May - June 2019 by Loss Prevention Magazine

MAY–JUNE 2019 | V18.3 LOSSPREVENTIONMEDIA.COM

Know your crime risk... at your store, In Transit, and on the doorstep

See Us at Booth 307 NRF Protect

LOSS PREVENTION MAGAZINE THE AUTHORITY ON ALL THINGS ASSET PROTECTION

TOOLS AND TRAINING HELP LP TEAMS

PUNCH BACK AGAINSTVIOLENCE FIVE EXECUTIVES DISCUSS WHAT MAKES VENDORS SUCCESSFUL SOLUTIONS PROVIDERS THE NEW GENERATION OF LP: ARE WE ON THE SAME PAGE? LP CHALLENGES IN A “SECURE” ENVIRONMENT AT PARADIES LAGARDÈRE

TABLE OF CONTENTS 6 EDITOR’S LETTER A New Digital Platform By Jack Trlica

10 RETAIL SPONSORS

12 INTERVIEWING Thought and Gesture: Part 2

Punch Back Against Violence

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

28 CERTIFICATION Fascinating and Challenging

Tools and training help LP teams address violence in stores

Interview with Jake Gillette, LPC, DICK’S Sporting Goods

30 LPM EXCELLENCE LPM “Magpie” Award: Applauding Excellence

By Garett Seivold, LPM Senior Writer

Featuring John Voytilla, Party City, and John Tabor, National Retail Systems

40 SUPPLY CHAIN Supply Chain Continues to Change

By Rod Fulenwider

Partnering with Retailers

42 FUTURE OF LP Using Artificial Intelligence to Catch Shoplifters in the Act By Tom Meehan, CFI

52 PERSPECTIVES Negotiating with Procurement

Five executives discuss what makes vendors successful solutions providers

Interview with Robert Kleinman, AFA; Thomas Nimblett, TIAA; and Terry Sullivan, LPC, The Loss Prevention Foundation

By James Lee, LPC, LPM Executive Editor

62 EVIDENCE-BASED LP Protective Sign Research

By Read Hayes, PhD, CPP

64 SOLUTIONS SHOWCASE - ThinkLP - InstaKey

The New Generation of Loss Prevention

67 ASK THE EXPERT All Hands on Deck

Interview with Kevin O’Brien, DTiQ

Seen and Unseen LP Strategies Interview with Mike Isch, STANLEY Security

An industry survey examines if field and corporate LP professionals are on the same page

70 CASE STUDY New Solution Protects Today’s “New Jewelry Store”

By Jacque Brittian, LPC, LPM Editorial Director

By Garett Seivold

72 LPM DIGITAL Bad News, Good News, and Some Terrific Content By Kelsey Seidler

LP Challenges in a “Secure” Environment

A look inside airport retail and restaurants

PRODUCT SHOWCASE

CALENDAR

PEOPLE ON THE MOVE

ADVERTISERS

SUBSCRIPTION FORM

VENDOR SPONSORS

82 PARTING WORDS D-Day: A Planned Success By Jim Lee, LPC

By Chris Rathgeb, Senior Director of LP and Safety, Paradies Lagardère

MAY–JUNE 2019

LOSSPREVENTIONMEDIA.COM

EBR +

ARTIFICIAL INTELLIGENCE

INTRODUCING

Secure 5 ™

Find 25% more opportunities in 25% less time. Traditional EBR is a thing of the past. Secure 5, built with artificial intelligence, analyzes mountains of data and automatically tells you “what you don’t already know” and “what to focus on next.” Its predictive analytics pinpoint situations with people, places, products, and processes. Prevent loss faster in-store and online, enhance your inventory position, and streamline your business operations. If you are ready to do more with less, you can improve your retail performance with Secure.

+1 888 371 8686

apprissretail.com

EDITOR’S LETTER

A New Digital Platform A bout five years ago we upgraded our website with an integrated platform that was state of the art at the time. It served us well but, like all technology, became dated. Therefore, we engaged a team of digital publishing experts to help us create a more up-to-date website and digital newsletter that we launched in April. The new website is still accessed at LossPreventionMedia.com and houses all the same content but is streamlined to enhance your reading experience. Some of the enhancements include: ■■ Faster loading and simpler navigation ■■ Fully mobile friendly for those who access content on smartphones ■■ Easier subscription process ■■ No login required for accessing print magazine content ■■ Cleaner, more contemporary look Our daily e-newsletter has also been redesigned to provide more news and original articles with links to breaking news, new job openings, and upcoming events in a format that is clean and easy to scan for the information you are most interested in. Please visit our website and sign up to receive our newsletters and other digital content. It’s free and only requires you to provide a business or personal email. Unfortunately, announcing the good news about our new digital platform comes with some bad news for the LPM team. Our digital managing editor, Kelsey Seidler, is leaving the team to accept an exciting opportunity to advance her career. Kelsey has been a terrific employee

for the past four years juggling the many tasks required for running a magazine’s digital channels. We hate to see her leave but at the same time are excited for her new opportunity. Thank you, Kelsey, for all you’ve done for the magazine these past four years. We never could have done it without you. Best of luck in your new position.

Content Is King There is an adage in the publishing industry that “content is king,” meaning no matter what your website or print magazine looks like, if you don’t publish content that people find interesting and want to read, you won’t be successful. The fact that we’ve published Loss Prevention Magazine now for over eighteen years, hopefully, speaks to the fact that we’ve kept that publishing mantra at the forefront of our minds. This issue is no different. In our cover story on page 15, we examine how LP teams are fighting back on the increasing violence and bad behavior that put both associates and customers in danger in our stores. It’s an unfortunate aspect of today’s society that has been trending upward for the past several years. A number of industry executives contributed to this article. Check it out and see how your organization compares to what others are doing. The partnership between retailers and vendors is one of the most important relationships that contribute to the success of LP organizations. We have a couple of articles addressing that topic. Jim

MAY–JUNE 2019

Lee’s feature interview on page 31 includes five solutions providers who discuss what they believe is important to a successful retailer-vendor partnership. On page 52 in our Perspectives column, three executives with combined decades of experience negotiating contracts discuss some of the pitfalls that can happen when procurement is more interested in saving pennies instead of developing meaningful partnerships. The findings from our latest industry survey titled “The New Generation of Loss Prevention: Are We on the Same Page?” on page 43 offers some interesting results. Our goal was to see how perceptions of key issues in our industry may differ—or not—between field LP professionals and corporate executives. You may be surprised by our findings. Finally, our fourth feature on page 55 titled “LP Challenges in a ‘Secure’ Environment” was contributed by Chris Rathgeb, senior director of LP and safety at Paradies Lagardère. He describes his team’s unique challenges preventing loss in the retail and restaurant environment inside airports. If you have a story like Rathgeb’s, contact us. We welcome and encourage contributions from working practitioners.

Jack Trlica Managing Editor

LOSSPREVENTIONMEDIA.COM

NO MATTER THE WEATHER OR POWER, WE MAKE IT SECURE. IMAGINE THAT.

OUTDOOR LATCH RETRACTION Our solution lasts through the harshest conditions and stays locked from the pull side when power is lost. Assured security when electricity is far from a sure thing—that’s the Detex effect.

DETEX.COM/LATCH5 · 800.729.3839

EDITORIAL BOARD Charles Bernard Group Vice President, Asset Protection and Comprehensive Loss, Walgreens

John Matas, CFE, CFCI Vice President, Asset Protection, Investigations, Fraud, & ORC, Macy’s

Erik Buttlar Vice President, Asset Protection, Best Buy

Chris McDonald Senior Vice President, Loss Prevention, Compass Group NA

Jim Carr, CFI, CCIP Senior Director, Global Asset Protection, Rent-A-Center

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

Ray Cloud Senior Vice President, Loss Prevention, Ross Stores

Melissa Mitchell, CFI Director, Asset Protection and Retail Supply Chain, LifeWay Christian Stores

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

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

Charles Delgado, LPC Regional Vice President, Store Operations, Academy Sports Scott Draher, LPC Vice President, Loss Prevention, Safety, and Operations, Lowe’s Scott Glenn, JD, LPC Vice President, Asset Protection, The Home Depot Barry Grant Chief Operating Officer, Photos Unlimited Bill Heine Senior Director, Global Security, Brinker International Frank Johns, LPC Chairman, The Loss Prevention Foundation Paul Jones, LPC Director, Asset Protection and Risk Management, CKE Restaurants Holdings Mike Lamb, LPC Vice President, Asset Protection, The Kroger Co. David Lund, LPC Vice President, Loss Prevention, DICK’S Sporting Goods

Joe Schrauder Vice President, Asset Protection, Walmart Stores Tina Sellers, LPC Vice President, Loss Prevention, Family Dollar Hank Siemers, CFI Vice President, Global Retail Security, Tiffany & Co. Quinby Squire Vice President, Asset Analytics and Insights, CVS Health Mark Stinde, MBA, LPC Senior Vice President, Asset Protection, JCPenney Paul Stone, CFE, LPC VP Security, Goodwill Industries of SE Wisconsin Pamela Velose Vice President, Asset Protection, Belk Keith White, LPC Executive Vice President, Loss Prevention and Global Sustainability, Gap Inc.

Loss Prevention, LP Magazine, LP Magazine Europe, LPM, and LPM Online 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.

MAY–JUNE 2019

LOSS PREVENTION MAGAZINE 700 Matthews Mint Hill Rd, Ste C Matthews, NC 28105 704-365-5226 office, 704-365-1026 fax MANAGING EDITOR Jack Trlica JackT@LPportal.com EXECUTIVE EDITOR James Lee, LPC JimL@LPportal.com EDITORIAL DIRECTOR Jacque Brittain, LPC JacB@LPportal.com MANAGING EDITOR, DIGITAL Kelsey Seidler KelseyS@LPportal.com RETAIL TECHNOLOGY EDITOR Tom Meehan, CFI TomM@LPportal.com SENIOR WRITER Garett Seivold GarettS@LPportal.com CONTRIBUTING WRITERS Read Hayes, PhD, CPP Walter Palmer, CFI, CFE Maurizio P. Scrofani, CCSP, LPC Shane G. Sturman, CFI, CPP Bill Turner, LPC David E. Zulawski, CFI, CFE CHIEF OPERATING OFFICER Kevin McMenimen, LPC KevinM@LPportal.com DIRECTOR OF DIGITAL OPERATIONS John Selevitch JohnS@LPportal.com SPECIAL PROJECTS MANAGERS Justin Kemp, LPQ Karen Rondeau DESIGN & PRODUCTION SPARK Publications info@SPARKpublications.com CREATIVE DIRECTOR Larry Preslar ADVERTISING MANAGER Ben Skidmore 972-587-9064 office, 972-692-8138 fax BenS@LPportal.com SUBSCRIPTION SERVICES

NEW OR CHANGE OF ADDRESS LPMsubscription.com or circulation@LPportal.com POSTMASTER Send change of address forms to Loss Prevention Magazine P.O. Box 92558 Long Beach, CA 90809-2558 Loss Prevention aka LP Magazine aka LPM (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 LPMsubscription.com. The publisher reserves the right to determine qualification standards. International print subscriptions are available for $99 per year payable in U.S. funds at circulation@LPportal.com. For questions about subscriptions, contact circulation@LPportal.com or call 888-881-5861. Periodicals postage paid at Matthews, NC, and additional mailing offices.

