identifying awesome people who will contribute—and they not only surround themselves with them, but engage with them,” said Lund. “They recognize that adding value doesn’t always have a traditional look. True leaders in our industry are searching for ways to expand our value and contribute more holistically to the business. We are all better when get outside of our silos and work together.” Early in his career, Lund took advantage of opportunities to learn more, increase his responsibility, work in different retail environments, and live in different places. His career journey led to experiences in

many genres of retail beyond department stores to include specialty apparel, discount, music instrument, big box specialty, outlet, luxury, and now sporting goods. As Lund reflects on his professional journey, he reminds us that growth and development can come from many different places. “I was provided with opportunities and the trust of many strong leaders that all had a role in my career development,” he said. ”But that said, I’ve also had many peers and coworkers who have contributed greatly to my professional growth as well. I feel that if you have the desire, you can learn something from everyone you work with,

even if that is learning what not to do or be.” Lund prides himself on people development and polishing the gems within his own organization. Nearly 40 percent of the district LP team are promoted store managers, and the last thirteen teammates appointed to director-level positions have all been promoted from within. He stresses the importance of education and training, remaining flexible, and carrying a winning attitude. “Invest in both your professional and personal self. Pursue higher education, manage a healthy lifestyle, build meaningful relationships, and above all, take time to have fun!”

“The most important quality when building business partnerships is honesty,” said Lynch. “If you have an appropriate product or solution for a retailer, tell them; make sure they know it and understand how it can help them. If you don’t have the right product or solution, tell them that as well. Be a solution provider first and foremost. Partnerships are all about working together. Honesty cultivates respect and enhances your credibility. It helps ensure you build strong and lasting relationships built on trust.” Lynch knows firsthand the importance of building strong and lasting relationships as a

solution provider, having spent most of the past four decades doing just that. After graduating from the United States Naval Academy in 1978, he served as a surface warfare officer before entering the world of retail as a director of store operations for a women’s specialty chain. In 1984, he joined Sensormatic Electronics and has supported the retail industry working for Sensormatic Electronics, ADT, and Johnson Controls ever since. “I have always believed that you have no business being in a customer’s reception area unless you have a solution that can save them money and bring increased profit to their bottom line or make

their processes more efficient, which will in turn save them money,” said Lynch. “For solution providers looking to build successful relationships with their business partners, I urge you to follow the same path. Listen to your customer, travel to their stores, and see their potential needs firsthand before you try to sell them anything. Finally, the loss prevention community is inclusive and has many tremendous leaders. Seek their advice and listen to what they have to share. I cannot begin to chronicle all of them, but I’m thankful for their counsel and guidance, which has literally helped make my career a success.”

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A Look Back at Twenty Years of Interviews By Jim Lee, LPC, and Jack Trlica

n this, our twenty-year anniversary, it’s appropriate to look back over the years at the many retail professionals and other interesting individuals we have interviewed for the magazine. The vast majority of those interviewed, of course, are loss prevention and asset protection executives, given the nature of this publication. There are others, however, who are on the periphery of loss prevention or outside the industry totally who have made interesting interviews. Here is a sample of some of them with quotes from the interviews shown in blue. To read the entire interview articles, please visit losspreventionmedia.com. Feature 2 INTERVIEW

Sallehudin Ahmad / korkeng / Shutterstock.com

WALMART BUILDING CONTINUITY AMONG STRONG LOCAL RETAIL BUSINESSES AROUND THE WORLD

By James Lee, LPC, LPM Executive Editor LP MAGAZINE

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SEPTEMBER–OCTOBER 2019

9/17/19 3:35 PM

“Powered by Walmart: Building Continuity and Strong Local Retail Businesses Around the World”

In this interview from September–October 2019, Jay Mealing, senior director of global security for Walmart International, gave us an

inside look at how Walmart manages technology and operations around the world. His international perspective focuses on developing local teams to manage the business without outside support while still actively integrating into corporate systems and processes. Here are some quotes from the article. Our overall Walmart International strategy is to utilize our buying power, tools, technology, and subjectmatter expertise with the idea of supporting “strong local retail businesses.” … I don’t want to assume that I know the India market better than my Indian counterparts, for example. Our goal is to give them tools that are effective,

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May–June 2021

FEATURE A Look Back at Twenty Years of Interviews

you done for me in the last hour” as opposed to “what is the overall trend” and looking at the bigger picture of how to reduce shrinkage.

INTERVIEW

FORTY YEARS OF RESEARCHING

RETAIL LOSS PREVENTION

A RETROSPECTIVE WITH PROFESSOR DICK HOLLINGER By James Lee, LPC, Executive Editor

LPM 0516-A.indd 33

5/6/16 3:46 PM

“Forty Years of Researching Retail Loss Prevention”

In May–June 2016 we sat down with Dr. Dick Hollinger as he neared retirement as professor at the University of Florida in Gainesville who studied employee dishonesty and managed the annual National Retail Security Survey that has been an important tool for our industry for the past several decades. A keen observer of the loss prevention industry, he was never shy about stating his opinion on issues important to our profession. SEPTEMBER - OCTOBER 2015

LOSS PREVENTION CONSULTING A CONVERSATION WITH INDUSTRY EXPERT BOB DILONARDO By James Lee, LPC, Executive Editor

LPPORTAL.COM

The main trend that I’ve seen over the years—leveraging technology, moving away from people catching people toward technology catching people—has been geared primarily toward the shoplifter. I think employee theft is the hardest of the pieces of the pie to have a direct impact on because of that. … When retailers have a highly ethical management team, pay a living wage, give sick leave, provide daycare, provide their employees with the kinds of expectations that one gets in a genuine career, then shrinkage is under control, and profitability goes up. … C-level executives oftentimes tend to look at “what have you done for me lately” or maybe “what have May–June 2021

LPM 0915 Book.indb 27

9/9/15 2:38 PM

“Loss Prevention Consulting”

Another observer of the loss prevention industry we interviewed in September–October 2015 also as he prepared for retirement was Bob DiLonardo who was an industry consultant and well-known authority on the electronic article surveillance business, cost justification of security products and services, and retail accounting. DiLonardo also wrote a column on industry news for the magazine as well as several feature articles over our first fifteen years. Hiring a consultant is a good investment. I hear people say, “I don’t want to spend money on a consultant.” I think that’s a mistake because it’s my job to know twice as much as you would need to know and to help you add value to your organization. The right consultant is worth his weight in gold when you’re looking at making multi-million dollar procurements. SEPTEMBER - OCTOBER 2014

INTERVIEW

THE FIRST PERSON YOU MUST LEAD IS YOU AN INTERVIEW WITH BRIGADIER GENERAL (RETIRED) BECKY HALSTEAD By James Lee, LPC, Executive Editor

LPPORTAL.COM

When asked about what technologies have been

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significantly impactful in our industry, he said: In my opinion, the most important enhancements have been solid-state electronics, microprocessor controls, recording devices, and John Coutta’s tremendous invention of camera rotation along its longitudinal axis. Solid-state electronics allowed for smaller cameras. Microprocessors added “brains” and controlled switching, PTZ, and data collection. Recorders assisted in investigations and evidence keeping. And longitudinal rotation coupled with mirrors made domes the standard housing in the industry. Superimposing a POS transaction onto video really jump-started the data mining industry because we needed some type of software to help us identify transaction anomalies, instead of staring at videotape. Now the data mining industry is very sophisticated and has provided information that is essential to properly running all aspects of the business, including loss prevention.

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9/8/14 2:13 PM

“The First Person You Must Lead Is You”

Someone we interviewed who had absolutely nothing to do with our industry was (retired) US Army Brigadier

General Rebecca “Becky” Halstead. She was the first female graduate of West Point to become a general officer and the first woman in the history of the US military to serve as a commanding general in combat. We not only interviewed her for our September–October 2014 magazine, but also had her as the keynote speaker at the magazine’s 2014 annual editorial board meeting where her presentation was a huge hit. Here are some of her thoughts on leadership. Most surveys say that the number one thing that people want to see in their leaders is integrity. That’s true, but the only way to have integrity is to be disciplined, because it’s too easy to not have integrity. It’s too easy to take a shortcut. It’s too easy to not quite tell the whole truth. Integrity can be inconvenient. It can be uncomfortable. But choosing this harder right is what we’re supposed to do as leaders. You don’t have to go all the way to Iraq or Afghanistan to find combat. Combat can be found right in our own families, in our own communities, in our own businesses, and it’s called lack of integrity. Maybe it’s not as obvious or grievous as a mortar or an IED or a bullet, but people lose their occupations, businesses fail, and economies crash when leaders lack integrity. … I think that more of us should think about the legacy that we want to leave, and the legacy that we are leaving. Because I think what happens is it makes you start to think about your values, and whether your behaviors are reflecting those values. Because if they are, you’re going to touch lives. And

when you touch lives, you’re going to make a difference. That brings purpose to your life, and what greater position is there to be in than to have purpose?

INTERVIEW

THE CURRENT AND FUTURE ROLE OF

RISK

MANAGEMENT Insights from Libby Christman, Ahold USA By James Lee, Executive Editor

LP MAGAZINE | JANUARY - FEBRUARY 2012

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1/20/12 11:38 AM

“The Current and Future Role of Risk Management”

The vice president of risk management for Ahold USA, Libby Christman, was the subject of our interview in the January–February 2012 edition. In her role, she was responsible for claims and insurance management, safety, property protection, corporate and operational crisis management, and business continuity. Hers was and still is a big job that had a lot of impact on her corporation. My goal at Ahold USA is to expand the assumed definition of risk management. As a support function, we can get pigeonholed into just focusing on safety or claims, but I believe we have a lot of expertise that can add value to many areas of the business. We’ve been meeting with other departments and business areas to help them understand not only what our function is, but also what

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“Most surveys say that the number one thing that people want to see in their leaders is integrity. That’s true, but the only way to have integrity is to be disciplined, because it’s too easy to not have integrity. It’s too easy to take a shortcut. It’s too easy to not quite tell the whole truth. Integrity can be inconvenient. It can be uncomfortable. But choosing this harder right is what we’re supposed to do as leaders.” Rebecca “Becky” Halstead

our function can be; how we can add additional insight on risk factors to the things other departments are doing. Apart from working with the asset protection department as we discussed earlier, we’ve also been working closely with our maintenance department on proactive measures in stores. We’ve been working with our human resources group on some conceptual training ideas. We’ve been working with store operations to a greater degree not only on tactical things, but also more strategic solutions for risk factors. We’ve been taking a look at construction to provide input on particular design elements that have caused problems. We’ve May–June 2021

FEATURE A Look Back at Twenty Years of Interviews

been working with our purchasing department on ergonomic issues with certain equipment. So we’re trying to insert ourselves into different business areas that weren’t accustomed to seeing somebody in risk management have any input or opinion before. … One thing that we’ve certainly become more aware of is the whole idea of business continuity. September 11th showed us that an event can occur to disrupt the core functions of your business. You need to be prepared and have a plan in order to keep your business viable. We’ve placed a significant amount

“My best advice for anyone who is looking to redefine his or her career or looking for a place to get started again is to go to a company that is committed to your function, whether that function is loss prevention, risk management, or safety. It is important that the company is committed to your craft and understands the value of what you do. It is also important that you sharpen your skill set so that you have a broader range of skills. It is important not to be one dimensional.” Marvin Ellison

May–June 2021

of focus on how we continue to run our business in the event a catastrophe takes out a warehouse, an office building, or somehow takes out our systems. We are making sure that we have documented plans and roadmaps as well as alternative worksites in place to ensure we can continue business.

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“From Store-Level LP Associate to EVP of Stores”

Marvin Ellison started his career in loss prevention, but he had been elevated to executive vice president of US stores at The Home Depot when we interviewed him for our March–April 2009 magazine. It is not unheard of for loss prevention executives to move into other roles, but Ellison is one whose career could be termed “meteoric” given he is now CEO of Lowe’s. In our conversation, we wanted to look at how his loss prevention career influenced his career. There are fundamental things that have been invaluable in the different roles I’ve taken on outside of asset protection. The first one is making sure that you are very thorough and detail oriented. I learned as a young investigator in assets

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protection the value of being detailed and thorough. That habit of disciplined attention to detail pays huge dividends for me right now. The second important thing is to understand people. In order to be an effective assets protection leader, you must have very effective people skills. These people skills will assist in your ability to influence. As I have been blessed to climb the corporate ladder, the ability to influence has played a major role in my success. The third thing that’s helped me is the ability to understand the entire retail operation. As an effective asset protection leader, it’s important to understand how the front end works, how the back end works, how the sales floor works from a price change and a markdown standpoint, and how the supply chain works. I spent my entire asset protection career trying to find ways to reduce inventory shrink. The only way I could figure that out was to continue to get deeper and deeper into the understanding of how the retail operation worked. Today, as an operator responsible for generating revenue, I take the technical knowledge I learned in asset protection and put a different spin on it. … My best advice for anyone who is looking to redefine his or her career or looking for a place to get started again is to go to a company that is committed to your function, whether that function is loss prevention, risk management, or safety. It is important that the company is committed to your craft and understands the value of what you do. It is also important that you sharpen your skill set so that you have a broader range of skills. It is important not to be one dimensional.

and extent of the problem, understanding the role of process in securing best practice, evaluating security equipment, staff dishonesty, and shop theft.

