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LPPORTAL.COM | V12.6 NOVEMBER - DECEMBER 2013 Think like a Chief Visibility Officer

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MAGAZINE

LOSS PREVENTION

MAGAZINE THE VOICE OF LOSS PREVENTION

MOBILE POS THE LOSS PREVENTION CHALLENGES

MOBILE POS THE LOSS PREVENTION CHALLENGES TAKING RETAIL LP STRATEGIES TO A WHOLE NEW INDUSTRY THE EXPERT’S ROLE IN LAWSUITS AGAINST RETAILERS LPPORTAL.COM

2014 PRODUCT SHOWCASE AND RESOURCE GUIDE

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*Volumatic Kount US Retail Fraud Survey 2013

Reinventing the way petty crimes are handled

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CONTENTS

Mobile POS: The Loss Prevention Challenges

6 PUBLISHER’S LETTER An App for the LP Industry By Jack Trlica 8 ON THE WEB 10 RETAIL SPONSORS

The many issues impacting implementation of this new technology

12 INTERVIEWING A Lie…Is It Or Isn’t It? Part 2 By David E. Zulawski, CFI, CFE and Shane G. Sturman, CFI, CPP

By Chris Trlica, Contributing Writer

26 ACADEMIC VIEWPOINT 2012 NRSS—First Glance at the Results By Richard C. Hollinger, Ph.D.

Taking Retail LP Strategies to a Whole New Industry

40 EVIDENCE-BASED LP Who Do We Watch? By Read Hayes, Ph.D., CPP 48 CERTIFICATION Why We Should Be Thankful By Gene Smith, LPC

Conversation with Chris McDonald, Compass Group

By James Lee, LPC, Executive Editor

67 SOLUTIONS SHOWCASE - DTT - Checkpoint Systems - Alpha

70 MY TURN Why Your New LP Career Is Going Nowhere and How to Fix It By Brandon Brown, CFI

Lawsuits against Retailers

72 INDUSTRY NEWS Technology Innovations That Made a Difference By Robert L. DiLonardo

The role of an LP expert in the litigation process

By Charles “Chuck” Sennewald, CSC, CPP, CPO

CALENDAR

75 PEOPLE ON THE MOVE

2014 Product Showcase and Resource Guide

75 ADVERTISER DIRECTORY

Product Showcase and Resource Guide

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ANNUAL INDEX

VENDOR SPONSORS

78 PARTING WORDS We Can Do Better By Jim Lee, LPC

A comprehensive source for finding LP products and services

NOVEMBER - DECEMBER 2013

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11 10 of the top 50 retailers

use the retail equation to improve their return processes.

Leading retailers choose The Retail Equation to improve the customer experience at the return counter. Driven by predictive analytics, your return processes become more flexible and friendly while still managing risk and preventing abuse. See how leading retailers are optimizing returns at www.theretailequation.com/success or call us at +1-888-371-1616 to learn more. LPM 1113-A.indd 5

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PUBLISHER’S LETTER

An App for the LP Industry

700 Matthews Mint Hill Rd, Ste C Matthews, NC 28105 704-365-5226 office, 704-365-1026 fax

of our major articles that you can view or listen to on your commute or driving between stores. We’re also working on an app for iPads and tablet PCs where viewing our digital edition with all the graphics and photos from our print magazine is at your fingertips. We may not be able to reduce your busy work load, but we hope we can offer you a convenient way to read the magazine and stay up-to-date on what’s happening in the world of LP. Please download the iPhone app today and try it out. Let us know what you think. And watch for the new updates and new versions coming soon.

LP Magazine EU Update

In the September-October edition of this column, I announced the launching of a European version of the magazine. In fact, the inaugural edition of LP Magazine EU rolled off the presses in November with quite a collection of editorial written by and about companies and personalities “across SHOPLIFTING SCAMS AND the pond.” DESIGNING OUT CRIME If you have peers operating in Europe, let them know to be on the lookout for it. We will also be distributing 1,000 copies of this first issue of the EU magazine in January to senior LP executives in the U.S. and Canada. For more information about LP Magazine EU, contact the managing editor, Louise Henham, at louise.henham@orismedia.eu. In the meantime, try to relax and enjoy the holidays…if that’s possible. LPPORTAL.EU | V1.1 WINTER 2013 – 2014

FEATURE ARTICLES THE ONLY WAY IS ETHICS AT THE CO-OPERATIVE GROUP INTERVIEW WITH SUE FISH, ACPO BUSINESS CRIME LEAD DEEP WEB AND MOBILE IMPACT ON RETAIL FRAUD CONTROL

MAGAZINE

PLUS PROFILE OF ARNOTTS WICKLANDER-ZULAWSKI BCSC | ORIS FORUMS WILKO’S MICK PHIPPS | EBAY INTERVIEW WITH LAURENCE KING

SHOPLIFTING SCAMS AND DESIGNING OUTCRIME LPPORTAL.EU

ou’re not busy or anything, are you? November and December is when most LP professionals kick back, put their feet up, and wish for more to do, right? Yeah, right. I’ve been associated with the loss prevention industry for over twenty years. One of the first things I noticed about the people I met in LP was how much they worked. A 40-hour work week was a joke, and the further up the ladder you looked, the longer the hours. And that’s in “normal” months, which, of course, there are no “normal” months in loss prevention. But November, December, and January could be termed “hyper-months.” Here at the magazine we hope to provide you with a variety of ways to stay informed with what’s going on in the industry in the most convenient ways possible. We already send electronic newsletters twice weekly. We also produce a digital edition of our print magazine. And, of course, we have the print magazine for those times you can relax at home or on the plane and spend time with the paper-and-ink edition. Now we have launched our first smartphone app to deliver timely news and information as important things happen in the industry. LP Magazine app 1.0 is currently available for iPhones in the App Store in iTunes. Very shortly, perhaps even as you read this, an Adroid app will be available for the rest of you. This first version of the app features top news items, ORC and technology updates, as well as text versions of the feature articles from the print magazine. Coming in 2014 in updated versions of the app, we plan to add additional content, like our EyeOnLP videos and podcasts of some

MAGAZINE

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Jack Trlica Editor and Publisher

LossPrevention, LP Magazine, and LP Magazine EU 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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EDITOR AND PUBLISHER Jack Trlica JackT@LPportal.com EXECUTIVE EDITOR James Lee, LPC JimL@LPportal.com CONTRIBUTING EDITORS Robert L. DiLonardo Walter E. Palmer, CFI, CPP, CFE CONTRIBUTORS Dave DiSilva Read Hayes, Ph.D., CPP Richard C. Hollinger, Ph.D. Adam Paul Gene Smith, LPC Shane G. Sturman, CFI, CPP Chris Trlica David E. Zulawski, CFI, CFE CHIEF OPERATING OFFICER Kevin McMenimen, LPC KevinM@LPportal.com DIRECTOR OF MARKETING Merek Bigelow MerekB@LPportal.com DIGITAL EDITOR John Selevitch JohnS@LPportal.com DESIGN & PRODUCTION SPARK Publications info@SPARKpublications.com 704-844-6080 CREATIVE DIRECTOR Larry Preslar PROOFREADER Amy Trainor ADVERTISING

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

NEW OR CHANGE OF ADDRESS www.myLPmag.com POSTMASTER Send change of address forms to Loss Prevention Magazine P.O. Box 92558 Long Beach, CA 90809-2558 LossPrevention aka LP Magazine (USPS 000-710) is published bimonthly by Loss Prevention Magazine, Inc., 700 Matthews Mint Hill Rd, Ste C, Matthews, NC 28105. Print subscriptions are available free to qualified loss prevention and associated professionals in the U.S. and Canada at www.myLPmag.com. The publisher reserves the right to determine qualification standards. International print subscriptions are available for $99 per year payable in U.S. funds at www.LPportal.com. For questions about subscriptions, contact circulation@LPportal.com or call 888-881-5861. Periodicals postage paid at Matthews, NC, and additional mailing offices.

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ON THE WEB

EDITORIAL BOARD Leo Anguiano, LPC Senior Director, Asset Protection Rite Aid

Karl F. Langhorst, CPP, CFI Corporate Director, Loss Prevention, The Kroger Co.

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

Bob MacLea Senior Vice President, Loss Prevention, TJX

Francis D’Addario Emeritus Faculty Member, Strategic Influence and Innovation, Security Executive Council

John Matas Vice President, Loss Prevention, Investigations, & Technology, Macy’s

LP Magazine App

The app is here! The app is here! Want news when it happens across the loss prevention industry? Want to know the latest in ORC or the latest technology? Want to know what the top industry experts are saying in LP Magazine? We do. That’s why we’ve created the first news app in our industry to get the latest delivered to you even faster. The LP Magazine app is available in iTunes NOW. You are only a few clicks away. Simply head to the iTunes store, search LP Magazine, and download today. Not an iPhone user? LP Magazine app for Android arrives soon.

Charles Delgado Vice President, Asset Protection, Meijer

Stay connected. Get Ahead. LP Magazine gets you there.

Columns

There are a number of new articles on the magazine website you may have missed. Visit the Columns page at LPportal.com for these and many more. Hidden Costs of Holiday Returns Can Wreak Havoc on the Bottom Line By Tom Rittman The top seven hidden costs of returns Healing a Broken Relationship at Work By Erick Lauber, Ph.D. Don’t let a negative relationship at work effect your productivity or even your job

Attracting Partnerships By Adam Smith, CFE, CFI How to develop meaningful internal partnerships and why you should. Preparedness Planning: Three Vital Steps By Lucien G. Canton, CEM Treat disasters the same as day-today problems to be most effective

Patti Felz Vice President, Loss Prevention, Polo Ralph Lauren Tim Gorman Divisional Vice President, Loss Prevention, Asset Protection and Business Continuity, Walgreens Barry Grant Senior Vice President, Operations & Loss Prevention, CPI Corp Bill Heine Senior Director, Global Security, Brinker International Sonya Hostetler Vice President, Asset Protection & Safety, Walmart Stores U.S.

Linkedin Company Page

LP Magazine is making it even easier to stay ahead of the latest news and discussions across our industry—follow LP Magazine’s company page. We are posting magazine updates, news announcements, and much more as a way for you to stay on the pulse of the latest from LP Magazine. There is much more to come in 2014. You won’t want to miss it.

Frank Johns, LPC Chairman, The Loss Prevention Foundation Gary Johnson Vice President, Loss Prevention, Vitamin Shoppe

Linkedin Group

Continue the conversation in LP Central, the LinkedIn group powered by LP Magazine. Ask fellow industry professionals what’s on their mind. Pick the brains of your colleagues in the industry as you tackle the latest challenge. LP Central lets you do this. If you’re not already a member, we encourage you to join now!

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NOVEMBER - DECEMBER 2013

Chris McDonald Senior Vice President, Loss Prevention, Compass Group NA Randy Meadows Senior Vice President, Loss Prevention, Kohl’s Dan Provost, LPC Vice President, Global Loss Prevention, Staples Mark Stinde Vice President, Asset Protection, 7-Eleven Paul Stone, LPC Vice President, Loss Prevention and Risk Management, Best Buy Claude Verville, LPC Vice President, Loss Prevention, Safety & Hazmat, Lowe's Stanley E. Welch, LPC Vice President, Director of Loss Prevention, jcpenney Keith White Senior Vice President, Loss Prevention and Corporate Administration Gap Inc.

R y

Paul Jones, LPC Senior Director, Global Asset Protection, eBay

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Join these great companies as an LP Magazine corporate sponsor. Email JackT@LPportal.com for more information. LP MAGAZINE | NOVEMBER - DECEMBER 2013

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

A Lie…Is It Or Isn’t It? Part 2

ne of the ways to increase your efficiency at detecting deceptions is to conceal what is known from the investigation. This gives the interviewer several unique advantages in detecting attempted deceptions during a conversation. With certainty the interviewer can know he is still being lied to until the subject admits to the evidence or circumstances revealed by the investigation, plus the interviewer can increase the subject’s fear of detection level, also known as “cognitive load.” The cognitive load is merely the stress and intellectual challenge of concocting and defending a deception from detection. An interviewer can use a number of different strategies to increase the cognitive load and make it even more difficult for the deceiver to maintain the lie. But first, a short discussion about the important differences between the liar and truth tellers.

Liars vs. Truth Tellers

The frame of reference is hugely different for the truth teller who views himself as a resource for the interviewer and, while possibly nervous at the onset of the conversation, he is not on the whole threatened by the encounter. As a result, the interviewer is able to establish rapport and cooperation with the truth teller resulting in an open dialog between the two. The liar must examine each topic and question for hidden traps while the truth teller is able to answer each question on face value. The deceiver often uses fewer details to allow room for improvisation should the need arise. The problems continue for the deceiver as the physiological and psychological implications of the fear of detection impact his critical thinking, which adds to the confusion. Thinking is very different when we are not under the pressure of the moment with the fear of detection and the possibility of discovery looming over our heads. Where a clear mind may see contradictions, the stressed mind sees none. The interviewer can increase the cognitive load on a deceptive individual in a number of ways that may increase the behavioral leakage. The first telling of a fabrication is like the opening night of a play. There may have been practice, but others miss their lines, someone strays from the script, or props appear in the wrong places that the actors must react to. The following 911 call is an example of such an “opening night” performance. Dr. Martin MacNeill made the following 911 call to the Pleasant Grove (Utah) Police Department, reporting his wife’s drowning in the family’s bathtub. It is worth listening to the actual 911 call to hear the doctor’s voice and tone. Do these verbal behavioral aspects seem

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Zulawski and Sturman are executives in the investigative and training firm of Wicklander-Zulawski & Associates (www.w-z.com). Zulawski is a senior partner and Sturman is president. Sturman is also a member of ASIS International’s Retail Loss Prevention Council. They can be reached at 800-222-7789 or via email at dzulawski@w-z.com and ssturman@w-z.com.

consistent with the shock of discovery of his wife’s body? Remember, if the story is fabricated, this is the first telling and mistakes will be made. [The 911 call can be heard at: deseretnews.com/article/700088382/ Martin-MacNeill-Was-his-wife-Micheles-death-accidentalor-was-it-murder.html?pg=1] 911 OPERATOR: Pleasant Grove Police Department. MACNEILL: I need…I need an ambulance! 911 OPERATOR: Okay, what’s the problem, sir? We need medical. Sir, what’s wrong? MACNEILL: My wife’s fallen in the bathtub! [How does he know this?] 911 OPERATOR: Who’s in the bathtub? Who’s in the bathtub? Join usMyatwife! the conference! MACNEILL:

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continued on page 14

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continued from page 12

MACNEILL: She’s not. I’m a physician. I need help! [It is interesting to note he refers to himself as a “physician,” rather than using the more common term “doctor.” Also, one would think he would be providing basic medical information for the responding medical personnel. Who needs help in this situation? She does, unless she is no longer among the living.] 911 OPERATOR: Sir, sir, I need you to calm down. Sir, I can’t understand you, okay? Can you calm down just a little bit? MACNEILL: I need help! 911 OPERATOR: Okay, what…your wife is unconscious? MACNEILL: She is unconscious. She’s under water. [One would think the first thing to do would be to get her out of the water and prepare to do or start CPR before calling 911.] 911 OPERATOR: Okay, did you get her out of the water? MACNEILL: I can’t! I just (INAUDIBLE)…I let the water out. [MacNeill can’t pull his wife out of the tub. Later he is alleged to have said to others that she was draped over the side. Yet, there is testimony she was seated in the tub.] 911 OPERATOR: She’s under the water? MACNEILL: She’s under the water, and I need an ambulance! 911 OPERATOR: Okay, is she breathing at all? MACNEILL: She’s not! 911 OPERATOR: Okay, sir, the ambulance has been paged. They’re on their way, Okay? Do not hang up. [Because of confusion over the address, it will take almost 30 minutes for responders to arrive.] MACNEILL: Why? (Hangs up) 911 OPERATOR: What? Sir? (Redials number) MACNEILL: Hello? 911 OPERATOR: Sir, this is 911. Can I help you? MACNEILL: I need help! 911 OPERATOR: Okay, sir, they’re on their way. Is your wife breathing? MACNEILL: She is not! I am a physician. I’ve got CPR in progress! [Has the body been moved?] 911 OPERATOR: You’re doing CPR? (CROSSTALK) 911 OPERATOR: Sir, how old is your wife? MACNEILL: My wife is 50 years old. She just had surgery a couple of days…a week ago. [Why is the mention of “surgery” important unless this needs to be reason for the cause of death, and he wants to make sure police know this? He still has not offered any medical vitals except in response to the dispatcher’s questions. How does the link between surgery, in this case a facelift, and this incident occur? Would it be more common for someone to consider a heart attack?] 911 OPERATOR: What kind of surgery did she have? MACNEILL: She had a facelift.

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911 OPERATOR: She had a facelift? MACNEILL: Yes. 911 OPERATOR: Okay, do you know how to do CPR? MACNEILL: I’m doing it! [Has the body moved? Do we hear any exertion or movements? It is interesting to note when emergency personnel arrive later, there is water coming from her mouth. With all the CPR done by the doctor, one would think the water would have been expelled already.] 911 OPERATOR: Okay, do not hang... If you listen to the 911 call and read the news reports about the investigation, this exchange becomes even more telling. What emotions would you expect MacNeill to have upon discovering his wife’s body in the bathtub? When we listened to the recording, there was an edge of anger and aggression in his tone and speech pattern that seems inconsistent with the circumstances. Once you know the caller is a doctor, the call becomes even more curious since a physician should have experience with medical emergencies, yet there is not the careful clinical response one would expect. Does the information provided, the tone of voice, and speech pattern seem correct given the medical background of the caller? Why is there an angry tone to this conversation? The victim is underwater and he calls 911 before trying to get her out of the tub or prop her up so she is out of the water. Does this make sense in light of what most of us would do if we saw someone under water? When you read the news article, consider what his young daughter says about finding her mother and the neighbors’ comments about getting her out of the tub. Does the body position lend itself to CPR? There is also a long gap between the arrival of a neighbor, then a second neighbor to remove his wife from the tub. The doctor claims he is preforming CPR prior to this, but Pleasant Grove emergency responders said that while they performed CPR on Michele, she threw up a lot of water. Finally, one of the neighbors said he looked for towels to wipe up the bathroom, but couldn’t find any there. He said he located wet bloody towels in the laundry room. Did the doctor stop CPR to wipe up water and blood before the neighbors arrived? MacNeill told investigators he found his wife hunched over the tub with her head underwater making it even more curious why he could not get her out of the tub and had to let the water out. This certainly differs from the testimony of the daughter and what position she saw her mother in.

Need for Consistency

The first telling of a fabricated story is fraught with danger for the deceiver. The telling is done under tremendous emotional and physiological pressure that might cause even the most well-prepared story to change. Next, multiple retellings of the story have to be consistent with other versions and evidence recovered at the scene. Then, there are the witness recollections and the likely improvisations during the crime that must be explained. In our next column we will explore other ways to increase the cognitive load or stress on a person attempting to deceive. You might want to consider what techniques an interviewer might employ to add this additional stressful thinking and how they should be used.

NOVEMBER - DECEMBER 2013

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COVER FEATURE

MOBILE

POS LPM 1113-A.indd 15

THE LOSS PREVENTION CHALLENGES By Chris Trlica, Contributing Writer

11/27/13 11:11 AM

MOBILE POS: THE LOSS PREVENTION CHALLENGES

66% of U.S. smartphone owners use their phone

80% of smartphone owners say they want more mobile-optimized product

to help them shop.

information while they’re shopping in stores.

(Leo J. Shapiro and Associates, 2012)

(Moosylvania, 2013)

Consumers spent

43% of smartphone owners have used their mobile device while in a

six times as much time in retailers’ apps in

store for a shopping purpose.

December 2012 than they did a year earlier.