LOSSPREVENTIONMEDIA.COM

COME VISIT US at NRF booth 611 or Call us at 772-287-7999; email is good to pmorello@cisssinc.com

Gen5 - K ey Featu r

Stop crime one Handbag at a Time!

98 Db A

larm

Over 12

The Gen5 is securing handbags all over the world with fantastic results.

0lbs pull

strength

Exclusiv e IR Ma

gnetic K ey

~Unauth

orized m

Replace a Replace a

larm

eries

ble Alar

Replace a

m Sectio

ble Teth

Earth Fr

agnet ac tivates a

ble Batt

er Base

iendly

Multi fu

nction c

able des

~ Length

s up to 5

Perfect P

2”

ign

lacemen

t of Dec oder

~ Easily

Strong V

deactiva

te alarm

isual De

~ Blinkin

7 strand

terrent

g LED Lig

coated s t

eel cable

Tick-r-Tape Tag deserves a Tickertape Parade! The Tag

No More Spider Nests

Features

pe - Key Tick-R-Ta g rming Ta

98db Ala

(shown actual size 1.75”)

AM or RF The Tape

(customize with your logo)

etic Key tes alarm IR Magn va Exclusive thorized magnet acti ~Unau

le Batteri

b Replacea

endly

Earth Fri The Base

(works with or without our tapes and labels)

Proven to be easier to use than other wrap tags & more effective.

ngth ve Tape Conducti 1 or 2 strips at any le ~

le Base Disposab Easy on, Easy off ~ rrent isual Dete Strong V Blinking LED Light ~ tions ing Func 1-6 Alarm n s & batterie d Lifespa Unlimite~interchangeable parts

RETAIL SPONSORS

MAY–JUNE 2019

LOSSPREVENTIONMEDIA.COM

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

MAY–JUNE 2019

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

Thought and Gesture: Part 2 I

n our last column, we discussed some of the geographic differences when using gestures in other cultures. We also touched on the differences between an emblem and gesture, plus some cultural variations in emblems. Our focus here will be the view that gestures and language are created together as a single process delivered together seamlessly in a choreographed fashion to convey understanding to another.

Spacial Context Gestures are unconsciously created as the language is chosen to support the communication and understanding of the speaker. Gestures can have a full range of meaning that is designated by the speaker, which could be spacial, descriptive, or a motion. But the gesture itself may also reveal the internal mental image the speaker is using when describing the thought. For example, the gestures can be almost like a diagram providing a context for the story to unfold. When we use a diagram as part of the interview, the subject uses it to convey information in a clearer way. The diagram provides a spacial context for the witness’s description of events. Pointing to a space in the room gives that topic a frame of reference to a particular place, and another gesture made to that same spot later in the conversation adds further context to what is being said. So an interviewer might become aware the witness has pointed to a place in front of her when she says, “Jill’s house.” That point in space now represents Jill’s house. But later she says, “We had talked earlier about going to Jill’s, then stopped at the house” (pointing to a different location in front of her than she used before when referring to Jill’s house). From this sentence we might assume the house referred to was Jill’s, but then why is the gesture mismatched from the location she indicated before? It would seem the gesture indicates a physical location other than Jill’s house, and it would have been more appropriate to say “her” rather than “the” house. On some occasions a gesture can also help the observer determine the point of view the speaker is taking when reporting his narrative. For example, Robert is known to be an ultraliberal Democrat, often espousing liberal positions to anyone who will listen. Yet when he describes a meeting between Republicans and Democrats, he says the following: “The Republicans”—gestures and touches his chest—“and Democrats separately gathered at different ends of the room.” Robert’s self-touch to his chest might indicate that he was a Republican, but this is a mismatch based on what we know

MAY–JUNE 2019

Zulawski and Sturman are executives in the investigative and training firm of Wicklander-Zulawski & Associates (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. © 2019 Wicklander-Zulawski & Associates, Inc.

about him. A more likely explanation is that he was standing with the Republicans as he was describing the two groups in the room. The self-touch here was an indication of his spatial orientation in the description instead of an indication of his political affiliation. An interviewer can use gestures to establish the meaning of space in the interview room. Pastors often do this as they preach, indicating spatially around them where good and evil reside. Generally, the pastors use space directly in front of them to indicate goodness, and somewhere off to one side or the other is the space where evil resides. They use the spaces and their gestures to support their preaching. Interviewers in the

The diagram provides a spacial context for the witness’s description of events. Pointing to a space in the room gives that topic a frame of reference to a particular place, and another gesture made to that same spot later in the conversation adds further context to what is being said. same way can use space in the room to indicate good and bad. For us, the good space generally occupies that immediately in front of us and somewhat down. When we talk about positive things our hands are open palms up as though delivering a gift to another, while the bad space occupies one side or the other and slightly behind our bodies. Once these spaces have been identified, we can now use gestures as a subtext to indicate positive and negative aspects that we may not want to explicitly identify using our language. While offering one or another rationalization, we can gesture either to the good or bad space to provide additional meaning to what we are saying. In general, when delivering rationalizations, we use the third person (he, she, they, them, and others) rather than the word

LOSSPREVENTIONMEDIA.COM

continued on page 14

A VIDEO MANAGEMENT SYSTEM BUILT FOR INTELLIGENCE POSITION

POSITION

Heat Map — identify areas with the highest traffic

POSITION

Path Analysis — report customer movement

POSITION

People Counting — report on customer entry and current occupancy

Conversion Rate — report on purchase vs browse

Line Queue — report on how long customers are waiting

TOTAL VIDEO MANAGEMENT SOLUTIONS

• Recording • Traffic Counting • Retail Video Analytics • Data Integration

Map and analyze the customer journey with a Video Management System from ClickIt. Built with powerful technology that records and provides analytics so you can monitor customer behavior at multiple points throughout the store—the second they walk through your door. To learn more about our single source technology and create strategies from insights gained at various points inside your store, call 631-686-2900 or email sales@clickitinc.com.

Visit us at NRF Booth #711 www.clickitinc.com

continued from page 12

“you,” which would personalize the rationalization to the person we are speaking to. If the interviewer personalizes the rationalization, it increases the likelihood that the subject may offer resistance or a denial if the rationalization isn’t perfectly suited to him or her. However, there is a unique use of the pronoun “you” called the impersonal you that is the informal equivalent of “one” or “people.” One (people) could say, “Why would you do that?” The interviewer could say, “You”—interviewer touches his chest—“could say, ‘Why would you do that?’” which changes the personal pronoun “you” into the informal impersonal you. The gesture toward the interviewer indicates to the listener that the pronoun “you” is not directed at them, but rather it is being used to indicate a generic group of people performing the action. This particular usage is really a third-person usage of the word “you,” which also encourages agreement with the interviewer’s rationalization.

The speaker who uses gestures is in the moment of the thought, and the gestures are included naturally. However, a deceptive individual who doesn’t have a clear picture in mind or doesn’t have an actual memory of the event being described, will have a diminished number of gestures as they narrate. The gesture itself can become an object or descriptive motion and may change repeatedly during an individual’s narrative. The same can be said for the narrator’s point of view, which can be that of the person being described or as an observer. As a result, the gestures can change from those of the observer to those of the person being described as the point of view changes. The individual’s gestures can also provide a spatial relationship like that of a map to help orient the listener to the elements of the narrative. The gestures may provide movement within or across the map to illustrate changes in location as the story progresses.

Fluency While the meaning of gestures can change and both hands can be involved in gesturing, people generally use their dominant hand to perform the gesture. The location of the gestures is also central to the trunk of the body. Most gestures will occur from the beltline to the shoulder line and outward to the width of the shoulders. Gestures associated strongly

MAY–JUNE 2019

with emotions may extend outward farther from the body and appear much more animated to the observer. On occasion, people will struggle to gather their thoughts, providing a series of false starts to the sentence, which will also affect the individual’s gestures. “The … fact … that … that … she’s … uh … she’s somehow … involved is crazy to think about.” In the previous sentence, the speaker is struggling to express a thought verbally, and it is likely that the gestures associated in this struggle would only be partly completed. For example, the hand may slowly start to rise in a series of increments matching the false starts until the gesture is finally completed at the word “crazy” when the hand touches the speakers head. This makes sense since the gestures and the language being chosen will match in a synchronized, choreographed way as the thought is completed. As the individual struggles to complete the expression of the thought, the gestures remain uncompleted until the thought is fully expressed by the words. Remember that the expression of a thought is completed only with the verbalization of the sentence and the matching gesture. Unlike an emblem, gestures almost always accompany speech and diminish when an individual is not talking. An observer may see gestures occurring if an individual is holding a silent conversation with themselves especially if the internal conversation deals with strong emotions. One thing is clear is that gestures diminish as an individual’s fluency decreases and increases as it arrives. There is an absence or diminishing of gesturing in situations where there is no memory or when the memory has faded. By extension, this is also probably true when an individual is being deceptive or creating a fabrication since the memory actually doesn’t exist. In studies focused on detecting deception, police officers and college students both focused on movements and eye contact as indicators of deception, while criminals focused on the lack of movement of the other party as an indicator of deception. The speaker who uses gestures is in the moment of the thought, and the gestures are included naturally. However, a deceptive individual who doesn’t have a clear picture in mind or doesn’t have an actual memory of the event being described, will have a diminished number of gestures as they narrate. In some situations, this may result in a mismatch between any gestures that do occur and the narration by the deceptive subject. When there is a mismatch between the words and the gestures, the interviewer should focus on the gesture as more likely being correct than the words chosen by the individual. As a side note, individuals are often able to recall more details about events and increase memory retrieval when they perform gestures while repeating the story. Using the gestures as they describe the story helps them cognitively enter the moment of speaking, increasing their ability to retrieve information. In the past two columns, we have addressed the movements and gestures associated with an individual’s words as they verbalize a thought that they have had. In our next column, we consider more general movements that aren’t necessarily associated with the expression of language.