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9/7/08 6:10:09 PM

“Researching Loss in the Worldwide Retail Market”

We reached across the Atlantic for our September–October 2008 interview with Adrian Beck, one of the major research scholars in the field of loss prevention. Since the mid-1980s Beck has conducted research on retail crime and shrinkage, including measuring the scale

The definition of shrinkage varies depending on which surveys you look at. You could be talking about shrinkage when I’m talking about process failure. Someone else will say, “I have known loss and don’t worry about it. I’m only interested in unknown loss.” These are completely different subjects. So there is a definitional issue that needs to be resolved about what we mean by shrinkage. Then we can make genuine comparisons. … ORC is one issue that is quite perplexing to me. I recently looked at some of the numbers on ORC, and they don’t add up. You’ll hear some people suggest that ORC accounts

for something like 80 percent of all shrinkage. However, the statistics from [Dr. Richard] Hollinger’s study [National Retail Security Survey] would suggest that this cannot be true. And yet there’s so much energy being expended on this subject. … I’ve been doing deep dives in particular areas to understand how different factors can influence our understanding of the causes of loss. There is a sense that we have been overly obsessed with the problem of external theft. There’s a danger it’s been turned into the bogeyman of loss prevention—that is, if in doubt, let’s blame the outsider for our losses. I’ve been trying to show that we should not be afraid of looking within the organization, measure and understand what is going on, and determine how we can have an impact on it.

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May–June 2021

FEATURE A Look Back at Twenty Years of Interviews

chairman and chief operating officer of Limited Brands. Schlesinger holds a doctorate in organization behavior from Harvard Business School and is a prolific author or coauthor of numerous business topics. At the time of this interview, he was transforming the company across the board, including the loss prevention function. Here are some of his thoughts about the changes taking place.

“Managing Change at The World’s Most Admired Specialty Retailer”

Another C-level executive we interviewed for our May–June 2003 magazine was Leonard Schlesinger who was the vice

“As we find ourselves in very uncertain times now with war and threats from all over the place, I need to know that we have crisis preparedness activities inside the organization that are allied with loss prevention and safety services in a seamless way. This is necessary so that people feel comfortable, the business assets are protected in a significant way, and we are generating economic returns.” Leonard Schlesinger

May–June 2021

We had a loss prevention model that was largely rooted in the traditional security model of the ’60s, ’70s, and ’80s. Over the last several months we have attempted to update that model and to shift its focus to one that is much more rooted in education, training, and support of our operating brands. This has required a fairly large talent shift and a substantive organizational shift from a brand-based loss prevention activity to one that is now enterprise-based. … Asked about his expectations for the loss prevention organization, he said: It’s really pretty simple. Number one, I expect to have a level of partnership between the loss prevention function and the stores function primarily, that’s significantly better than we’ve had in the past. This partnership must develop the capacity to not only selfdiagnose their loss prevention situations but be actively involved in developing and managing their environments, including both safety and loss prevention. Number two, I expect the organization to have dramatically enhanced processes and procedures to track and manage inventory and assets. I think we have the basics down as well as

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anybody, but the disciplines have to be defined in a systematic way across all of our brands simultaneously. Throughout all this, I expect to see the perception of our loss prevention organization rise to among the most responsive support functions that exist in the company. Further, I expect to be able to tie their support of the respective line functions and the efforts of their work directly to the P&L and be held accountable for investments in that function against the returns that they drive. Finally, which in some respects is first, I expect them to be major contributors to developing and managing the environment where everybody who works here feels safe and secure. As we find ourselves in very uncertain times now with war and threats from all over the place, I need to know that we have crisis preparedness activities inside the organization that are allied with loss prevention and safety services in a seamless way. This is necessary so that people feel comfortable, the business assets are protected in a significant way, and we are generating economic returns.

we do a lot of crazy things around here and always have. Retailing is a pretty tough job. You have to out work your competitors…and we have some great competitors out there. I believe that how you out work them is by having people who are engaged in what they’re doing, enjoying what they’re doing, and having fun at what they’re doing. That would be the piece I brought from sports more than anything.

the culture. Quite frankly, I wouldn’t have made the decision to come here had it not been this way. I was fortunate to see it work the right way at Cook United in Cleveland from 1973 to 1978, where the VP there, reported to the president as well. ED I T OR: Let’s step back for a minute. How did you get started in loss prevention? COU GH L I N : I started as a store detective at Macy’s in California working for a lady named Kathy McAuliffe, who was one of the really great teachers. She was probably as fine a loss prevention manager as I’ve ever run into in the business. She was great teacher and Macy’s was a great organization. Macy’s very much believed in training…teaching you leadership, the financial aspects of the business, merchandising. It was a great, great starting ground.

ED I T OR: How did you get to Wal-Mart?

ED I T OR: Then you went to Cook as

what? COU GH L I N : I went to Cook as the Cleveland area supervisor. When I first started work, the Cleveland area had a rowdy bunch with a terrible reputation. Here I was 23-years-old, and I went in and laid the law down. I told them this was how it was going to be and if they didn’t like that, they didn’t need to be there. There were fourteen people at that meeting and twelve of the fourteen got up and left. So, I got my baptism into management under fire. ED I T OR: You played football in college, didn’t you? COU GH L I N : Yes, at Cal State University in Hayward. ED I T OR: Did you take anything from your experiences as an athlete and apply them when you went into management? COU GH L I N : I don’t know that I did exactly. But I will tell you that I played for a coach named Les Davis at Cal State. I remember him telling us that working

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.

COU GH L I N : I got a phone call one day from Jack Shewmaker and Ferold Arend. Ferold was president of Wal-Mart at that time and Jack was the executive vice president of merchandise and operations. Sam Walton was the chairman. They had asked the head of loss prevention at Cook for recommendations on someone who could help them. They were impressed that I had been promoted fourteen times in five years, so they asked if I would be interested in coming down to talk to them. It was certainly a culture shock. Bentonville had only 4,000 people in 1978. There was only a single lane road each way. The newspaper’s headline when I came down the first time was that Bentonville was getting its first traffic light. Wal-Mart was small and just becoming known. The reason I knew them was because Cook was selling some stores to them in Oklahoma and Texas. At that time, they had about 190 stores and had just acquired the MOHR Value chain and the shrinkage was off the charts…the highest they had ever had. I saw it as a good opportunity. Cook was in trouble. I was at an age when I could. My wife and I were pregnant with our first child. So, I told them if they were interested in me, I was interested in giving them a commitment of two years. I didn’t know if it was something I’d want to do long term. And they agreed to that. So, I came here as director of LP.

hard was essential to success, but he also emphasized having fun with what you did. If I brought anything from sports, it was that—work hard, but have fun. And

ED I T OR: People have mentors. You had the great experience of knowing and

March – April 2002

LossPreventionMagazine.com

“The View from the Top: How the CEO of Wal-Mart Views the Industry”

This last one may be a bit controversial, not because of the interview at the time, but because of his subsequent personal failings. However, at the time, it was an important coup for our fledgling magazine when we were able to sit down with Walmart’s CEO Thomas Coughlin in his Bentonville office for this March–April 2002 interview. What was supposed to be a thirty-minute visit turned into ninety minutes. Coughlin was another loss prevention professional who rose through the ranks to the top of the corporate pyramid. I want [LP people] to be business people. I want them to be seen as a vital member of the team … a cog … a spoke of the

wheel … that helps us be to our customers what we are—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. They are not a profit drain or burden when they are operating correctly. … I think the biggest challenge loss prevention has is the same that the corporation as a whole has. And that is to be this large organization, but act like a small one. I really mean that. I believe so firmly that to be grounded in this community and in every community we operate is extremely important.

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That same priority needs to be on Dave Gorman’s agenda in our loss prevention division, with our audit division, with our merchandise division. Everybody needs to understand, to effectively run this huge company, we have to act small. … It’s necessary for me to talk about [loss prevention] issues. It’s necessary for the guys in charge of merchandising to talk about them. The chief operating officer, it’s a critical role for him, as it is for the people working for him in other areas. Just like it is for the regional operating vice presidents and district managers. When everyone’s on the same page, the entire organization sees it as a priority.

May–June 2021

SPONSORED CONTENT

SUPPLY CHAIN

seamind224 / Shutterstock.com

Scott Pethuyne, LPC Pethuyne is a member of the industry solutions team at Zebra Analytics. He comes from an accomplished background in asset protection with tenures at Justice, Ascena Retail Group, and Designer Brands (formerly DSW). He uses his intimate knowledge of AP strategies and the Zebra Prescriptive Analytics solution to show retailers how to combat fraud, drive efficiency, and strengthen revenue and margins.

Supply Chain Fraud and Prescriptive Analytics A

There are multiple ways to use a prescriptive analytics solution to identify and root out warehouse theft.

variety of opportunities to commit fraud lie within the supply chain. Crafty retail criminals know that merchandise in transit is highly vulnerable to theft before it reaches the relatively secure store environment and will get very creative in their efforts to seize the goods. Retailers can stave off supply-chain fraud by leveraging an advanced analytics solution like prescriptive analytics. Prescriptive analytics is a software methodology that analyzes data and tells you: 1. What is happening. 2. Why it happened. 3. How much it is costing you. 4 What to do about it. 5. Who should do it. With this analytical powerhouse in their toolbelts, loss prevention professionals can increase visibility to the supply chain and root out fraud before losses mount. Following are a few types of fraud that

The logic is simple: if an employee successfully steals once, they’ll do it again, creating a distinct pattern of missing items during their specific shifts. May–June 2021

prescriptive analytics can help stamp out.

Warehouse Theft Within the four walls of every warehouse lies millions of dollars’ worth of valuable merchandise. Even with huge investments in security measures like CCTV, RFID tagging, and more, dishonest employees continue to find ways to slip product out the back door and either keep it for themselves or resell it for cash. Warehouse employees have insider knowledge of their workplaces’ security measures, which helps them avoid detection in their acts of theft. To avoid the triple whammy of cash loss, inventory inaccuracies, and negative impact on the customer experience, retailers need to act now to identify and eliminate warehouse fraud. There are multiple ways to use a prescriptive analytics solution to identify and root out warehouse theft. One of the most effective involves analyzing claims for missing items, cartons, or totes and correlating them with labor records, shipments, bills of lading, and store claims. The logic is simple: if an employee

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successfully steals once, they’ll do it again, creating a distinct pattern of missing items during their specific shifts. An alternative approach involves monitoring access to the “cage” (protected storage area for high-risk items). Any employee whose credentials are used to access the cage with unusual frequency or on days they are not working can point you directly to fraudulent activity.

Cargo Heists Merchandise in transit presents a golden opportunity for thieves to hijack and steal it. Equally concerning is theft by third-party logistics drivers who may be more likely to steal due to a lack of loyalty toward the retailer receiving the shipment. The total amount of merchandise lost to cargo heists increases every year, and by extension, the theft becomes more difficult to detect. Prescriptive analytics can leverage a variety of data to identify cargo heists, and one of the most effective is GPS data and delivery route. By analyzing GPS data, prescriptive analytics easily identifies and alerts you when trucks unexpectedly stop or take sudden detours

along their routes. This is a strong indicator of some type of fraud (the truck may have been hijacked or the driver may have stopped to transfer goods into a colluder’s vehicle or safehouse) and empowers you with the fastest means of both identifying it and, more importantly, acting on it.

Bribery Some vendors and suppliers will do just about anything to win your business, including bribing your buyers. Some dishonest buyers and merchandisers will gladly accept cash, merchandise, vacations, and other perks in exchange for a lucrative contract or special favors. To ensure that contracts go to the best suppliers, not just the ones with the deepest pockets. it is common practice in retail to forbid buyers from accepting bribes. But when

greed takes over, buyers may be influenced to make bad decisions. A solution involves configuring prescriptive analytics to monitor your buying policies and vendor agreements and compare them to actual business activities. Any violations or inconsistencies (for instance, a low-selling product that a buyer nonetheless keeps ordering more of) are instantly flagged and sent to the relevant figures of authority. In one example of this, a fashion retailer’s prescriptive analytics solution notified its asset protection team of irregular supplier payments issued by a certain buyer. Some vendors were being paid in just ten days (much too fast as the retailer requires payment after thirty days to ensure quality), while other, smaller vendors were being

By analyzing GPS data, prescriptive analytics easily identifies and alerts you when trucks unexpectedly stop or take sudden detours along their routes. paid up to six months late. The solution identified this was inconsistent with the terms set forth in the buyers’ agreements and ordered the AP team to investigate. The investigation revealed the buyer was prioritizing payments to some vendors in exchange for a variety of perks, including cash, expensive wines, and in one case, a new car. The buyer also confessed that he was delaying payments to smaller vendors to force them to provide perks as well, which few of them could afford. He was terminated, thus resolving a case worth $3.5 million.