(comScore, Shop.org, and The Partnering Group, 2012)

(Flurry, 2013)

hese are the sorts of statistics driving the retail-sector mobile revolution. Retailers are keenly interested in becoming more engaged with the mobile-integrated lives of their customers. At the same time retailers are embracing their own mobile devices as a kind of retail Swiss Army knife—multifunctional, powerful, yet compact and portable. With both consumers and retailers desiring more mobile integration in the retail realm, a diversity of mobile solutions has naturally emerged, perhaps most visibly the mobile point of sale. Meanwhile, loss prevention departments are challenged with the task of how best to support their operations partners in these mobile endeavors. “It’s not a secret that customers are changing the way they shop and the way they want to use their own mobile devices when they shop. It’s a matter both of choice and of convenience,” says Mike Wiley, senior manager of asset protection operations at The Home Depot. “Loss Prevention needs to be proactive in figuring out ways to mitigate the risk that comes with these new technologies without it being too cost prohibitive. “It’s critical to have a seat at the table from the very beginning, so we can have an idea of the sort of impact these new systems will have on loss opportunities. Being there from concept until rollout gives us the time necessary to reduce risk exposure to the company. Once a project charter is written or work development has already started, it’s much more difficult to get things changed,” advises Wiley. “For mobile POS, there needs to be a real shift in thought process. Retail in general seems to be moving from a traditional front-end checkout area—one that we like to think of in LP as somewhat secure—to essentially a sales-anywhere philosophy.”

The Mobile POS Family Tree

The family of mobile POS solutions represents one facet of what a recent study refers to as “the eco-system of technological capabilities, retail store attributes, and customer attitudes and beliefs.” The ground-breaking study, Mobile Point-of-Sale and Loss Prevention: An Assessment of Risk, was commissioned by the Retail Industry Leaders Association (RILA) and sponsored by Checkpoint Systems and Ernst & Young. Researchers John Aloysius and Viswanath Venkatesh of the University of Arkansas’ Sam M. Walton College of Business produced the report that will serve as an indispensable roadmap for operations

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and LP departments alike while exploring the nuances of mobile POS deployment. There exist many species and subspecies of mobile POS solutions, because in practice, each retailer must craft a solution that fits their specific needs. There are, however, a few notably dominant varieties. Chief among these is the system in which a roaming sales associate armed with a payment-card-equipped smart device processes payments away from fixed checkout areas, a system detailed in Part 1 of this series (“Mobile POS—The Brave New World of Retail” September-October 2013). Another emerging system, also discussed in Part 1, takes self-checkout a step further. Instead of a customer scanning and bagging merchandise at the self-checkout kiosk, they use a mobile device to scan products as they shop and bag them as they go. When finished, the customer displays the phone to the self-checkout kiosk, transferring the scanned UPCs. The customer then completes payment as normal. Retailers benefit from customer-driven automation of their operation. Customers avoid checkout lines and enjoy smartphone-enabled shopping perks, like smart price comparisons, e-coupons, and running price totals of their selections. Functionally, this system extends the autonomy granted to customers using conventional self-checkouts. The customer still scans the products, still bags them, but the process is delocalized, no longer close in time or space to the payment.

Mobile Wallet

According to many retail experts, the next major shift in transaction technology will be the emergence of the mobile wallet paradigm. A customer’s smartphone is used to pay, either by third party via an encrypted broadband Internet connection or by direct radio communication between the customer’s smartphone and a store device. “It’s our job as store operators and asset protection professionals to adapt to whatever new and innovative payment solutions are of interest to our customers,” says Wiley, “but at the same time, adopting a new technology represents a pretty big investment for retailers. We’re at the point where many applications can be simplified onto one device, making that device very convenient for consumers.”

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MOBILE POS: THE LOSS PREVENTION CHALLENGES “This technology is moving quickly, because of the competition in retail as it is today,” says the vice president of LP for one major department store chain whose company requires he remain anonymous. “If a particular retailer has a quicker, more efficient transaction that creates an enhanced customer experience, they could take away customers simply based on ease of the sale. So as the technology continues to evolve, more retailers will want to adopt it.”

RFID Non-Interaction Model

There is also a vision of a future in which, at least for certain retailers, all transactional processes are automated—a customer walks into a store, fills a bag with merchandise, and then walks out. Scanning, payment, and validation happen automatically. The transfer of ownership is so seamless, the store becomes almost like a well-stocked, well-organized, remote storage facility. Just grab what you need and get back to the rest of your life. Of course, this speculative future won’t be possible for many retailers and won’t be desired by many more. Retailers may lose opportunities to upsell or to advertise in-store, for example. And the LP challenges would be spectacularly daunting. Integrating a conventional store with RFID-powered automated checkout has been anticipated for years, but it isn’t right around the corner, says Scott Thomas, global director of retail market development at IP security solution provider Genetec. “Ten years ago what people thought would be on the horizon is RFID. There’d be RFID tags on everything, you’d have virtually no interaction with a salesperson, you’d put your items in your bag,

and you’d show your card on the way out when your account would be automatically billed,” says Thomas. “Of course, that hasn’t happened quite as predicted, but I can see eventually there being a combination self-checkout process where people go to a kiosk, present their form of payment, and they’d be able to check themselves out of most any place. That’s doable technology, and we might start to see it in the next 5-plus years.” The major barrier to an RFID-tagged store is cost. Tags are still expensive, whether they’re reusable or disposable. They were expected to become as cheap as a penny or two apiece, but they remain in the five- to ten-cent range. “If you add a nickel to a dollar purchase, you’ve added a five percent margin,” explains Thomas, “and most of your items can’t absorb five percent. Even on a ten-dollar item, you’ve added a half percent. In some cases retailers can absorb that, in other cases it can’t.” Thomas adds, “The other thing is implementation costs. You need RFID readers at the POS and RFID security systems to replace EAS antennas. And, of course, they’ll raise a whole new set of security concerns.”

Fracturing the Transaction

One unifying factor common to all of these transactional technologies is the psychological changes that come with them. For their entire lives, consumers’ checkout experiences have involved waiting in lines, waiting for employees to scan products, and then paying for them. These fundamental processes of a transaction—scanning, payment, and

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MOBILE POS: THE LOSS PREVENTION CHALLENGES validation—aren’t commonly thought of as separate processes at all, since they almost always occur simultaneously and in one place. Only after all of these steps have occurred does the consumer move the item from the mental bin labeled “store property” to the bin labeled “my property.” Consumers have very strong conditioning—a lifetime’s worth—linking checkout lines and fixed registers to the transfer of property. In a very real sense, mobile POS breaks this conditioning, challenging a lifetime of norms, by fracturing these transactional processes and scattering them in time and in space.

From the operations standpoint, this may not be as huge of a challenge as it initially seems. Since these fundamental transactional processes are linked to sophisticated data structures requiring very well-defined inputs, migrating these processes to accommodate a mobile transaction may turn out to be relatively straightforward— after all, products are still being scanned; cards are still being swiped. But for loss prevention, the change to mobile POS can prove to be anything but straightforward. According to the University of Arkansas study, the change can “disrupt many of the existing loss prevention processes that are embedded in or designed around the

“It’s not a secret that customers are changing the way they shop and the way they want to use their own mobile devices when they shop. It’s a matter both of choice and of convenience. Loss prevention needs to be proactive in figuring out ways to mitigate the risk that comes with these new technologies without it being too cost prohibitive. It’s critical to have a seat at the table from the very beginning, so we can have an idea of the sort of impact these new systems will have on loss opportunities.” Mike Wiley, Senior Manager of Asset Protection Operations, The Home Depot “There’s a whole new grey area surrounding the point at which ownership passes from the store to the customer,” says Aloysius, associate professor of the University of Arkansas Department of Supply Chain Management and coauthor of the RILA-commissioned study. “There’s also a sense that it’s a lot less easy to validate the purchase. Some things that have been built into the transaction now have to be separate. But these are things that are outside the existing norms. It’s the kind of thing that may not be so easy to handle both from the customer viewpoint and from the employee viewpoint.” From the consumer’s perspective, this may be a bit shocking at first, but consumers can be quite adaptive, and new practices quickly become norms. If the processes can be simplified or made more efficient and painless, consumers will embrace the change as a better shopping experience, having eliminated—or at least improved—one of the least pleasant aspects of shopping. But from the retailer’s perspective, the change is much less straightforward. Many store processes are intimately tied to existing conventional checkout procedures, procedures that are time-tested and have been built iteratively, with changes made over years as necessitated by new policies and technologies. To varying degrees, mobile POS systems disrupt these procedures, necessitating retailers very carefully redesign them to accommodate new transactional paradigms and the new psychological paradigms that accompany them.

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transaction process.” Conventionally, because transaction processes happen at more or less the same time and place, transaction-related loss prevention processes can be consolidated to that same time and place. “But with mobile point of sale,” says Aloysius, “you suddenly lose all that. Take for example the model of a customer walking around a sales floor, scanning products with their cell phone. That’s the scanning component, so that’s going to happen first, and it may happen at many different locations around the store. And then they might walk up to an employee at a traditional cash register and make a payment. But what you notice is that the payment does not occur at the same time or at the same place as the scanning. “And to layer on something to the story,” Aloysius adds, “there’s a form of validation that happens when you have a traditional cash register, because remember that the store employee who conducts the transaction has the opportunity to check—maybe in great detail or maybe just superficially—on the customer’s transaction for errors, for signs of malicious acts, for any sort of anomaly. In some cases the store employee will do that, while in other cases such as self-checkout, it’s easy to have a fixed point camera over the belt so you can sync validation with the customer’s motion as they put the item in a bag. “But with mobile you lose a lot of that. So, all of a sudden, you need to rethink processes; you need to figure out—what do I do if I can’t have a fixed point camera or if I can’t instruct my employees to look for certain signs of malicious acts? What can I do instead? And that’s the kind of problem that you can get with mobile POS. In a way it’s just a whole new world,” says Aloysius.

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Feature 1 MOBILE POS: THE LOSS PREVENTION CHALLENGES

Validation

A multiplicity of loss prevention complications come with restructuring transaction processes for mobile POS, and for some varieties, validation can become a major challenge. “For systems where a customer is not interacting with an employee at any point, you’d have to be very cautious about validation,” says Aloysius. “It’s not impossible, but you’d probably have to build in at least the possibility of an exit check. Part of our research looked into consumers’ tolerance to these checks, and this sort of careful study of processes can be very important. For example, it surprised us that based on our surveys, people weren’t too concerned about the time it took, but privacy intrusion really did bother people. They were bringing up that stores had no right to stop them unless they believed that there was a reason to stop them. Finding out what it is about a check that bothers people lets you fine-tune the nature of the process.” Validation becomes an increasingly important component of the transaction process not simply because it becomes disjointed from other transaction processes, but because mobile POS gives customers greater autonomy in the store. Greater customer autonomy is an ongoing trend in retail, as more streamlined stores and increasing consumer product knowledge—and mobile access to Internet-based knowledge—contribute to an expectation of greater shopping independence, reducing the number of employees it’s necessary to have on the floor to help customers. But there are worries that greater customer autonomy could contribute to loss, as customers who feel less watched may take opportunistic advantage of their autonomy.

Internal Risk

One risk that goes hand-in-hand with a greater emphasis on validation is the risk of employees falsely accusing customers of theft. “Of course you don’t want employees accusing people falsely, but especially in the initial stages, there’s going to be a lot of mistakes,” says Aloysius. “Customers won’t be sure whether they’ve scanned something, they won’t quite understand the process, and there are going to be a lot of genuine mistakes. What you don’t want to do is start accusing people of malicious acts, because that’d be the surest way to kill the innovation. Just one accusation will turn into hundreds of people who hear about it or read about it and decide, ‘I don’t want to take that risk.’ During our research we did get the impression that there needs to be a lot more training, that employees weren’t quite ready for the change. They didn’t know how the system worked, and they also didn’t quite know how to handle a lot of people walking around making a bunch of mistakes.” Loss prevention departments will need to carefully reexamine apprehension policies after deployment of a mobile POS system, but this won’t be the only change for LP professionals on the floor. “With LP professionals, their job could become a lot more difficult,” says Aloysius, “because traditionally what you try to do is create this zone of surveillance, and that’s pretty easy in a traditional store because you just funnel people through a fixed point and then just the notion that they have to walk through this fixed point is sometimes sufficient to act as a deterrent. With mobile, especially a system where you scan and walk out without having to go through any kind of cash register, you suddenly lose all of that. There is no sense that you’re being watched,

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MOBILE POS: THE LOSS PREVENTION CHALLENGES since it’s almost impossible for you to have cameras at every point in the store, especially if it’s a large footprint store with lots of aisles.” While mobile POS may create substantial changes in the way LP professionals go about daily work, Home Depot’s Wiley believes they’ll adapt quickly. “We need to give credit where credit is due. For LP associates, adapting to change in today’s world is a daily if not hourly process,” Wiley says, “and I’d venture to say that most associates can visualize what mobile transactions might look like in the future because they’ve already gone through many of the what-if scenarios in their minds. Many LP associates might even shop with their own mobile devices. We need to realize that when and if we make big changes to processing sales transactions, it most likely

and updated, or if attackers find security holes in the mobile wallet software, they’ll be able to steal customers’ account data. “It’s just like in the skimming cases, where they’re stealing credit card info by putting a false mag stripe reader on the gas pump,” says Thomas. “I think there’s a real fear that people are going to be able to get close to you, bump your phone, and get information off it. I think the first time it happens, it’ll make big news and everybody will start taking a closer look about how to guard against it. In the bigger picture though, it will be a universal problem. It won’t just happen in a store. It could happen on a subway, on the street, in a school, anyplace.” In this case, poor implementation by a single third party could threaten the adoption of the entire technology. If a story

“There’s a whole new grey area surrounding the point at which ownership passes from the store to the customer. There’s also a sense that it’s a lot less easy to validate the purchase. Some things that have been built into the transaction now have to be separate. But these are things that are outside the existing norms. It’s the kind of thing that may not be so easy to handle both from the customer viewpoint and from the employee viewpoint.” John Aloysius, Associate Professor, Department of Supply Chain Management, University of Arkansas won’t be a surprise. Many of them have literally grown up with smartphones and understand the technology very well.” Just as mobile POS systems will change the jobs of retail sales associates, they could also enable new routes of internal theft. “Talking to retailers, the first and foremost concern is the devices themselves walking out the door,” says Genetec’s Thomas, “and the second concern is fraudulent transactions. With the POS moving throughout the store employees can create refunds or load gift cards anywhere a camera isn’t looking at them. Likewise, if you’re a floor person and you happen to leave your mobile POS device unattended somewhere, like at a docking station, if you’re not logged off another associate could pick it up, walk into a dressing room or a bathroom and create a fraudulent transaction.”

External Risk

Mobile POS systems may open new avenues for external loss as well. Although it is standard to encrypt mobile transaction data, one careless retailer could poison the well for everyone. “Most all retailers use some type of encryption software for mobile POS, but there have been some instances in the past where a retail store’s transaction data was picked off and used to create bogus credit cards, bogus return transaction data, and stealing personal pedigree information,” says the department store VP. “Encryption of any type of wireless transmission in the retail environment is of the utmost importance.” There’s an analogous concern about the adoption of mobile wallet systems. If consumers’ mobile devices aren’t properly secured

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emerges in the media that causes consumers to lose trust in their mobile wallet, they’ll stop using it, which could translate into the loss of a valuable tool for retailers. Is it the responsibility of retail loss prevention to test third-party mobile payment apps? Might an LP organization award “Security Certified” stamps of approval to software that checks out? Looking to the future, if part of the LP mission is to support operations, is it the job of LP to predict what technologies operations may want to adopt, and protect these technologies before they are adopted, or maybe even before they are considered? One could shed light on such questions by considering another question—What is the LP response to the threat of organized retail crime (ORC) exploitation of mobile POS? The answer, according to Wiley, is the same as to any question about ORC exploiting a new technology. “We need to try to understand what opportunities might come up, or what overrides or ways to circumvent our system they might come up with. We have to get ahead of the curve. We need to embrace RILA, NRF, LPRC, and ORC taskforces around the country. We need to communicate with each other to understand what our risks are. One of my colleagues said it best—‘We all have the same criminal. We have one thing in common and that’s the same criminal.’ So we need to work on solution development internally as well as continue to support these industry groups to continue working together.” As with any change in the retail landscape, there are widespread predictions that ORC will have great interest in mobile POS systems,

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continued on page 22 |

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MOBILE POS: THE LOSS PREVENTION CHALLENGES

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“There are fears in LP about what they don’t know about these devices, and I think one of the greatest fears is they don’t know what they don’t know. There are going to be things that you and I haven’t thought about, has never entered the realm of possibility. Things that some bad guy is going to figure out and exploit. That’s when you have to pick it up and start addressing it. I think that’s the biggest fear—What else don’t we know? What else should we be worried about?”

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Scott Thomas, Global Director of Retail Market Development, Genetec continued from page 20

since disrupted transaction processes may be exploitable. “We actually did some interviews with criminals, and they’re not really geared up for this change yet, so they haven’t figured out how to game the system,” says Aloysius. “One thing that they did assure us, however, is that it wouldn’t take them long. They don’t know what they’re going to do yet, but someone’s going to figure it out pretty soon. Some of the people we talked to told us that one of the major sources of information was from people who worked for retailers. That’s how they found out who’s monitoring what, where the cameras are, what times are good, and you can infer that with new innovations there’s a lot of stuff that’s invisible to them at first, so they’re going to have to go to store employees for that information.”

There is one more persistent threat, which accompanies most any decision, whether technological or not, that is epitomized in a bit of wisdom that issued from the lips of none other than Donald Rumsfeld, who said, “There are known knowns; there are things we know that we know. There are known unknowns; that is to say, there are things that we now know we don’t know. But there are also unknown unknowns; these are things we do not know we don’t know.” Scott Thomas elaborates, “There are fears in LP about what they don’t know about these devices, and I think one of the greatest fears is they don’t know what they don’t know. There are going to be things that you and I haven’t thought about, has never entered the realm of possibility. Things that some bad guy is going to figure out and exploit. continued on page 24

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MOBILE POS: THE LOSS PREVENTION CHALLENGES continued from page 22

That’s when you have to pick it up and start addressing it. I think that’s the biggest fear—What else don’t we know? What else should we be worried about?”

LP Responses

“There are a lot of challenges out there,” says Thomas, “but there’s a technological answer for almost every one because that’s what technology companies do. We’re changing the landscape with technology.” As problematic as mobile POS may initially seem to be, it is no different from any other major shift in the retail environment insofar as the problems are almost always addressable given careful thought and deliberate execution. Maintaining control over device function, tracking the device’s location, and linking device data to surveillance camera data can address many of the worries about fraud and device misuse. Many retailers restrict mobile POS usage to tenured associates, disallowing temporary or holiday hires. Many also have policies in place necessitating that in-store LP associates be notified as to when and where a device will be in use. Thorough training and well-crafted policies are really the backbone of the LP reaction to mobile POS systems. As the role of LP professionals continues to shift from detective to analyst, addressing technological problems with technological solutions begins to seem easier and more natural. For example, certain mobile POS systems may give rise to greater customer autonomy, which may make customers feel less watched, which may give the impression that stealing is easier. What’s the answer? “One possibility,” Aloysius suggests, “are these devices that beep when people pass, that give

you the notion that someone is watching or something’s happening. More of those types of psychological deterrents may be necessary.” Said another way, change in behavior caused by a new technology is countered by another new technology addressing the psychology of that behavior. Mobile devices can also directly benefit LP efforts. Some devices are equipped with cameras, allowing photographs or video to be recorded from them directly to serve as a forensics or tracking tool. Tracking media access control (MAC) addresses of the devices of suspected shoplifters could allow automated notification of when the device—and, therefore, the suspect—makes a return visit. As consumers’ personal lives and retailers’ business practices become increasingly mobile-integrated, the careful deployment of mobile transaction technologies stands to benefit consumers and retailers alike. The job of LP is, as always, supportive—anticipate process issues and plan accordingly. Most importantly, start work with operational partners early in the deployment process to minimize exposure to loss. New technologies will continue to increase the complexity of the systems in which LP operates. There’s no choice but to embrace them, study them, and maybe celebrate them.