LOSSPREVENTIONMEDIA.COM

FEATURE

TOOLS AND TRAINING HELP LP TEAMS

PUNCH BACK AGAINST VIOLENCE By Garett Seivold, LPM Senior Writer

TOOLS AND TRAINING HELP LP TEAMS PUNCH BACK AGAINST VIOLENCE

magine, if you can, the country’s polarized politics spilling over into a store aisle and a retail associate trying to calm a shouting match between two customers. Or try to picture a criminal gang storming a mobile phone store, throwing customers and personnel out of the way as they grab handfuls of merchandise. It’s probably not hard. Videos like these abound. They are exactly the types of incidents that attract thousands of eyeballs on YouTube, make indelible additions to a retailer’s record, and are one more reason for retailers to punch back at seemingly more aggressive behavior in retail environments. For the safety of employees and customers, to maintain environments conducive to attracting shoppers, to recruit and retain workers, and to safeguard hard-fought-for reputations, more retailers are taking stock of their ability to prevent and respond to store violence. For example, in a newly released survey by ASIS International and Everbridge, retail respondents, by a wide margin, identified violence and active-shooter situations as the top two threats facing their organizations—over natural disasters, cyber crime, and supply chain issues. Also, compared to two years ago, 47 percent of retail security decision-makers said they’re now more concerned about employee safety, and 67 percent think company leaders are more worried about worker safety too. Thanks to social media, there are yottabytes of anecdotal evidence to suggest that incidents of aggression in retail stores are increasing, exactly the kind of behavior that can spark a physical altercation if not effectively handled. The risk is probably sensationalized but also very real, according to Larry Hartman, director of risk management, loss prevention, and safety at Goodwill Industries of Central Florida and a former LP executive at Larry Hartman

Burlington Stores, Home Depot, and Kmart. He said historical threats persist—such as violence associated with organized retail crime (ORC) and robbery. “But these days it also takes less to put people off, to rub someone the wrong way,” said Hartman. “It’s a more sensitive environment now, and if something happens, you certainly see and hear about it more in the media today.” Surveys by the National Retail Federation (NRF) reflect a consensus among retailers that in-store violence has grown, and it’s an issue that retailers need to confront, suggested Robert Moraca, NRF’s vice president for loss prevention. “We’ve always told our people to not resist, so no one gets injured, but how does that fit today’s more violent ORC criminals? There is a level of violence that we’ve never really seen before, and it’s not just active shooter and active assailant, but just more aggression in general,” he said. It appears to be a global phenomenon. According to new data from the British Retail Consortium, the Association of Convenience Stores, and UK’s Union of Shop, Distributive, and Allied Workers (USDAW), violence and workplace abuse leveled against retail store staff is up dramatically. Over the last ten years, for example, USDAW has found a consistent level of exposure, with between 50 to 60 percent of workers reporting an incident of verbal abuse in the last twelve months, and 30 to 35 percent reporting an incident of a threat of physical violence. The group’s latest survey, however, saw a spike in those numbers, to 66 percent and 42 percent, respectively. Among the wider security industry, workplace violence has become an increasingly hot topic—perhaps more than it should be, suggested Lynn Mattice, managing director at Mattice and Associates, a security consulting firm, in his presentation at the ISC West security conference in April. Mattice bemoaned the constant drumbeat about workplace violence to which security directors are currently exposed, but he said it’s warranted for LP executives. “Everybody is an expert, everybody says MAY–JUNE 2019

LOSSPREVENTIONMEDIA.COM

you need training, but it’s such a small part of what security departments need to do,” said Mattice. “Yes, there may be a small increase in events, but the probability is still quite remote—except in the retail industry. In the retail industry it is quite high.” The specter of violence has always been a concern for retailers, but there has been an increase in recent years in those that recognize it as a strategic business issue, according to Read Hayes Read Hayes, PhD, director of the seventy-member Loss Prevention Research Council (LPRC). The issue of violent crime has now been the subject of four LPRC summits, which bring together law enforcement, LP leaders, and solution partners, and its working group targeting the issue has become the second-largest working group in the LPRC, with a focus on four critical issues: parking lots and other areas like

Since customers also don’t want to shop in a fortress or see draconian security, how should LP leaders be looking at the problem? Hayes said LPRC research points to the importance of examining the entire retail environment and considering how it might be changed so that “red guys” feel less safe and “green guys” feel safer.

TOOLS AND TRAINING HELP LP TEAMS PUNCH BACK AGAINST VIOLENCE restrooms where people often feel uneasy; armed robbery; shoplifting turning violent; and active-killer type scenarios. “It was a bit of a battle to get some retailers to see violence as a strategic issue, but now more have come around to it,” he said. To enable business success, Hayes said retailers need to focus on (a) the shoplifter because a customer needs to be able to find the product he or she came in to buy; (b) the experience because friction from long checkout lines and the like dampens sales; and (c) safety and security because from the time a customer enters a store’s parking lot, he or she needs to feel safe for the sale to take place. “People want to work in safe places and shop in safe places, so not only is there a life safety issue and a moral imperative to protect workers and customers, but also there is a strategic tie in.” And it’s an increasingly important one. With online shopping a persistent option, there is rarely a reason for customers to shop in a location where they feel uncomfortable. “Intimidation can be a killer to a retail company’s business because now you can get back in your car and order. It’s a looming issue for retailers,” said Hayes. From LPRC interviews with shoppers, Hayes said they’ve learned that intimidation extends far beyond harrowing scenarios, such as a van in the parking lot full of masked men poised to commit a robbery. Intimidation comes in many forms. “There is intimidation from dark places or the lack of sales people. Just a general sense of feeling vulnerable keeps people away and shortens how long they shop,” Hayes said. “We’ve also learned about the negative impact from things like people asking customers for gas money, or trying to sell them something, or loitering in the area, or just people who are not doing the normal things—they’re all types of intimidation to a customer.” Since customers also don’t want to shop in a fortress or see draconian security, how should LP leaders be looking at the problem? Hayes said LPRC research points to the importance of examining the entire retail

environment and considering how it might be changed so that “red guys” feel less safe and “green guys” feel safer. “One thing we’ve found is the importance of day versus night. You might have a parking lot that has beautiful trees that are inviting during the day, but which can be hiding places at night, so bad guys feel safe and customers don’t,” Hayes explained. “It’s not an argument against lush vegetation, but it is a call to look at how environmental issues play during different times, weather, seasons, and so on.” Larry Hartman said he’s observed retailers responding to the new risk environment in a variety of ways, including with policy approaches, such as more frequent reviews and revisions of shoplifting policies and store opening and closing procedures, and with deterrence, including staffing levels and positioning uniformed guards or LP staff at entrances. But leading LP units are also examining the conflict management skills of its general staff and asset protection personnel. Employees are the most likely victims of in-store violence, but they also may be the best chance to prevent it. “The better prepared employees are, the more likely they are to avoid a problem and the calmer they will be during the unfolding of the event,” Hartman explained. Because if it is true, as most believe, that everyone’s default today is a little bit closer to the boiling point, then the ability of staff to lower temperatures has become more important than ever.

People We spoke with Rob Holm on a big day. One and a half years in the making—after assessing training options, selecting vendors, testing, and tweaking the curriculum—McDonald’s was rolling out its e-learning workplace violence prevention training program to its restaurants. “We’re excited about it,” said Holm, the company’s director of global security. “We identified it as an opportunity and as the right thing to do for employees, to provide information they need for those exposures that unfortunately do exist.” LP MAGAZINE

MAY–JUNE 2019

The company is starting with its restaurant managers, who in the next ninety days will be completing in their stores an online training program created by a third-party vendor shaped to fit the chain’s challenges, align with its policies, Rob Holm and resonate with its managers. The course consists of seven modules, which require about fifteen minutes each to complete, on topics from armed robbery to active-shooter scenarios to managing aggressive behavior. After each module, restaurant managers must pass a competency test before moving to the next lesson. Learners will complete surveys so that the company can continue to refine and improve the training program. Soon, the seven learning modules will be condensed into a shorter, more focused one-module training course for all restaurant crew members to undergo. “We want to help problem situations from escalating, and if something has already escalated, then our managers will be in a position to de-escalate things,” said Holm. One typical challenge for quick-serve restaurants is the issue of homeless individuals that cause problems or loiter inside restaurants. Confronting and managing those issues humanely but effectively requires an understanding of both verbal and nonverbal messaging, explained Holm. “People need to be aware of the specific things they should say and also what not to say, and how body language can help a situation or make it worse,” said Holm. “The goal, really, comes down to building awareness for situations that they may get exposed to that can put their safety at risk.” Although not specifically driven by a rise in incidents, McDonald’s training program is, in part, a response to a general increase in threat levels in society. “In the last several years, societal, demographic, and political issues have increased risks in our industry,” said Holm. “It is absolutely a

TOOLS AND TRAINING HELP LP TEAMS PUNCH BACK AGAINST VIOLENCE big priority of ours to ensure that our restaurants are safe and secure for customers and safe work environments for our employees.” Macy’s is another leading retailer that has recently focused on managing conflict, especially the potential for violence during suspect apprehensions. In fall 2018, it started to send asset protection staff in select markets Tara Nutley through conflict management training. By the end of 2019, the goal is to have all AP colleagues trained, according to Tara Nutley, Macy’s director of asset protection, training, and communication. “Selecting the right facilitators to deliver the class was important,” said Nutley. “We had several AP executives from all regions participate in the ‘Train the Trainer,’ which helped us put together an aggressive training plan for 2019.”

“People need to be aware of the specific things they should say and also what not to say, and how body language can help a situation or make it worse. The goal, really, comes down to building awareness for situations that they may get exposed to that can put their safety at risk.” – Rob Holm, McDonald’s 18

Like McDonald’s, Macy’s initiative was sparked less by a specific rise in problems and more by a generalized recognition of today’s threat environment. “Although the number of shoplifting incidents remained consistent, the threat level increased,” said Nutley. “We decided to find a training program that was geared toward non-escalation and de-escalation strategies. We want our AP team to have the skills in order to safely manage an incident while being confident to disengage if the threat level makes that appropriate.” To better manage shoplifting incidents and assist customers, Macy’s AP staff is developing a range of skills during training, including using the universal greeting, managing conflict, identifying conflict triggers, and positioning bodies. Although it’s too early to gauge specific benefits, there are upstream indicators that training will yield better results. “The AP team has positively reacted to the training program and expressed that they have more confidence when managing difficult situations,” said Nutley. One key to the successful development of the program, said Nutley, was a strong commitment to the training program by its vendor and all AP associates. Holm similarly cited the importance of stakeholder support to its successful rollout. Holm said they first tested its training program for restaurant managers on their supervisors. “They got it in advance, so they were more than just aware of it, and so they would support it as well, and we made a few improvements as a result of their feedback,” said Holm. “It has to be a cross-functional effort. You need to make sure you’re partnering with everyone you need to in order to move the ball across the goal line.” Top executive support is clearly critical as well, especially since the natural result of training managers about handling violent incidents is a spike in reported incidents. “The expectation is that once you heighten awareness and have more consistency in who to report an incident to and how to MAY–JUNE 2019

LOSSPREVENTIONMEDIA.COM

report it, that the incident rate is likely to spike and then gradually plateau,” said Holm. “If we don’t spike, I would worry that we didn’t do a very good job.” Although active-shooter events are extremely rare, they too need to be part of the conversation between LP leaders and top management, said Hartman. “We’re simply too exposed from a risk perspective to not have an open dialogue about worst-case scenarios.” For a retailer that is just starting to formally address violence in stores, a “crawl, walk, run approach” is going to be necessary, according to Todd McGhee, an active-shooter and anti-terrorism trainer at Protecting Todd McGhee the Homeland Innovations. In addition to training, a robust program must include incident analysis; a mass communication plan, including a platform for relaying critical information via text or email to sets of designated stakeholders; emergency response planning, including people tracking, reunification protocols, and leadership redundancy; internal and external coordination and planning, potentially including law enforcement, other retailers, and property managers and landlords; and all the way up to drills and exercises. Training is a vital part of that planning effort, said McGhee. He suggests it should be as interactive as possible. “Ideally, get to them in their environments and out of their seats,” he said. For employees most likely to encounter potential violence, he said four hours of instruction is probably appropriate. He acknowledges that cost is always a concern but that he’s participated in full-day training courses that were free to retail stores through a cooperative effort among property managers, consultants, and local authorities having jurisdiction. “That kind of coordination can be an effective way to share the financial burden,” he said.