Some vendors and suppliers will do just about anything to win your business, including bribing your buyers.

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May–June 2021

CERTIFICATION

The Loss Prevention Foundation (LPF) is a leader in educating and certifying retail loss prevention and asset protection professionals by providing relevant, convenient, and challenging educational resources. The LPF is dedicated to elevating the industry through its accredited LPQualified and LPCertified courses. For more informations, visit losspreventionfoundation.org.

Home Depot LP Professionals Share Their Insights on Certification T

Alex Kohler

There isn’t a more relevant certification course to take than the LPC if you’re an LP and AP professional looking for advanced learning in the industry.

he Home Depot has made a commitment to continued education for its asset protection team through LPQ and LPC course scholarships. Scott Glenn, LPC, vice president of asset protection with The Home Depot, had this to say about LPF certifications for his team: “I continue to be impressed by how well-structured and in-depth the course work of the LPQ and LPC certifications are and how committed our associates are to improving their knowledge base and developing their own careers. The LPC and LPQ are the gold standard in the industry, and I would highly recommend the courses to all retail AP and LP professionals.”

Alex Kohler, LPC

Multiunit Asset Protection Manager, The Home Depot LPCertified in February 2020

Alex Kohler, LPC, earned his degree in criminal justice administration while also working in various “floor-walking asset protection” positions in the retail environment. The combination of his degree

and the AP jobs he held paved the way for his career path. He had his first LP and AP management role in 2011 and in 2013 took a chance for a position with The Home Depot. He has been with The Home Depot for eight years as a multiunit asset protection manager. “It started as a craving to learn more about the LP and AP industry from a different perspective.” That is how Alex Kohler, LPC, began explaining why he pursued his LPC certification. He continued, “I had peers that had been through the course, and as I talked with them, I realized that this course could assist me in understanding other areas in the industry that I might not focus on in my day-to-day duties. As I began reading through some of the content, it made me uncomfortable, but that only served to make me want to take the course even more. “The LPC course was challenging, and I quickly learned that I had to find a good way to retain all the information. I began reading a section at a time and then looked for ways that I

May–June 2021

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could apply what I read in my everyday job role. I also spent a lot of time talking with my peers that had been through the course or were going through it at the same time. Each conversation was valuable and left me with a unique perspective on the information.” When asked about any advice he might have for young LP professionals just starting in their careers, Kohler said, “I said that when I started the coursework, the LPC certification made me uncomfortable. As a new LP professional, look for those learning opportunities that make you uncomfortable because those are the opportunities that you will learn the most from. Learn something from everyone you meet and interact with along your career path. Remember that everyone has something, a leadership style, a personality trait, a vision, or an idea, that you can learn from. The success of our industry is built upon our relationships.”

Continued on page 38

CERTIFICATION Continued from page 36

“There isn’t a more relevant certification course to take than the LPC if you’re an LP and AP professional looking for advanced learning in the industry,” Kohler continued. “The course content will have an impact on every decision or obstacle you have to navigate, and you will have a new appreciation for the decisions being made daily to adapt in the ever-changing LP and AP environment.”

Stacey Hutchens, LPQ Asset Protection Specialist, The Home Depot LPQualified in October 2020

Stacey Hutchens

The LPQ course definitely gave me a better understanding of how all parts of a business intertwine and affect each other.

Stacey Hutchens, LPQ, began looking into a career in asset protection after serving in the Army as a military police officer. She has been with The Home Depot as an asset protection specialist since 2016. “I decided to get my LPQ certification to open up possible career opportunities that I had not been previously considered for,” said Hutchens. “I also wanted to gain a better understanding of the business side of operations and how it works hand-in-hand with asset protection. The LPQ course definitely gave me a better understanding of how all parts of a business intertwine and affect each other.” Hutchens continued, “The LPQ course really took a deep dive into topics other than external and internal shrink. I feel like all the content, from workplace safety to harassment and conflict resolution, really set you on a path to be a great leader in the LP and AP industry. Whether you already have a job working in the industry or are just starting to look into it, you will take away some great knowledge from this course.”

May–June 2021

Newly Certified Following are individuals who recently earned their certifications. Recent LPC Recipients Annmarie Baldasare, LPC, Amazon Eric Baxter, LPC, DICK’S Sporting Goods Kristina Benjamin, LPC, Walgreens Michael Burch, LPC, Securitas Electronic Security William Burdick, LPC, DICK’S Sporting Goods Khalid Carpenter, LPC, IKEA North America Raymond Ciniglio, LPC, Home Depot Brian Corso, LPC, Rite Aid Sarah Fennimore, LPC, Home Depot Justin Fitzpatrick, LPC, Home Depot Randolph Hall, LPC, Whole Foods Market Tracy Hensley, LPC, Amazon Jason Hertig, LPC, Home Depot Dayna Howard, LPC, Amazon Lucas Jacob, LPC, Amazon Audrey Kohler, LPC, Lowe’s Kevin Kost, LPC, Office Depot Jeremy Krantz, LPC, Amazon Luis Loayza, LPC, Nordstrom Rashad Mitchell, LPC, Amazon Brock Nearhoof, LPC, DICK’S Sporting Goods Carlos Perez-Pliego, LPC, Amazon Scott Pethuyne, LPC, Zebra Technologies Joseph Rapacz, LPC, Ascena Retail Group Broncho Rollins, LPC, Amazon Kim Sakevich, LPQ, LPC, The Wireless Experience Andrew Smyth, LPC, Charter Communications Scott Springer, LPC, DICK’S Sporting Goods Dusko Tadic, LPC, Amazon Laura Wade, LPC, Amazon

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Jimmy Williams, LPC, Walmart David Zwernemann, LPC, Amazon Recent LPQ Recipients Jennifer Anderson, LPQ, Heritage Co-Op Meredith Atkins, LPQ, Meijer Kyrie Bock, LPQ, ALTO Jake Burch, LPQ, Academy Sports + Outdoors Samantha Byrne, LPQ, Army Air Force Exchange Service Daniel Duncan, LPQ, TJX Daniel Ferrer, LPQ, Allied Universal Security Services Ryan Finch, LPQ, Lake Country Co-op Leon Halatek, LPQ, ALDI Leighton Knaus, LPQ, TJX Lauren Lewin, LPQ, TJX Jared Malin, LPQ, TJX Sylas McCabe, LPQ, TJX Kenneth Meehan, LPQ, The GIANT Company Lindsay Monk, LPQ, Nike North America. Sabrina Mundarain, LPQ, TJX Paul O’Brien, LPQ, TJX Jakob Plessinger, LPQ, TJX Timothy Prominski, LPQ, Meijer Efrain Reyes, LPQ, TJX Laraine Robinson, LPQ, Buzz Bingo Angela Smith, LPQ, TJX Lori Stansbury, LPQ, TJX Brandon Weston, LPQ, TJX Bobby Williamson, LPQ, Home Depot Amy Winters, LPQ, Meijer Jevonne Woods, LPQ, TJX Rick Woolworth, LPQ, Army Air Force Exchange Service Enrique Yu, LPQ, Army Air Force Exchange Service Paul Ziemba, LPQ, Ace Hardware

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Workplace Violence Retail Policies Reviewing Current Trends and Moving Forward Together

Other 5.4%

4. Retail Sales 7.7%

1. Law Enforcement 47.7%

3. Transportation 12.2%

2. Mental Health 20.5%

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This begs the question: what is it about retail that puts employees at risk? As it turns out, the retail environment often brings together some of the strongest predictors of WPV: working directly with the public, cash handling, and the sale of alcohol all contribute to an increased risk for violence. For some retail verticals, such as convenience or liquor stores, later store hours, fewer staff members, and reduced guardianship also heighten the overall risk of workplace violence. More recently, the COVID-19 pandemic also put retail employees in the line of fire for enforcing mask mandates and social distancing guidelines in-store. With the ever-looming threat of workplace violence, many retailers are taking steps to update and strengthen their WPV policies and programs to better protect their associates. In support of this effort, the Loss Prevention Research Council (LPRC) surveyed our retail members to better understand these policies. In future research, we plan to develop a comprehensive retail “checklist” designed to mitigate the risk of violence in-store.

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By Kenna Carlsen

FEATURE Workplace Violence Retail Policies

Defining the Four Types of Workplace Violence Now that we understand a bit more about the prevalence of violence in retail, it’s important to also understand the different categories of workplace violence: criminal intent, customer/client, worker-onworker, and personal relationship. Notably, prevention and mitigation strategies will likely differ depending on the type of violence being addressed as each type is unique in its motivations, circumstances, and risk factors. For our purposes, special attention will be placed on worker-on-worker violence as this is perhaps the best opportunity employers have to assess risk and potentially mitigate violent incidents.

apparent, and oftentimes recognizing red flags requires a deeper and more complex understanding of that person, an understanding that often goes beyond an employer/ employee relationship. Therefore, it is recommended that employers continue to cultivate an environment where employees feel comfortable reporting suspicious behaviors and that they are familiarized with common “cues” to violence, including: ● Major and/or stressful life changes ● Extreme mood changes and/or irrational beliefs or ideas ● Sudden and observable changes in overall behavior or appearance

Types of Workplace Violence Type I: Criminal Intent

Type II: Customer/Client

The perpetrator does not have a legitimate relationship with the business or employees. Violence is usually committed with other offenses.

The perpetrator has a legitimate relationship with the business. They are typically a customer, client, or patient.

Type III: Worker-on-Worker

Type IV: Personal Relationship

The perpetrator is a current or former employee of the organization.

The perpetrator does not have a relationship with the business but does with the intended victim(s).

Employee-Initiated Workplace Violence Workplace violence, especially that committed by a current or former employee, is amongst the most sensationalized by the media. This has been further intensified in the past few years with the rise of mass shootings, and more questions are being raised around what employers could and should do to prevent these incidents. Of course, this is easier said than done. The drive to commit violence isn’t always May–June 2021

● Blaming

others for their problems or mistakes ● Contextually inappropriate fascination with weapons, violence, or prior violent events ● Abuse of drugs and/or alcohol ● Challenging or resisting peers and authority figures ● A history of intimidation, verbal abuse, and/or mistreatment of others ● Lying and stealing ● Excessive absenteeism or tardiness ● Holding grudges and/or making threats toward others

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● Unrequited,

obsessive romantic attention or stalking Of course, many of these “cues” are not unique to violent individuals. For example, feelings of stress or unfairness, major life events, substance abuse, and observable changes in behavior are also common risk behaviors for suicide. If an employee exhibits suspicious or worrying behaviors, managers should take care to assess each situation on a case‑by‑case basis and, if possible, consider the involvement of a mental health professional or threat assessment team. De-escalation and sensitivity training may also be useful tools if or when the employee is confronted or given disciplinary action. Finally, it is important to understand how a workplace can impact the risk of workplace violence. According to the National Safe Workplace Institute, characteristics of the high-risk workplace include: ● Chronic labor versus management disputes ● A large number of employee grievances, feelings of unfairness, or injustice ● A large number of workers’ compensation claims, especially for psychological injury ● Authoritarian management style (such as understaffing, excessive demands for overtime) ● Increasing incidence of harassment, threats, and/or assault ● High turnover rates ● High rates of absences, tardiness, illness, or injuries

LPRC Project Overview In late 2020, the Loss Prevention Research Council designed a survey to better understand current retail WPV policies, the programs in place to prevent and respond to WPV, and the extent to which these programs could be considered evidence based. The survey was administered across the LPRC’s Retail

is via an electronic learning management system (91%), followed by self-directed (27%) and face-to-face training (23%). For a majority of our responding retailers, training on workplace violence is delivered upon hire and then refreshed on an annual basis. The question then remains: is this the most effective way to educate employees? Results: Workplace In general, training methods Violence Policies can be categorized into three and Programs broad categories based on the overarching goal: (1) to A vast majority of retailers deliver information (information within this sample (96%) have based), (2), to demonstrate an official policy specifically skills and abilities being trained outlining processes and Results: WPV Training (demonstration based), and (3) procedures for responding to and Education to offer them opportunities to workplace violence incidents. practice the learned skills or Of those, 95 percent specifically Perhaps one of the most abilities (practice based). Of the have a “zero‑tolerance clause.” fundamental yet most Establishing a zero‑tolerance important tools in risk mitigation three methods, practice‑based methods are considered policy is, in many ways, an is training. WPV in particular to be the best overall as employer’s first line of defense should be a multifaceted they allow the trainees to against WPV as it sends a program designed to teach apply their knowledge in a clear message that there are employees about the kinds more realistic environment. consequences for violence. of actions that constitute However, research suggests This, however, raises more workplace violence, how to that a combination of all three questions: what exactly is a identify potentially violent or categories is likely to create zero-tolerance policy, and dangerous individuals, how to how do retailers define it? report suspicious behavior, and the most effective training programs overall. The answers aren’t that what to do in the event of a Training can be delivered straightforward. Based on violent incident. While all of the in a variety of ways, such the answers provided by our retailers in this study do have retail respondents, there was specific WPV training, the types as face‑to‑face, self-paced training modules, virtually, no standard definition of “zero of violence covered in these and others. In-person delivery tolerance.” However, they did programs varied significantly, tend to revolve around three where suicide and interpersonal maximizes the ability for the trainer to oversee individual key elements: violence tend to be addressed progress, and they have the less frequently overall. ● Workplace violence is opportunity to adapt the The most common delivery taken seriously. program based on the progress method for these trainings ● All incidents are investigated. ● All confirmed incidents. would result in some form of disciplinary action. When broken down further, 27 percent of retailers stated Associate-on-Associate that workplace violence would lead to the termination of that Customer-on-Associate employee, while 23 percent indicated that any disciplinary action would be “up to and 55% IPV/Domestic including termination.” Finally, we asked a series of Robbery questions about the reporting process for workplace violence. Overwhelmingly, retailers Suicide 23% indicated that employees are actively encouraged to report 0% 20% 40% 60% Network, where a total of twenty-two people responded, representing twenty-two unique organizations and over 52,000 stores across North America. General merchandisers, grocers, home improvement stores, pharmacies, and specialty retailers were amongst those who participated in the study.

any allegations or incidents of WPV, and this message is reiterated in new hire and annual training, posted materials, and via email or other e-systems. They were also asked about the avenues they provide for reporting. Some of the more common options include an anonymous telephone or hotline (100%), in-person reporting (81.8%), and electronic messaging (72.7%). Dropboxes are much less common in comparison, where only 9 percent of retailers offer them as a method to report WPV.