CHRIS TRLICA is a business and technology analyst based in North Carolina. He is a contributing writer to LP Magazine focusing on emerging technologies. Trlica can be reached at chris.trlica@gmail.com.

THERE’S NO ONE ELSE LIKE YOU. s we enter the holiday season, we are reminded of the great privilege it is to serve you. Were it not for your ongoing pursuit of excellence within the loss prevention community, such outstanding relationships could not be forged. Just as no two snowflakes are alike, no two clients’ needs are alike. And it is an honor to know each and every one of you individually — not only as clients, but as friends. We thank you for your loyalty and wish you the very best of the holidays.

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ACADEMIC VIEWPOINT

2012 National Retail Security Survey—First Glance at the Results

am back in the saddle again after undergoing hip replacement surgery this past summer. That is why you did not see me at the National Retail Federation LP conference in San Diego in June, when I usually report preliminary shrinkage statistics. It is also the primary reason that the 2012 National Retail Security Survey (NRSS) Final Report is not yet published. As those of you who have gone through orthopedic surgery know, it is not an immediate recovery process. It set me back in my work schedule, and as a result, delayed both the data collection and analysis phases of the NRSS. Nevertheless, I am now walking, riding my bike, climbing stairs, fishing in my boat—all without pain for the first time in many years. My new titanium left hip is performing better than I ever expected. I know that this column is about loss prevention research, not orthopedic health issues, but I wanted to explain why you haven’t yet seen the 2012 NRSS results before now.

The most important number that is annually produced by the NRSS is the industry-wide average shrinkage percentage. The overall average during the 2012 fiscal year was 1.47 percent. Preliminary Numbers

As of this writing, the Final Report is not quite ready to print, but I have some preliminary numbers to share. However, I must inform you that my hip surgery is not the only reason that the Final Report is late. The other reason is due to a less than robust response level among senior LP executives who were asked to complete the questionnaire. I wanted to wait until we received at least 100 responses from major U.S. retail firms to make sure that this year’s shrinkage statistics were as stable and reliable as possible. One could argue that I waited too long, but without enough respondents, shrinkage numbers become

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by Richard C. Hollinger, Ph.D. Dr. Hollinger is professor and chair of the Department of Sociology and Criminology & Law at the University of Florida, Gainesville. He is also director of the Security Research Project, which annually conducts the National Retail Security Survey. Dr. Hollinger can be reached at rhollin@ufl.edu or 352-294-7175. © 2013 Richard C. Hollinger

unreliable and could lead to questionable results and invalid conclusions. Unfortunately, after receiving 94 questionnaires, I decided that waiting any longer would not yield more responding retail firms. The most important number that is annually produced by the NRSS is the industry-wide average shrinkage percentage. Based on the 91 valid shrinkage percentages reported, the overall average during the 2012 fiscal year was 1.47 percent. This number is slightly higher than the all-time lowest shrinkage percentage of 1.42 percent reported last year. It is hard to tell at this time if this will become a long-term trend, but it would appear that retail shrinkage is beginning to increase slightly. More specifics by vertical markets will be presented in the Final Report. We have also calculated the sources of shrinkage loss. As has been the case for two decades, senior LP executives believe that the largest proportion of retail shrinkage is attributable to employee theft—this year 40.9 percent. The second largest loss source was believed due to shoplifting and organized retail crime (ORC) at 33.1 percent. Administrative and paperwork errors accounted for 15.3 percent. Vendor frauds were estimated at 5.96 percent. Lastly, 7.48 percent of shrinkage is attributed to “unknown” sources of loss. The unknown category is now included in the survey to allow some respondents to indicate that they really do not know exactly where their losses are coming from given a weak audit trail. Incidentally, we recognize that the percentages of loss source figures exceed 102 percent. This is due to the way in which the question is asked, which does not force each respondent to make their responses total 100 percent.

Final Report Release

I know that this is just a quick and very incomplete overview of the 2012 NRSS findings, but given the lateness of the Final Report, I felt that I owe the readers of this column whatever statistics that we now can release. Moreover, it is appropriate that these preliminary results are first published in LP Magazine, since this publication and fellow bionic hipster and magazine executive editor, Jim Lee, have long been a supporter of this important research project for the retail loss prevention community. The 2012 Final Report will be available online very shortly and will be announced via the magazine’s weekly e-newsletter, LP Insider. Finally, I want to thank all of you who sent cards, gifts, and best wishes during my surgical recovery. Your expression of concern was very much appreciated by me and my family.

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PARTNERING WITH RETAILERS

By Dave DiSilva

Connect and Collaborate Conference Connect and Collaborate is more than just the name of a conference. It is the way eBay Global Asset Protection works with our retail and law enforcement partners. In 2009 when Paul Jones began his tenure with eBay, retailers were seeking more effective ways to investigate online criminal activity. Jones and his Global Asset Protection Team were challenged to create a safer shopping experience for users by reducing criminal activity on the platform. This task required combing through a $70 billion global marketplace to identify stolen property. The natural move was to connect with retailers and law enforcement to collaborate on criminal investigations. The launch of PROACT created a collaborative symbiosis. Retailers needed an active partner to work to address suspected criminal issues, and eBay needed to locate stolen merchandise listings across the globe. In the years since, eBay’s AP team and retailers have connected and collaborated on many investigations resulting in successful prosecutions of criminal sellers and the removal of stolen merchandise from the platform. The collaboration builds trust and ensures a fair and competitive marketplace for our users. Our business partner’s benefit with effective investigations with less time spent on non-issues. Our relationships with retailers continue to mature, as does the approach toward online crime. The shared experience of investigating together has improved our knowledge base of online criminals. One takeaway demonstrated by online criminals is that they are not brand loyal and may operate on multiple marketplaces to sell stolen goods. We actively

watched presentations from retail executives, eBay leadership, and key law enforcement officials dedicated to combating organized retail crime. Following is a sample of the agenda. How We Proactively Protect Our Community Denise LeLux, VP, and Mark Roberts, Director, Trust and Safety, North American Customer Experience, eBay, Inc. PROACT Update—What’s New and a Look to the Future Dave DiSilva, Manager, and Hawken Averett, Senior Investigator, Global Asset Protection, eBay, Inc. Macy’s ORC Overview John Matas, VP, Investigations, Fraud, and Technology, Macy’s ORC Discussion—National Retail Federation Richard Mellor, VP, Loss Prevention, and Jonathan Gold, VP, Supply Chain and Customs Policy, National Retail Federation Kohl’s Approach to ORC Investigations Wallace Crosno, Manager, Investigations, Kohl’s Law Enforcement and Retail Partnerships Sergeant Richard Rossman, Broward County Sheriff’s Office, Federal ORC Task Force eBay Brand Protection 101 Raquel Smith, Manager, Brand Protection, eBay, Inc. Online Investigations Using Third-Party Tools Dave DiSilva, Manager, Global Asset Protection, eBay, Inc.

research tools and techniques that may help our business partners identify criminal sellers on any platform. The end result is these criminals are put out of business, and ultimately are kept off our market place. The Connect and Collaborate meeting in October was attended by more than eighty retailers and law enforcement professionals in our new facility in Utah. The event provided a forum for retailers and law enforcement to share success stories, techniques, and contact information. The attendees

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The event is an example of our retail outreach and partnership. In the coming months we will conduct webinars, corporate training, upgrade our exception reporting, and improve our systemic capabilities. Thank you to all of our speakers and attendees for your participation in Connect and Collaborate. To learn more about eBay Global Asset Protection and PROACT, contact us at proact@ebay.com.

NOVEMBER - DECEMBER 2013

LPPORTAL.COM

11/27/13 11:11 AM

INTERVIEW

TAKING RETAIL LP STRATEGIES TO A WHOLE NEW INDUSTRY A CONVERSATION WITH CHRIS MCDONALD OF COMPASS GROUP By James Lee, LPC, Executive Editor

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11/27/13 11:26 AM

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EDITOR’S NOTE: Chris McDonald is the senior vice president of loss prevention for Compass Group North America. He came to Compass Group in April 2012 after nearly four years as senior director of LP for Dollar General. McDonald is a seasoned LP executive having held multiple positions with Toys“R”Us, Babies“R”Us, Office Depot, and the Hartmarx Retail Group. He is also a member of the LP Magazine editorial board, and a board member of the International Associations of Interviewers. Over the years he has served on various industry committees making contributions to the NRF, RILA, ASIS, and the industry as a whole. EDITOR: Yours is not a traditional retail company. Tell us about Compass Group. McDONALD: In simple terms Compass Group is the world’s leading contract food and support services company. We do over $26 billion in worldwide sales in fifty countries. We serve more than six million meals a day in North America alone where we have over 20,000 different client locations and employ a little over 200,000 associates. It’s an impressive organization to say the least. EDITOR: Did you say 20,000 client locations? McDONALD: Yes, 20,000. That’s the fun part for us, and where it gets complex. For example, if we’re looking at one of our clients who is a university or a corporate campus, they might have a dozen or more different locations that we service. Additionally, there is the catering business, perhaps vending services, facility services, and more. It varies enormously from location to location. Our operations range in size from a cashierless convenience store or one-person kiosk to a full-scale restaurant operation, a concert venue, or even a sports stadium. EDITOR: What different types of businesses do you operate in? McDONALD: We’re engaged in a variety of vertical markets. One is

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Just like any other corporation in America, we have leakage. We have shrinkage opportunities. My task from a strategic standpoint is to employ strategies and disciplines that ensure our operators’ efforts make it to the bottom line, just like any other LP organization. The processes we employ may be different from the traditional retail perspective, but the goal is ultimately the same. healthcare where we provide patient food service, patient transport, and facility services within a hospital, as well as, retail café food service. That means whether you are a patient in a hospital eating the food brought to your room, or you are visiting someone there and you eat dinner at the retail café, we are your host. We also service the education markets—everything from private to public K-12 clients to higher education universities, like Louisiana State University, Texas A&M University, the District of Columbia public schools, and many other great schools. EDITOR: Are these cafeteria-type facilities? McDONALD: It’s much more than the traditional cafeteria concept. It’s all kinds of dining and catering services. If you’ve been on any college campuses recently you find that like so many other areas, the food service is about an experience and environment. If there is a Starbucks or coffee shop on the premises, we would operate NOVEMBER - DECEMBER 2013

the coffee kiosk for you. We can also provide the catering for any events or meetings. Our objective is to provide you with great food and quality service wherever you might find the need for hospitality offerings. EDITOR: What are other markets? McDONALD: Another of our vertical markets is the business and industry sector, which handles the café, catering, and food service needs for a number of Fortune 500 companies, such as Microsoft, Caterpillar, IBM, United Technologies, and SAP. We also provide hospitality at sporting events, entertainment venues, concerts, and operate many stand-alone restaurants as well. Spiaggia, Bar Toma, and Fulton’s on the River are a few in Chicago. The Fulton Crab House and Wolf Gang Puck’s Grand Café in Orlando are two locations in Florida. We operate in specialty venues, too, including various Smithsonian Museums, the Georgia Aquarium, and the Seattle Art Museum to name just a few.

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INTERVIEW

EDITOR: With all the services you provide, is there any standard situation or do you mold your services to the situation? McDONALD: Our services are entirely customizable, and what we do depends on the client. That’s both the fun part and the challenging part from a loss prevention perspective. If someone is building a new hospital or new corporate headquarters and wants us there from day one, that’s great, we would love to be your partner. We can design the kitchen, the retail front, and present you with a solution that fits your needs. It’s your choice. In today’s environment, we’re often taking over existing properties that have existing kitchen and dining facilities. In those cases we can take what you currently have and customize it to help you maximize your facility. The ultimate goal is to help you provide an end result of great service and delicious, healthy food for your customers, employees, patients, or students.

EDITOR: Why does the Compass Group need a senior VP like you? McDONALD: Just like any other corporation in America, we have leakage. We have shrinkage opportunities. My task from a strategic standpoint is to employ strategies and disciplines that ensure our operators’ efforts make it to the bottom line, just like any other LP organization. The processes we employ may be different from the traditional retail perspective, but the goal is ultimately the same. EDITOR: How do you employ LP strategies at Compass based on your custom model? How is it different from your past roles? McDONALD: The strategies and ideals that led me to a senior-level position is what continues to drive me today, and that is the simple realization that the loss prevention industry is fundamentally a support function. My accountability is driven through my customers—the operators and frontline

people who run our day-to-day business. Those are the people who I have to support and make successful in order to make the company successful and ultimately my department successful. If it wasn’t for all these other people working so hard, there would be no reason for us to be here to support them. I remind myself and my team of that regularly. We exist to service them. As far as what’s different, retail enjoys a great deal of standardization. You have a prototype of store types, you have consistent operating standards as the box is the same from store to store, and generally you have a single system or process structure across your portfolio. In our world such standardization is non-existent because we customize ourselves to provide for our clients for whatever the need. What works in operation A may not work in operation B or C. I may have a hundred different versions of some process, but it’s necessary to serve our clients. So, the challenging part for me is being able to

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INTERVIEW

If I have issues with inventory and product going out the back door through theft or waste, then I have food cost issues, which impact my margin. If I have front-of-house issues, such as cashier integrity or fraudulent POS transactions, then I have reduced sales and margin. If I find a solution on either one of those ends, my food costs go down, which makes my sales and profitability go up. We see virtually an immediate impact. deliver some degree of consistency and develop LP programs and philosophies that can be applied across the matrix of the businesses, whether it’s a two-person operation or an operation with hundreds of people. EDITOR: With all the different business models, are there measurements back to a specific location? McDONALD: Yes, and that entails another interesting part of my job. As I’ve said, one of Compass Group’s strong points is our ability to provide customization. When you look at a restaurant chain, which produces standard menu offerings, they have consistent average food costs. They are able to determine production, output, and waste in consistent manners. But for Compass, determining those factors in our various business lines is much more difficult because one café produces a

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totally different menu than another café. Therefore, the comparisons are much more complex. We have measurements, algorithms, and many great people helping to manage the business, but clearly it’s not as clear-cut as most chain organizations or retailers. EDITOR: How does your role differ from a typical LP executive’s? McDONALD: There are many differences, but one that I think is very interesting is the fact that I sit on both sides of the table now—not only as a loss prevention practitioner, but also as a representative or a salesperson of our industry. For example, if we are working with a new client who may not be familiar with the world of loss prevention and risk, we will spend time to help educate them about loss prevention and market our function as a benefit they receive in working with Compass. The message is not only that we are going to NOVEMBER - DECEMBER 2013

cook you a great meal and make sure we’re providing you with the service levels you expect, but we are also doing internal due-diligence using training and technology to monitor our employees, making certain everything is accounted for, and otherwise limiting risk and loss. EDITOR: How is your team organized? McDONALD: Our team is organized in a regional or zone structure based on geography with regional LP managers supporting the field operations and reporting into a senior director. Additionally, we have a corporate staff of systems managers who help lead our focus through data mining and business intelligence. I then report to the CFO. It gives us a different perspective as we’re closely tied to both finance and operations. The dynamic is great and allows us a very balanced perspective of our business. EDITOR: What are the typical duties of the regional managers, and what are they spending their time doing? McDONALD: There are three main strategies of the regional job function. Number one is training and awareness. Because we are still a maturing LP organization, we spend a large amount of our time teaching and training our operations and finance teams as to what loss prevention is about and its impact on them. We teach the pitfalls of not following policies, of not holding people accountable, and our mantra is to “inspect what you expect.” I’d say the regional managers spend almost 50 percent of their time training. The second piece of their job is a little more traditional in the form of investigating and problem solving, and then thirdly, audits and compliance measurements complete the circle. EDITOR: Does your staff also come from a traditional retail LP background like you? McDONALD: We have a good mix on the team. Some of the staff came from retail LP backgrounds, with others who have food service and hospitality loss prevention experience on their resume. From my perspective, this has been a

LPPORTAL.COM

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INTERVIEW

great complement as we are able to leverage off one another. Additionally, one of my strategies is to employ or customize many of the successful tactics we have used in “retail” loss prevention for many years and make them successful in our environment. We’re constantly striving to learn and leverage the team’s experience base truly using the “best of the best” ideas. EDITOR: How do you measure performance in terms of the objectives and the goals that you’ve set for them? McDONALD: The big piece of the pie in the retail world revolves around that quarterly or annual shrink number. Unfortunately, we don’t have that litmus test in our world. On one hand, we do rely on investigation and case production output. It’s a traditional measurement that’s black and white and shows an immediate ROI. On the other hand we monitor sales. We are starting to look more closely at how resolving an issue

can impact sales, customer satisfaction, and other efficiencies. EDITOR: Explain that. McDONALD: If I have issues with inventory and product going out the back door through theft or waste, then I have food cost issues, which impact my margin. If I have front-of-house issues, such as cashier integrity or fraudulent POS transactions, then I have reduced sales and margin. If I find a solution on either one of those ends, my food costs go down, which makes my sales and profitability go up. We see virtually an immediate impact. That’s a measurement that’s really interesting in this environment. When we address an issue in any given location, often within a matter of weeks we’ll see an impact on sales. I don’t have to wait for a year-end inventory. EDITOR: As you look a few years down the road, what types of things are you contemplating that will

LP MAGAZINE | NOVEMBER - DECEMBER 2013

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enhance the LP function within the company? McDONALD: One of our strategic plans is to continue to take advantage of technology, especially our growing access to big data. This will obviously help direct us. One of the questions becomes how can we leverage data across the business to help drive our loss prevention focus over the coming three to five years? Frankly, I don’t know what it should look like yet. The data will tell us where we need to go and where we should focus. Do I need to be driven more toward the cash and retail finance operations? Is there an opportunity in inventory controls? The viewpoint right now is to get the information and let it help build the business plan. A second major emphasis is technology implementation. Before I came on board, the company had already identified that as an opportunity and started down that road. We’re continuing to develop technologies such as POS exception reporting and the implementation

11/27/13 3:06 PM

INTERVIEW

of CCTV in both traditional and non-traditional manners. EDITOR: If one of your LP managers wanted to look at exception-type information to identify a problem in a particular facility or with a particular person, do you have that capability? McDONALD: Yes, in many cases that type of detail is available. Additionally, we also partner with our finance folks to identify anomalies in food cost, overall sales, or production statistics that will help guide us. We’re also able to not only compare an individual cashier against his/ her peers within their operation, we’re comparing them at large against similar operations, so we get a broad spectrum to work from and identify potential issues. EDITOR: Is there any one particular business model that is more challenging than another? McDONALD: They all have their own benefits and challenges. In healthcare cafés you have a more retail-like

exposure as they are open to the public and open for longer hours. In contrast, in the school environment you have less risk because most meals are transacted via student meal plans to “repeat” customers; the students. The same is true in our business and industrial environments. However, one unique opportunity we have noticed is that serving our “regular” customer can produce risk. For example, if we have a corporate office employee who visits for lunch regularly during the week, they establish a familiarity with the Compass employee. Because people are fairly habitual, it’s easy for a dishonest employee to take advantage of that situation because they don’t have to predict what the customer is going to purchase. They know that every day, “Joe” orders a chicken wrap with a fruit salad and drink that costs $6. He also always pays with cash. If Joe is in a hurry, he just gives us the money and heads to the dining area or back to his office. He has no need for a receipt. I think the

concern speaks for itself. It makes for an interesting “people-watching” study—are we as diligent with our receipts when we buy a meal as when we buy a product from a retailer? It’s taught me to pay more attention when I’m buying my lunch. EDITOR: Is there a background screening program for your employees? McDONALD: We have a very complex background screening program. The complexity is that we’re doing business under the client’s roof or on the client’s campus, so my employees have to meet their standards. In the healthcare industry we have to follow one set of rules and regulations. If we’re servicing a government contractor, there may be another. In the education environment, still another. Everyone has their custom set, so we’re actually very dynamic in that our background screening processes are dependent upon the needs of the client. Again, it’s our job to meet the client’s needs.