TOOLS AND TRAINING HELP LP TEAMS PUNCH BACK AGAINST VIOLENCE Retailers run significant risk if they fail to extend training to store personnel, warned McGhee. “In the case of a real incident, there are going to be lawsuits. They’ll be looking at what your policies are, how current they are, and what training and education you have,” he said. “Policies are important, but you need to show the flow of information to the entire workforce. There is liability if you have policies but don’t exercise them through training.” The topic takes on additional importance in the wake of a recent Seventh Circuit court decision. The US Equal Employment Opportunity Commission had brought a case against Costco Wholesale on behalf of a Costco employee who alleged she was harassed for over a year by a Costco customer. Late last year, the appeals court upheld the verdict against Costco for allowing a hostile work environment, including a $250,000 award to the plaintiff (EEOC v. Costco Wholesale Corp., Nos. 17-2432 & 17-2454, 7th Cir., Sept. 10, 2018). The lesson? Customer-facing

businesses must be aware that customer harassment can, in some circumstances, give rise to a claim of a hostile work environment, noted a client brief about the case by law firm Nixon Peabody. Finally, experts note that training aimed at enhancing employee safety, in order to maintain vitality and align with risk, can’t be static. For example, American Eagle has long been a leader in providing travel safety instruction and information to employees, with hundreds of AE employees logging 2,500 international trips annually, according to Scott McBride, vice president of global LP, safety, and security. If the security team feels it is lacking information about a specific region, as well as on a random and periodic basis, AE security staff will debrief employees returning from trips to better Scott McBride

LP MAGAZINE

MAY–JUNE 2019

inform their future instruction. “We will ask about what they saw, if they experienced any issues. In about one out of every twenty-five trips, we will do a debrief,” said McBride.

Skills Workplace violence prevention training was a significant theme at the ISC West security conference in April. One warning issued during several education presentations was to recognize that managing an angry customer requires specific skills and techniques. It is, perhaps, an ability that seems should come naturally. But, for most people, it doesn’t. “People don’t know how to talk to people, and it’s not just a matter of telling people to listen. There are specific techniques to it and tools you need to give them,” advised Ben Scaglione, senior consultant at DVS Ben Scaglione

TOOLS AND TRAINING HELP LP TEAMS PUNCH BACK AGAINST VIOLENCE

“People don’t know how to talk to people, and it’s not just a matter of telling people to listen. There are specific techniques to it and tools you need to give them. And statistics are starting to show that if people knew better how to communicate with others, the amount of workplace violence would substantially decrease.” – Ben Scaglione, DVS Security Solutions Security Solutions. “And statistics are starting to show that if people knew better how to communicate with others, the amount of workplace violence would substantially decrease.” The risk rises the farther one goes down on the organizational chart, suggested McGhee. “On one hand, you may have a long-time store manager who is very invested in the success and growth of the company and will be focused on responding to be people in a very professional manner. On the other hand, you may have a minimum wage employee who feels no investment, and so when faced with a problem person, they can quickly become irate themselves and quickly become part of the problem,” said McGhee. A new study by researchers at Eastern Connecticut State University shows that workplace shootings increasingly have these types of disputes at their genesis, as opposed to robberies.

Analyzing 1,533 workplace homicides from firearms between 2011 and 2015, researchers found that, compared to historical data, these crimes were increasingly in nonrobbery events. “This includes things like arguments, both arguments between employers and employees, arguments between customers and employees, as well as other types of crimes [like] intimate partner violence, mass shootings, and other types of circumstances,” said Mitchell Doucette, health sciences assistant professor, in announcing the results of the study. William Singleton is a partner at Vistelar, a provider of conflict management training that has worked with several retailers to enhance the skills of asset protection staff. The method of training has varied to fit the William Singleton organization. As noted, Macy’s utilized a train-the-trainer model. REI chose to deliver training online. Kroger-affiliate Pick ’n Save used Vistelar to deliver four-hour live-training blocks directly to LP staff. Regardless of the instruction method, content should be founded on treating people with dignity by showing respect, according to Singleton. “I think across all professions there is a sense that the level of aggression is going up. Things are more volatile,” he said. “Our ‘non-escalation’ training program emphasizes setting context and treating people right, so the situation doesn’t escalate.” Empathy is at the core of its training philosophy. In addition to improving outcomes, that focus has the added benefit of being popular with human resources departments and retail organizations. “They love the whole foundation of treating people with respect,” Singleton noted. Specifically, with respect to customer management, empathy focuses on acknowledging their perspective, seeking to understand, and anticipating their needs. “By using the ‘empathy triad,’ employees gain confidence in this skill,” said Singleton. MAY–JUNE 2019

LOSSPREVENTIONMEDIA.COM

“And if you do happen to come late and the situation has already escalated, our proxemics—body positioning, hand positioning, and situational awareness—coupled with our redirections and persuasion sequence are popular tools that provide staff with more confidence to handle the situation.” When private facilities devise a perimeter protection strategy, it is a best practice to clearly identify the property boundary, so that individuals have no excuse for trespassing onto it. It’s similar in person-to-person security, said several experts. Store associates should create boundaries when dealing with threatening individuals, by holding up their hands to indicate they shouldn’t come any closer or asking them politely to lower their voices. “You need to set a boundary so that you know when people cross it,” advised Hector Alvarez, president of Alvarez Associates, in his 2019 ISC West conference presentation, “Workplace Violence Prevention and Response.” A strong level of confidence among staff is key to tamping down situations that have the potential to spiral out of control. Active listening, offering options, and giving people time to reconsider are learned skills that give staff options for keeping situations on a path of non-escalation. “But if you don’t have that confidence or a structured framework you can refer to in the heat of the situation, situations can easily follow the ‘red brick road,’” warned Singleton. Jesse Stanley, CPP, CFI, is principal and consultant at Strongside Principles, a business training and consulting firm, with more than a decade of experience directing retail investigations and Jesse Stanley loss prevention teams. He suggested that while training builds on a client’s existing programs, it can also mean revisiting some very basic aspects of loss prevention. “One of my clients wanted to redo the way they dealt with

TOOLS AND TRAINING HELP LP TEAMS PUNCH BACK AGAINST VIOLENCE shoplifters to better prevent the incident from turning into disruptive behavior, and we worked with them to redesign their approach. It started with the language they used and to call them ‘customers’ instead of ‘shoplifters,’ ‘suspects,’ or ‘criminals.’” Like several other experts, Stanley noted that violence has always been part of the retail risk environment, and that while it’s not entirely clear if danger has truly increased or not, coverage in the 24/7 news cycle has caused it to get more attention in the C-suite. He thinks one undeniable development, however, is the attitude of shoplifters. In the past, when apprehended, thieves were far more likely to act caught. “What retailers are seeing more and more is a difference in their willingness to engage, and to turn around and attack a store employee or LP agent,” said Stanley. “It’s almost like, ‘How dare you try to stop me from committing a crime?’ As if they consider it a sign of disrespect.” Part of an effective training program may require a retailer to

update their “customer is always right” approach. “If I’m a sales associate, and the customer is always right regardless of what the customer is doing, I am going to feel powerless,” explained Stanley. “You want employees to connect with their customers, but they are going to be looking to disconnect if they believe they are powerless in any conflict that might arise.” In broad terms, retailers need to position store associates and LP staff to succeed—and to avoid setting them up to fail. For example, the new UK survey, which included employee interviews, suggested that some store policies are actively encouraging problems by “rewarding” aggressive customers with vouchers after an incident or a complaint. “What we want to do is ensure that people have the tools they need if they have to engage, to have training that supports store policies, and to have expectations clearly stated,” said Stanley. “That will help them to remain as safe as possible.”

Helpful concepts for employees to understand include the idea that language can put customers on the defensive, from explanations that treat them like children (“those are the rules”) to specific trigger words that can set people off. Stanley noted that disruptive behavior by a customer often has “an unmet demand” at its core, which includes a customer who feels he or she is being treated rudely or disrespected. “And now I react to that, and immediately we’re off to the races,” he said. “We have to be careful to not overinflate the issue, but we want to make sure there is an understanding of the connection between lower-level aggression and extreme violence,” said Stanley. “When you look at extreme violence you often see that perceived rudeness preceded it, which is not to say that every time someone feels disrespected that they will come in with a gun, but when those events do occur there is often a sense of being wronged in some way that sparked it.”

KNOW YOUR CRIME RISK

At your store. In transit. On the doorstep.

22 of the top 25 Retailers rely on CAP Index for their crime risk forecasting.

You’re responsible for protecting your people, places, and bottom line from crime. Make smart, defensible decisions with our CRIMECAST® data, providing solutions for risk assessment, resource allocation, and security protocols.