Types of Workplace Violence Addressed in Trainings

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91% 96%

77%

80%

100%

FEATURE Workplace Violence Retail Policies

Examples of Training Delivery Methods Information Based

Demonstration Based

Practice Based

Lectures, presentations, slideshows, text-based modules

Examples or reenactments via in-person skits, videos, audio, or simulations

Role play, guided practice, simulations

and response of the group. Furthermore, interpersonal communication is also maximized with in-person trainings, which allows for activities such as skits, role play, and guided practice. However, in-person trainings also limit overall flexibility as compared to virtual. For example, employees are restricted in their ability to go at their own pace, and the availability of archival training materials is limited. Therefore, organizations should adapt their training based on their individual needs. In terms of training frequency, the theory of

cognitive load suggests that learners have finite working memory, and once this is met, new information and the ability to learn and retain new information is significantly hindered or lost entirely. Therefore, it is recommended that longer or more information-dense trainings are delivered over multiple sessions to allow the audience to “reset.” According to the Occupational Safety and Health Administration (OSHA), new and reassigned workers should receive an initial orientation session on WPV before being assigned to their duties, and

all employees should receive training on an annual basis. For higher-risk settings, refreshers may be needed on a quarterly or even monthly basis.

Results: Risk Assessments and Interventions It became clear while writing this report that many retailers in this study tend to focus more heavily on reacting to incidents rather than proactively trying to mitigate the risk of WPV. That’s not to say that they aren’t being proactive at all. Most of our retail respondents (82%) utilize background checks as

Considerations for Training Development Needs Assessment Learning Styles Delivery Mode Budget

Consider which topics and training programs are necessary to your organization and set measurable learning objectives. Incorporate a variety of learning styles (visual, auditory, and kinesthetic) to maximize the reach of your training. Consider how to best deliver your training based on the topic at hand (such as in-person role play, online modules, or virtual real-time training). Consider your budget and find a balance between the strength of your training and the money allocated toward the program.

Delivery Style

Stay mindful of the topic at hand and consider if your employees would benefit more from self-paced or instructor-led training.

Audience

Understand the target audience. What are their roles in the company? What level do they serve the organization? What are their responsibilities?

Content

Using your learning objectives as a guide, develop content that is relevant to your training topic and tailor it to the target audience.

Timelines Communication Effectiveness

Develop a timeline, including an estimate for the amount of time it takes to complete the training and the deadline for completion. Ensure that the communication of training details is announced in a timely and easily accessible format. Measure the effectiveness of your programs. For example, administer a test to measure knowledge retention, survey your trainees, and measure key performance indicators before and after training.

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the first step in risk mitigation. Furthermore, a majority also have a designated team in place to respond to WPV threats and employ outside mental health services. However, there is a critical tool that is largely underutilized: risk assessments. Just as we tend to conduct store-level risk assessments for things like theft and organized retail crime, we can also use a similar method to assess the risk of workplace violence. As a rule, any sort of risk analysis should be grounded in evidence. And the good news is that we have a plethora of research to lean on when trying to understand the strongest predictors of violence. The graph above outlines some of these common risk factors. To maximize the ability to recognize at-risk employees, assessments would ideally be

Frequency of Workplace Violence Training by Employment Level Upon Hire

Upon Promotion

80%

Annually

Regularly (Nonannual) 77%

73% 64%

77%

64%

60%

53%

40% 27%

27%

20% 9%

Nonmanagerial

conducted at four stages: the preemployment stage, during the new-hire process, on an annual or biannual basis, and when responding to a violent incident. The graph above also compares the proportion of retailers who conduct risk assessments during the preemployment stage versus

Managerial

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Corporate Management

the period after a WPV incident. While it’s clear there is much more emphasis on reacting to violence, this also points to a very positive discovery: a substantial portion of our retail sample already have tools in place to examine risk factors, which means that much of the hard work is already done.

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Upon Policy Change

FEATURE Workplace Violence Retail Policies

Results: EvidenceBased WPV Policies and Programs At the heart of the Loss Prevention Research Council is the goal of supporting informed, evidence-based decisions. To maximize WPV policy, retailers must continue to reassess their policies to ensure they are relevant and effective. In the final part of the survey, our responding retailers were asked questions designed to assess whether their policies and programs are evidence based and to better understand the types of evaluations used to examine their overall effectiveness. The good news is that most retailers are taking steps

to continuously improve. Nearly 82 percent of retailers conduct reviews of their WPV prevention strategy following incidents of violence, and 100 percent regularly evaluate the effectiveness and integrity of their security systems. Furthermore, 70 percent of those surveyed said that their WPV prevention and control strategy is grounded in scientific evidence. Unfortunately, only 37 percent of retailers reported that their policies and programs undergo rigorous scientific trials before and after implementation. Basing policy on scientific evidence is a great start, but that doesn’t necessarily mean they will

Risk Assessments: Preemployment versus after a Workplace Violence Incident Preemployment

After an Incident

Antisocial/Violent Beliefs Antisocial/Criminal Peers Emotional Distress Family Dissatisfaction Financial Insecurity History of Aggression Impulsivity Job Performance Job Satisfaction Risk-Taking Low Self-Control Social Support Substance Abuse Violent Victimization Overall Wellness 0%

20%

May–June 2021

40%

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60% LossPreventionMedia.com

translate perfectly to each organization. Trials allow employers to objectively see how well their policies are working and draw attention to those aspects that may need improvement.

Research Conclusions Workplace violence remains an important and challenging issue facing retailers. According to the National Retail Federation (NRF), customer service issues are on the rise, including violence. As evidenced by this study, most retailers have policies in place designed to educate employees about identifying and responding to instances of workplace violence. In some ways, however, these trainings appear to lack sufficient information about suicide and interpersonal violence, both of which make up a significant margin of violent incidents occurring in the workplace. Furthermore, it appears that most organizations have taken a more reactive approach when handling workplace violence. It is recommended that retailers should begin assessing some of the individual-level predictors of violent behavior and other antisocial behavior before and during the employment process. Furthermore, to test the effectiveness of these policies and procedures, we also recommend more rigorous testing across organizations. Kenna Carlsen received her master’s degree in criminology, law, and society from the University of Florida in 2019. She currently serves as research team leader with the Loss Prevention Research Council (LPRC) where she supervises a team of researchers as they plan, coordinate, and execute studies addressing retail’s most pressing issues. Carlsen also facilitates four working groups at the LPRC—Violent Crime, Organized Retail Crime, Retail Fraud, and the upcoming Workplace Performance Working Group. She can be reached at kenna@lpresearch.org.

TECHNOLOGY Tom Meehan, CFI

ZinetroN / Shutterstock.com

Meehan is retail technology editor for LPM as well as chief strategy officer and chief information security officer for CONTROLTEK. Previously, Meehan was director of technology and investigations with Bloomingdale’s, where he was responsible for physical security, internal investigations, and systems and data analytics. He currently serves as the chair of the Loss Prevention Research Council’s (LPRC) innovations working group. Meehan recently published his first book titled Evolution of Retail Asset Protection: Protecting Your Profit in a Digital Age. He can be reached at TomM@LPportal.com.

What Retailers Need to Know about the Global Chip Shortage I

Computer chips are found in every machine we use today, from cars to water treatment plants and internet cables. Nearly anything that plugs into a wall has at least one chip that acts as a tiny computer to make the device work.

f you’ve tried to buy a new computer or video game system in the past year, you’ve most likely come across outof-stock notices or listings on eBay for more than double the retail price. As the COVID-19 pandemic hit in early 2020, consumers faced product shortages in everything from toilet paper and hand sanitizer to the Nintendo Switch. But as the economy slowly reopens in 2021, we still have to deal with another challenge: the continued global shortage of computer chips.

Why Are Computer Chips So Important? Computer chips, or semiconductors, operate as the “brain” of any electronic device in the world. They are the most critical and expensive component in computers, and although they have existed for over fifty years, we have managed to manufacture smaller and more powerful chips to make computers faster and cheaper. Computer chips are found in every machine we use today, from cars to water treatment plants and internet cables. Nearly anything that plugs into a wall has at least one chip that acts as a tiny computer to make the device work.

May–June 2021

But the tiny size and complex design of computer chips require specific manufacturing conditions. Chips are produced in fabrication plants, usually called “fabs,” with highly controlled environments to minimize dust, temperature spikes, and even static electricity, all of

demand as people lost their jobs and had to spend less on nonessential items. What many economists failed to predict, however, is that as more people spent time at home, the demand for consumer electronics, like TVs and video game systems, would skyrocket.

In early 2020, major buyers of chips, like auto companies and consumer electronics manufacturers, bought fewer chips in anticipation of decreased demand as people lost their jobs and had to spend less on nonessential items. which can damage the internal components of computer chips. These fabs cost billions of dollars to build and can take up to two years before they are fully operational, so our supply chain is highly dependent on the chip manufacturers running today.

What Is the Global Chip Shortage? While the chip shortage is a simple equation of supply and demand, it has global implications for pretty much every sector. In early 2020, major buyers of chips, like auto companies and consumer electronics manufacturers, bought fewer chips in anticipation of decreased

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To meet this dramatic increase in demand, electronics companies bought up all the extra chips in the market. Combined with uncertainties about consumer spending, chip manufacturers were challenged to match their production capacity with demand, leading to an unprecedented global shortage in computer chips.

What Caused the Chip Shortage? While unanticipated changes caused by COVID-19 affected the supply and demand of computer chips in 2020, we are still seeing these effects impact multiple industries today. Other industry bottlenecks have caused the

chip shortage to continue well into 2021. Although major tech corporations like Qualcomm and Apple have designed the advanced chips we see in the newest cars and consumer electronics, they do not produce the chips themselves. Instead, they rely on advanced factories called foundries to produce their designs. Just three or four foundries control the majority of global chip fabrication, and about 91 percent of contract chip manufacturing happens in Asia alone. With global chip manufacturing in the hands of so few players, production delays added up quickly last year as manufacturers struggled to overcome pandemicrelated challenges, such as decreased production capacity, fewer workers, and delayed shipping times. The global chip shortage isn’t only because of the pandemic. With the rise of 5G, many manufacturers are increasing the production of 5G-enabled devices, which need a lot more computer chips than the typical smart device. The transition to the newer generation of telecommunications and cellular data has put a huge strain on chip production that would have happened even without the coronavirus.

What’s Happening with the Chip Shortage Now? As the global chip shortage continues, we are seeing lead times (how long it takes to fill an order for a chip once it’s been placed) estimated to be over twenty weeks, compared to the twelve-week lead time in February 2020 before COVID-19 became a global pandemic. In early 2020, many auto manufacturers underestimated the demand for new cars, expecting that fewer consumers would be driving to work as they transitioned to working from home under government stay-at-home mandates. This has led many carmakers to halt

production in 2021 as the chip shortage caught up with them. To regain control of chip production from overseas manufacturers, Intel recently announced a plan to create a foundry business. While

As cars have become smarter, offering advanced features such as blind-spot detection and self-parking, computer chips make up around 40 percent of a car’s manufacturing cost as of 2020.

While unanticipated changes caused by COVID-19 affected the supply and demand of computer chips in 2020, we are still seeing these effects impact multiple industries today. Other industry bottlenecks have caused the chip shortage to continue well into 2021. Intel currently designs and manufactures its own chips, this foundry would allow them to produce chips for other companies as well, making it easier for companies in the United States, Europe, and other regions to acquire the chips they need for their own production.