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NOVEMBER - DECEMBER 2013

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LPPORTAL.COM

11/27/13 11:24 AM

INTERVIEW

EDITOR: How was it that you decided early in your life to get into loss prevention as a profession? McDONALD: Candidly, like many of my peers, I fell into it. When I graduated from college I was working for a local bank in Atlanta. It was right around the time of the savings-and-loan scandals of the late 1980s. Obviously, as I looked toward banking as a career, it just did not seem to be a place I wanted to be. So, I answered a blind ad in the newspaper that turned out to be Kuppenheimer Men’s Clothiers, a division of the Hartmarx organization. They had a one-person LP department and wanted to add an auditor—what today would be an analyst. It turned out to be one of the greatest jobs I could ask for. I reported to the director of LP who reported to the CFO. So, literally, I was one step away from the CFO and had regular access to him. Here I was, straight out of college, direct access to a CFO, in a small retail company doing a couple hundred million dollars in sales

and learning all about loss prevention, auditing, and finance. I learned more in my first year than I probably ever learned in college. I then moved to Office Depot’s LP team at a time of great growth for the company where I was able to learn about big-box retail. The next move was to a recently IPO’d company called Baby Superstore. They didn’t have an LP department and were looking to start one. We were just beginning to solidify a program when we were bought out by Toys“R”Us and became Babies“R”Us. I spent twelve years at Babies“R”Us, moving up the LP ladder to eventually become the director. I then moved to Dollar General as the senior director of LP. After about four years, I received a call from Compass Group and made not only a company move, but an industry transition. Looking back I can truly say I’ve had a blessed career working with many great industry leaders, great LP teams, and some truly interesting organizations.

EDITOR: When you got the call from Compass and recognized that it was far different than you’d been exposed to before, what was the attraction that caused you to make the change? McDONALD: What interested me most was the idea of taking what I’d learned over the past twenty years and putting it into a different environment. Not that LP programs are ever easy, but taking strategies from one retailer to another retailer is much different than taking that same knowledge into a completely different environment and deciding what will work and what won’t. Here at Compass, our operations vary in things ranging from the POS systems to the awareness level of our employees, to even include the cultural differences of the hospitality industry. Add to that the idea of getting into a different industry at a senior level, pardon the pun, but it was a recipe for an exciting move. I’m never one to shy away from a challenge, so to me it was “game on, let’s play.”

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INTERVIEW

EDITOR: Looking back over your career, who are those people who have been special supporters and mentors for you? McDONALD: Let me reach outside of the LP world for a moment. The first person is a gentleman by the name of Dave Schoenbeck. Dave was the senior vice president of operations for Babies“R”Us virtually the entire time I was there. He and I had an initial meeting when Baby Superstore was purchased by Babies“R”Us that resulted in me wanting to ensure I was on his team. He is one of those leaders that you just naturally gravitate toward. I think our bonding originated in the fact that he had come from an LP family as his father had been in loss prevention. Even though he was in operations, he had a very clear understanding of what LP could bring to an organization, and he let us contribute as partners in the business. We were never separate from operations, but truly part of the operations team. His management

over many years to develop a great relationship, team, and friendship. I still employ that same management style today.

style in leading people and growing an organization was great to work under. He excelled in giving people opportunities to succeed, or fail in some cases, and in recognizing the team that he had under him. Under the loss prevention umbrella, I would have to say both Walter Palmer and Bob Serenson, who I came to know through my time with Babies“R”Us as well. Bob was overseeing the LP efforts at Babies“R”Us when we met. The program was being managed through the Kids“R”Us organization, where Walter was the director. One of the great things I learned from Walter was to look at things in different ways. Walter always had a great way of opening a problem or opportunity and making you dissect it so you could understand it better. With Bob I think I learned much more about the value of true partnerships. For many years we worked together in a supervisor-subordinate relationship that felt much more like a partnership. We leveraged our strengths and weaknesses

EDITOR: Is there anybody else? McDONALD: Being such a tight knit industry I could name quite a few more people who I’ve watched and learned from over the years, but I’m afraid I would leave someone out. I would say that’s another key benefit an up-and-coming leader can leverage in our world. I’ve made quite a few partners and mentors over the years that I can leverage with just a phone call, and, without exception, the industry leaders always reciprocate with each other. There are quite a few senior leaders on the vendor side of our world who have also been key partners in my career successes as well. If I may offer a piece of advice to an up-and-coming young person in the industry, it’s this—find a mentor that continued on page 38

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continued from page 36

you can rely on, someone you can watch, partner with, and build a relationship with. It’s not about an “assigned” mentor relationship, but the development over time with people you trust and are willing to listen to. Despite our tendencies to be very type A personalities, we don’t know everything and all of us have lots to learn. A mentor who has “been there, done that” is a great asset to have around. EDITOR: Finally, you know of course that you are a rare breed in LP, at least in one respect—you’ve never relocated from Atlanta despite your career path. That’s pretty rare in the LP world. McDONALD: That’s true, I’ve been fortunate to stay in Atlanta through all of my transitions. It certainly has helped to be near a major airport where I can get virtually anywhere in the country. While I haven’t formally relocated, I have spent a lot of time away from the family. I will candidly admit that I owe more than 50 percent of my success to my wife, Rebekah, who kept everything at home going so I could go out and advance my career. She put her career on the backburner and made a lot of sacrifices to make sure we had a stable home environment for the family while I was commuting and doing the things needed on the career and business side. EDITOR: How long have you been married? McDONALD: We’ve been married for 22 years. We married out of college. She was a retailer at the time working for Helzberg Diamonds and had a successful career. We decided to start a family, which is a story that would make its own article, and she put her career on hold so I could focus on mine. We were fortunate enough to make some sacrifices early on and she was able to stay at home and raise our boys—John Morgan who is now fourteen and Brock who is eight. That was another key decision that has helped us succeed. I’ve never worried about the home front, and she is really my best friend and “partner in crime.”

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I have a small gentleman’s hobby farm that keeps me busy. At any given time, you’ll find me sitting on top of a John Deere tractor where I do my best thinking. We have a rule that my cell phone stays on the kitchen counter when I’m out on the tractor. Rebekah will pick it up if there is an emergency. But most of my friends know that “If Chris is on the tractor, he is thinking. Don’t bother him.”

EDITOR: Loss prevention and the business world are very intense. How do you get away from it? McDONALD: We live on about 13 acres outside of Athens, Georgia, which puts us a bit out in the country. Unlike a lot of people in business, I’m not a golfer. In fact, I look at a golf course and think, “What a waste of land. I wonder how many cattle I could raise on 18 holes?” I have a small gentleman’s hobby farm that keeps me busy. At any given time, you’ll find me sitting on top of a John Deere tractor where I do my best thinking. We NOVEMBER - DECEMBER 2013

have a rule that my cell phone stays on the kitchen counter when I’m out on the tractor. Rebekah will pick it up if there is an emergency. But most of my friends know that “If Chris is on the tractor, he is thinking. Don’t bother him.” My second hobby is a love of anything with an engine. So aside from my working tractor, I have a 1937 John Deere A that we take out and play with. I also have several classic cars that we work on and show. So, when we finish the farm work, we’re out showing classic cars or going to hunt down another one. It’s not too uncommon to see me on a Monday with a little grease still under my fingernails. EDITOR: You obviously have a rewarding personal and professional life. McDONALD: It’s been fun and I certainly haven’t followed any script I could have imagined. We’ve been very

blessed not only professionally, but as a family. I owe a lot of my success to learning from others. I have learned through my career that success is about the people that you bring together around you. It’s about building great teams and relationships. I’ve been fortunate to both work on and build some great teams. I owe my success to many other great people. Whether it’s personal or professional, I’m looking forward to what the next twenty years has to offer just as much as I enjoy looking back over the last twenty.

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EVIDENCE BASED LP by Read Hayes, Ph.D., CPP

Who Do We Watch?

ith so much media coverage of lawsuits claiming racial profiling, I thought it timely to readdress some of our shoplifter behavioral indicators. We believe humans are wired to profile people and situations. That’s an important part of survival and success. People anticipate, look for possible patterns, and then respond accordingly. Going through life in a clueless state might be relaxing, but probably a dead end. In the case of store thieves, it’s the same thing. Store employees are constantly picking up cues from shoppers, and looking for patterns that might mean a theft is underway. The important thing to remember is there should be a logical profiling process. We believe that process means this—we should only respond to cues that appear in clusters, and those clusters are in proper context. In other words, stealers versus buyers can in part be identified by clusters of cues taken in context. No single behavior, such as repeated “looking around,” signals theft every time. But a group of behavioral and enabling cues like frequent looking around, standing very close to a fixture filled with small, high-loss items, with their hands down, and holding a shopping or other bag in hand should prompt an employee to more closely watch the individual.

Store employees are constantly picking up cues from shoppers, and looking for patterns that might mean a theft is underway. The important thing to remember is there should be a logical profiling process. We believe that process means this—we should only respond to cues that appear in clusters, and those clusters are in proper context. We’re looking at categorizing cues into behavioral actions and reactions, and enablers or tools to help make sense out of the data. Theft actions include head and hand positions, travel speed and direction, distance and angles to displays, signaling to others, diversions, tests (to put us off or to see if we’re watching), and reactions to the stress of deviance such as flushing and grooming gestures. Enabling cues include carrying conveyances, athletic footwear for rapid escape, theft tools like cable or package

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Dr. Hayes is director of the Loss Prevention Research Council and coordinator of the Loss Prevention Research Team at the University of Florida. He can be reached at 321-303-6193 or via email at rhayes@lpresearch.org. © 2013 Loss Prevention Research Council

cutters, special “magic bags,” and false receipts. As mentioned, these cues should appear in clusters, and the context of the situation should add power to the overall prediction.

Working Together

This October’s LPRC Impact conference was even bigger than the past eight events, with over 180 executives (last year we had just over 100) participating in the unique, interactive workshop. But even more importantly, the participants brainstormed on many more research project results than the past. With fourteen, rather than the past three, working groups and action teams meeting in breakouts, the stage is set for an incredible amount of practical loss prevention research throughout 2014. Several University of Florida faculty members and LPRC researchers presented findings, discussed implications, and explored the rapidly transforming future of retail with the attendees. Over forty retail chains were represented at this year’s conference along with the university scientists, technologists from leading solution partners, and brand owners like Bacardi, Diageo, and P&G. Multiple new retail chains also joined the LPRC during the conference, including Luxottica, Kohl’s, Ulta Beauty, Target, and Ahold USA, with others expected to join soon. The LPRC board of directors is already starting to plan the tenth annual Impact conference in 2014. Please contact us if you would like to learn more about the professional development and research opportunities available through the LPRC.

Getting the Word Out

This year we had the incredible opportunity to discuss evidence-based loss prevention; the SARA simplified problem-solving process; the psychology of offenders and how we use that to deter them; and recent research results with LP and other retail executives at the FMI, RILA, and NRF loss prevention conferences; the LP Magazine editorial board meeting; the Mexican ANTAD loss prevention conference; as well as our Impact conference and individual retailer in-house meetings. I am continually impressed with the energy, innovativeness, and intellect of both the LP and solutions provider professionals. We have huge challenges ahead with over $45 billion in annual losses, ongoing violent and other crime and loss issues, and rapidly changing retail formats. We need good people doing good things and, of course, much more R&D to improve results. I encourage you to share your LP practices and tool-enhancement ideas and experiences with me anytime at rhayes@lpresearch.org.

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FEATURE

LAWSUITS AGAINST RETAILERS THE EXPERT’S ROLE By Charles “Chuck” Sennewald, CSC, CPP, CPO

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LAWSUITS AGAINST RETAILERS

ontemporary loss prevention policies and procedures is a direct consequence of the so-called “litigation explosion” that dates back to the early to mid-1980s. Time was when a head-long pursuit through the parking lot and across heavily-trafficked public roadways was a way of life. To many it was exhilarating and the resultant capture of a shoplifter was rewarding. However, I recall with clarity the case of two teenage brothers who were pursued by supermarket employees for the theft of a couple of candy bars and a 16 oz. can of beer. The two were struck and killed by an auto in the middle lanes of a nearby freeway. The subsequent lawsuit was punishing. It’s fair to identify that very case as the beginning of the end of hot pursuits in the retail industry. Subsequently, other practices, heretofore invoking mild reprimands, became socially and legally unacceptable and everyday practices, such as wrestling a suspect to the ground and gaining control with an arm-lock, became suspect, again, magnified by lawsuits. Shoplifters died, invariably followed by a lawsuit resulting in the awarding of damages. Awards sent corporate policymakers, guided by their own legal counsel, back to the drawing boards.

legal battle. The search starts with a phone call that may precede the formal filing of a complaint, or before the decision is made to file or not to file. In those cases where the decision is yet to be made, the experts are queried based on receipt of a “letter of demand,” which precedes the filing of a formal complaint. More often than not, the experts are located and retained after the filing. The “letter of demand” seeks to reach a settlement for a nominal sum with the tacit threat of “pay a nominal amount now or you’ll pay much more later.” These letters of demand may be frivolous claims or may have limited merit with a nuisance value. If the attorney is unsure, he may seek professional advice from an expert. Many times the pending defendant store will view the demand as a nuisance only and pay it to avoid the substantial costs if the matter goes forward. Costs, of course, include retaining an expert whose fees often are comparable to those of an attorney. Or the store (and their counsel) will refuse to pay and, in essence, tell the plaintiff’s counsel to go pound sand. Either the would-be plaintiff goes away or the complaint is filed, and the war is on. Often, if the demand is refused and the issue isn’t of great or serious substance, the “victim” may decide not to go forward because lawsuits are very expensive to prosecute.

Contemporary loss prevention policies and procedures is a direct a Case Prior to Filing a Complaint consequence of the so-called Evaluating Following reflects an example of legal counsel seeking expert “litigation explosion” that dates back advice in the decision-making process prior to the filing of a civil to the early to mid-1980s. I recall with complaint. “Mr. Sennewald, my name is Bryan O’Conners, and I’m house clarity the case of two teenage brothers counsel for XXXX Markets. We understand you are an expert in loss who were pursued by supermarket prevention practices and have authored some books on the subject. in need of professional guidance in response to a letter of employees for the theft of a couple of We’re demand concerning a shoplifting detention. Would you be available candy bars and a 16 oz. can of beer. The and interested in assisting us?” Q. “If I can, what is the customer alleging?” two were struck and killed by an auto in the A. “Excessive use of force with injuries.” middle lanes of a nearby freeway. The Q. “Tell me what happened.” A. “The loss prevention agent observed subsequent lawsuit was punishing. the lady remove a pack of cigarettes from It’s fair to identify that very case display as she neared the check-out as the beginning of the end of hot terminal and slipped them down the front of her blouse. She paid for other pursuits in the retail industry. items, but failed to pay for or declare The Litigation Process

Despite the greatly altered face and character of loss prevention today, complaints against retailers continue on, albeit not at the same pace of yesteryears, but continue none-the-less. Lawsuits driven by a loss prevention act or omission requires an “expert” to assess the event and educate the judicial community, which includes a jury, on justification or lack thereof of the act or event. For example, was the forceful holding of a suspect to the ground, who then died due to positional asphyxia or a heart attack, reasonable or not? Such tragedies have been litigated time after time and experts, depending on the totality of circumstances, have opposing opinions. In a litigation process involving a loss prevention incident, there are, typically, two experts with opposing opinions. The law firms trying the matter will seek out their own expert for the eventual

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the cigarettes. Upon exiting the store the agent approached her, identified himself, and asked her to surrender the cigarettes. She complied. He then escorted her to the office as required. To get to the office the two had to climb a set of stairs and the older lady had some trouble breathing and had to stop to catch her breath before she could reach the upper level. Once in the office, the agent applied handcuffs pending arrival of the police.” Q. “How old is the lady?” A. “She’s 79 years old.” Q. “Why was she handcuffed?” A. “Company policy mandates all detainees awaiting arrival of the police must be handcuffed. Once they arrive, the police officer will decide if the cuffs should be removed or not.” Q. “What’s the purpose or logic behind this policy, if you know?”

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LAWSUITS AGAINST RETAILERS A. “It’s my understanding the policy is in place for the protection of all parties and to prevent escape.” Q. “What is the amount of the demand?” A. “$18,000” Q. “Give it to her. If you don’t, they will file and the price will go way up. I, for one, would never testify that the policy was reasonable. That elderly lady wouldn’t be combative or aggressive or harm anyone, nor could she run away. She could barely make it up the stairs. If she’s a nice-looking lady, looks like a gentle, loving grandmother, the jury will be incensed at the store using cuffs, let alone the bruising of her wrists. Do me a favor, sir, please advise senior management that they should modify the policy to allow for some reasonable flexibility, to exercise some good judgement when it comes to the elderly or children.” A. “Even though she admitted the theft?” Q. “Sure. That’s not going to be the issue.” A. “Well sir, that was quick and you certainly are candid. Thank you. Please send me a bill for your consultation.” Q. “I’m not going to bill you. Consider it free advice. Just get the policy changed.” In this case house counsel may have suspected the policy needed tweaking, but needed an expert to support his suspicion. On what grounds could he question or criticize the policy that may have been in place for some years, but never challenged, until now? If an expert identifies it as a weak or problematic case or policy, the attorney has the ammunition to bring about change. After all, he is the firm’s legal counsel.

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The above scenario reveals how the consultant or expert determines the nature of the problem, what precipitated the complaint, and the bottom line—does he agree with the attorney’s theory of liability or theory of defense? Clearly the expert’s view and opinions can and often do educate or influence the corporate policy decision makers. This is certainly the case after the filing of a complaint, when the matter really builds traction leading to the formation of the expert’s opinions, pre-trial, or testimonial opinions in deposition or during trial. The expert’s task is to share his opinion in an area of expertise outside the normal area of understanding or knowledge of the general public—to educate. It’s that simple. Time and time again, similar scenarios occur, beyond the view of LP executives, unless such executives are privy to the corporation’s role in litigation involving LP practices. Because law firms under contract manage most lawsuits for the corporation or an insurance carrier, the LP executives who need to know what’s happening and what’s being discovered are often out of the loop. More often than not, the attorney (or paralegal) will call in a search for an expert after the complaint has been filed. Some do their homework and research the known history and background of experts. Others call cold. Some want an expert who is pliable or amenable to their theory of liability or theory of defense. Some want to know if “the case has bumps in the road” or not. Some want an expert who will be an advocate for their cause. Experts who are advocates are often known as “whores,” because they will do or testify to whatever pleases the client. Some appreciate a candid off-the-cuff reaction; others don’t. The very best and most professional attorneys retain only the very best and most respected experts.