VISIT US AT CAPINDEX.COM TO SEE HOW YOU CAN OUTSMART CRIME LP MAGAZINE

MAY–JUNE 2019

TOOLS AND TRAINING HELP LP TEAMS PUNCH BACK AGAINST VIOLENCE To devise a program that maximizes its value to employees, LP might benefit from doing more investigation into what the actual exposures and problems are, suggested Stanley. “When you’re doing a store visit, everyone will put on their happy faces. Most people will just say that ‘it’s going great,’” said Stanley. “But we need to use our Wicklander skills, to really interview people and to uncover how asset protection teams and employees really feel about these challenges and how big the problems are, so we can create a plan to help them.” Stanley said it’s important for retailers to find a vendor who will be a true partner and is able to alter training approaches to best align with the brand and the company culture, be it intensive workshops or computer-based training, and who has the ability to embed training on disruptive behavior into the company’s broader training program. Singleton, too, thinks a training provider’s ability to customize training is a key point for retailers to consider, as well as the scope of topics it can address

At the 2019 ISC West trade show, booths touting gunshot detection solutions had a larger footprint than in years’ past, from big names like Johnson Controls to smaller ones like Amberbox and Safe Zone. Although the retail applications may be limited, the technology seems to be ripening, and cost has also come down. 22

so that training can expand as a retailer’s program matures. “Ideally, you want a training vendor that is able to train on the entire spectrum, from non-escalation, to crisis intervention, all the way through to active shooter.” Finally, there is no denying the substantial resources that training consumes, but retailers that have made a point to track outcomes have often found a positive return on investment, according to Stanley. He said one measurement-driven retail client found its investment paid for itself in less than nine months, based solely on a reduction in injuries and workers’ compensation cases associated with shoplifting stops. Others have tracked significantly higher customer satisfaction scores, as employees become more skilled at managing complaints, as well as higher rates of exchanges compared to returns, and increased employee job satisfaction and lower attrition. “It can make a huge difference to shift the paradigm and shift people’s behavior—so that instead of seeing a challenging customer as a problem, they see it as an opportunity,” said Stanley.

Tools Technology can play a role in protecting staff, including well in advance of the point when de-escalation is called for. For example, crisis-management software from Everbridge is designed to incorporate myriad streams of information, from social media feeds to weather data, to give companies a heads up if threats seem on track to intersect with its assets. That can provide value on a large scale, such as in monitoring supply chain risks, as well as a personal level, by giving corporate LP teams a warning when targeted violence seems to be headed a store’s way, in the shape of an ORC gang, a violent flash mob, or if social unrest is starting to roil. It’s vital life-safety intelligence that corporate teams can then use to reduce the risk of harm to staff by warning store managers to be vigilant, ramp up security or staffing, or close stores. “Here in Boston we regularly have severe weather. And while it’s not a bad MAY–JUNE 2019

LOSSPREVENTIONMEDIA.COM

thing, we often have Super Bowl parades. And you need to plan for how that might affect stores,” explained Ravi Maira, vice president of Ravi Maira industry and solution at Everbridge. “If it’s a snowy day, and all those people on the parade route come in to your store, what is your plan? Have you communicated it consistently across all of your stores in the affected area? For any type of potential disruption, you want to be as proactive as possible.” Such a centralized approach can also lift some of the security management burden off store managers, who might be knowledgeable about neighborhood crime but might not have the expertise to make good decisions on what to do about it, Maira added. By layering company policies and protocols on top of the threat data, the solution can automate execution of predefined communications processes and track progress—a big help for big retailers. Especially in retail, this has long been a problem without good options, said Maira. “How can you centrally provide support and expertise in a distributed threat landscape for thousands of locations? But an individual store also can’t monitor and keep track of all the weather events, planned protests, construction projects, and other more threatening issues that can be a disruption or put employees in harm’s way.” As a selling point, this type of tool can yield business as well as safety benefits. It may even help elevate the role of LP, suggested Maira. It’s part of the larger industry story of how retail security teams can provide more value by migrating from a focus on responding to events to being more predictive, he said. Case in point: while retailers can’t control the weather, they can leverage weather-related data to drive their bottom lines, according to a new report from IBM. The survey of continued on page 24

INDUSTRY LEADING SECURITY The TDL™ (Theft Deterrent Level™) Series of Secure Display Cases from Jahabow define the industry standard for reducing loss and safeguarding your most valuable inventory.

VI SI T US AT BOOT H #1048

Secure Display Cases from

TOOLS AND TRAINING HELP LP TEAMS PUNCH BACK AGAINST VIOLENCE continued from page 22

1,000 C-level executives representing thirteen industries in fifteen countries reported that the executives believed improved weather insights can reduce annual operating costs, with nearly a quarter saying the savings can be between 2 percent and 5 percent. Naturally, there is a limit to technology’s ability to prevent harm from violence in open environments such as retail. “If you’re a corner store and someone comes in shooting, it’s not going to be a savior at that point,” noted Maira. But he added that for a big box or shopping mall, a critical event management platform, tied to other technology such as gunshot detection, can provide a way to spark real-time communication with employees that could be lifesaving in an active-shooter event. At the 2019 ISC West trade show, booths touting gunshot detection solutions had a larger footprint than in years’ past, from big names like Johnson Controls to smaller ones like Amberbox and Safe Zone. Although the retail applications may be limited, the technology seems to be ripening, and cost has also come down. Safe Zone’s sensors are priced at $149 apiece, which would allow an average-sized convenience store to benefit from coverage for about $600. Late last year, Charleston International Airport added a more complete technology solution from Shooter Detection Systems, which will help steer first responders to an incident more quickly (via shot location information) with more information (by streaming relevant video streams), as well as activating appropriate door locking and unlocking. Technology can be a deterrent to violent criminals as well. For example, a late-night armed robber of a convenience store will often wear a mask or hoodie to evade identification by surveillance video, but integrating video with a store’s front door can provide protection without putting store associates behind off-putting bulletproof glass encasements or using revenue-limiting “wall through” windows. Moto Mart locations in the

The Top Threats* That Retail Organizations Are Preparing Against Active-Shooter Situations

89%

Workplace Violence

78%

Natural Disasters

66%

Cyber Crime

53%

Supply Chain Issues

44%

Terrorism/Man-Made Disasters

41%

Executive Protection/Travel Security

31%

Product Tampering

28%

Organizational Malfeasance

22%

Other

Chemical, Biological, Radiological, Nuclear Release

None of the Above

*Survey respondents were instructed to select “all that apply” (Source: Responses of thirty-seven retail companies to the 2018 Active-Shooter Preparedness Survey, Everbridge/ASIS International)

Midwest, for example, are using First Line facial recognition by Blue Line Technology to deny entry to individuals who wear masks or otherwise attempt to conceal their identities. During overnight hours, the stores’ doors remain locked until a surveillance camera outside the store entrance captures a clear image of an approaching customer’s face, at which time software unlocks the door, with the goal of preventing incidents by forcing potentially violent criminals to be videotaped. “Retailers’ number one priority is the safety and security of their main assets—their associates—as well customers, but we’ve been living for a decade in an environment where LP is being asked to do more with less,” explained Hedgie Bartol, business development manager for retail at Axis Communications, which is where networked security technology comes in, he said. Unlike Hedgie Bartol MAY–JUNE 2019

LOSSPREVENTIONMEDIA.COM

a closed video-surveillance system (CCTV), a network solution is easy to scale and redeploy, which provides LP with real options for leveraging technology to enhance safety and security without the cost of deploying additional LP staff. One example, he noted, is to use audio analytics, either as a standalone module or a camera add-on. “They can tell when things are getting heated, like between a cashier and a customer,” said Bartol. “It can immediately send an alert to a manager or someone who is specially trained in de-escalation to go to the scene to help,” said Bartol. In an ISC West conference panel discussion on physical security applications for artificial intelligence, Ken Mills, general manager of IoT, surveillance, and security at Dell, recounted how one European city’s shopping district, hampered by rowdy behavior late at night, deployed audio analytics to trigger street lights to increase brightness when it detected escalating voice levels. Doing so helped to modulate patrons’ behavior and restore the shopping area’s reputation in continued on page 26

Visit us at NRF Booth #733 www.3xlogic.com or call us at 1-877-3XLOGIC for more information.

TOOLS AND TRAINING HELP LP TEAMS PUNCH BACK AGAINST VIOLENCE continued from page 24

Workplace Violence Preparedness Activities in the Last Two Years Conducted Employee Training/Education

48%

No Additional Steps

19%

Increased On-Site Security

11%

Other

11%

Invested in Communications Technology

Invested in Risk/Threat Intelligence Technology

(Source: Responses of thirty-seven retail companies to the 2018 Active-Shooter Preparedness Survey, Everbridge/ASIS International)

the community as a safe place to go at night, he explained. Networked solutions also facilitate stores sharing information with law enforcement, piping live video to police if a glass break detection sensor alarms, for example. “The capabilities that technology now affords would help mitigate tragedy if they were more readily shared with law enforcement,” Bartol added. Technology-based opportunities to prevent violence and crime in retail environments range from very simple to complex, according to Bartol. But he warned, if you don’t know that tools like aggression-detection intelligent video are out there, then it’s impossible to identify how to best apply technology to a retailer’s

advantage. “I think retailers, with LP at the lead as the owner of most of the technologies, are at the cusp of great things,” said Bartol. “But in a lot of these scenarios, it’s a matter of ‘we don’t know what we don’t know.’” Beneficially, networked security technology has taken some of the pressure off LP and should encourage their creativity. “I suggest they think about, ‘What would I attempt from an integrated technology standpoint if I could not fail?’” he said. “With consumer expectations for smart and connected stores, there is way more risk these days from doing nothing than in adopting wrong technology, because networks make it far simpler to change technologies today.”

Perception of Retail Company Leaders’ Concern for Employee Safety “Executives and leaders in my organization are more concerned about employee safety then they were two years ago.” Agree Strongly Agree

48% 19%

Neutral Disagree

19% 15%

(Source: Responses of thirty-seven retail companies to the 2018 Active-Shooter Preparedness Survey, Everbridge/ASIS International)

MAY–JUNE 2019

LOSSPREVENTIONMEDIA.COM

If security technology and other security measures are to maximize their ability to deter crime and violence, then people need to know it’s there, explained Read Hayes. A store guard needs to appear sufficiently capable and alert to intervene. Patrol vehicles need to have a form factor that allows them to be seen over rows of parked cars. Surveillance systems need to announce themselves. “It’s not just about the actual capability of countermeasures but also how the ‘problem people’—those who create intimidation for customers—view its capability,” said Hayes. “You have to increase the visibility of security countermeasures if they are going to make the problem people feel less safe.” It’s a point that Larry Hartman echoed. He believes the trend of deploying large pubic monitors has violence prevention benefits. “A 360 fish-eye camera provides great coverage, but the public doesn’t necessarily appreciate that,” said Hartman. “But a fifty-five-inch monitor is an immediate visual deterrent for someone when they walk in.” Both technology and training have an important role to play in protecting sales associates from harm, especially with workplaces being perceived as more dangerous. A new survey by the Society for Human Resources Management (SHRM) conducted in March found that one out of every seven US workers say they do not feel safe at work. Additionally, the percentage of organizations reporting incidents of violence is up 36 percent compared to 2012. SHRM’s survey report posits the question whether the increase reflects actual violence levels or simply a greater level of awareness, less tolerance, and better reporting of violence. But in a way, suggested several retail security experts we interviewed, it doesn’t really matter. Retail employees—those who do the heavy lifting of managing potentially aggressive customers day in and day out—must receive protection from violence as well as feel protected.