Without a reliable supply of chips, auto companies are expected to lose around $61 billion in sales in 2021. Today, millions of cars are sitting in factory lots, almost complete minus the computer chips they need to function. With the global auto industry buying around $37 billion in How Does the Chip chips each year, they spend Shortage Affect far less than other major Consumers and players in the chip industry, Businesses? making them a lower priority to chip manufacturers that Consumers are bearing the have to prioritize their orders. brunt of the global chip shortage. After reducing chip orders in Because computer chips are response to declining vehicle both essential to consumer sales in 2020, car manufacturers electronics and in low supply for find themselves in the back manufacturers, consumers are seeing the prices of already‑costly of the line today as they try to reorder chips to keep up electronics increasing rapidly if with the increase in consumer they can even buy them at all. demand for new cars this year. Many video game consoles, like Ford Motor Company Sony’s PlayStation 5 and the new reduced its full-year forecast Xbox Series X from Microsoft, due to the computer chip are completely sold out at official retailers and are only available for shortage and now sees it highly marked-up prices on eBay extending to 2022. Two of the largest RFID chip manufacturers and other third-party sellers. Even Apple, which spends $58 have lead times of twenty weeks or more as compared to billion per year as the world’s biggest buyer of computer chips, six to eight weeks in the past. As economic activity picks had to delay the long‑awaited back up throughout 2021, we release of the new iPhone 12 by can expect to see the chip two months in 2020 because shortage continue. Although of the chip shortage. Samsung, companies like Intel and other despite being the world’s existing chip manufacturers are second-largest producer of planning to build new fabs, it chips, recently announced it can take months, if not years, for might have to postpone the launch of its upcoming high-end these fabs to get online and be smartphone due to the shortage. fully operational.

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As cars have become smarter, offering advanced features such as blind-spot detection and self-parking, computer chips make up around 40 percent of a car’s manufacturing cost as of 2020.

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David Hardeman Hardeman leads CONTROLTEK’s client solution delivery team of installers, planners, engineers, and project managers who deploy various loss prevention solutions for its customers. With more than thirty years of experience in the security and life safety electronics, manufacturing, and retail support industries, Hardeman has implemented the latest and best processes, systems, and infrastructure pieces, elevating CONTROLTEK’s delivery capabilities to the highest in the industry.

How to Choose the Right LP Solutions Provider

When it comes to loss prevention, retailers need a solutions provider who takes the time to learn all about the client’s business and operations in order to recommend a solution that helps the retailer reach its specific goals.

What should a retailer look for in a solutions provider? A solutions provider is not someone who just sells you products and/or services. When it comes to loss prevention, retailers need a solutions provider who takes the time to learn about their businesses and operations to recommend a solution that helps them reach their specific goals. Building a partnership on trust and collaboration begins with the solutions provider asking the right questions to understand exactly what the retailer needs. Although a solutions provider may have a team with many years of expertise, they may not truly understand the client’s challenges until they conduct a comprehensive review. From there, they can effectively work together to achieve a solution that is customized to their business needs.

questions and structure a fact‑finding mission. This provides all key team members an opportunity to learn as much as possible about the client’s business and their expectations of a successful program implementation. By walking the client through the project and program process, we can create an all-inclusive plan to prepare for any potential issues before, during, and/or after the solution implementation.

What really makes a successful partnership? I don’t believe installation of the client’s solution is where the relationship between the solutions provider and client ends. Instead, maintaining a proactive approach to the partnership keeps their goals and requirements at the forefront. Most importantly, I believe consistent follow up with the How can a retailer and a solutions retailer to ensure their solution is provider collaborate throughout meeting expectations is paramount to ongoing success. For example, the process? Of course, there are many similar providing routine monitoring of a retailer’s EAS system’s health allows types of EAS options available, prompt attention to any potential or but there are really no true “one actual system performance issues. size fits all” LP solutions. Retailers Furthermore, discovering are seeking recommendations to a solutions provider who can decide upon the technology that provide additional benefits such as best meets their requirements, so professional services, specialized an effective EAS solution is one training, and recommending or that is customized to meet the developing system enhancements retailer’s challenges. can help ensure the solution My approach in working with is well received in the retailer’s clients is using a “collaborative environment. Continual optimization impact model,” to ask exploratory

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of the solution implementation is paramount to ongoing success. Why should a retailer look to the future when considering their EAS investment? It is important not only to review a retailer’s current challenges but also to take a deep dive into their operations and potential risks, helping them look into the future. Enhanced knowledge and access to an array of LP technologies, from traditional EAS to emerging technologies like RFID, is becoming more accessible and affordable, offering additional benefits to retailers. COVID-19 introduced many unanticipated changes for retailers, such as figuring out how to secure, distribute, and track products while shifting to omni‑channel offerings like curbside pickup and BOPIS (buy online, pick up instore). It became even more important to offer and implement RFID solutions designed to better protect and monitor inventory in real time. What is your advice for retailers vetting their next provider? By cultivating and maintaining a partnership with clients, a successful solutions provider delivers innovative, proven product and support offerings. The goal is always open and honest communications with client partners to meet today’s demands while preparing for tomorrow’s challenges.

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Leverage the Strength of Your Loss Prevention Journey By Jennifer Schaefer, MA, LPC

the overarching picture of my life, however, I can see the individual stepping‑stones and opportunities that presented themselves and led me here. I see my career as a kaleidoscope. When you hold up the eyepiece and look within, you can see vibrant colors layered in facets. One small turn to the left or right changes the colors and shapes,

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FEATURE Leverage the Strength of Your Loss Prevention Journey

and a new picture forms. In my career, I have made both small and large turns. Each turn has displayed a fascinating array of vibrant colors and opportunities. The various shapes and colors illustrate all the changes made and roads taken toward the next adventure. These turns were based on portfolio management and overall leadership development.

My Career Path My professional picture began taking shape when I worked for a judge as a judicial law clerk in the criminal court system. I reviewed additional opportunities in the field, which led to a brief tenure in city work, and finally set my roots within the retail industry at Target Corporation. I progressed forward in the retail arena managing a multitude of teams focused on safety, theft, and fraud in a variety of brick-and-mortar locations.

I see my career as a kaleidoscope.

theft and fraud education, quality assurance, brand and logo infringement, and other legal areas. The role at Caribou afforded enormous growth and development in a company heavily engaged in creating a positive, diverse corporate culture. Building a department from the ground up was not only inspiring but also allowed for an opportunity to imprint upon the brand. Eight years later, I moved on to the US security team for McDonald’s Corporation. I was afforded the opportunity to oversee brand protection, life safety, and security for six regions, which included approximately 2,100 company and franchise locations. In addition to field work, I helped to manage projects such as mobile order and pay, loyalty card programs, gift card fraud, and global mobile app abuse, as well as leading the communication and training team,

When you hold up the eyepiece and look within, you can see vibrant colors layered in facets. One small turn to the left or right changes the colors and shapes, and a new picture forms.

I left that role to pursue an opportunity with Caribou Coffee Company. I assisted in building the LP department, which grew to incorporate managing the activity for more than 410 company and licensed locations. The role encompassed employee relations, investigations, program development, safety, May–June 2021

workplace-violence initiative, and life safety for all employees. I worked and traveled with restaurant personnel, field service support, and regional business partners protecting the brand, restaurants, and employees. The time spent with McDonald’s serving millions of people across

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the globe increased my exposure to and elevated my standards for global safety and security. While staying within the criminal justice portfolio, I recently took a leap of faith and landed on both feet as part of the wireless industry working for T-Mobile as a field asset protection manager supporting multistate corporate locations. My role allows for engagement at all levels in the business ensuring the protection of people, brand, and profitability. I absolutely love engaging with my teams in support of our consumer markets. I have the opportunity and pleasure of partnering with our multifaceted customer and employee base, including internal and external business plans. I feel fortunate being able to support teams, consult cross-functional department peers, and lead initiatives, including mentoring others through company programming. My career span has afforded me the ability to build departments, relocate across the country, oversee existing initiatives, and implement change. I’ve enjoyed both industry recognition and personal accomplishments throughout the years. Each of my varied experiences has been an intrinsic piece of my overall development in the industry. I have found it interesting to reflect upon feedback from peers and colleagues over the years. Some sound bites include “a rolling stone which gathers no moss,” “runs on high-octane jet fuel,” and “passion is contagious.” Running off high-octane jet fuel is a drive I have possessed all my life. I pride myself on being a premier contributor and conduit of communication, engaged in

all levels of business, and focused upon employee and customer needs, while ensuring brands are protected. I am blessed to have brought my passion for people, operational discipline, and protection to a variety of teams, making an exponential difference in lives touched.

The Women of LP In any industry, a level of myth surrounds gender-equality issues, including salary disparity, promotability, titles, positions, roles, and responsibilities. In several of my past positions, I was the only female in the department and/or the only individual who had certain educational attainments and certifications in my peer group. I felt fortunate and humbled to have those

opportunities and to bring my passion and extroversion to the department or company. And even though I am well educated and in possession of a competitive portfolio, I am mindful of past roles where male peers have been paid significantly more for the same job or the defined desired qualifications. All but one of my past leaders have been men, and the one woman came from operations, which was unprecedented at the time. Being an independent, confident woman in a leadership role in the LP industry can be perceived in various ways. I’ve been fortunate in my career to work with fantastic women and men who not only shared in the success of colleagues but also shared promotion opportunities,

partnered on team-driven initiatives, and embraced being stronger together. The support has been amazing as well as refreshing. During those interactions, it is always critical to share knowledge, stretch boundaries, and expand upon the gender limitations intrinsically found in a male-dominated industry. It is also critical to maintain a competitive edge through continued professional and academic development and industry certifications that fit your individual needs, wants, and desires as experiences evolve. I have my master’s in criminal justice leadership and my loss prevention certification (LPC) from the Loss Prevention Foundation (LPF), which is flexible and always evolving based on the industry.

I’ve been fortunate in my career to work with fantastic women and men who not only shared in the success of colleagues but also shared promotion opportunities, partnered on team-driven initiatives, and embraced being stronger together.

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FEATURE Leverage the Strength of Your Loss Prevention Journey

I’ve also found, as a woman in the industry, that it’s imperative to maintain a network of peers, partners, and mentors across various categories and to maintain a sense of subject-matter expertise. While specialization helps, it’s just as important to diversify and maintain a high level of general knowledge to successfully evolve and transition with the changes in the LP industry. Also, become active in various industry organizations and seek leadership positions. For example, I am an active member sitting on the Loss Prevention Foundation Advisory Council.

The Pandemic Workspace As LP professionals, we continually lead and protect against loss in all environments, including a pandemic workspace. Ensuring our teams are safe through consistent communication, empathetic

All paths taken truly prepare you for the next step in life and become part of your personal brand.

is imperative to identify immediate needs and then shift, massage, and reprioritize individual and team workloads. During the past year, the T-Mobile company culture and executive leadership have been nothing but world-class and exemplary. Collaboration and creative mindsets have been critical, as was learning to utilize technology for creative interaction with our employees and customers in remote environments. And remaining open to feedback during these unprecedented times has built upon the company’s already strong foundation and filled previously unidentified gaps.

Career Advice We each make decisions daily regarding when or where to focus our drive. Most importantly, we must each decide to bring our individual best to work. I think it is critical to reflect upon our

Never devalue yourself or your experience. Continue to invent and reinvest in yourself as you move forward through life’s chapters. Remember that it’s alright to pick a different lane from your peers, and while there may be speed traps and potholes, enjoy the ride.

understandings, and endless protection resources has been top priority. Frequently touching base to confirm all voices are heard through various channels is critical to meet the needs and challenges faced daily. It May–June 2021

impact and to look forward strategically. What legacy do you want to live versus leave behind? What shoes do you want to walk in? We should always dig deep within and determine our leadership mantra. What makes each of

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us different than the next? If it’s a small glimmer or spark, allow it to shine and share it with others. As you continue to grow, develop, and shape your career path, a multitude of opportunities will arise internally and externally. Never turn a blind eye on what could be. Remove any limited visibility and keep your head on a swivel to continually evaluate your needs and wants for development and self-enhancement. All paths taken truly prepare you for the next step in life and become part of your personal brand. Never devalue yourself or your experience. Continue to invent and reinvest in yourself as you move forward through life’s chapters. Remember that it’s alright to pick a different lane from your peers, and while there may be speed traps and potholes, enjoy the ride. Challenge yourself daily as it is critical to your growth. And take pride in your work, from the planning and implementation to the finished product. One last bit of advice: the ability to show empathy and sympathy and to work with teams is invaluable. Truly connect with the human dynamic and take care of your team, always ensuring to leave no one behind. Celebrate team wins and reflect upon moments when you were able to teach, train, or coach a colleague. Remember that no company or department defines who you are. Your inner self and how it permeates outward to whomever you come in contact with is what defines you.