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continued on page 44 LP MAGAZINE | NOVEMBER - DECEMBER 2013

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Sample Dishonest Associate Lawsuit

It is more common to commence the search after a complaint is filed that might allege some tortious act, such as negligence, excessive use of force, false arrest, failure to provide adequate training or supervision, inadequate guidelines, and many others. Let’s walk through a lawsuit that reflects an action against a retailer for unlawful discharge and false imprisonment of a dishonest associate. During the early stages of the litigation, a plaintiff attorney called, similarly to the call described above, introducing himself and asking as to my availability to assist in his case. He informed me the matter involved the unlawful termination and jailing of an innocent employee of a national store chain. Q. “How do you know she was really innocent?” A. “The evidence they used, and shared with the police, was a video tape that was patched together to prove their belief that the employee stole merchandise. The prosecutor obtained the original tape, which unequivocally proved her innocence, and the criminal case was dismissed. The store has acknowledged she didn’t commit a crime.” Following is a summary of the events in this lawsuit. Service Desk Exchange. An employee entered the store on her day off with her new baby in arm and presented a set of bed sheets to the customer service desk for an exchange. It was an uneven exchange, which meant she would receive some cash back. She had no receipt, claiming the sheets were a gift from her mother who had purchased them at this store. They were for her new apartment. One of the associates at the service desk knew the employee and suspected she had just picked up the merchandise from its display location and that it was not paid for. The service desk employee closely questioned the off-duty associate, who claimed she had just entered the store carrying the sheets. Time at the service desk was 1:00 p.m. A supervisor was contacted and alerted. That supervisor checked a computer program that reflected sales by item and date of sale. The computer failed to reflect a recent sale of that SKU number. This information was relayed to the LP employee in the store who checked the video tapes. He quickly searched the tapes and located the employee entering with no merchandise in hand, verifying the service desk employee’s suspicion. This was reported to the floor supervisor. The time generator was blurred on the tape, but it was the day’s tape. By company policy the only LP employee authorized to detain or interrogate an associate was the district LP manager, who was too far away to respond, so the request for the “uneven exchange” was granted. The paperwork and goods returned were marked as evidence. The off-duty associate eventually left the store, unaware of the suspicion or investigation. Associate Arrested. Two days later the suspected associate was scheduled to work at noon. An hour before she reported, the LP manager arrived at the store, talked to the floor supervisor and service desk employee, gathered the returned goods and documents, and interviewed the store LP agent about his search of the video tapes, who showed her the tape in question depicting the suspect’s entry empty handed. The time generator on the tape was not clear. A second video tape from about 1:00 p.m. showed the suspect at the

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service desk with her baby and the sheets. In this video she is engaged in discussion with the original suspicious employee. When the associate arrived for work, she was summoned to the store’s offices and there, in the presence of another female associate serving as a witness, the suspect was asked about the transaction. She reiterated her story that her mother purchased them in that store and that she was bringing the sheets back because they were the wrong color. She was then told that she wasn’t telling the truth, because the video clearly showed she entered the store with no merchandise. The associate claimed that wasn’t true and asked to see the video. Her request was denied. She then asked the interrogator to phone her mother who would verify the purchase. This was also rejected. Eventually, she was given paper and pen and instructed to sit down and honestly explain what happened. While so engaged, the LP manager phoned the police and asked them to respond to the store to transport a prisoner. Before the police arrived, the suspected associate simply wrote, “I’ve done nothing wrong. I stole nothing.” She signed the paper and walked off the job and out of the store. The LP manager didn’t see her leave. Minutes later a police officer arrived. He was given a written report about the incident and shown the video. He returned to the police station and filed a police report alleging theft. The following evening, the officer went to the associate’s home, arrested her, and transported her to the local station where she was booked. Defense Council Retained. The suspect retained a criminal defense attorney who questioned the women in depth. She recited her version of the events, including entering the store with the baby in her arms and the bag with the sheets, being “hassled” at the service desk, and eventually being given the exchange and a few dollars. She told the attorney she then, quite by accident, came upon her father and sister who

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LAWSUITS AGAINST RETAILERS happened to be in the store. They all left the store together. Once outside the store, her sister remembered she had failed to buy a item she needed. The suspect, to accommodate her sister, returned to the store empty handed, leaving her baby with her sister, and made the purchase. Her attorney and the deputy prosecutor discussed the case, and then the two watched the tape. At that point they realized the tape used as evidence against the employee had to be the wrong tape, or the wrong location on the tape, because the chronological sequence of events as depicted on the tape provided to the police showed the suspect, first, entering the store without a baby and, second, standing at the service desk with the baby. Where did the baby come from? All tapes generated on the date of the event were obtained and a more careful review revealed the discharged and accused associate did, indeed, enter with package and baby in arms prior to her appearance at the service desk and prior to the entry showing her entering empty handed. Upon this discovery, a second and more careful review of the inventory record of sales by SKUs revealed a sale had, indeed, been made a week prior to the day the plaintiff was seeking an exchange. The service desk employee missed that entry in her hasty search. Therefore, the plaintiff’s story was true. She had been wrongly accused and incarcerated based on a profoundly inept, careless, and improperly trained loss prevention department and its agents. The young ex-employee was devastated. She had a meritorious cause to claim damages. Discovery. A lawsuit was filed against the retailer and the process of discovery was launched. Discovery in a lawsuit is the

process wherein both parties—the plaintiff and the defendant—may demand the production of documents that are germane to the lawsuit. Invariably, the expert suggests or requests documents that the attorneys didn’t realize are important. Below is a partial listing of the reams of documents the store produced in this case: ■ All video tapes of the day of the incident. ■ The loss prevention department’s official complete investigative report of the incident. ■ Human resource files of the LP manager/investigator, including training records and performance evaluations. ■ Job descriptions for the positions of LP manager and in-store agents. ■ All performance appraisals of the LP manager and in-store agent. ■ HR file of the associate arrested and terminated. ■ HR file of the service desk employee. ■ HR file of the in-store agent. ■ LP training manual. ■ LP policy-and-procedure manual. ■ Specific documentation of policy and procedure in the handling of shoplifters. ■ Specific documentation of policy and procedure for handling and disposition of internal investigations. ■ Copies of all internal investigations and dispositions in the district for three years prior to the case in question. ■ The company’s refund and exchange policy. ■ Policy statements regarding the role of store manager and HR manager in employee arrests and termination.

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LAWSUITS AGAINST RETAILERS ■ Copy

of all documents regarding the termination of the plaintiff. other documents ad infinitum. All discovered documentation was analyzed and reviewed by the expert to identify the company’s expectations of its employees in handling the affairs of loss prevention. The expert then compared the performance in this case against that standard. For example, HR policy requires the LP manager to present findings of an investigation of an associate and obtain concurrence that the evidence justifies termination from employment for cause. If the LP manager fails to do so, that is a breach of policy. The expert/ consultant also compares the incident in question with historical

■ And

The expert’s task is to share his opinion in an area of expertise outside the normal area of understanding or knowledge of the general public—to educate. It’s that simple. Time and time again, similar scenarios occur, beyond the view of LP executives, unless such executives are privy to the corporation’s role in litigation involving LP practices. Because law firms under contract manage most lawsuits for the corporation or an insurance carrier, the LP executives who need to know what’s happening and what’s being discovered are often out of the loop. records for evidence of consistency or inconsistencies in internal investigations. All this back-office review provides the expert with the answers to such questions as: Are the policies and procedures of the company in keeping with custom and practice in the retail LP industry? Was the investigation conducted thoroughly, impartially, and professionally? Was the investigator qualified for that task? Expert Opinion Shared. Armed with the answers to these and other questions, the expert is then ready to render his professional opinions about this case. The opinions are then shared with the counsel that retained the expert and, depending on state law, that opinion is formalized in writing and submitted to the trial court and/or revealed and shared with opposing counsel in deposition testimony under oath. A word about expert opinions: In the American judicial system witnesses are not allowed to express opinions. Witnesses may only testify to what they saw, heard, touched, tasted, or smelled. The only exception is expert witnesses. The attorneys on both sides evaluate the case in light of the opinions of the experts on both sides and negotiate for settlement. If the attorneys can not agree on a settlement, the matter goes

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to trial and the expert shares his opinion and is subject to cross-examination, under oath, with the jury. In this case the store did not obtain an expert. Instead they put forward, as their “expert” a company LP executive. This is a questionable strategy in my view because experts, by the very nature of their role in litigation, are considered neutral and not advocates for one side or the other. Perhaps, even with known “hired guns” in the country, no one would accept the case in defense of the retailer apparently because the flaws in the loss prevention program were insurmountable. Testimony at Trial. In my testimony at trial, I was critical of many aspects of the program—its policies, its failure to have or produce certain policies and procedures, and the lack of qualifications, training, and investigative experience of the LP manager involved. I testified that the LP manager was overwhelmed with a wide variety of duties other than loss prevention and should never have been involved in criminal investigations. I testified the “investigation” was fatally flawed, as it was hasty, incomplete, and reckless. I was also critical of the company’s failure to provide its districts with investigators. Lastly, I informed the jury that the company had failed to produce their policy and procedure regarding the handling of internal investigations, claiming they didn’t have one. I pointed out that they had very detailed policies and procedures on handling shoplifting matters, but nothing on handling suspected dishonest employees. I told them I contemplated that a great deal and came to the logical conclusion that the company had detailed rules about accusing the general public of shoplifting because of their fear of the consequences of making mistakes, but the company wasn’t afraid of making mistakes with employees. The case never went to the jury. After my testimony the court took a recess and during the recess a settlement was negotiated.

A Challenge to the Reader

After reading this magazine in its entirety, come back to this article and reread the synopsis of this internal investigation. Then list the various mistakes, failures, and problems with the case, just as would any impartial expert in the industry. How many things went wrong? Compare your itemized list with a colleague or others in your own organization, simply as a thought-provoking exercise. The retailer in this case learned something and benefited. Could you or your LP organization learn something as well?

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CHARLES “CHUCK” SENNEWALD, CSC, CPP, CPO is a nationally known consultant, expert witness, and author of twenty-one books, several of which focus on loss prevention and security. His most recent book From the Files of a Security Expert Witness is a collection of 36 lawsuits, many involving retailers, in which he played a role. Sennewald is the former director of security for Broadway Department Stores where he worked for eighteen years before establishing his own consulting practice in 1979. He is a graduate of the U.S. Army’s Military Police School, the Los Angeles County Sheriff’s Academy, and earned his BS from California State University at Los Angeles. Sennewald can be reached at sennewald@cox.net.

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Certification Column CERTIFICATION

Why We Should Be Thankful T

his is the time of the year that most of us think about giving thanks for our health, our families, and friends and maybe even our 2013 successes and accomplishments. I know I am very grateful for these things. I also know that if it weren’t for having good health, support of my family and friends, I would not have accomplished as much. Not even close. Being thankful requires time for reflection. I recently took the opportunity to do some early year-end reflection after our October board of directors meeting. In that fall board meeting, which is one of two annual meetings that we are required to conduct, we did a year-to-date status review of

Most of you are committed to building a plan for shrinkage reduction or reaching your job performance goals, but often fall short on developing the same type of plan for professional development. what we had accomplished and what is planned for 2014. This was a four-hour meeting where the Loss Prevention Foundation (LPF) staff and committee chairs reported to the board, which is comprised of thirty retail vice presidents and senior executives from several leading solution providers. Four new board members were added to the board, including Tim Gorman, DVP, Loss Prevention, Asset Protection, and Business Continuity, Walgreens, Mike Keenan, CPP, CFI, VP Loss Prevention, Gap Inc., Mark Mellor, DVP, Loss Prevention and Global Business Continuity, Family Dollar, and Mark Stinde, VP Asset Protection, 7-Eleven.

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by Gene Smith, LPC Smith is president of The Loss Prevention Foundation, the not-for-profit organization charged with the responsibility of managing certification. He was formerly president of the industry’s largest executive search and consulting firm. During the past fifteen-plus years, Smith has provided career counseling for thousands of industry professionals nationwide. He can be reached at 704-837-2521 or via email at gene.smith@losspreventionfoundation.org.

2013 Highlights

Many mentioned after the meeting that it was the best ever. That was great to hear, but the celebration was short-lived because we went right back to planning and working diligently to do even better. However, we would be remiss if we didn’t share some of the highlights. The Foundation now has: 6,588 members in our group. 5,000 worldwide locations in 165 counties that offer the LPQ and LPC exams. 1,400 exam locations in the U.S. 1,000 certified professionals. 452 companies have either LPQ or LPC-certified or certification-seeking employees. 279 companies have someone certified. One company has 193 certification participants. 140 companies have LPC credentialed employees. 139 companies have LPQ credentialed employees. 78 vice presidents and directors are LPC certified. 74 companies now hold LPQ or LPC as a preferred requirement for employment. 5 countries have LPC certified individuals. LPC credential holders now hold positions in nine of the top ten U.S. retailers. The LP Memorial Fund distributed two gifts of $2,000 each to surviving families who lost loved ones from the LP industry. New certificates for membership and certification were created. LPF was rebranded with a new website, conference booth displays, and a merchandise store. A fully automated CRM system was implemented. A recertification program for LPC-certified professionals was launched. Academic credit for completing the LPQ or LPC requirements was granted at American Military University, Eastern Kentucky University, Fairleigh Dickinson University, and Mississippi College. The LPF led fundraising efforts to raise enough donations for approximately 100 new bicycles (over $10,000) to students at Devonshire Elementary School in Charlotte, NC. The school was recognized on the Today show for their efforts toward improving

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attendance and academic achievements of their students; 87 percent of the 576 children live in poverty and most have never owned a bike. These accomplishments are due primarily to the efforts of the thousands of supporters who have helped in the efforts to elevate our profession. We cannot even begin to thank each individual, company, or group. It has been so inspiring to see the engagement of our board, our members, and our volunteers. We look forward to delivering on some really great 2014 goals that will further support our mission.

Personal Career Plan

The Foundation is focused on professional development. With that in mind, we offer you this challenge—formalize a personal plan to add to your professional skills and knowledge to further advance your career in 2014. Most of you are committed to building a plan for shrinkage reduction or reaching your job performance goals, but often fall short on developing the same type of plan for professional development. It is amazing that when we speak at various events, LP executives can recite their top high loss locations and can articulate without hesitation exactly what the strategy is to improve results. But when we ask them about their career goals, they struggle with verbalizing what they need to do to reach those goals. Most of them have failed to formalize a plan. We would like to encourage you to consider putting yourself on a path of continuing education. Invest some time in yourself and make a plan. Identify one or two areas in which you want to seek further education and go for it. While the thrill of the chase and the pursuit of dishonest individuals is one of the main reasons many of you were attracted to this profession, it is not the most important area to master. Decide what you want your personal branding to be. If you do nothing but focus on investigations, do not wonder later in your career why you do not get interviews for higher positions that require you to manage the entire scope of loss prevention. If your resume speaks too much about investigations, ORC, interrogations, and not enough about the business, then guess what your brand is? You must invest in yourself. Enroll in the LPQ or LPC and obtain valuable information that you can use immediately in your current position. Learn firsthand how easy it is to learn online. Join the Foundation as a member and add it to your credentials. Break the stereotype of being too focused on cases. Commit to finishing your degree or taking a course at one of our great academic partners—American Military University, American Public University, Eastern Kentucky University, Fairleigh Dickinson University, or Mississippi College. The time to increase your desirability for a promotion or career

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opportunity isn’t tomorrow when you need it, but rather today, before you need it. The truly successful industry leaders pursue continued education in advance of when they need it. You should, too.

Newly Certified

Following are individuals who recently earned there LPC and LPQ certifications.

Recent LPC Recipients

Chris Barber, LPC, Goodwill Industries of Central Indiana Jay Bonnell, LPC, Goodwill Industries of Central Indiana Shannon Bueno, LPC, Walgreens John Calhoun, LPC, Walgreens William Colby, LPC, Coles Express Kyle Davidson, LPC Charles Delgado, LPC, Meijer Stuart Deske, LPC, Redbox Automated Retail Susan Factor, LPC, Walgreens Jason Foshee, LPC, Cash America International Richard Fuehrer, LPC Amber Gilmore, LPC, Cabela’s Peter Green, LPC, Goodwill Industries of Central Indiana Nathan Guta, LPC, Walgreens Crystal Hancock, LPC, Big 5 Sporting Goods Charles Kostyk, LPC Joseph Laufenberg, LPC, Festival Foods Pascual Machado, LPC, TJX Karlye Maloney, LPC, Goodwill Industries of Central Indiana Mark McInaney, LPC, Walgreens Sonya Medlock, LPC Rite Aid Charles Moore, LPC Walgreens Nicole Pappas, LPC, Redbox Automated Retail Matthew Pearsey, LPC, Goodwill Industries of Central Indiana Camio Robinson, LPC Saud Sanady, LPC Chris Schkade, LPC, Walgreens Ethan Stephens, LPC Nicole Strange, LPC, Publix Super Markets David Strom, LPC Randall Thomas, LPC, Goodwill Industries of Central Indiana Bryan Venza, LPC, TJX Laurie Zaccaro, LPC, Walgreens

Recent LPQ Recipients

Mariah Angelo, LPQ, Rack Room Shoes Eric Bosko, LPQ Roy Bredahl, LPQ, Walmart Linda Bredeson, LPQ, Publix Super Markets Seirra Brown, LPQ, IOBSE Kelly Cybulski, LPQ, RILA Shaunte Davis, LPQ, T.J.Maxx Camille Decker, LPQ, Weis Markets Charles Dincol, LPQ, Home Depot Walter Edwards, LPQ Kelli Gasswint, LPQ, Rite Aid Ginny Gomez, LPQ, Macys Logistics and Operations Peter Leary, LPQ, Allied Barton Security Services Gregory McDermitt, LPQ, Walmart Trevor Monroe, LPQ, Rack Room Shoes Toyce Newsome, LPQ, T-Mobile USA Rudi Robinson, LPQ, Sears Holdings Alicja Smardz, LPQ, eBay

NOVEMBER - DECEMBER 2013

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Product Showcase and Resource Guide

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CONTENTS

ALARM MONITORING/RESPONSE

Category, Page Access Control, 52 Alarm Monitoring/Response, 52 Auditing, 53 Background Screening, 53 Case Management, 53 - 54 Cash Handling/Safes, 54 - 55 Civil Recovery, 55 EAS, 55. Education/Certification, 55 Employment/Recruiting, 56 Exception Reporting, 56 Facial Recognition, 56 Fire and Life Safety Systems, 56 Guards, 57 Internal Theft, 58 Locksmiths. 58 Physical Security, 58 - 59 Product Protection, 59 - 60 Refund/Returns Management, 61 Restorative Justice, 61 Safety, 61 Security Pedastal Advertising, 61 Security Seals, 61 Security Systems, 62 - 63 Store Detectives, 62 Video Surveillance, 63 - 65 Wireless In-Store Communications, 66

WATCHING OVER YOU SINCE 1873 • Underwriters Laboratories Listed

ACCESS CONTROL

Find Out Why InstaKey Security Systems Is The Number One Key Control Program Among Retailers!

Many Companies Promise Great Service

ECL-230X-TDB

•

Factory Mutual Approved

•

SIA Certified Operators

At AFA, we deliver superior levels of customer service. If you don’t believe us, ask our customers!

8 6 6.232.628 5 www.afap.com

NO MORE...

16,000 lbs of pull force

✓ Inconvenient and Costly Locksmith Callouts ✓ Inopportune IC Core Swap Holdups and Delays ✓ Unauthorized Key Duplication

Access Control ■ Video Surveil lance ■ Intrusion Alarm

We Deliver it! Just Ask Our Customers. Providing Service Excellence for over 45 Years

www.instakey.com | 800-316-5397 | 303-761-9999

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www.setronics.com | 800-640-4550 |

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AUDITING

BACKGROUND SCREENING

It all adds up to easier.

Global presence

Compliance Easier Turnkey technology expertise screening

We can help you pinpoint the right people for your success. fadv.com 866-400-3238

CASE MANAGEMENT

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CASE MANAGEMENT

CASH HANDLING/SAFES

pneumatic tube systems worldwide

Loss Prevention Solutions for internal cash handling www.aeroco Real Time Tracking Complete Audit Trail RFID Technology

Toll Free 800.231.4156

www.aerocom-usa.com www.aerocomcanada.ca

CASH HANDLING/SAFES

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CASH HANDLING/SAFES

CIVIL RECOVERY

EAS

INTRODUCING

SUMMIT SERIES THE NEXT GENERATION OF CLOUD-BASED CASH MANAGEMENT SYSTEMS

LossPreventionFoundation_Ad Texture.pdf

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2:54 PM

Inventors of the

a3tag

The new mantra in retail security

THE NEW SUMMIT SERIES OF SAFES OFFER:

• Web-based reporting • Complete remote management suite • Plug and play installation • Blowfish cipher encryption for secure communications

The new patented intelligent a3tag combined with the new Smart Detacher provides retailers the tools to control not just external theft but internal shrinkage too.

To learn more, contact us at: (800) 342-3033 ext. 5335 info@apunix.com

glen@retailersadvantage.com Tel: 416 699 2566 www.rfidadvantage.com

EDUCATION/CERTIFICATION PRALPShowcaseAd1303.indd 1

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HOW WILL YOU BE

MEASURED? Get certified through the Loss Prevention Foundation. Set yourself apart with credentials that are the standard for the loss prevention profession.