LEVEL LEVEL UP UP TRAINING TRAININGTO TOACTIVIATE ACTIVIATETHE THETRUTH TRUTH Convert Convert Your Your Knowledge Knowledge Into Into Skill Skill

THE THELINK LINK

THE THE LINK LINK provides provides investigators investigators with with anan opportunity opportunitytotopractice practicetheir theirinterviewing interviewingskills skillsin in a risk-free a risk-free interactive interactive simulation. simulation. Save Save $100 $100 when when purchased purchased with with a Level a Level I or I or II training II training course. course. WZ WZ Practical Practical Advanced Advanced Workshop Workshop

LEVEL LEVELII II

Redesigned Redesigned forfor 2019 2019 this this workshop workshop will will take take your your interviewing interviewing skills skills toto the the next next level. level. Work Work through through case casestudies studiesand andexercises exercisescreated createdtotobetter better prepare prepare you you forfor your your next next investigation. investigation. WZ WZ Interview Interview && Interrogation Interrogation Techniques Techniques

LEVEL LEVELI I

Learn Learn a series a series ofof technqiues, technqiues, anchored anchored byby the the WZ WZ Non-Confrontational Non-ConfrontationalMethod Methodthat thatallow allowyou youtoto successfully successfully resolve resolve cases cases and and identify identify the the truth. truth.

SELECT SELECTYOUR YOURLEVEL LEVELAND ANDPOWER-UP POWER-UPYOUR YOURINVESTIGATIVE INVESTIGATIVESKILLS SKILLS LEVEL LEVEL I –I – WZ WZ INTERVIEW INTERVIEW && INTERROGATION INTERROGATION TECHNIQUES TECHNIQUES

LEVEL LEVEL II –II – PRACTICAL PRACTICAL ADVANCED ADVANCED WORKSHOP WORKSHOP

MAY MAY 1 –1 2– 2

CHARLOTTE, CHARLOTTE, NCNC

3 3

CHARLOTTE, CHARLOTTE, NCNC

8 –8 9– 9

HOUSTON, HOUSTON, TXTX

1010

HOUSTON, HOUSTON, TXTX

1515 – 16 – 16

PHOENIX, PHOENIX, AZAZ

1717

PHOENIX, PHOENIX, AZAZ

2929 – 30 – 30

BUFFALO, BUFFALO, NYNY

JUNE JUNE 5 –5 6– 6

SEATTLE, SEATTLE, WA WA

7 7

SEATTLE, SEATTLE, WA WA

5 –5 6– 6

NEW NEW YORK, YORK, NYNY

7 7

NEW NEW YORK, YORK, NYNY

1919 – 20 – 20

NASHVILLE, NASHVILLE, TNTN

2121

NASHVILLE, NASHVILLE, TNTN

1919 – 20 – 20

IRVINE, IRVINE, CACA

2121

IRVINE, IRVINE, CACA

JULY JULY

GET GETTHE THE TRAINING TRAINING SKILLS SKILLS TRUTH TRUTH REGISTER REGISTERONLINE: ONLINE:

W-Z.COM W-Z.COM ororcall: call:

1010 – 11 – 11

MINNEAPOLIS, MINNEAPOLIS, MN MN

1717 – 18 – 18

CHICAGO, CHICAGO, IL IL

1919

CHICAGO, CHICAGO, IL IL

2424 – 25 – 25

BALTIMORE, BALTIMORE, MD MD

2626

BALTIMORE, BALTIMORE, MD MD

3131 – 1– 1

SAN SAN ANTONIO, ANTONIO, TXTX WICKLANDER-ZULAWSKI WICKLANDER-ZULAWSKI & ASSOCIATES & ASSOCIATES| 800.222.7789 | 800.222.7789| W-Z.COM | W-Z.COM

800.222.7789 800.222.7789

CERTIFICATION Interview with Jake Gillette, LPC, PSP Gillette is loss prevention director at DICK’S Sporting Goods. He is a highly experienced professional focused on building the most effective teams in the industry. Strongly technically oriented, he has a track record of pairing the right individuals with the latest technology and innovation to drive sustained results. For over fifteen years, he has led effective teams in the areas of profit protection, omni-channel fraud, investigations, corporate security, operations, distribution, and crisis management.

Fascinating and Challenging Why did you decide to pursue your LPC certification?

What benefits have you seen from taking the course?

I found the LPC credential to be an invaluable asset in my loss prevention career. It not only validated my experience and knowledge but also distinguished me amongst my peers, professionally adding credibility. I was also fortunate to receive a scholarship from Vector Security, a professional partner who takes pride in upskilling our industry.

I appreciate being part of a group of loss prevention professionals who not only hold personal development important but also demonstrate it. I also look forward to the many benefits the Loss Prevention Foundation has to offer the industry. If you could offer one key takeaway to someone currently considering getting certified, what would it be?

Was the coursework what you expected?

I found the coursework easy to navigate but thorough and thought-provoking. It really stretched beyond my current knowledge and experiences in areas like pharmacy and supply chain loss prevention. I was able to learn many new concepts in completing the coursework, which was refreshing.

How would you compare the foundation certifications to other educational courses that you’ve taken?

Talk about the process of going through the coursework and taking the exam.

When first taking on the LPC content, I found myself struggling for time. We are busy professionals, and there seems to never be enough time. The fact that the content was web-based allowed me to use text-to-voice features in my tablet. This was especially nice for plane rides and in the car. After completing the coursework, I found it easy to schedule the exam at one of many testing locations close by. The exam was challenging but legitimate. This is a true certification.

Difficult but rewarding and authentic. I found some certifications in the industry are easy to achieve and lack in depth of content. If you are looking for letters to add to the back of your name with little work, this is not the certification for you. If you are looking for substance, practicality, a healthy challenge, and pride, seek your LPC. How has certification changed your expectations of loss prevention as a career, for yourself and for others?

I started the LPC coursework years after college at a time when I wasn’t sure where my career would take me next. The LPC excited a personal desire to grow, learn, and get better. I am very proud to hold this certification.

Looking at your own personal background and knowledge, what information in the course helped you the most?

Fortunately, I learned about supply chain loss prevention during my LPC prior to accepting responsibility for that area of the business. The key learnings in the LPC content positioned me well with introduction to and continued learning in the discipline.

Do it. There will come a time in your career where you will need to lean on the experiences and content gained from completing your LPC. The certification also provides common ground when networking, which can be beneficial in continued growth.

Newly Certified

Following are individuals who recently earned their certifications.

What was the most eye-opening information that was part of the curriculum?

Recent LPC Recipients

At my current employer, we are no strangers to government compliance and regulation. I was amazed to find out the regulation in pharmacy loss prevention. I found the complexities fascinating and challenging.

Joseph Baldasare, Jr, LPC, Lowe’s Robert Brady, LPQ, LPC, 7-Eleven Michelle Bronson-Jones, LPC, Rite Aid Davinder Cheema, LPQ, LPC, Best Buy Canada

MAY–JUNE 2019

LOSSPREVENTIONMEDIA.COM

Our Success Starts with Our Partners

Christina Crain, LPC, Meijer Steven Dean, LPC, Navy Exchange Service Command Isabelle Devereux, LPC, John Lewis PLC Mason Drawbond, LPC, Amazon Paul Evans, LPC, Southeastern Grocers Brian Fantom, LPC, K&G Fashion Superstore Randy Graham, LPC, Navy Exchange Service Command Michael Gray, LPC, DICK’S Sporting Goods Tahsin Haopshy, LPC, Gabriel Brothers Victor Hernandez, LPC, Fanzz Gear Kelly Johnson, LPC, Bed Bath & Beyond Alyssa Jones, LPC, Sears Charles Jones, LPC, DICK’S Sporting Goods Christian Latson, LPC, HomeGoods Brandon Lollis, LPC, DICK’S Sporting Goods Matthew Maheu, LPC, CFI-Legacy, CKE Restaurants Curtis McGruder, LPC, AT&T Barry Mince, LPC, Lowe’s Staci Noonan, LPC, Meijer Richard Peck, LPC, TJX Meredith Plaxco, LPC, PetSmart Brian Reichart, LPC, Amazon Eduardo Sosa, LPC, Luxottica Retail Malinda Sweat, LPC, AFS Angel Torres, LPC, Ascena Retail Group Randy Vickers, LPC, Lowe’s Matthew Welch, LPC, DICK’S Sporting Goods William West, IV, LPC, CKE Restaurants Victor Wichi, LPC, GameStop Angela Williams, LPC, Lowe’s Joseph Womack, III, LPC, Beall’s

DOCTORATE LEVEL PARTNERS

MASTER LEVEL PARTNERS

BACHELOR LEVEL PARTNERS

ASSOCIATE LEVEL PARTNERS

Recent LPQ Recipients Kenneth Anderson, LPQ, Macy’s David Bailey, LPQ, Navy Exchange Service Command Ashley Bartol, LPQ, Loss Prevention Foundation Cheryl Brereton, LPQ, Goodwill of the Heartland Gregory Brown, LPQ, American Eagle Outfitters John Cunningham, LPQ, Lowe’s Mathew Dromey, LPQ, Northwood University Arthur Griffore, II, LPQ, DICK’S Sporting Goods Robert Jones, LPQ, Skogen’s Festival Foods Kristina Jones, LPQ, TJX Zara Lujan, LPQ, REI Deviin Mabry, LPQ, TJX Claudia Melano, LPQ, Nordstrom Shawn Mullens, LPQ George Oancea, LPQ, TJX Christina Petrossi, LPQ, Goodwill Industries of Houston Mark Radford, LPQ, Walmart Paul Richardson, LPQ, Lowe’s Travis Robinson, LPQ, Walmart Ashley Starr, LPQ, Comcast/NBCUniversal Todd Wiley, LPQ, Lowe’s

DIPLOMA LEVEL PARTNERS

inc.

Professional development is key to a fulfilling career. Visit www.LossPreventionFoundation.org to find out more. SM

Educating an industry, one leader at a time. LP MAGAZINE

MAY–JUNE 2019 2019

LPM EXCELLENCE

LPM “Magpie” Awards: Applauding Excellence

The LPM “Magpie” Awards offer a means to celebrate industry accomplishments on an ongoing basis, recognizing the loss prevention professionals, teams, solution providers, law enforcement partners, and others that demonstrate a stellar contribution to the profession. The ability to influence change is a product of drive, creativity, and determination, but it also requires a unique ability to create a shared vision that others will understand, respect, support, and pursue. Each of the following recipients reflects that standard of excellence, representing the quality and spirit of leadership that makes a difference in our lives, our people, and our programs. Please join us in celebrating the accomplishments of our latest honorees.