Mentorship Every day, I partner with colleagues to provide

resources, tools, education, and expertise for the business, operations, and customers. In doing so, it is critical to maintain relationships focused on all levels of continuous development and growth through succession and talent management. I have been provided the luxury not only to mentor different individuals across companies but also to be mentored. My first mentorship started when I was at Target. My mentor asked a few questions: What do you want from the mentorship? What do you look to gain? What do you hope can come from the relationship? In all honesty, I wasn’t prepared for such questions. I wasn’t prepared to be interviewed and didn’t truly have any answers. I thought it was enough that I enjoyed learning from the person I had picked to be my mentor, but that was not enough when it came to a mentorship. Mentorship is a two-way street. It is about sharing not only leadership skills and abilities but also the larger picture and scope of what a person can do. A mentoring relationship should provide a foundation, a trusted haven, and an environment for growth to take place—for both parties. It should provide a foundation to share learnings and reflections from both people on a multitude of things. Being a mentee is really about putting the onus on oneself to continue development, check in with the mentor, and set up the relationship as a symbiotic partnership. The partnership can be built over time and imparted to the next stage in any career path. Having someone in a confidential position to share your goals,

dreams, and wants—without any judgement and true objectivity—is a treasure to find. We each have an epicenter surrounded by many layers, each representing a circle of influence. Each layer sees a different radiance of passion, energy, and support. It is imperative that these circles are filled with the right people and that your epicenter is reserved for those who are a critical part of your playbook. Their roles and responsibilities or the vision and objectives you want from each relationship should be clear. Time is of the essence and invaluable to your career path, so make sure each person clearly understands their role in building your foundational structure.

Final Word I have learned by fortunate experiences, hard work, and perseverance. Every career move I have taken has been a next step in growth and responsibility. When looking to make your next move or to add individuals to your circles of influence, make timely changes that reflect your evolving needs and validate your individual accountability. Many times during my career, I have had moments of feeling uncomfortable, scared, or nervous. It can feel very isolating at times when you want to take the next step and advantageous approach. Unfortunately, it’s hard to know if it’s the best move until you make it, putting one foot in front of the other. And it is okay to say, “I don’t know. I’m unsure.” But hold your head high anyway and feel a sense of confidence laced with the individual knowledge you bring to the table. Never second guess what you can bring nor what is learned in

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A mentoring relationship should provide a foundation, a trusted haven,and an environment for growth to take place—for both parties. It should provide a foundation to share learnings and reflections from both people on a multitude of things. each place, adventure, and road taken, which can truly provide another layer in your foundational development. Have fun. Don’t be afraid. Know that the road will take time and that trials and tribulations can happen, but always learn from the adventure. Look around every corner for opportunities. Put yourself out there, knowing time is of the essence, and embrace life’s moments by making them happen!

JENNIFER SCHAEFER, MA, LPC, is a field asset protection manager for T-Mobile US, supporting the corporate retail store channel overseeing Minnesota, Wisconsin, North and South Dakota, and parts of Illinois. Her role focuses on protecting people, profit, and profitability through identification and review of counterproductive behaviors internally and externally. She responds to major events, provides education and awareness through training channels, and consults and works closely with law enforcement partners. She takes great pride in public speaking, teaching criminal justice coursework, and being part of local and state crime prevention associations.

May–June 2021

Tomas Knopp / Shutterstock.com

CYBER SECURITY

Garett Seivold, LPM Senior Writer Garett Seivold is senior writer for LPM. A trained journalist, he has spent the majority of his career writing about security, risk management, supply chain, and loss prevention topics. He can be reached at GarettS@LPportal.com.

Ransomware Thrives in Retail with Focus on COVID F

Mat Newfield

It’s not surprising to see people’s level of concern for their personal safety jump in light of the global health crisis.

or more than a year, the pandemic has been consuming most of the bandwidth that people have for “things to worry about.” Consequently, the risk of ransomware seems to have fallen somewhat off the radar, suggests a new study by Unisys. But such attacks haven’t slowed much, and retailers are still vulnerable as indicated by attacks in April on premium men’s wear brand Boggi Milano and a Canadian hardware chain with 1,050 stores, Home Hardware Store, Ltd. In the latter case, the DarkSide ransomware group posted a sampling of the corporate data it had copied from the retailer, which it threatened to release publicly unless the company contacted the attackers to arrange payment for decryption keys. A company spokesperson acknowledged the attack in an email to ITWorldCanada.com but wouldn’t say how much the ransom was for. The stolen documents were reported to include the privately held

Complacency is especially evident in the US—24 percent of Americans are less likely to say they’re concerned about a data breach during the pandemic than the global average.

retailer’s financial reports and documents relating to a recent acquisition. The attack on Boggi Milano, which operates approximately 200 shops in thirty-eight countries, was carried out by a hacker group called Ragnarok. It claimed that its attack on company servers included theft of forty gigabytes of corporate data including human resource files such as salary information, and the company confirmed it was the victim of a cyber attack. Both attacks reflect a trend in ransomware attacks since 2019. Hacker groups not only lock up their targets’ systems and deny them access to files, but also exfiltrate data. The strategy has proved effective, forcing many organizations—even ones capable of recovering their systems through backups—to still pay attackers to prevent the publishing of their data online. It is that backdrop that makes results from the 2020 Unisys Security Index worrisome. While remote work and data sharing persist, people generally are growing complacent about internet security, the results suggest. Overall concerns around internet security, including computer viruses and hacking, dropped thirteen points from 2019 levels in the survey’s zero to 300 index, despite a significant

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increase in the number of cyber attacks in 2020. The company’s analysts suspect that a laxer attitude toward online security is because people have been so focused on health and personal well‑being. Complacency is especially evident in the US—24 percent of Americans are less likely to say they’re concerned about a data breach during the pandemic than the global average. “It’s not surprising to see people’s level of concern for their personal safety jump in light of the global health crisis,” said Mat Newfield, chief information security officer at Unisys. “However, the fact that it is not only matched by but also exceeded by a drop in concerns around hacking, scamming, or online fraud reflects a false sense of consumer security.” Individuals seem to be paying a price for their diverted attention. The number of online crimes reported to the FBI’s Internet Crime Complaint Center has jumped nearly 400 percent during the pandemic, with up to 4,000 incidents per day. But individuals’ lack of focus can also impact retailers and other employers, warn Unisys analysts. According to Newfield, the survey results underscore the need for businesses “to ensure Continued on page 60

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CYBER SECURITY Continued from page 58

they are placing a clear and concerted emphasis on proper training for their employees working from home and adopting a zero-trust security architecture that leverages best practices like encryption and microsegmentation.” The Darkside ransomware group announced their ransomware-as-a-service (RaaS) in August 2020 via a “press release,” according to

The professionalization of ransomware attacks has caught the attention of the Department of Justice (DOJ), which created a new task force last month to combat the growing threat of ransomware.

Tom Patterson

Eva Velasquez

security firm Varonis, and have since become known for their professional operations and large ransoms. “They provide web chat support to victims, build intricate data leak storage systems with redundancy, and perform financial analysis of victims prior to attacking,” according to the firm’s Snir Ben Shimol. The professionalization of ransomware attacks has caught the attention of the Department of Justice (DOJ), which created a new task force last month to combat the growing threat of ransomware. An agency memo, obtained by CNN Business, describes 2020 as the worst year ever for ransomware attacks and said the new task force will unify efforts across the federal government to disrupt ransomware attackers. Outreach to the private sector for insight into ransomware and extortion threats will be part of the government’s effort. Tom Patterson, chief trust officer at Unisys, praised the DOJ’s initiative and suggested the private sector needs support to combat the threat. “Ransomware is being launched with impunity

May–June 2021

Cyber Security and SupplyChain Among Top Risks to CEOs According to data presented by the Atlas VPN team, based on the KPMG 2021 CEO Outlook Pulse survey, nearly one-fifth (18%) of CEOs see cyber-security risks as the number one threat to their organizations’ growth over the next three years. Concern over cyber-security risks rose significantly among CEOs compared to last year, when it occupied the fifth spot in the list with 10 percent of CEOs indicating it poses a threat to their organizations’ development. Other CEO concerns that made it to the top five include: ● Tax

● Operational

● Regulatory

risk (14%) risk (14%) ● Supply chain risk (12%),

● Environmental

risk (10%) or climate change risk (10%)

Meanwhile, talent risk, which occupied the first spot among concerns last year, dropped by a fifth (20%) to a mere 1 percent in 2021. To mitigate these risks, companies plan to spend more on digital technologies this year, with 52 percent prioritizing data security measures. “The emphasis on cyber security in companies is long overdue,” said Rachel Welch, COO of Atlas VPN. “While COVID-19 has brought about a myriad of challenges Rachel Welch for individuals and organizations, it has also encouraged us to seek better practices. In the end, those who will be able to adapt to the new normal in the post-COVID world will come out of the situation more robust than before.” Read a more detailed version of this sidebar article at losspreventionmedia.com. from criminals around the world, and more needs to be done to change the economics of the attack, to make it more costly to attack than defend,” he said. Eva Casey Velasquez, president and CEO of Identity Theft Resource Center (ITRC), said there has been a shift among cyber criminals away from collecting data on individuals to perpetrate identify fraud toward defrauding businesses of all sizes with ransomware attacks and phishing schemes. The ITRC also said it expects the recent shift to be a long-term trend. Retail organizations are faced with one of the more complex threat footprints of any industry, according to the NTT 2020 Global Threat Intelligence Report. Retail organizations manage a wide variety of valuable information and “the complexity of the retail

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environments and complexity of the data retail manages helps make retail the focus of complex attacks,” the report concludes. Ransomware isn’t the primary threat vector—accounting for 42 percent, DoS/DDoS attacks are the single largest type of attack against retail organizations—but the success rate of targeted ransomware attacks is still high, and the single most detected malware in the Americas is the WannaCry ransomware, according to the firm. Additionally, the retail industry has the second-lowest overall cyber-security maturity score, warned the firm. “If retail wants to make significant progress toward their goal, they should emphasize data and system classification and management, focusing on the impact security will have on their business operations.”

• The first, in-person event of the year! • Connect with your peers, the leaders in the retail asset protection community. • Sessions cover topics such as civil unrest, risks of contactless shopping, integrating safety and health into Total Retail Loss, protecting lone and mobile employees, and much, much more!

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The Retail Industry Leaders Association (RILA) is for those that lead not just in sales but in aspiration. Through collaboration, education, advocacy and innovation, we envision the future of retail—and help retailers succeed in it.

SPONSORED CONTENT Supphachai-Salaeman / Shutterstock.com

New Product Spotlight

Product Spotlight New Solutions from Leading LP Suppliers

This New Product Spotlight section provides readers with information on new products and services from leading retail asset protection solution providers. If your company is looking for new technology or solutions, please check with these vendors as well as the other advertisers throughout the magazine. Visit the magazine website for more information about these new offerings.

Introducing the Shield Tag Armor Your Protected Products

The World's First Single-Use Disposable GPS Tracker

Checkpoint understands complex challenges presented by organized retail crime in stores. Our new Shield Tag helps prevent the removal of security labeling by thieves reselling products to unsuspecting customers. The Checkpoint Shielded Tag deters both opportunistic theft and ORC with an added layer to your EAS label, protecting without impacting brand.

The GD100 tracker is perfect for ORC investigations using the built-in light sensor to determine when packages are being tampered with or opened. The device immediately sends an alarm indicating the package has been opened at an unscheduled time or unapproved location with Google map location, time, and date stamp.

bit.ly/checkpoint-shield-tag

7pgps.com May–June 2021

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Connect, Monitor, and Solve Thousands of Investigations Instantly

You Know Gen5. Meet Gen6. Offer great customer experience while keeping your products secure from shoplifters. CIS’s line of Gen6 alarming tethers has several options to accommodate your needs, whether you need a tether strong enough to pull a Jeep, a detachable EAS Padlock Tag, or to disarm and release from the Smart Release lock.

The Cadillac of LP Enterprise Intelligence Platforms: • Next-Gen Case Management with built-in Automated Investigations • AI-Powered ORC Crime Linking Network Alerts with Zero Data Sharing. • Every single employee in your organization (hundreds of thousands) can submit incident reports on external, internal, accidents, etc.

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DetectiveAnalytics.com

Case Management Even out here, you’re in control.

IntelliQ’s Case Management transforms a complex need into an easy-to-use system. We have streamlined case building, tracking, and reviewing, allowing for better accountability and flexible reporting through our dynamic dashboards. Our custom build will tailor the system to your environment and gives you the ability to control all aspects of the system. We link with our data analytics and required third parties to create a platform that will do the work for you, in all phases, allowing you to maximize your time in the most efficient way possible!

Only Detex offers a delayed egress solution for outdoor applications. For decades, Detex has led the way in innovating weatherized security systems that can handle the harshest conditions out there. Our system sounds an alarm and delays exit 15 or 30 seconds. Plus it’s configurable to best suit your application.