For more information visit losspreventionfoundation.org or call (866) 433-5545

Educating an Industry, One Leader at a Time LP MAGAZINE | NOVEMBER - DECEMBER 2013

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EMPLOYMENT/RECRUITING

Jennings Executive Recruiting, LLC

FIRE AND LIFE SAFETY SYSTEMS

Retail 20|20 A Loss Prevention Reporting Solution Built for the 21st Century

“A Refreshing Approach to Loss Prevention Recruiting” Specializing in Nationwide Loss Prevention and Asset Protection Recruiting

EXCEPTION REPORTING

Denise Jennings, President

WATCHING OVER YOU SINCE 1873 • Fire Alarm Systems

We focus on providing superior customer service to both client companies and candidates. We pride ourselves in evaluating talent, making successful placements and continual follow up before and after each search. We sincerely care about placing the right person in the right position, and with the right company. Membership Affiliations: The Loss Prevention Foundation National Retail Federation (NRF)

Design & Installation

•

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!

503-305-8063 denise@jenningsrecruiting.com www.jenningsrecruiting.com

•

8 6 6.232.628 5 www.afap.com

www.agilenceinc.com | 856-366-1200

FACIAL RECOGNITION

Catch shoplifters as they walk through the door. That’s how FaceFirst® — today’s most advanced yet affordable facial recognition technology — is transforming loss prevention for a Fortune 100 retailer with hundreds of locations. FaceFirst sends descriptive alerts seconds after known shoplifters or litigious individuals enter any of your locations so you can spot and stop trouble before it happens. Call FaceFirst now and discover why LP Magazine says this is “game-changing technology for retailers.”

805-482-8428 www.FaceFirst.com

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GUARDS

Now you can manage your guard program in the palm of your hand. BLACK

Security Guards & Investigative Solutions BLACK ONLY AND GRAIDENTS BLACK NO SHADOW

Security Guards & Investigative Solutions

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YOUR TRUSTED PARTNER FOR ALL Security YOUR SECURITY NEEDS! Guards & Investigative Solutions

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Security Guards & Investigative Solutions INVESTIGATIVE EMERGENCY PERMANENT SOLUTIONS RESPONSE & TEMPORARY SECURITY GUARDS

Security Guards & Investigative Solutions

w w w.protossecurity.com

Security Resources, Inc. is a leading national security company providing security guards and investigative solutions throughout the United States, Canada, and Puerto Rico.

Permanent, temporary and emergency guards for U.S., Canada, and Puerto Rico

(877) 477-9638 www.securityresources.net

1-866-403-9630

St. Moritz is a global, full service, integrated Security Company. St. Moritz provides Loss Prevention Guard services – armed, unarmed, uniformed and suits for an impressive list of premium clients around the world. St. Moritz operates 27 company-owned Regional Offices managed from its headquarters-based International Communications Center (ICC).

Contact:

Bob Buckley - VP of Loss Prevention BBuckley@smssi.com | (617) 529-2812

www.smssi.com

GUARDS 24 Hours a Day • 7 Days a Week • 365 Days a Year! • “Providers of Reponsive Professional Proactive Protection”

The ONLY Security Guard Company Owned and Operated by Loss Prevention Professionals

EMERGENCY GUARDSecurity SERVICE Guard Service Permanent, Temporary & Emergency Security Protection Emergency Guard Service in 2 Hours or Less. Retail Security Specialists Off-Duty Cops & Police Officers Mobile Vehicle Patrol Service Armed or Unarmed Officers Uniformed or Plain Clothes Loss Prevention Officers Security Surveillance

One point of contact, one invoice, one account manager, one operation that mitigates risk, limits liability, prevents loss and protects assets. LP@nationwidesecurityservice.com • www.nationwidesecurityservice.com

Toll-Free Dispatch:

1-888-980-9118

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INTERNAL THEFT

Clear Employee Handbags For Loss Prevention

NO MORE...

Multi-Point Exit

SIMPLY THE BEST!

Take It From The Pro’s! Watch The Video

LP Director:

”...superb security comes from the automatic high security relocking provided in the self locking Trident lock...” Fire Marshal: Locksmith:

“...really like seeing the Trident bolting into the frame instead of the floor where dirt, moisture, & salt build up in the strike...”

615-988-0468

www.clear-handbags.com

Bolts Into The Frame Not The Floor!

✓ Inconvenient and Costly Locksmith Callouts ✓ Inopportune IC Core Swap Holdups and Delays ✓ Unauthorized Key Duplication

Clear Handbags & More provides clear bags to the retail industry for both store locations and Distribution Centers. Call us today to find out how implementing a clear bag policy can improve security and reduce internal theft at your facility.

You Want, We Do

Find Out Why InstaKey Security Systems Is The Number One Key Control Program Among Retailers!

Does your facility require clear bags for security reasons?

If not, should you?

PHYSICAL SECURITY

LOCKSMITHS

“...Trident provides multiple points of locking with code compliant single motion release for exit doors - much better than slide bolts...”

www.securitech.com

www.instakey.com | 800-316-5397 | 303-761-9999 PHYSICAL SECURITY

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PRODUCT PROTECTION

PHYSICAL SECURITY

LockUp employee lockers are the foundation of a solid loss prevention strategy. Lockers feature shared-use locks, so fewer lockers are needed, reducingboth material investment and locker footprint. LockUp is a turnkey locker and lock solution, saving costly labor for assembly and installation. LockUp offers secure, personal storage for employees and rapid ROI for stores.

Sales Up, Shrink Down. Beautiful. Talk about retail insight. Turns out that theft, aka shrink, was a 40 billion dollar issue for retailers last year. Yet effective solutions are few and far between. RockTenn, in collaboration with the Loss Prevention Research Council, is committed to addressing that opportunity. Like with our Anti-Shrink* technology. This modular security cabinet system restricts shelf removal to one bottle at a time. Real-world in-store testing demonstrated that this approach is one of the most effective ever. Shrink was down dramatically, accompanied by substantial sales increases. Anti-Shrink technology is adaptable to most products and packages.

PRODUCT PROTECTION LP Resource Guide.indd 1

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If your brand or category is subject to the high cost of theft, sound the alarm. Call Kathy McGowan-Carnes right now. 973.610.2871. We will share the 3 key criteria to successful loss prevention, and show you how to apply that to your business.

Watch it in action check out the video! * U.S. and foreign patents pending.

Improving your bottom line one innovation at a time.

LockUp by Digilock® lockup.com | 707.766.6000

www.rocktenndisplays.com

More in Store. Less Out-of-Pocket.®

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Se-Kure Perfume LP Magazine Ad 10-4-13_Layout 1 10/4/13 1:31 PM Page 1

PRODUCT PROTECTION

INCREASE YOUR MERCHANDISE AVAILABILITY WITH EVOLVE E10 Protect Your Merchandise. Promote Your Messaging. Plan Your RFID Migration.

www.CheckpointSystems.com

PRODUCT PROTECTION

ZERO THEFT!

Eliminate shoplifting and employee theft with the Vensafe dispensing system!

A Southern Imperial Company

www.intelligentlossprevention.com 800.747.4384

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RESTORATIVE JUSTICE

SECURITY PEDASTAL ADVERTISING

Save Time. Increase Restitution. Reduce Recidivism. Only with CEC’s Complete Restorative Justice System. —2.167” wide x 4.625”

Contact CEC to learn more. sales@CorrectiveEducation.com 877-318-0983

www.CorrectiveEducation.com

REFUND/RETURNS MANAGEMENT

SAFETY

SECURITY SEALS

New, Most Comprehensive, State-Of-The-Art

Combustible Dust Hazards Testing Lab & Education Center

11 10 of the top 50 retailers use the retail equation to improve their return processes.

www. FAUSKE.com

877-FAUSKE1

Our expert team will help you identify what samples need testing and walk you through OSHA Combustible Dust NEP and NFPA codes compliance.

www.theretailequation.com LP MAGAZINE | NOVEMBER - DECEMBER 2013

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SECURITY SYSTEMS

It’s all about visibility. WATCHING OVER YOU SINCE 1873 • Burglar Alarm Systems •

Design & Installation

•

UL Listed & FM Approved Central Station Monitoring

With Tyco Integrated Security’s help, you can learn to think like a Chief Visibility Ofﬁcer. Look beyond LP and shrink to see what your security technology can do to help protect and improve customer experience.

At AFA, we deliver superior levels of customer service. If you don’t believe us, ask our customers!

Learn more at TycoIS.com/CVO

8 6 6.232.628 5

www.afap.com

STORE DETECTIVES TYCO-18534 LP Mag - Resource Guide Value Ad.indd10/14/13 1 3:37 PM

U.S. SECURITY ASSOCIATES, INC

RETAIL LOSS PREVENTION SERVICES t WE PROVIDE

Loss Prevention Associates to Apprehend Shoplifters Store Greeters under COMPASS program to help Deter Shoplifters Retail Uniformed Security Officers Temporary and Permanent Assignments for All Services

www.ussecurityassociates.com 866-989-4644 “A Suite of Services for the Retail Community”

Over 160 Offices Nationwide Including Canada, Mexico and Puerto Rico 62

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SECURITY SYSTEMS

VIDEO SURVEILLANCE

When you think

IP video

think

American Dynamics

VIDEO SURVEILLANCE

Get all the power and reliability of our larger NVRs in a frame small enough to fit in the palm of your hand. Our full suite of video solutions are designed specifically for retail environments to: • Cut losses by integrating surveillance video and point-of-sale transaction data • Speed investigations and recoveries with better, more efficient searches • Improve store compliance, presentation and other operations through daily, automated reports you can scan through in minutes from any remote location • Enhance customer and employee safety

• Proven long-term leadership with Intellex legacy • Complete IP camera portfolio - standard res to HD • NVRs and Hybrid recorders that dispel the “big business only” mentality • Groundbreaking video management that unifies analog and IP

F r o m Ty c o S e c u r i t y P r o d u c t s

SEE MORE at marchnetworks.com

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VIDEO SURVEILLANCE

Your cashier’s sweetheart is first in line.

Delivering the next generation of video analytics.

Be the first to know.

WATCHING OVER YOU SINCE 1873 • Video Surveillance Systems - IP & Analog - Intelligent Analytics •

Design & Installation For information regarding our complete line of digital video solutions, call 516-827-6326 or email info@clickitinc.com

Get the Axis picture. Stay one step ahead. Visit www.axis.com/retail

At AFA, we deliver superior levels of customer service. If you don’t believe us, ask our customers!

8 6 6.232.628 5

www.clickitinc.com

www.afap.com

VIDEO SURVEILLANCE DTT’s SmartAudit™ reports provide a comprehensive business improvement tool for locations.

VIDEO SURVEILLANCE

axis_ad_retail-sweet_lossprev_1sixthpg_us_1310.indd 2/10/2013 1 2:50:42 PM

Many Companies Promise Great Service

CASH THEFT h Review cash going into and out of the register.

SOLUTIONS TO EMPOWER YOU Optimize store operations with Milestone video surveillance software

Employee rolls up cash and places in her pocket.

TRANSACTIONAL FRAUD h Identify fraudulent transactions using POS overlay.

Access Control ■ Video Surveil lance ■ Intrusion Alarm

We Deliver it! Just Ask Our Customers. Providing Service Excellence for over 45 Years

Employee rings up a ‘No Sale’ for $0.00 but receives cash from the customer and hands him change. This creates an overage in the register, which can be taken at a later time.

www.milestonesys.com

800.933.8388 www.dttusa.com

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www.setronics.com | 800-640-4550 |

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VIDEO SURVEILLANCE

VIDEO SURVEILANCE

VIDEO SURVEILLANCE

Security Simplified.

Experience Verint. see what’s in store Look to Sony video for quality, insight and context.

It’s all about visibility.

A Global Leader in Video and Situation Intelligence Solutions Verint® helps retailers to manage business more efficiently, increase customer satisfaction and embrace new ways to improve operations — and the bottom line. From real-time monitoring of interactions in your store to providing powerful business intelligence solutions that can count traffic, analyze dwell times and determine the number of people at the checkout lines, Verint’s comprehensive solutions can lead to more sales, higher profits, stronger customer loyalty and increased customer satisfaction.

To learn more, visit Verint.com/videosolutions or call 866-NEXTIVA

See Sony cameras in action at sony.com/security/retail

Learn more at TycoIS.com/CVO © 2013 Sony Electronics Inc. All rights reserved. Reproduction in whole or in part without written permission is prohibited. Sony and the Sony make.believe logo are trademarks of Sony.

SITUATION INTELLIGENCE / VIDEO MANAGEMENT & ANALYTICS AUDIO & SPEECH ANALYTICS / BUSINESS INTELLIGENCE INTELLIGENT NVRS / IP CAMERAS / ENCODERS & DECODERS

VIDEO SURVEILLANCE TYCO-18534 LP Mag - Resource Guide Value Ad.indd10/14/13 1 3:37 PM

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INDEX Securitech, 58 Security Resources, 57 Se-Kure Controls, 60 Setronics, 52, 64 Sony Electronics, 65 St. Moritz Security Services, 57 Store Board Media, 61 SURE 'N FAST, 54 Telaid, 58 The Retail Equation, 61 ThinkLP, 53 Turning Point Justice, 61 Tyco Integrated Security, 62, 65 Universal Surveillance, 65 U.S. Security Associates, 62 Verint, 65 ViewZ, 63

InstaKey, 52, 58 Intelligent Loss Prevention, 60 Jennings Executive Recruiting, 56 LockUp by Digilock, 59 Loss Prevention Foundation, 55 LP Software, 53, 54 March Networks, 63 Milestone, 64 Nationwide Security Service, 57 NuTech National, 52 Palmer, Reifler and Associates, 55 Protos Security, 57 Retailer Advantage, 55 Ritron Wireless Solutions, 66 RockTenn, 59

Aerocom, 54 AFA, 52, 56, 62, 64 Alpha, 59 Agilence, 56 American Dynamics, 63 AXIS Communications, 64 Detex, 52 Corrective Education Company, 61 CheckPoint, 60 CheckView, 62 Clear Handbags & More, 58 ClickIt Inc., 64 Corporate Safe Specialists (Summit), 55 DTT, 64 ELC Security Products, 61 FaceFirst, 56 Fauske & Associates, 61 First Advantage, 53

WIRELESS IN-STORE COMMUNICATIONS

Better Communication is Better Security. 2-way Radios Shopper Callboxes Wireless Intercoms Tough MIL-STD 810 Rating Lightweight and Compact • VHF and UHF Models • License-Free Models Available • 255 Channels • Audio Accessories and Gang Chargers available • PC Programmable • •

For Use at Locked Cabinets, Will-Call Areas, Seasonal, Heavy Merchandise Areas, Fitting Rooms • Works with Your Existing 2-way Radios • Wireless, No Wires to Run • Battery Powered • Easy to Install • Cost Effective •

For Use at Rear Delivery Doors or Any Restricted Access Areas • Works with Your Existing 2-way Radios • Keeps Doors Locked while Allowing 2-way Radio Communication with Inside Personnel • Long Range • Industrial Grade • Easy to Install • Cost Effective •

visit us at www.ritron.com 66

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SOLUTIONS SHOWCASE DTT

DTT Combines Video Surveillance and LP Services to Generate Profit

s a leader in video surveillance and loss prevention solutions, DTT provides operators with an extensive collection of managed services along with superior hardware and software. DTT has equipped, serviced, and supported more than 30,000 clients, offering a solution that makes managing locations simpler and also improves the overall operation. DTT’s solution is entirely customizable to suit the needs of any operator. Following are comments from various convenience-store operators, specifically.

Chris Zimmerman, COO Gilligan Oil Company, 67 Units “I was tired of dealing with different vendors for security systems and wanted to implement one that could work across my entire enterprise. When I was introduced to DTT, it was not only the most convenient choice, but also turned out to be a high-quality system that makes sense for my operation. “Both the SmartAudit™ reports and MyDTT™ portal have become a critical part of my business. I can’t be at every location at one time, so I rely heavily on my team to run the operation on the ground. I need to be sure that what I am pushing down from the top is working properly at the store level. “The SmartAudits let us know what areas we need to work on. DTT’s loss prevention department acts as my eyes and ears in the stores.”

Bruce Holbrook, Owner Express Stop AZ, LLC, 19 Units “Our stores are spread across the four corners of Arizona, so we manage a multi-unit operation more or less remotely. As a result, surveillance is vital for us as it provides the opportunity to check in without having management physically present. “Convenience stores tend to have very few people on duty at a time—as few as one person at times. That means that management may not always be around, so monitoring the store and fuel islands is challenging. The exterior cameras are crucial. We need to know what’s going on at the fuel islands, including customer accidents, damage to company equipment, customer and employee interactions, and fuel spills. The video helps us to quickly view incidents, document how they occurred, and aid in determining next steps.

DTT has equipped, serviced, and supported more than 30,000 clients, offering a solution that makes managing locations simpler and also improves the overall operation.

Preston Bartow, Loss Prevention Mickey Mart Food Stores, 30 Units “We use the system mostly for spot-checking things like customer service, internal and external theft, and accidents. The system helps to keep employees on their toes. We often watch the stores live and will call to address concerns right on the spot, which lets them know we are paying close attention. “With the DTT system, I was able to uncover product theft at one of our c-store locations. I caught on to a cash shortage and, upon review, found that the store clerk was handing cigarettes out the window for free. We quickly provided the video footage to the police department and the employee was terminated and arrested. “Overall, I find that the DTT system helps with LP, protecting company assets, and employee behavior. It’s a tool that my team and I utilize every day.”

“We use the Live View portion of the MyDTT portal daily to dial into all our stores and get a good idea of what’s happening across all areas of our operation. With the MyDTT portal, we find the case-management software useful because of the need to review and document store-level incidents. In the past if an incident occurred, someone needed to go to the location and burn footage from a local DVR. Now, DTT does the work collecting the data and we simply review the video of each incident.”

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SOLUTIONS SHOWCASE CHECKPOINT

Checkpoint Introduces Intelligent Merchandise Availability Program Directly to Retailers’ Showrooms

etailing has always been a challenging business—tight margins, pricing pressures, demanding and knowledgeable consumers, and intense competition all raise the stakes for retailers trying to succeed in their markets. Not surprisingly, smart retailers are looking for new ways to optimize their business processes and deploy tools that help them improve both their top and bottom lines while enhancing shopping experience. Today, those pressures have been intensified by the development of trends such as omni-channel retailing, just-in-time inventory, and faster merchandise refresh rates. All of these challenges contribute to the difficulty in overcoming what has emerged as retailing’s number one challenge—reducing out of stocks so the right merchandise is available at the right time, at the right place, when the shopper is ready to make a purchase.

The iMAP Store is a mobile display, designed to simulate a variety of retail vertical markets and demonstrate Checkpoint’s innovative solutions. The store can be temporarily installed almost anywhere, helping retailers prioritize the types of customized features needed to be deployed to make it a powerful tool specifically for their store environment. Out-of-Stock Situations

That’s where the Intelligent Merchandise Availability Program (iMAP) comes in. This concept, pioneered by industry leader Checkpoint Systems, helps retailers reduce out-of-stock (OOS) situations. OOS are primarily caused by two main factors, shoplifting and operating inefficiencies related to inaccurate inventory management. Checkpoint’s iMAP program helps retailers address both aspects with proven solutions that reduce shrink and new innovative technology that enhances merchandise visibility. Only Checkpoint offers this unique program, which integrates multiple retail operational processes in order to provide real-time intelligence and critical insights into the store’s merchandise availability. Built upon EAS and high-theft solutions for loss prevention, as well as the unique capabilities of RFID technology, iMAP supports retailers’ critical efforts to employ sophisticated analytical techniques to understand the sources of out-of-stock situations and measure the effectiveness of initiatives to mitigate them.