Excellence in Leadership

John Voytilla, SVP of Operational Excellence for Construction, Facilities, LP, Safety, Procurement, and Project Management, Party City “Driving shrink down and saving millions of dollars for an organization is fun and exciting,” said Voytilla. “But having the opportunity to hire, train, and build great teams is the most rewarding part of the business. Seeing individuals that I’ve had the privilege to lead, now leading strong organizations and becoming leaders in the industry—that’s what I cherish the most.” Voytilla started his LP career as a store detective to help with college expenses. Nearing graduation, he accepted an LP manager role with Gold Circle Stores, which led to multistore roles with TJ Maxx and Montgomery Ward. He later accepted his first director position with OfficeMax. “I learned what it meant to have a vision for building an organization and helping the company grow, becoming an officer of the company and having the privilege to lead the loss prevention and safety programs through two mergers in the process.” Two years ago, Voytilla joined Party City to build an in-house professional LP organization while assuming additional responsibility for construction, facilities, procurement, and project management. Voytilla also believes in contributing to the industry in other ways. He’s been very active with the Loss Prevention Research Council (LPRC), currently serving on the Board of Advisors (BOA) and previously serving as chairman of the BOA from 2014 to 2017. He also served as a member of the National Retail Federation LP Council for a number of years. “To be a true leader in the industry, you must have integrity, humility, relentless focus, and be disciplined in all aspects of the business,” he said. “Don’t focus on a title. It’s more important to learn all the different areas of your company and take advantage of the opportunities presented to you. Volunteer for stretch assignments and be a learner. When you make a mistake, own it and move on. Finally, as a leader you need to listen to those closest to the work. They’ll provide you unfiltered feedback—you just need to ask for it.”

Excellence in Partnerships and Community Service John Tabor, Senior Vice President, National Retail Systems

“When building business partnerships, listening and learning are the two most critical pieces,” said Tabor. “Whether it’s listening to customers’ needs, understanding our employer’s expectations, or listening to the employees themselves, there’s a lot of great talent with wonderful ideas that can lead to substantive change within an organization. Also, ongoing learning is critical. When you think there’s nothing more you can learn, that’s pretty much career suicide. Not allowing individuals at all levels of the organization to get out and network is probably one of the worst management decisions that a leader can make. It creates a glass ceiling for the employee.” For those working their way up the career ladder, Tabor stresses the importance of communication. “Just about every leadership tool we end up putting in our toolbox is something we’ve learned from someone else,” he said. “Too often today we see people’s eyes buried in their cell phones. No one is talking anymore. Having the ability and humility to communicate, understand, and have compassion is essential.” That same compassion and understanding has served Tabor well in his personal life. He has served as a volunteer fireman in his hometown for more than thirty years, acting as a first responder at Ground Zero during the events of 9/11. He sits on a board working with children born with Down syndrome, recognizing those who make a difference, and providing learning tools that will help them reach their full potential. He assists with autism awareness groups, Homes for Heroes, and cancer-recovery initiatives. Most recently, he was involved in a fundraiser following a fatal New Jersey school bus crash, which took place in his hometown. “I cannot say enough about the importance of getting involved and supporting your community,” he said. “Volunteering can be a life-changing experience. I’ve always loved giving back, coaching, helping with events, and so forth. Being able to contribute gives me great pride and a sense of fulfillment like nothing else.”

Nominate Your Peers at Excellence@LPportal.com 30

MAY–JUNE 2019

LOSSPREVENTIONMEDIA.COM

INTERVIEW

PARTNERING WITH RETAILERS FIVE EXECUTIVES DISCUSS

WHAT MAKES VENDORS SUCCESSFUL SOLUTIONS PROVIDERS By James Lee, LPC, Executive Editor

LP MAGAZINE

MAY–JUNE 2019 2019

PARTNERING WITH RETAILERS

Patrick Henderson is cofounder of Protos Security and works with their various departments focusing on operational issues.

EDITOR: What is Protos Security, and as a cofounder, how did it all start? HENDERSON: Chris Copenhaver and I were on a church league bowling team with someone who worked in the loss prevention department at Advance Auto Parts. He mentioned that he wished he could find a guard company he could rely on showing up on time nationwide, as well as a one-stop shop, superb communication, and accurate invoicing. So Chris and I put together a proposal as a master service provider for guard services in which we would manage subcontracted local and regional guard vendors. He gave us the Miami market, and we were off to the races. EDITOR: As a graduate of Virginia Military Institute, what were the life lessons in that education? HENDERSON: Chris and I as well as Cameron Tabor, our [chief technology officer], are class of 1999. VMI prepares students for the real world. The education is important, but it is just one of the three “legs of the stool” along with the military ROTC training and athletics that teach invaluable workplace qualities like time management and a “make it happen” attitude. Another aspect of VMI is performing guard duty during your cadetship, so I guess that was our first experience in the guard business.

EDITOR: As a young man, you had a significant health issue. How did your recovery impact your life? HENDERSON: In 2002, I was experiencing a lot of back pain. One night while I was in Wilmington, North Carolina, I couldn’t stand the pain any longer and drove home to Roanoke at 2:00 in the morning. My wife, Heather, of three years at the time, took me to the emergency room where an MRI found spots in my back. After a biopsy, they determined that I had Burkitt’s lymphoma, a non-Hodgkin’s lymphoma that is generated from the mono virus. That diagnosis of stage 4 cancer with a 20 percent chance of survival led us down a path of months of treatments.

●

“If you are truly interested in your customer, want to solve their issues, and recognize that sometimes that means walking away from a sale to do the right thing, then a great sales person can be an exceptional solution provider.” Carina Lewis After many blood transfusions, surgeries, and extreme amounts of chemotherapy, I was in remission by November. However, I had a setback on Christmas night when I went into septic shock. Apparently, I had picked up a bacteria at some point during chemo. Fortunately, my oncologist chose one of only two antibiotics that this bacteria responded to. So at age twenty-five, I learned lessons many people never get to learn and appreciate. I have perspective on how much my wife loves me. I know what a really bad day is now. And I feel I have had a “near miss” that gives me a sense of confidence to go out and make the most of life. MAY–JUNE 2019

LOSSPREVENTIONMEDIA.COM

Carina Lewis is the former vice president of global sales for Sekura Global with over thirty years of experience in the retail security industry.

EDITOR: What is Sekura Global and your role with them? LEWIS: Sekura Global is a division of Clipper Retail Ltd, a well-established British company specializing in providing retailers with display and labeling solutions. Sekura Global is the security division delivering innovative solutions in the US, Canada, UK, Europe, and Australasia. Until just recently, I was vice president of sales focused on building the North American market and supporting our team here, plus assisting with growth in our other key markets. EDITOR: Where and what is Tomlinscote, Camberley? LEWIS: Being a Brit, I was educated in England. Tomlinscote is the equivalent to a US high school and is in Surrey, a county south west of London. EDITOR: How did you get your start in this business? LEWIS: My very first experience in loss prevention, or security as it was referred to way back, was with a UK company called AFA Minerva that specialized in fire, burglary, and associated systems. AFA had just entered the business of EAS and were distributors of a hard-tag EAS system. I was referred by a friend that worked there and got the job because I had a background in retail and sales. I didn’t even know what EAS was at the time. In 1991, I joined ID Systems who was purchased by Checkpoint Systems in 1994.

PARTNERING WITH RETAILERS EDITOR: Are there differences in the UK and US buyer? LEWIS: If you are referring to the retail customer, I would say yes. EAS and security in general is a lot more overt in Europe. Uniformed security guards and EAS are common in most retail stores, and CCTV has been adopted in almost every public space, so the general public and shoppers are used to security and loss prevention devices. The US is adopting more overt systems, but historically, particularly in malls and department stores, EAS has been very subtle.

Pedro Ramos is responsible for managing the Agilence sales team. Previously, he managed the loss prevention and reverse logistics programs for Pathmark, a 141-store supermarket chain. He is a former chairman of the New Jersey Food Council’s LP committee and is active in the Pennsylvania Food Merchants Association, NY Food Industry Alliance, and the Loss Prevention Foundation.

EDITOR: What is Agilence and your role with the company? RAMOS: Agilence is a software solution provider offering data analytics to the retail, grocery, restaurant, and convenience industries. My title is vice president of sales, but my role is much broader. I’m also involved in helping determine the strategic direction of the company, and like everyone in our company, I’m focused on making sure that our customers are getting the most out of our software platform. EDITOR: As a former LP executive, what challenges did you face in the transition?

RAMOS: The biggest challenge for me was a change in mindset. I had to work on how to transition my approach to create a broad business case with limited input. As a leader I’ve always been goal driven, but as a solution provider running the sales team, my ability to achieve my goals hits closer to home, which raises the stakes for me. EDITOR: How has that LP experience transferred to your present position as a solution provider? RAMOS: My LP and overall retail experience gives me a common ground with prospects. It allows me to understand the perspective of my customers and to explain how Agilence can help them achieve their goals and help improve the efficiency and effectiveness of the team.

●

“The best customers out there truly believe in a partnership with the vendor. This means open lines of communication, understanding and relaying priorities, and understanding the limitations we have as vendors. The biggest attribute is honesty and transparency in the relationship.” Stuart Rosenthal, Checkpoint best quality and manufactured product. We do this with our own engineering and manufacturing. My other priorities include fiscal management of the Alpha line of business and ensuring my team and I provide the most outstanding customer service and support in the market place.

Stuart Rosenthal started his LP career as store detective in 1984 and progressed to director of LP. He worked for Rich’s Department Stores, Britches of Georgetown, Ross Dress for Less, Toys“R”Us, and Bloomingdales before moving into the solution-provider world.

EDITOR: What is your role in Checkpoint, and what do you view as your priorities? ROSENTHAL: My current role as vice president of sales and marketing is much broader than the title indicates. I am responsible for everything Alpha for Checkpoint in North America, including sales, marketing, customer service, and our Canton manufacturing and operations. I have a long list of priorities, but first and foremost is to deliver the LP MAGAZINE

MAY–JUNE 2019 2019

EDITOR: You had an extensive LP career from store detective to director. What challenges did you experience in your transition? ROSENTHAL: There are always challenges when stepping into a new role, especially when you are changing career paths. I was fortunate enough to make this move into an industry I love. I have made a lot of relationships over the years, and all of them opened their doors to me when I made the transition. Even though not everyone bought from me, the experience of the meetings helped me grow into this role and move my sales career forward. The biggest challenge I faced was not going to an office and interacting with people each day in that setting. There is a transition period in working from home and being self-disciplined

PARTNERING WITH RETAILERS to manage your time like you are in an office.

value for long-term success in part by delivering new innovation to customers.

EDITOR: Did your practitioner peers view you or treat you differently as a vendor? ROSENTHAL: I don’t think so. I never had anyone call me “a sales person,” and the people I was closest with offered me great advice in my transition. I think the thing that helped me the most was I never forgot what it was like to be on the other side of the desk. The retailers I called on treated me more as a consultant than a sales person. I strived to make my customers feel like I was part of their teams.