+1 (402) 699 7935 intelliq.com | info@intelliq.com

Learn More: bit.ly/outdoor-delayed-exit LPM

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May–June 2021

D3 Security Unit

Medeco Intelligent Key Cabinet

Whether your project calls for thermal, optical, or fisheye cameras to license plate recognition or other cutting-edge analytics, the D3 unit has dozens of possible combinations. The unit does not require hard line access to the internet or electricity making it mountable anywhere. Each D3 unit connects to the LVT Platform, a completely remote cloud VMS and security alert Command Center, providing you access at any time, anywhere in the world.

The Medeco Intelligent Key Cabinet is a complete key management solution that secures, controls, and audits the use of keys. Only authorized users are able to access the electronic key management system, allowing employees to retrieve keys quickly without having to wait for a manager.

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Freedom Micro II HS

Solink Video Alarms Monitoring Service

The Freedom Micro® II HS offers the highest customer experience, fastest merchandising, and unmatched security. It’s the next generation of the number one retail solution for smart devices. Compatibility with the Versa EX™ and the Versa IoT Network also means your teams can stop fussing with keys and focus on selling.

Reduce the cost and hassle of false alarms and enable rapid response with video verification to your mobile device for real alarms. Video verification empowers you to cut through the noise of false alarms and identify the real risks to your business while using your existing cameras.

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bit.ly/3ubOyUT May–June 2021

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JOIN OUR RESEARCH & RESULTS COMMUNITY The Loss Prevention Research Council (LPRC) conducts evidence-based research and provides a collaborative environment to develop crime and loss control solutions to improve the performance of its retail members, solutions partners, and entire retail industry. Our research and team/individual development tools provide you with the necessary resources to combat theft, fraud, and violence.

CONNECT WITH NEARLY 70 RETAIL CHAINS & MAKE AN IMPACT IN YOUR ORGANIZATION

LPRESEARCH.ORG

info@lpresearch.org

Aleksandra Bataeva/ ShutterStock.com

PEOPLE ON THE MOVE To stay up-to-date on the latest career moves as they happen, visit the Professional Development page on the LPM website LossPreventionMedia.com. To inform us of a promotion or new hire, email us at peopleonthemove@LPportal.com.

Professionals Advancing Their Careers Genesis Medina is now a corporate investigator at 7-Eleven. Brittney Kotteles and Smail Maouche (France) were promoted to senior district managers of AP at Abercrombie & Fitch. Jose Torres is now an AP specialist at Advance Auto Parts. Charles Cherry and Joseph Rapacz, LPC were promoted to directors of AP at Ascena. Advance Auto Parts announced the following promotions: Emma Gomez, corporate manager of AP programs; Wes Davis, senior manager of AP CSC/supply chain; and Axel Phillips, senior manager AP, DC operations. Amazon announced that Steve Sturgill, LPC has been named to the board of directors of the International Supply Chain Protection Organization (ISCPO), and Kim Hooper has become the director of student education for the International Organizations of Black Security Officers (IOBSE). The company also announced the following promotions and new hires: Andrew Beckett, director of logistics LP, Americas Region; Amanda Buell, MBA, LPC, senior program manager, standards and compliance, world-wide critical incident operations; Michael Kingrey, senior program manager, safety & DOT compliance, North American transportation; Andreas Seidel, CPP, director of security and LP risk and resilience, EMEA (Germany); Nira Lee, program manager, global security academy; Aisha Rashid, global security academy trainer (UK);

Joshua Olsen, LPC, principal, retail LP programs; David Marsh, PgDip, MSyI, CPP, senior program manager; Robin Cihlar, CPP, CFI, CBCI, senior risk manager (Czechia); Gary Senior, CPP, senior risk manager; Justin Gingery, LPQ, senior regional LP manager; Trevor Mohs, LPC, regional manager, logistics LP, global specialty fulfillment; Kirby Sabey, Logan Rivers, Paul Witten, MA, Ben Gregory, Carter Gulli, LPC, and Michael Greenwell, MBA, regional LP managers; and Kenny Espinosa, Dennis Womack, Mindy Morgan, Chris Reagan, Alfredo Ontiveros, and Joseph Rayski, multiunit LP site leads.

Joshua Phillips is now director of field AP at Chipotle Mexican Grill.

CVS Health announced the following promotions: Brendan “Ben” Dugan, CFI, director of organized retail crime and corporate investigations; Kevin Moring, director of AP retail operations; and Robert Alberta and Mark Kneale, market AP leaders.

Stephen Mitroka is now a territory AP manager at American Freight Furniture.

Julio Cesar Veríssimo de Carvalho is now supervisor of LP at Dafiti Group (Brazil).

Jennifer Zervas, LPC was promoted to LP manager with At Home Group.

Paulo Cesar Barbosa is now supervisor of LP at Distak Distribuidora (Brazil).

Justin MacIntyre, CFI, LPC was promoted to manager of corporate investigations at Bealls.

James Bequette is now a regional AP manager at Dollar Tree Stores.

Andrew Kouimanis was promoted to head of corporate safety and risk at Coles (Australia).

Andrew Frum was promoted to director of LP, revenue protection at Express.

Brett Szrejna was promoted to senior AP investigations manager, and Brett Ovall is now a regional AP manager at BJ’s Wholesale Club. Jayson Sutton is now VP of shortage control and safety at Burlington Stores.

Nicole Dean was promoted to LP advisor at Chemist Warehouse (Australia).

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Robert Hough, LPC, CFI is now managing director of LP, audit and firearms compliance, and Israel Rodriguez Jr. is now a regional LP manager at Dunham’s Sports. Ken Semple is now director of security, risk, and audit at DX Group (UK).

LossPreventionMedia.com

Michael Lopriore, PCI, CFI was promoted to global security manager at Facebook. David Czikray was promoted to regional AP manager at Family Dollar. Andrew Burchett is now senior manager, AP and supply chain at Five Below. Leslie Allen was promoted to director field investigations, and Michael Mateo was promoted to senior manager of field investigations at Foot Locker Allisa Amborn was promoted to district AP manager at Fred Meyer. Chris Nelson was promoted to senior VP and head of AP at Gap Inc.

Gap announced the following promotions: Chris Batson, CFI, MBA, director of AP, total loss; and Jacob Myers, director of AP operations. Jared Tedeschi Sr. is now an investigator at Grainger. José Antonio Gutiérrez Mendoza is now a regional LP manager at Grupo Chedraui (Mexico). Gilliard Ribeiro Antunes is now senior LP analyst at Grupo DPSP (Brazil). Cristiane Teixeira Lopez Franco is now an LP supervisor at Grupo Pereira (Brazil). James Crowther was promoted to support center profit protection manager at Halfords (UK). C.H. (Choong Hoon) Ha is now president of Hanwha Techwin America.

Christian Ibbott was promoted to multiarea security manager at H&M.

Tony Rengel was promoted to senior manager of downstream SCAP operations, and Marcelo Marquez was promoted to ORC investigator at The Home Depot.

Anthony Clark was promoted to market leader. Glenn Master is now director of AP at McLane Company.

Scott McQueen, MBA has taken on an additional position as chair, ISRM Japan Chapter at the Institute of Strategic Risk Management (Japan).

Andre Martha is now an LP senior analyst at Mercado Livre (Brazil).

Bob Casar, CFE is now senior director of LP at Intellishop. William Wilson with Half Price Books is now also the director of professional education at the International Organization of Black Security Executives (IOBSE). Richard Wittman is now a district AP manager at JCPenney. JD Sports Fashion announced the following promotions and new hires: Ana Martins, area manager of profit protection (Portugal); Lee Golding, territory profit protection manager (UK); and Arnold Tuankotta, area profit protection manager (Netherlands). David Munoz was promoted to regional LP manager at Liberty Tire Recycling. Christian Latson, LPC, LPQ is now operations specialist at the Loss Prevention Foundation.

Cheyne Collins, CCII, CORCI, CEFI is now a regional LP manager at Michael Kors (Canada). Phoebe Tyszkiewicz was promoted to LP manager of store projects at Morrisons (UK). Ashlea Lewis is now an LP investigator, south zone at Myer (Australia). Paul DelPonte is now executive director at the National Crime Prevention Council. Nordstrom announced the following promotions and new hires: Jarrell Wilson, area LP manager; Solomon Mayo Jr., district AP manager; and Tip Bradford, LPQ, exception reporting business analyst. Brooke Murota, MBA, was promoted to senior manager of AP operations at Old Navy.

Meredith Plaxco, LPC, VP of LP and safety at PetSmart, and Oscar Arango, VP of AP with Target, have joined the board of directors of the Loss Prevention Foundation (LPF). Josef Hall and Andrew Cahill are now district AP managers at Lowe’s. Pamela Woods was promoted to corporate investigations and field auditor at Lumber Liquidators. Eddie Sosa, LPC was promoted to regional manager of investigations for Luxottica North America.

Old Navy announced the following promotions: Matthew Koury, CFI, manager of AP operations; and Dina Yakhin, senior regional AP manager. Rey Rodriguez was promoted to manager of investigations at Oportun.

Macy’s announced the following promotions: Gary Novello Jr., LPC, CFI, director of fraud strategy and analytics; Aaron Jenkins, senior manager of business administration; Jacqueline Rice and Ryan Kelly, senior AP investigators; and

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May–June 2021

Justin Vuylsteke is now director of AP at Prosegur.

PEOLPE ON THE MOVE Adam J. Cabrera, CFI is now a regional LP manager at Peloton Interactive. Jacob Lewis is now a regional AP manager at Pharmacann.

Tony Raab was promoted to associate director of LP, and Jason Baker was promoted to senior regional LP manager at Spencer Gifts.

Dan Hayward is now investigations officer at Poundland & Dealz (UK).

Richard Andre is now a field LP manager at Staples.

Anthony Hegg was promoted to area LP manager at The RealReal.

Brent Craven is now a retail fraud investigator at Starbucks.

Rite Aid announced the following promotions and new hires: Heidi Haugh, Steven LaPres, Kevin Brown, and Jarred Coolbaugh, regional AP leaders; David Schulz, profit protection analyst; and Deborah Beene, physical security analyst.

Colton Neal, LPQ is now an LP analyst at Tailored Brands.

Ross stores announced the following promotions: Mike Liles, AVP of LP division 2; Beth Currie, LP and safety director, supply chain; and Robert Grant, senior area LP manager.

Target announced the following promotions and new hires: David Crowther, senior manager of theft strategy & operations; Frederick D. Hassel Jr., AP operations manager: and Meena Gurguis and Rizwan Mohammed, AP business partners.

Dikaios Mihalitsis is now VP of fraud and risk, and Abraham Gonzalez, CFI, LPC is now director of investigative systems and analytics (fraud and risk) at Saks Fifth Avenue. Adam Ostrowsky was promoted to divisional VP of stores and LP at Sears Authorized Hometown Stores.

Lisa Gutierrez was promoted to director of advanced client services at Securitas Electronic Security. Sephora announced the following promotions: Michala Serbousek, LP systems analyst; Casey Kirsner, area LP investigator; and Ibzan Perez, district LP manager. Shawn Weir, CFI was promoted to director of AP at Shoot Point Blank. Roberval De Macedo was promoted to regional LP manager at Sodimac (Brazil).

Paul Morrison is now a divisional LP manager at Talize (Canada). Lexis Plumley and Imran Qazi, LPQ are now field AP managers at T-Mobile.

Tony Sheppard is now director of LP solutions at ThinkLP.

The TJX Companies announced the following promotions and new hires: Peter White, SAS-AP, global security and intelligence specialist; Thomas Buck, CFI, district LP manager; and Julia Yost, LP training specialist. Brandon Sutton is now acting organized retail crime investigator, and Steven Troughton was promoted to store investigations supervisor at TJX Canada/Winners Merchants International (Canada). Almond Dennis Jr. is now a regional manager of asset & profit protection at Transformco. Sue Whiddon is now an area LP specialist at Trulieve. Trent Pringle was promoted to senior manager of LP systems security and operations at Ulta Beauty.

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Brian Robbins is now a regional LP manager at Variety Wholesalers. Kyle Elliott is now VP of sales, and Jerry Kane is now director of sales at Vector Flow. Vector Security announced the following promotions and new hires: Allan Watters, LPC, head of innovation, retail solutions; Tara Park, VP of human resources; and Dan Reynolds, director of customer experience. Cody Cummings is now a safety and LP supervisor at The Vitamin Shoppe. Ken O’Connor was promoted to director of investigations and standards, and John Williams is now an AP solutions partner at Walgreens. Walmart announced the following promotions and new hires: Cory Bresnahan, senior manager II, global investigations; Maria Herrera-Garcia, project manager, global investigative governance; Matt Long, global investigator, workplace investigations; Mary Capron, Chase Mobley, and Randall Heale, LPC, market AP operations leaders; and Debbie Ho, global investigations. Velayudhan Pathiyil is now a regional manager of global security operations at The Walt Disney Company (India). Matthew Smith was promoted to company LP manager at Waterstones. Shannon Rolon was promoted to field manager of AP at White Cap. Dave Thompson, CFI was promoted to president, and Amanda Weaver, CFI is now an instructor at Wicklander-Zulawski & Associates. Gordon McLardy was promoted to head of risk at Wilko (UK). John Pappas is now senior LP manager at Windsor Fashions.