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But iMAP is more than an innovative concept built around reducing out of stocks and improving merchandise availability. It is a reality today and can be demonstrated at retailers’ headquarter sites as a working prototype, illustrating solutions to multiple scenarios faced in a store environment. This iMAP Store gives retailers the ability to do much more than imagine a solution—it lets them experience how a solution would apply in their own store environment.

The iMAP Store

specifically for their store environment. This “traveling store” comes with RF/RFID hardware, software, EAS tags and labels, and Alpha high-theft merchandise protection solutions. Retailers can see examples of such applications as: E xit door solutions, S ales floor merchandising options, P oint-of-sale checkout and deactivation systems, I nventory receiving area, P hysical inventory, and H igh-theft solutions. After seeing the live demonstrations on site, many retailers have taken the next step and tested different solutions at their stores with a measurable improvement in reducing out of stocks. Learn more by scheduling an iMAP Store demonstration today to see how Checkpoint’s emerging technologies can positively impact your merchandise availability and increase your shopper satisfaction.

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SOLUTIONS SHOWCASE ALPHA

Alpha Spins a Continuous Web of Innovation

oss prevention managers and retailers have one goal in mind when it comes to shrink management—develop more sophisticated ways to prevent or detect theft, while creating an “open merchandising” environment that encourages shoppers to buy more. To meet that goal, Alpha leads the industry when it comes to designing and engineering many of the most innovative and utilized high-theft solutions.

The solution offered the adjustability needed to fit a variety of boxes while providing EAS deterrence. Through the use of retractable cables that wrapped around each side of a box, the Universal Wrap pioneered a new era in security. Once the cables were ratcheted into a cinched position, the Wrap could not be removed without a specialized magnetic key. The solution also provided flexibility with differing EAS technologies by offering RF and AM versions. Alpha filed for patent protection on the Universal Wrap, and was awarded a U.S. patent (5,722,266) for the technology in 1998.

Next-Generation Wrap

Case in Point—The Alpha Spider Wrap

The original concept of the Spider Wrap was developed by Alpha in 1996 after studying the shrink challenges encountered by one of their large consumer electronics customers. The retailer was having difficulty protecting boxed merchandise of different sizes—in particular boxed hard drives—and they required a single, “one-size-fits-all” solution. Previous attempts at protection ranged from employing plastic and metal bands to various types of collapsible bags. However, these concepts distracted from the branding and merchandising set and were difficult to apply, especially on the sales floor. Alpha’s General Manager Larry Yeager and their team of engineers were determined to provide a solution for six-sided box security—one that would be adjustable, but also secure enough to deter theft. Their efforts paid off, and the “Universal Wrap” was born.

Despite the success, the Alpha team was not finished. They engaged retailers to provide candid feedback on the performance of the Wrap and, in response to that feedback, began to make improvements. The next generation no longer required the use of a separate tool to tighten the cables. An integrated, on-board cable tightening mechanism was now housed in a smaller body and on-board electronics would audibly alarm if a cable was cut. This pioneering breakthrough led to Alpha’s ongoing market leadership in alarming technology. Retailers were realizing that Alpha’s wrap solutions were a key contributor to meeting their shrink-management goals. When a retailer commented that the device body and cables were reminiscent of the body and legs of a spider, the Universal Wrap became the “Spider Wrap®,” which has become one of the most trusted theft-deterrent solutions in the global marketplace. The story of the Spider Wrap is just one example of the successes in innovation that Alpha has experienced. They continue to pioneer new solutions, and the results are continually recognized. One loss prevention director recently stated, “Alpha has filled a void by engineering very merchandise-specific, shrink-prevention devices that bring unequaled creativity and shrink deterrence to the market along with excellent customer satisfaction and increased merchandise availability.” Alpha is currently developing the next generation of Spider Wraps. Key features include a stronger locking mechanism, a smaller body for improved merchandising, “no tangle” cables, and dual EAS technology. An XXL size is also being developed to protect extra-large boxes for items like plasma TVs. Investing in research, development, and product management to fuel Alpha’s innovation pipeline is essential. It shows their commitment to solving retailers’ challenges by inventing the tools necessary to sell more and lose less. With nearly 200 patents under their belt, you can be sure that Alpha will continue to provide positive contributions to the industry.

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MY TURN

Why Your New LP Career Is Going Nowhere and How to Fix It

uring my first year in the loss prevention field, I had a manager who routinely took walks around the outside of the store during his shift. He regularly asked me to join him, and he would use the time to simply talk. He discussed tricks of the trade, pitfalls, things I should remember for my safety, and other little golden nuggets of information. At the time I took these walks for granted. I viewed them as simple security checks and, frankly, annoying disruptions to my day. I mean c’mon, we had shoplifters to catch, right? But there comes a point in your career when you’re able to reflect with more clarity. Today, I realize those walks were much more than just security checks. They provided my manager with time to teach in his environment, where he had my undivided attention. He knew that one day the information he was giving me would prove useful. He was right. Since his method was so effective, plus I could use more exercise, I thought I’d try it myself today. Let’s take a walk shall we?

This Is for the Rookies

Are you a public sector pro that recently made the jump to the private sector? Perhaps you’re fresh out of school looking to blaze your own trail in loss prevention. Or, maybe you’ve switched careers entirely and landed in this field looking to climb the corporate ladder. Regardless of how you’ve arrived, there’s one thing that you should focus on right out of the gate, as it can be the difference between upward mobility and a stagnant career. And if you apply enough effort to it, you’ll be rewarded with the career you want and deserve, instead of settling for one that someone else thinks you should have. Personal branding—It isn’t just for mega companies with huge marketing budgets. It’s for you. Personal branding is simply the practice of marketing…well, you. It allows you to highlight the skills, traits, and accomplishments that make you unique. Your brand can ultimately become your reputation; what people think of when your name is mentioned.

Let’s Walk over This Way

When you need a dentist, plumber, or even an attorney, how do you evaluate talent before you make a decision on whom to

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By Brandon Brown, CFI Brown is a freelance writer and loss prevention professional with over seventeen years’ experience in the retail, financial, and food-service industries. He holds the Certified Forensic Interviewer (CFI) designation and has received advanced training in Wicklander-Zulawski interview and interrogation and practical kinesics interview and interrogation methods. Brown is a member of the National Writers Union, the International Association of Interviewers, and the Restaurant Loss Prevention and Security Association. He can be reached at brandonbrowncfi@gmail.com.

hire? You probably start your search online or ask your friends and family. Before you hire them, the person’s talent and how they will treat you are probably paramount to you. But how do you measure this and what truly influences the decision you make? Most likely it comes down to one thing—perception. Your own perception of the individual’s talent level and how they treat their customers will either compel you to hire them or keep you searching for a professional that meets your needs. You desperately search for information that will provide insight into this person. You make your own judgments using things like customer testimonials, “star” ratings, and other available data. Throughout your LP career, the folks that will make decisions about you and your career path will do the same thing. And since much of evaluating your talent is subjective, it’s important that you’re involved in the process and proactively influence the perception those people have of you. This is exactly what personal branding will help you do. You may be reading this thinking, “If I just do a great job, my results will highlight my talent.” Maybe; maybe not. I’m sure by now in your new role, you’ve spent a considerable amount of time learning what’s expected of you. You understand the performance metric categories you’ll be measured by—case totals, recovery dollars, sales, accident frequency, shrink numbers, whatever. Producing exceptional results across these categories will surely help justify your employment and satisfy your superiors. But only excelling at them won’t necessarily get you to the next level without mixing in some personal branding. Why?

Let’s Walk across the Street Here

The reason is that real talent can sometimes be difficult to measure and see in the loss prevention industry, especially to the people who really matter when it comes to your career advancement. Whether it’s a superior a bit higher up the ladder in your current company, or a hiring manager at a different company, many times their lines of sight to your talents and accomplishments can be blocked. Sometimes it may be blocked by your immediate supervisor for a myriad of reasons, or sometimes simply because of the nature of our business. For example, the numbers used to evaluate you are often confidential in nature or difficult for hiring managers to locate. Things like privately-held company performance, shrink results, internal theft case totals, recovery dollars, and safety numbers are often very closely guarded.

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There is also a component of our jobs that make it difficult to evaluate our talent based on numbers alone. Much of what we do as loss prevention professionals is intangible. Our ability to influence behavior, deter misconduct, train people, and “sell” our message to our business partners and organizations might be reflected in our numbers. Or, they might not be due to circumstances beyond our control. But these things are very important for people to understand when they are making a determination on our effectiveness. Unfortunately, there’s no website that lists the top 100 most-talented loss prevention professionals, sorted by their unique traits and characteristics for companies to promote or recruit from. For those new to loss prevention, there’s no portfolio to display, showing the masterful work you’ve done in the industry, beyond your own statements and claims. And as long as that’s the case, then it would be prudent for you to be proactively involved in the process and spend some time influencing perception. Here's how.

Watch Your Step on That Curb and Let’s Walk on Back

Best-selling author and marketer, Seth Godin, advises, “Obsessively specialize. No niche is too small if it’s yours.” Find Your Niche. What problem can you solve better than anyone else? For upward mobility you should invest the time to separate yourself from the rest of your peers, not mimic them. Otherwise, you’ll get lost in the crowd. And you’re far better than that. Find your strengths and passions. Strive to be better than them at every other professional in the industry, because when you specialize and make yourself the expert in something, the right people will find you. If you needed heart surgery, would you be okay with any doctor performing the surgery, or would you seek a specialist? If your forte is training, then be the authority on LP training and awareness. If you’re into safety, then own it. Interviewing? ORC? LP technology? Robbery prevention? Inventory? Know everything there is to know about your chosen niche. Read, study, interact with other industry leaders, and develop or improve your company’s processes in your niche area. It’s easier to market yourself as (insert name) expert on (insert niche), than it is to market (insert name) loss prevention professional. Stand out. Get noticed. Move up. Conduct an Inventory. Not that kind of inventory—your inventory. Before you can really develop your personal brand, you should know how people currently perceive you. Ask for feedback from your coworkers and others who know you. Listen for the consistencies. Often times, people will give you a lot of information about how you’re perceived (positive and negative) so you can fine-tune their perception down the road. Ignoring your faults and negative traits will only delay your progress and can cause inconsistencies in the brand you are developing. Network the Right Way. How many times have you received an email out of the blue from a former coworker who you haven’t seen or heard from in years, suddenly asking if you could help him or her find a job? How does that make you feel? Exactly. Don’t be that person. It hurts your brand.

Value the relationships you make and nurture them throughout your career. If you consistently interact, treat people right, and give your time and energy without expecting anything in return; good things will happen. When your network sees you as generous, helpful, and an industry expert, you’ll improve your “star rating” and receive the social proof needed to advertise that your personal brand is solid. Tell your Story. Stories sell. You’re a human being; not a job title and a resume. Telling your story is really about just being yourself and showing your human side. It’s your personality and uniqueness that will build your personal brand. Your story makes you relatable to others. It drives connection and that’s what it’s all about. Be genuine. Tell your story across any medium you use to communicate your brand’s message, and you’ll make connections that will help your career when it matters most. Perception Is Reality. Make sure that your brand’s message is consistent. It’s meaningless to spend the time and effort building your reputation offline, only to have your reputation be negatively affected online because you posted the wrong photos. It doesn’t really matter what you think; it matters what your audience thinks. And in your case, your audience is any hiring manager who offers career advancement. How they perceive you is reality. Pay Attention to the Details. It’s the small things that make the biggest difference, especially because you never know when a networking opportunity might present itself. Make sure your brand is presented well and consistently across all mediums. When was the last time you freshened up your Business cards, Social media accounts, Resume, Email signature, or Professional headshot? Prepare. Imagine yourself at an industry conference talking to a loss prevention hiring manager. Are you prepared? As Alec Baldwin, sales guru in the movie Glengarry Glen Ross, said, “Always be closing.” What will you say if someone asks you what you do? You can’t just say, “I work in the loss prevention department for XYZ company.” Nope. Missed opportunity. You should be ready with a practiced “elevator pitch”—a brief statement that highlights not only what you do, but communicates your value. You want to highlight why you’re different and what you can provide their company. Always be prepared to market your personal brand in a way that highlights why you’re unique and tells your story at the same time.

Looking Back down the Road

With time spent taking your personal inventory and establishing a personal brand, very soon, you’ll be looking back on a fantastic career that you’ve built in the loss prevention industry. You will have reached your goals because of your own hard work, talent, and personal branding efforts. One day, you’ll have a chance to influence someone else’s career. Share your experiences, struggles, and successes with them. In fact, when that day comes, you may want to ask them if they’d like to take a walk.

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INDUSTRY NEWS

Technology Innovations That Made a Difference

by Robert L. DiLonardo DiLonardo is a well-known authority on the electronic article surveillance business, the cost justification of security products and services, and retail accounting. He is the principal of Retail Consulting Partners, LLC (retailconsultingllc.com), a firm that provides strategic and tactical guidance in retail security equipment procurement. DiLonardo can be reached at 727-709-6961 or by email at rdilonar@tampabay.rr.com.

ideo literally means “I see” in Latin. The ability to capture, record, and distribute what we see is now ubiquitous. Anyone with a cell phone can conduct surveillance and instantly slap the clip up on YouTube…whether the subject likes it or not. In our business the camera dome enclosures, the technology inside them, and the systems controlling their operation are the ever-present reminder that unfettered visibility to assets, customers, and potential thieves is crucial to our success. We take for granted the power of video surveillance, but the early components were neither sophisticated, nor easy to integrate into a useful tool. The fictional “mass surveillance computer system” portrayed on the current CBS crime drama Person of Interest has been conceived from closed-circuit television system components continually evolving since the late 1960s. “CCTV” is an anachronism, not a useful acronym. The seasoned veterans among this readership are fond of musing about the interesting things they have witnessed over their careers. The evolution of camera-based surveillance systems provides an interesting walk down memory lane. The first day of my career in retail—circa 1974—started with a walk past the security guard at the employee entrance. As I waited in line while he checked IDs, I had my very first encounter with the 9-inch-square CCTV monitor capturing an image from the fixed camera sitting over his shoulder, pointing at the door. The picture was unintelligible from the “burn-in” after months of non-stop focus on a single, unmovable point. The boxy, large camera was in plain sight and braced into the wall, but it could be refocused or repositioned up and down or by hand.

Early Video Patents

Following are some of the most meaningful evolutionary developments in the space. Camera Housings. The patent for the first rotating housing for an anti-shoplifting surveillance camera was issued in October 1970. Shaped like a hanging lantern, with real and fake camera lenses protruding from all sides, the device could be “toggled” to rotate clockwise and counter-clockwise up to 355 degrees to a stop. The patent abstract describes “units without television cameras which are operated for psychological

Over the course of the past forty years, cameras have evolved from vacuum tube non-solid-state electronics to a portion of a PC board in a smart phone. Instead of climbing a ladder to adjust the camera’s field of view, it’s all done remotely, wirelessly, and effortlessly. Rather than staring at reams of videotape, mass storage and instantaneous exception retrieval is commonplace. The complementary software applications and mobile alert capabilities are too numerous to list.

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effect,…a programmed stopping unit…to give the impression of manual [operation].” Next came the development of the first hemisphere-shaped dome that could be dropped below ceiling level. Patented by a Swiss inventor in June 1973, the idea was to provide a way to observe a larger area. The key innovation, however, turned out to be the inclusion of “metalized” reflective material on the surface of the dome “so as to form a convex mirror,…to conceal the camera from the view of [an] observer” while allowing enough light in order to effectively operate. Remotely Controlling Pan-Tilt-Zoom (PTZ). Up until 1976, system users were forced to make manual adjustments to continued on page 74

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CALENDAR continued from page 72

the cameras in order to change view position, lens focus, or iris aperture. The next significant innovation, patented in November 1976 by Atlanta-area inventors David M. Blackshear and David L. Pearl, focused upon remotely controlled camera PTZ positioning, with auto-scan panning through an arc up to 360 degrees, tilting up to 90 degrees, and lens focus and iris control.

November 4 – 7, 2013 Coalition of Law Enforcement and Retail (CLEAR) 4th Annual Training Conference The Weston Buckhead, Atlanta, GA clearusa.org November 20 – 21, 2013 ISC East 2013 Javits Center North, New York City isceast.com January 12 – 15, 2014 National Retail Federation 103rd Annual Convention & Expo Jacob Javits Convention Center, New York City bigshow14.com

John M. Coutta

January 28 – 29, 2014 United Publications TechSec Solutions Delray Beach Marriott, FL techsecsol.com March 11 – 13, 2014 Jeweler’s Security Alliance 36th Annual Security Seminar and Expo Hilton Buena Vista Hotel, Orlando, FL jewelerssecurity.org March 9 – 12, 2014 Food Marketing Institute 2014 Asset Protection Conference Hyatt Regency Riverfront Hotel, Jacksonville, FL fmi.org March 17 – 20, 2014 Merchant Risk Council e-Commerce Payments & Risk Conference Aria Resort, Las Vegas, NV merchantriskcouncil.org April 1 – 4, 2014 ISC West Sands Expo & Convention Center, Las Vegas, NV iscwest.com April 6 – 9, 2014 Retail Industry Leaders Association Asset Protection Conference JW Marriott, Indianapolis, IN rila.org April 30 – May 2, 2014 International Organization of Black Security Executives Annual Spring Conference Pleasanton, CA iobse.com June 11 – 13, 2014 National Retail Federation Loss Prevention Conference & EXPO Greater Fort Lauderdale (FL) Broward County Convention Center lp14.nrf.com

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Yet another Atlanta-area inventor, John M. Coutta, had a profound impact on virtually every important aspect of retail-centric video surveillance. An entrepreneur in the classic sense, he was awarded six patents between 1976 and 1985, and his ideas spawned a long list of other improvements. Sensormatic acquired Coutta’s company, MCS – Rail, and the rights to his patents in June 1983. SensorVision, as the product line was named, became the industry standard over the next fifteen years. Here are several highlights of Coutta’s work. Recording Video “Spaced-in-Time.” Recognizing that it wasn’t going to be practical to stare continually at real-time video transmissions to a monitor, Coutta conceived a means for “spaced-in-time frame recording” of the output of surveillance cameras. The idea was to record individual video frames at selectively spaced periods, enabling the reviewing of long periods of surveillance in a much shorter period of time. POS Transaction Data on Video. Successfully superimposing actual POS transaction data from electronic cash registers and the early computer-based POS systems onto video should be regarded as a seminal development in the detection of transaction anomalies and acts of internal theft and sweethearting. The first application with claim was filed in April 1977. The patent abstract reads clearly and concisely, “Digital data from the cash register observed is converted to video characters and mixed with the video output of the camera, and the combined video presentation is recorded.”

NOVEMBER - DECEMBER 2013

Mirror Intercept of Lens View, and “a Pig on a Spit.” Point the camera lens toward the intended target, right? No. Better to point the camera lens at a mirror, and move the mirror to change the field of vision. This ingenious claim allowed the camera to be mounted along its optical axis, like “a pig on a spit.” The mirror is mounted perpendicular to the optical axis to intercept the view of the camera. “Then, by selected rotation of the camera and mirror about these axes, both pan and tilt functions are achieved in a very compact structure.” In fact, the original domes manufactured by MCS – Rail were small enough to replace conventional ceiling tiles and light enough to be shipped via UPS or Federal Express. Modern video equipment is certainly smaller than it was in the 1980s. But this patent claim explains why dome housings can be exceedingly small, yet effective in viewing the entire field of vision below a ceiling. Coutta and his co-inventor, Paul A. VanDusen, filed this patent in November 1980. Continuous Pan and Programmable. Not to be overshadowed by Coutta, David Blackshear filed a patent in 1988 that described a “rotary electrical coupling” that would successfully manage 360-degree continuous panning of the camera at speeds approaching that of a human head—90 degrees per second.

Forty Years of Evolution

LPPORTAL.COM

11/27/13 4:19 PM

PEOPLE ON THE MOVE Dane Boland was named District Manager of AP, and Sean Lynch

was named Regional Manager of AP for Abercrombie & Fitch.

Daffy Ferrer was appointed LP

Manager at Bergdorf Goodman. Joe Young is now Regional LP

Manager for Big 5 Sporting Goods.

Saundra Smith was appointed

District LP Manager at Big Lots.

ADVERTISERS

David Joyce, LPC is now Field LP and Safety Manager at Office Depot.

Agilence.................................................................25

Shaun McDonald was appointed

Alpha.................................................................17, 19

Area Director for Pep Boys.

Jay Hawkins, MS, LPC is now Corporate LP

Manager at Price Chopper Supermarkets. Robert Corrado is now AP District

Manager for Rite Aid.

Mark Harris, CFI was named

agilence.com/features alphaworld.com

Axis Communications.............................................9

axis.com/retail

Checkpoint.......................................................31, 33

checkpointsystems.com

Matthew Bates was named Regional LP

Regional Director of Ethics and Compliance at Rush Enterprises.

CheckView.............................................................45

Pete Troupos is now Corporate Manager

Hector Graciani was appointed AP Director at Saks Fifth Avenue.

ClickIt Inc...............................................................13

Brian Cook is new District LP

Contact, Inc............................................................49

Manager for Burlington Coat Factory. of LP for The Children’s Place.

Colin White was made Regional

AP Manager at Comex USA.

Cliff Zagala and David Sanford were

appointed Regional Managers, and Judy Hughes was made Senior Director of LP for CVS Caremark.

Delhaize America announced the following appointments: Tina Sellers to Director of LP, Leigh Ann Stubbs to LP Analyst, Carolyn Rickman to Distribution LP Specialist, and William Miller and Melissa Blackwelder to LP Specialists. Dan Valladares was made

Director, Commercial National Accounts, for Diebold. Ralph Malear was appointed Regional

Director at Dollar Tree Stores.

Martin Medina, LPQ is now Area

LP Manager for Gap Inc.

Matthew Fauley, CFI was named Retail

Sales Director for Georgia Gun Club.

Jeremy Rathbone was appointed

Corporate LP Operations Manager at Hermes of Paris.

Timothy Maurer, CFI is now a Regional

LP Manager for Hot Topic.

Robin Rosario was named District Leader, LP, in the San Francisco Bay Area for jcpenney. Nick Jacobson is now District

LP Manager at Kohl’s.

Tammy Cunningham, CFI is now Area

LP Manager for Limited Brands.

Amber Scoggin is now LP

Manager for Louis Vuitton. Daniel Fullerton, Dennis Shanley, Craig Gassert, and Brad Gilbert were named Area LP Managers, and Emily Bosworth was promoted to

Regional LP Director at Lowe’s.

James Stark is now Director of LP,

Distribution, and Supply Chain for The Neiman Marcus Group.

Hal Parker is Retail LP Specialist at New Balance. Frank Dara was made District LP Manager for Nike.

Manager for Sears Holdings.

Dickson Amoah was appointed Regional

LP and Safety Manager for Sleepy’s.

Garry Wiebe is now Director of LP at

Sobey’s West and Thrifty Foods.

Chad Rusk, LPQ was named District

LP Manager for Stage Stores.

Brian Closs is Senior National Account

Manager at Stanley Security.

Tim Bradley was appointed Area

LP Manager for Stein Mart.

Shannon Stilwell, CPP, CFE was appointed

Vice President at Sysrepublic.

Shawn Abernathy, LPC was made

AP Market Leader for Target.

John Trumble was appointed

Regional LP Manager at Tilly’s. Brian Marsh is now District

LP Manager at TJX.

clickitinc.com

contactinc.com

Corporate Safe Specialists.................................43

remotecashcapture.net

Corrective Education Company............................2

correctiveeducation.com

Detex.......................................................................21

detex.com/230X

DTT..........................................................................34

dttusa.com

First Advantage.....................................................37

fadv.com/showme

Food Marketing Institute.....................................39

fmiassetprotection.com

InstaKey..................................................................36

instakey.com

Intelligent Loss Prevention..................................27

intelligentlossprevention.com

Joseph Troy, Jr. was named Regional

International Assoc. of Interviewers.................73

Sanford Siegel, LPC is now Manager LP Operations for Tuesday Morning.

LockUp by Digilock.................................................7

Sarah Ta was named Product Manager at Verisk Retail.

Loss Prevention Foundation................................22

David Kinlow, MS, SPHR, LPQ is now

Milestone...............................................................35

LP Manager for Toys“R”Us.

Training and Communications Manager for LP, AP, Business, and Safety at Walgreens.

Brian Robinson was made District

LP Manager at Walmart Canada.

Brand Elverston was appointed Director

of AP and Strategic Initiatives, and David Hinds, CFI was named Market AP Manager for Walmart Stores.

iaofi.org

lockup.com

losspreventionfoundation.org milestonesys.com

Palmer, Reifler and Associates..........................24

palmerreiflerlaw.com

Prime Communications........................................27

primecominc.com/retailsecurity

Protos Security........................................................3

protossecurity.com

The Retail Equation.................................................5

theretailequation.com/success To stay up-to-date on the latest career moves as they happen, sign up for LP Insider, the magazine’s weekly e-newsletter, or visit the People on the Move page on the magazine’s website, LPportal.com. Information for People on the Move is provided by the Loss Prevention Foundation, Loss Prevention Recruiters, Jennings Executive Recruiting, and readers like you.To inform us of a promotion or new hire, email us at peopleonthemove@ LPportal.com.

LP MAGAZINE | NOVEMBER - DECEMBER 2013

LPM 1113-C.indd 75

checkview.com

Security Resources..............................................79

securityresources.net

Sony Electronics...................................................23

sony.com/security/retail

Tyco Integrated Security.....................................80

tycois.com/LP

Verisk Retail...........................................................47

veriskretail.com

11/27/13 3:23 PM

ANNUAL INDEX January/February 2013 Traffic Counting and Conversion Rate by Mark Ryski, HeadCount Corporation (p. 15) Asteya and the Attitude of Gratitude by Erik Newcomb and Rich Groner, lululemon athletica (p. 41) Mobility and Cloud Computing by Phil Belena, Enfatica, and Richard Marino, the Stores Consulting Group (p. 51) March/April 2013 Digital Journey: Leveraging New Technology in LP by William M. Titus, Sears Holdings (p. 15) Pep Boys: Tuning up LP for Greater Horsepower and Better Performance by Adam Paul, Contributing Writer (p. 41) Survival Skills for Coping in a Doing-MoreWith-Less Environment by Walter Palmer, CFI, CPP, CFE, PCG Solutions (p. 51) May/June 2013 Facial Recognition: A Game-Changing Technology for Retailers by Chris Trlica, Contributing Writer (p. 15) Kirkland’s: Still Going Strong after Nearly 50 Years by Adam Paul, Contributing Writer (p. 41) Negotiate Like an Interrogator by Michael Reddington, CFI, Wicklander-Zulawski (p. 51) July/August 2013 Mitigating and Managing Threats and Acts of Violence by Steven C. Millwee, CPP, SecurTest, Inc. (p. 15) A Practical Guide to Online Investigations by Dave DiSilva, eBay (p. 39) Speak as Well as You Think by John M. Vautier, Vautier Communications (p. 47) September/October 2013 Mobile POS: The Brave New World of Retail by Chris Trlica, Contributing Writer (p. 15) h.h. gregg: An Upper-End Electronics Retailer with a Lowercase Name by Adam Paul, Contributing Writer (p. 41) The Evils of Technology by Kevin M. Plante, LPC, CVS Caremark (p. 49) November/December 2013 Mobile POS: The Loss Prevention Challenges by Chris Trlica, Contributing Writer (p. 15) Lawsuits against Retailers: The Expert’s Role by Charles “Chuck” Sennewald, CSC, CPP, CPO (p. 41) 2014 Product Showcase and Resource Guide (p. 51) Interviews by James Lee, LPC, Executive Editor Managing LP and Safety in a CustomerService Culture with Dennis Wamsley, Publix (Jan/Feb 2013, p. 29) From Running an LP Organization to Running a Marathon with David Lund, DICK’S Sporting Goods (Mar/Apr 2013 p. 29) Asset Protection in a ConvenienceStore Environment with Mark Stinde, 7-Eleven (May/Jun 2013 p. 29) Reorganizing the LP and AP Teams at Staples with Dan Provost and Steve Bacica (Jul/Aug 2013, p. 27) Where Are They Now? with Kevin Ach, Office Depot; Ken Amos, LPC, Walgreens; Jim Carr, CFI, Rent-A-Center; Bill Turner, LPC, Universal Surveillance Systems (Sep/Oct 2013 p. 29)

LPM 1113-C.indd 76

Taking Retail LP Strategies to a Whole New Industry with Chris McDonald, Compass Group (Nov/Dec 2013 p. 29) Academic Viewpoint by Richard C Hollinger, Ph.D. Self-Checkout: What Constitutes “Real” Customer Service? (Jan/Feb 2013 p. 26) What Is the Relationship between Wages and Employee Theft? (Mar/Apr 2013 p. 26) Is It Time for a Paradigm Shift in LP Technologies? (May/Jun 2013 p. 26) National Retail Security Survey: 20-Year Update (Jul/Aug 2013 p. 24) 2012 NRSS—First Glance at the Results (Nov/Dec 2013 p. 26) Associations in Action Thinking Differently Is Your Greatest Asset by Rhett Asher (Jan/Feb 2013 p. 38) Conference Participation Can Transform the Industry by Lisa LaBruno (Mar/Apr 2013 p. 38) Certification The LP Industry Goes Back to School by Catherine M. Penizotto (Mar/Apr 2013 p. 62) Evolving Attitudes toward Education by Gene Smith, LPC (May/Jun 2013 p. 68) The Secrets to a Successful Career by Gene Smith, LPC (Jul/Aug 2013 p. 36) The Value of Membership in a Professional Association by Jeff Levitt, LPC, CPP (Sep/Oct 2013 p. 38) Why We Should Be Thankful by Gene Smith, LPC (Nov/Dec 2013 p. 48) Evidence-Based LP by Read Hayes, Ph.D., CPP Opinion vs. Fact (Jan/Feb 2013 p. 48) Taking It to the Next Level (Mar/Apr 2013 p. 56) How Protective Countermeasures Actually Work (May/Jun 2013 p. 38) Using Big Data for Precision Prevention Measures (Jul/Aug 2013 p. 56) From Technicians to Behaviorists (Sep/Oct 2013 p. 26) Who Do We Watch? (Nov/Dec 2013 p. 38)

Interviewing by David E. Zulawski, CFI, CFE and Shane G. Sturman, CFI, CPP Cognitive Interviewing (Jan/Feb 2013 p. 12) General Interviewing: Part 1 (Mar/Apr 2013 p. 12) General Interviewing: Part 2 (May/Jun 2013 p. 12) General Interviewing: Part 3 (Jul/Aug 2013 p. 12) A Lie…Is It Or Isn’t It? Part 1 (Sep/Oct 2013 p. 12) A Lie…Is It Or Isn’t It? Part 2 (Nov/Dec 2013 p. 12) My Turn Make Time for Self-Improvement by Joe Box, Jr. (Mar/Apr 2013 p. 48) Have a Networking Plan and Work It Before You Need It by Kevin M. Plante, LPC (May/Jun 2013 p. 48) Why Do Employees Steal? by Fern Abbott (Jul/Aug 2013 p. 46) Why Your New LP Career Is Going Nowhere and How to Fix It by Brandon Brown, CFI (Nov/Dec 2013 p. 70) Parting Words by Jim Lee, LPC Good Things Do Happen to Good People (Jan/Feb 2013 p. 66) What Is March Madness? (Mar/Apr 2013 p. 66) Never, I Mean Never, Has It Been Better (May/Jun 2013 p. 74) The Power to Choose (Jul/Aug 2013 p. 66) Bumping into People (Sep/Oct 2013 p. 66) We Can Do Better (Nov/Dec 2013 p. 78) Publisher’s Letter by Jack Trlica Big Show Opportunities (Jan/Feb 2013 p. 6) The Benefits of User Conferences (Mar/Apr 2013 p. 6) Emerging Technologies (May/Jun 2013 p. 6) How Do You Read the Magazine? (Jul/Aug 2013 p. 6) LP Magazine Europe (Sep/Oct 2013 p. 6) An App for the LP Industry (Nov/Dec 2013 p. 6)

Statement of Ownership Publication title: LossPrevention Filing date: 10/1/2013 Issue frequency: bi-monthly No. of issues annually: 6 Mailing address of office of publication: 700 Matthews Mint Hill Rd, Ste C, Matthews, NC 28105 Mailing address of headquarters: same Name and address of publisher, editor, and managing editor: Jack Trlica, same address as above Corporate owner: Loss Prevention Magazine, Inc., 10433 Pullengreen Dr., Charlotte, NC 28277 Stockholders: Jim Lee, 10433 Pullengreen Dr., Charlotte, NC 28277; Jack Trlica, 7436 Leharne Dr., Charlotte, NC 28270 Publication title: LossPrevention Issue date of circulation data below: July-August 2013 Avg. No. Copies No. Copies of Single Each Issue During Issue Published Preceding 12 Months Nearest to Filing Date Total no. of copies 25,550 25,000 Outside county paid/requested subscriptions 14,831 16,120 In-county paid/requested subscriptions 0 0 Other paid/requested distribution outside USPS 6,325 6,199 Requested copies distributed by other mail classes through USPS 26 0 Total paid and/or requested circulation 21,182 22,319 Outside county nonrequested copies 2,589 1,248 In-county nonrequested copies 0 0 Nonrequested copies distributed by other mail classes through USPS 0 0 Nonrequested copies distributed outside the mail 1,393 1,315 Total nonrequested distribution 3,982 2,563 Total distribution 25,164 24,882 Copies not distributed 386 118 Total 25,550 25,000 Percent paid and/or requested circulation 84.2 89.7 Name and title of publisher: Jack Trlica, Editor and Publisher Date: 10/1/2013 NOVEMBER - DECEMBER 2013

LPPORTAL.COM

11/27/13 11:48 AM

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LP MAGAZINE | NOVEMBER - DECEMBER 2013

LPM 1113-C.indd 77

11/27/13 11:48 AM

PARTING WORDS

TEX BLA ON

We Can Do Better Y

Jim Lee, LPC Executive Editor

interview for the role to lead LP for the company. He also ‘marketed’ ou never know and rarely can predict when tragedies or me when he could, speaking to accomplishments in senior leadership catastrophic events will occur and alter the course of history meetings or supporting me to present in his place. This one person or change the direction of your life. We have had many such made a significant difference for me.” events in the course of our American history—Pearl Harbor, space Finding a Mentor. “In a recent article, Gene Smith shared his shuttles Columbia and Challenger explosions, Oklahoma City career advice about finding a good mentor. I can’t reiterate this bombing, Hurricane Katrina, and 9/ll. Perhaps one of these had a enough. Not every leader will make a good mentor, so choose life-changing effect on you or someone you know. Such is the case someone who will be willing to invest the time and be honest with with me. you about your growth. Then, mold the role you are in to play to Fifty years ago I experienced the assassination of President your strengths. While everyone needs to follow the job description, Kennedy. Up until then, my life had consisted of school, sports, there is tremendous latitude in how you approach your role. By and the desire to someday be a coach. This one event turned my playing to your strengths, you will make an impact more quickly.” world upside down. From that moment on I wanted a life in law Improving Diversity at the Senior Level. “Often, a company enforcement, specifically the Secret Service. Long story short, it did is pleased with their diversity statistics, yet this is not work out for me. Instead, I chose a career predominately due to entry-level positions. One in retail security. As it turned out, I got the executive told me, ‘They just don’t stay.’ I believe best of all worlds—a career that had elements these leaders need to ask why individuals leave of law enforcement, business acumen, and dig to learn the answer. Establish a diversity coaching, and crisis management. council where individuals can speak freely about Over time I have heard the challenges Lee Bland, Stage Stores the barriers they see within the company and made on how well things are going or Megan Curtis, Disney Stores what they believe will change the company’s not in loss prevention. Now you cannot Patti Felz, Ralph Lauren diversity path. Set goals to increase diversity and compare these challenges to those of the Kelly Gorman, PETCO be clear with your teams about why diversity aforementioned disasters, but often the effects Sonya Hostetler, Walmart is important. Goals should not be numeric, but are every bit as personal. I recently had an Cindy Hudson, Target directional in nature. Be clear that this is a business experience that stopped me in my tracks and I Joan Manson, The strategy, a part of the overall strategy to reduce wish to share it. Container Store loss. Fill positions only after exhausting diversity At our recent magazine and Loss Debbie Maples, Gap Inc. candidates.” Prevention Foundation annual board Melissa Mitchell, LifeWay Christian Stores Retiring near Hilton Head. “I recently meetings, we were enjoying an energetic Libby Rabun, AutoZone completed a gratifying seven-month consulting discussion when a voice from the back of the Tina Sellers, Delhaize America assignment with Soya Hostetler in Walmart’s room proclaimed, “You don’t have enough Kathleen Smith, Safeway AP organizaiton. What’s that line from The women represented in the room. It appears Rosamaria Sostilio, Godfather? ‘Just when I thought I was out, they loss prevention has not made much progress Saks Incorporated pulled me back in.’” in the past twenty years.” Helping Women and Minorities. “I am very That challenging, emphatic statement enthusiastic about diversity of thought. It is the power of more than came from Debra Rood, a former senior-level executive of operations, one perspective or way of thinking. This is only achieved with a LP, and other functions for major retailers, such as Toys“R”Us, diverse workforce, a term that has almost become a cliché. It would Staples, The Gap, and Walmart. After the meeting, I sat down with be my pleasure to interrupt my golf game to help where I can.” Debra to get her thoughts on women in retail and here are some of Debra is correct that we can do much better with women her candid comments. and diversity. I am reminded that fifty years ago before his death, Moving Up in an Organization. “I was lucky enough to have an President Kennedy signed the Equal Pay Act of 1963 and, yet, we are awesome mentor early in my career. He was supportive, yet brutally still striving to close the diversity gap. honest. He encouraged me to take intelligent risks and to increase my value to the organization by stepping outside my comfort zone to accept roles in different disciplines within the company. For example, I had zero industry knowledge about LP, but my mentor suggested I

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Everyone’s talking about the future — and that includes omnichannel

How will that impact inventory? The stuff’s got to be on the shelf.

Need to get my LP team in on the conversation

Merchandising, operations, IT – it’s going to affect everyone

The industry’s moving faster than ever. It’s all about visibility now. Which means our technology has to do more, too

The new cameras have to improve customer experience, not impede it

Gotta call Jon back tomorrow

It’s already tomorrow where he is. Guess I can call him now.

Industry roles are changing as fast as the technology is. We’ll help you think like a Chief Visibility Officer. From the big picture to a million minor details, your job is all about visibility. Creating a secure shopping environment. Managing loss prevention. Tracking millions of pieces of inventory – from the manufacturer to the shopping bag. And doing it all in one of the fastest-changing environments in global commerce. That’s why we like to think of people like you as Chief Visibility Officers – with an eye on every aspect of the industry, and the goal of improving customer experience through effective security technologies and practices. At Tyco Integrated Security, we get how important that is – and it’s why we work with 80 percent of the world’s Top 100 retailers. Backed with world-class monitoring capabilities and genuine Sensormatic® EAS technology, our end-to-end security solutions are designed to help improve visibility, reduce loss, manage risk, protect lives and deliver an enhanced customer experience. From fire and intrusion protection to implementing RFID, tagging and video solutions, we deliver the expertise that comes from decades of working side by side with the world’s most innovative retailers. Like you. We’re more than a security company. We’re your Tyco Team.

To download our latest White Paper, visit TycoIS.com/LP

LPM 1113-C.indd TYCO-18582 Retail80 - Loss Prevention Nov/Dec Issue.indd 1

11/27/13 AM 10/24/13 11:48 9:19 AM