LossPreventionMedia.com

Find the Perfect Match

Are you ready to ignite your job or candidate search? Whether you’re an LP professional looking for a new opportunity or an employer looking for new talent to fill a position, LPjobs.com is a resource you cannot afford to miss utilizing if you are truly committed to finding the best job or the best job candidate! We have been helping to find jobs and fill positions since 1999 as the only online resource dedicated to the loss prevention and asset protection profession.

Don’t miss out on the perfect match. Visit LPjobs.com today!

Alexander Softog / Shutterstock.com

Resource Guide

For companies who would like to showcase their solutions in this section, please contact LPM’s Media Strategist Ben Skidmore at 972-587-9064 or via email at BenS@LPportal.com.

Resource Guide to Products and Services

This section provides readers with information on select products and services from retail asset protection solution providers. If your company is considering new technology or programs, please check with these vendors as well as the other advertisers throughout the magazine.

& MORE

AFA PROTECTIVE SYSTEMS, INC. SINCE 1873

• Fire Alarm Systems • Design, Installation & Service • UL Listed & FM Approved Central Station Monitoring • Test & Inspection Services

At AFA, we deliver superior levels of customer service. If you don’t believe us, ask our customers! www.afap.com (866) AFA-NATL

May–June 2021

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LossPreventionMedia.com

Tired of Waiting on a Promotion? Take control of your future, get loss prevention certified and STAND OUT from your competition.

n n n n n

Loss prevention managers College students Store managers Operations support roles Anyone interested in a career in loss prevention SM

Commit to your future TODAY!

LPCERTIFIED Designed to provide advanced loss prevention education for experienced LP professionals with three years’ experience or more: POWERED BY THE LOSS PREVENTION FOUNDATION

www.losspreventionfoundation.org

Connecting You to (Just About) Everything LP, AP, Safety, and so Much More…Straight From Your Smart Phone!

Loss prevention management Loss prevention executives

Download it for free today!

LPM

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May–June 2021

Advertisers ADT Commercial............................... 19 adtcommercial.com AFA..........................................................70 afap.com Checkpoint.......................................... 31 alphaworld.com ClickIt...................................................... 7 clickitinc.com CONTROLTEK.........................................1 controltekusa.com Cyber Security Summit...................59 cybersecuritysummit.com InstaKey................................................ 21 instakey.com Loss Prevention Foundation......................... 25, 37, 71 losspreventionfoundation.org Loss Prevention Research Council...........................65 lpresearch.org LP Portal App............................... 51, 71 Google Play or Apple App Store LPjobs....................................................69 lpjobs.com LPM Media Group....................... 35, 47 lpmmediagroup.com Medeco................................................... 5 medeco.com/ikc Off Duty Services.............................. 45 offdutyservices.com Protos Security.................................. 75 protossecurity.com RILA Retail Asset Protection Conference................ 61 rila.org/ap Riot Glass............................................... 2 riotglass.com Sensormatic Solutions...................76 sensormatic.com/sensormatic-iq siffron.................................................... 33 siffron.com SPARK Publications.......................... 55 sparkpublications.com/books ThinkLP.................................................70 thinklp.com Verkada.................................................. 3 verkada.com/lpm Wicklander-Zulawski......................39 certifiedinterviewer.com/events

Calendar Due to the many event cancellations and postponements because of the COVID-19 pandemic, we are not listing industry events here. Please go to the magazine website Events page to get the most up-to-date calendar listings. LossPreventionMedia.com/events

Subscribe for Free at Your Home or Office

LOSS PREVENTION MAGAZINE

LPM is available free to loss prevention and retail professionals throughout the US and Canada. There’s no excuse for anyone interested in keeping up with the LP industry to not get the magazine at your home or office. To sign up for a free subscription, go to www.LPMsubscription.com. It’s simple. Takes only a minute. Or fax the completed form below to 714-226-9733.

❍o Yes, I would like to receive/con to receive LPM FREE of charge.

o No thanks. ❍o Yes, I would also like to receive your e-newsletter FREE of charge.

❍o No thanks.

International Subscription LP professionals outside the US and Canada can either read the digital magazine free or receive the print version for $99 per year. Contact circulation@LPportal.com to purchase an international subscription.

Please fill out completely: Signature_________________________________________________________________________________________________________Date____________________________________ Telephone________________________________________________________________________Fax_____________________________________________________________________ Email______________________________________________________________________________________________________________________________________________________________ First_____________________________________________Middle_______________________________________Last_______________________________________________________ Title__________________________________________________________________________Company___________________________________________________________________ Address1_______________________________________________________________________________________________________________________________________________________ Address2______________________________________________________________________________________________________________________________________________________ City_________________________________________________________________________________________________________________________________________________________________ State/Province____________________Zip/Postal Code________________________________ Country

o USA o Canada

You must answer both questions to receive LPM. 1. What is your company’s primary business? (Check one only) Retail (A) Department store/mass merchandiser (B) Discount/wholesale club/ outlet/off-price (C) Specialty apparel/footwear/ gifts/jewelry/sporting goods (D) Home center/hardware/ appliances/furniture (E) Drug store/pharmacy/vitamins (F) Office supplies/electronics/ videos/music/books ❍ (G) G rocery/supermarket/ convenience store ❍ (H) R estaurant/hospitality/ entertainment Other retailer_________________________________________________

o o o o o o o o

Non-Retail (N) C onsulting/integrator (P) Product manufacturer (R) S ervices/outsourcing (S) Law enforcement/ government/military ❍ (T) E ducation/library/media ❍ (Z) Other non-retail ___________________________

o o o o o o

2. What is the primary focus of your job? (Check one only) Retail Loss Prevention/Security ❍ (10) Corporate/regional/ district manager ❍ (11) Store LP manger/ investigator/associate ❍ (12) DC/logistics/ supply chain manager (19) Other LP manager

o o o o

Other Retail ___________________________________________________ (20) Corporate operations/ store manager (21) Finance/HR/legal/IT/ training manager (29) Other retail manager _____________________________________________________

❍ o o o

Non-Retail (30) Vendor executive/ owner/manager ❍ (31) C onsultant ❍ (32) Sales/marketing manager (33) Police officer/active military ❍ (34) E ducator/student/librarian ❍ (39) Other non-retail manager ___________________________________________________________

❍o

o o o o o

Fax to 714-226-9733 May–June 2021

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TODAY’S RETAIL LP LEADERS AND TOMORROW’S…

“…I have been a reader for many years now and I still continue to gain new knowledge and establish new connections because of your magazine.”*

LPM Readership LPM's primary readers are the LP management and professionals responsible for implementing, researching, specifying, recommending, and approving purchases of LP products and services.

About Our Readers

Industry Segment** Non-Retail 29%

Distribution of each print issue averages over 14,000 individuals every two months with 67% pass-along rate to 2 or more colleagues.* Plus, our extensive online presence is over 500,000 in online reach and growing quickly. The LPM brand truly is the fastest growing media brand for loss prevention. Your media strategist can provide additional readership details.

14,000+

Individuals every other month

67%

Pass-along rate to 2 or more colleagues

OVER 500,000

Online reach and rapidly increasing

*2019 Annual Readership Study, September 2019; **Circulation Data; November 2020, sample of 6,577 qualified readers; ***Performance Analytics as supplied by Google Analytics

Non-Retail Management 29% Retail 71%

Other Retail Management 9%

LP/Security Management 62%

Retail Segment** Department store, mass merchandiser Discount, wholesale club, outlet, off-price Specialty apparel, footwear, gifts, jewelry, sporting goods Home center, hardware, appliances, furniture

34% 7 11 9

Drug store, pharmacy, vitamins

Office supplies, electronics, videos, music, books Grocery, supermarkets, convenience stores Restaurant, hospitality, entertainment

3 14

Other retail segment

Note: Numbers may not equal 100 due to rounding

Retail Job Function** Corporate, regional, district manager 43% Store LP manager, investigator, associate 33% DC, logistics, supply-chain, other LP manager 4% Other retail manager (non-LP) 9%

60% read the magazine Cover to Cover*

68% read content on the LPM website

84%

84% read the LPM daily newsletter*

53%

have direct influence on LP-related purchases within their organization*

To find out more about reaching LPM readers to support your marketing strategy, contact Ben Skidmore at BenS@LPportal.com or by phone at 972-587-9064. To download the LPM media kit, visit LossPreventionMedia.com/advertise.

Orla / ShutterStock.com

PARTING WORDS

Jim Lee, LPC Executive Editor

Trying Harder A

Trust me—I had some really great times when I was younger. But today and tomorrow will be my best days. I can make that happen. Every day, I will leave myself some time to enjoy, to be a little silly, and to laugh.

round the new year, I made a list of things I would like to accomplish or work a little harder on. Perhaps you did the same. With midyear upon us, it’s a great time to look back and check progress. Here is my list. Make my life count. I have a clear purpose on what I want to accomplish and how I want to relate to other people. I recently thought about what might have happened to others if I had never existed. How would their lives have been different? Some might say, “Wow, it would have been cool not to have ‘that guy’ around.” To every place I had ever been and to everyone I had spoken, it would have been different had I not existed. So since I do exist and I understand that some of us are connected and do affect each other’s lives, make it count, keep it positive, and make it have meaning and purpose. Winning is not the only thing. My apologies to Vince Lombardi, but I want to understand better that being competitive does not mean I have to win every time. I have come to realize that if you always need to win, you end up enjoying it less when you do win. And if you lose, you are way too disappointed with

May–June 2021

the endeavor to have enjoyed the battle. Value friendships. I need to work harder on rekindling past relationships and take advantage of friendship opportunities that come my way. My friends need to know that I care about them and how good it makes me feel to know they care about me. Count my blessings. I often fall into that trap of wanting more of this and more of that. I need to sit down and remember where I started and where I am now and appreciate what I have. The wise old golf pro said, “You need to take time to smell the flowers.” Raise my hand. Over the years I have learned how to give money to certain charities and others in need. I have not really learned how to “volunteer” my time and services. I can do better. I can find an hour a month to give of myself to a good cause. I choose to be me. I have to remember that I don’t have to do anything I don’t want to do. I have choices, and I want to do those things that have positive effects on me and on others. Remember the good times. I will remember the

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good times that I have had with my family and friends and my work partners. And when we get together, we will reminisce about those happy times together and laugh ’til we cry. It is what it is; so what? I have come in contact with many people who have done rather well. Most of them are smarter and have more money and stuff than I do. Bully for them. And so what? I need to shape my life on what I have accomplished. My work is my calling. I cannot view what I do as a job but as what I want to do more than anything else. If I see it as my calling, then work is not a sacrifice but a positive experience that makes me feel good. The best part of my life. Trust me—I had some really great times when I was younger. But today and tomorrow will be my best days. I can make that happen. Every day, I will leave myself some time to enjoy, to be a little silly, and to laugh. I will continue working on this list and checking my progress through the rest of this year and in years to come. If you have such a list, I wish you good luck!

Continued Innovation in our Client Portal Software

We relaunched our brand, including modernization features in our client portal. This update affirms our commitment to provide data transparency and clarity in security operations. Enhancements include: More robust capabilities for requesting guards online. New ways to view performance metrics including recent incidents. Enhanced communication functionality to encourage information sharing. Ability to customize the dashboard by toggling between detailed list and map views.

www.protossecurity.com

Retail Solutions

Loss Prevention | Traffic Insights | Inventory Intelligence

Sensormatic IQ is an intelligent operating platform designed to provide unparalled visibility into retail operations and the shopper experience. Sensormatic IQ enables retailers to harness diverse insights to drive positive outcomes and informed business decisions. Leveraging data from across the enterprise under a single umbrella, retailers gain predictive and prescriptive insights into shopper behavior, inventory, and loss and liability. Shopper Insights

Inventory Intelligence

Loss & Liability

Traffic Counting

Inventory Accuracy

External Shrink Management

Store Occupancy

Supply Chain Visibility

Internal Shrink Management

Market Intelligence

On Floor Visibility

ORC Event Tracking

Shopper Journey

Shrink Visibility

Loss Event Predictions

Labor Optimization

Transaction Visibility

Safety & Compliance

Marketing Effectiveness

Fitting Room Analytics

Asset Protection

Floor Planning

Real Time Replenishment

Security Monitoring

Computer Vision

Sensormatic IQ 1010101 0101010

Analytics & Insights

Smart Sensors & Devices

AI/ML

Cloud

Mobile

3rd Party Solution Integration

Open Architecture

Prescriptive & Predictive

Driving New Data-Driven Outcomes To learn more, visit sensormatic.com/sensormatic-iq or call 800-642-7505 Copyright © 2020 Johnson Controls. All rights reserved. SENSORMATIC SOLUTIONS and the product names listed in this document are marks and/or registered marks. Unauthorized use is strictly prohibited.

May - June 2021