EDITOR: You have an exceptional educational and LP experience. What challenges were there for you in the transition? WOELFEL: I came from corporate-level positions, which was a pretty easy transition. As director of LP, sales audit, and vendor quality at Linens ’n Things, we implemented an exception-based reporting solution, which we used every day. I understood how data could drive an LP department to become a critical member of the wider operation.

Kelli Woelfel started her retail career over twenty years ago and has held positions within financial, inventory, and vendor quality control. As the director of LP for a nationwide retail chain, she selected and implemented a first-generation analytics solution. She has been working in the retail analytics software industry now for almost ten years.

EDITOR: What is Profitect and your role with the company? WOELFEL: Profitect is a prescriptive analytics software company for retail and [consumer packaged goods]. Our award-winning solution is powered by machine learning and AI. My role has evolved over the past seven years. Originally as VP of industry solutions, my role was to help prospective customers understand how our solution could help solve their business problems. Today, I am VP of strategic business value. My team works with our current customers to monitor, build, and report on business

EDITOR: What are the attributes of the ideal retail client? HENDERSON: First and foremost, someone who desires a true partnership with us and not just what’s in it for them. Most of the features we offer clients came from great discussions and working closely to identify problems and working together to solve them. More of the tangible attributes that allow us to serve a client the best have to do with fulfilling client needs for large amounts of permanent guard services at locations around the country, centralized billing, a need for field LP managers to have visibility into the guard program’s performance, and a desire for complete control of a large, national guard program. LEWIS: Someone who is open-minded and allows experienced, responsible, and professional solutions providers to understand their needs and offer suitable solutions. RAMOS: Each retail client is different, and each faces different challenges. However, the ideal client sees the urgency to make quick and informed decisions. They recognize that legacy tools don’t work in today’s fluid retail and omni-channel landscape. ROSENTHAL: The best customers out there truly believe in a partnership with the vendor. This means open lines MAY–JUNE 2019

LOSSPREVENTIONMEDIA.COM

of communication, understanding and relaying priorities, and understanding the limitations we have as vendors. The biggest attribute is honesty and transparency in the relationship. WOELFEL: Our ideal retail customer has several traits. First, they have lots of data and want to get more out of it, specifically, to use it to find out what they don’t know. They want to use data to empower people within their organizations but without requiring them to become data analysts. Most importantly, our ideal customer wants change. They want to use their data to do things differently, to capture the “total retail loss” mindset. They have a vision of using data itself differently and to use it for more than just theft prevention. EDITOR: What frustrates you most about being a solution provider? LEWIS: Being unable to have a conversation with a retailer who you feel would benefit from your solutions. RAMOS: Indecision is probably the biggest frustration, and a lot of that is being driven by our society’s “bright shiny object” syndrome. Although there are some exciting innovations happening, they’re not the solutions for everything, and they create unrealistic expectations.

●

“Indecision is probably the biggest frustration, and a lot of that is being driven by our society’s ‘bright shiny object’ syndrome. Although there are some exciting innovations happening, they’re not the solutions for everything, and they create unrealistic expectations.” Pedro Ramos, Agilence

PARTNERING WITH RETAILERS We understand technology and have a very honest approach toward our clients. While I wish I could tell everyone that there is a magic button that can solve everything for them, there isn’t. We try to truly find out as much as we can about the problems each customer is trying to solve, and we give them a tangible solution to solve them. ROSENTHAL: Not being able to snap my fingers and instantly create every solution a customer wants. The second item that most frustrates me is when you come across a competitor that blatantly misleads a retailer, whether through false claims or innuendo. It is bad for the entire industry, and being a former retailer, I take those things personally. My team understands this is not an acceptable way of doing business. WOELFEL: Honestly, nothing. I love my job. My only frustration comes from seeing people within retail who know a solution can make a significant impact on the business but just can’t get the support or commitment to make the investment. I was there. I get that.

DOUBLE THE POWER 20% MORE COVERAGE CLEAR AUDIO

HENDERSON: Sometimes having to experience a client’s unrealistic expectations.

Enter to win an Apple Watch at BOOTH 340

EDITOR: Do you have any concerns for the future of the LP profession? RAMOS: I wouldn’t say concerns. I think the LP profession will continue to be an important component of retail. However, it must evolve, and the speed of change around us requires a faster evolution of the profession. I truly believe the LP professionals that broaden their skills will become higher contributors and therefore more critical to the business. ROSENTHAL: I would not say I have concerns. I see changes in the industry coming, especially with technology. I truly believe the future of LP relies in a joint effort between the retailer and vendor to ensure the most effective products are brought forth in the industry that not only protects the products but also can manage them within the store and through the supply chain. I believe this can only be achieved through partnership and education. WOELFEL: We all see the evolution of retail, and this certainly impacts the LP profession. LP teams must continuously be learning and partnering as their companies develop new programs and processes. That holy grail of getting product to the customer next/same day, regardless of destination, exposes the company to tremendous risk. LP can be a wise “voice” in this process by being a partner in driving sales, margin, and productivity. If you are only viewed as a department that reduces fraud and catches thieves, you become disposable in the eyes of executives. HENDERSON: The physical safety of our LP professionals is of big concern to me. With all the safeguards that the profession has already put in place, there seem to be more attacks at malls, churches, and entertainment events. The people perpetrating these attacks seem to

1-800-950-5005 • www.kenwood.com/usa

continued on page 36 LP MAGAZINE

MAY–JUNE 2019 2019

PARTNERING WITH RETAILERS continued from page 35

be getting bolder. Figuring out how to keep our LP professionals safe needs to remain a priority in our industry. LEWIS: No, not if the LP industry understands that loss prevention is just one facet of retail. LP needs to enhance all departments of retail to ensure a positive customer experience without compromising the security of vulnerable merchandise. That way, they will be seen as an asset to any retailer. EDITOR: How do you and your company support the profession of LP? ROSENTHAL: We support the LPRC [Loss Prevention Research Council] and their research efforts. I am very proud to be a supporter of the LP Foundation. Working with Terry Sullivan, we started the “Demo for Dollars” campaign at the NRF [National Retail Federation] in 2018, where for every retailer that stopped by our booth for a product demo, we donated to the foundation. In 2018, we donated $2,000 at the NRF. We have expanded this event in 2019 to both RILA [Retail Industry Leaders Association] and the NRF shows. Additionally, we have built a beautiful Customer Experience Center as a working lab for our customers to test and look at the future of loss prevention solutions both ready now, being tested, and whatever we can dream of. It’s a real collaboration center for discovery. It includes a 150-seat auditorium that we will open to retailers to use for meetings at no cost. It has all the audio and visual needs needed for a great event. WOELFEL: Hosting webinars, attending industry conferences, and encouraging our customers to speak about their success helps to educate the industry on the impact they can achieve. Last year we partnered with the Loss Prevention Foundation and helped them craft an educational session on advanced analytics. We are proud to be a doctorate-level partner with the organization. This year we committed to participating in the LPRC, which is another exciting way for us to be on the forefront of change within the industry.

●

“LP teams must continuously be learning and partnering as their companies develop new programs and processes. That holy grail of getting product to the customer next/same day, regardless of destination, exposes the company to tremendous risk. LP can be a wise ‘voice’ in this process by being a partner in driving sales, margin, and productivity. If you are only viewed as a department that reduces fraud and catches thieves, you become disposable in the eyes of executives.” Kelli Woelfel, Profitect Finally, we sponsor and participate in both the RILA AP Leadership Council and the Supply Chain Leadership Council. Participation in these councils helps us to better understand the challenges and goals of AP and SC so that we can ensure our solutions are aligned to support their success. HENDERSON: Chris and I wanted to be sure that Protos would be a company that supported not only its community but also the industry in which we work. We support the LP profession in part by attending trade shows and sponsoring LP-specific events throughout the year—trade shows because they offer great value to the retailers through the speakers and breakout sessions, and educational events such as IAI [International Association of Interviewers] meetings held throughout the country each year. MAY–JUNE 2019

LOSSPREVENTIONMEDIA.COM

We are also great supporters of LP Magazine, the Loss Prevention Foundation, and the International Association of Interviewers. The magazine offers everyone in the industry great content and information, and the foundation and International Association of Interviewers, through their certifications, help educate our LP professionals so that they can do their jobs to the best of their abilities. We believe in the LPC, LPQ, and CFI tracks so much that a few Protos team members have obtained their certifications so that they can better understand the needs and challenges of our clients. LEWIS: Sekura values the opportunity to partner with the LP profession and are members of NRF, RILA, LPRC, Retail Risk, and several other organizations that support LP and related industries. RAMOS: We continue to be supporters of the trade organizations and the Loss Prevention Foundation. However, the way we believe we really help the LP profession is by providing the tools to help LP departments be more relevant within their companies. Most of our customers use our application for operations, marketing, and finance with the application managed by the LP teams. EDITOR: Have you had a mentor that has been influential in your career? How so? WOELFEL: I was hired into Linens ’n Things by Frank Rowan, assistant controller, and Bill Giles, controller, as the manager of inventory control. They influenced my career because they were finance and accounting guys who thought outside the box. They encouraged others to work as a team to solve problems and to speak up if you had something to contribute. They did not limit, but fueled, my growth. They believed in me and gave me enough freedom to go where I wanted. Eventually, I was given additional responsibilities, and they continued to support me in a way that built my confidence. They also loved their jobs, their teams, and the company. This was infectious, and I now require this attitude in any company I work

PARTNERING WITH RETAILERS for today. I enjoy working in a culture of collaboration and teamwork, where being passionate about your job, having fun, and thinking outside the box are all expected and encouraged. HENDERSON: My high school wrestling coach, Barry Trent, made a huge impact on me during my developmental years. His ability to lead by example and organize and initiate a well-run practice, as well as interject comedy and levity at the right moments, was very attractive. I experienced firsthand how he had to make tough choices to bench starting wrestlers at critical moments as a consequence for crossing the line on a character issue. LEWIS: Yes, I have been fortunate to have several mentors during my career. Most notably Ray Higgs and Simon Chapman in the UK whilst I was at ID Systems/Checkpoint and Larry Yeager during my tenure at Alpha. All three have had a huge influence on my career, encouraging me to hone my skills, to be a good listener, be a consultative solutions

provider, and, hopefully, a great partner to my customers. RAMOS: Bob Oberosler. Bob broadened my perspective beyond LP and helped me learn how to approach my job from a perspective of adding value to the business. ROSENTHAL: I have had several people I would consider mentors to me through both my loss prevention and sales careers. The one that stands out most for me is Walter Palmer. He taught me a lot about the business end of the retail world, and it is not all about catching bad people. He taught me the importance of partnerships and learning the operational and merchandising business outside of loss prevention. This has helped me throughout my career. The second thing that Walter taught me was to call back each solution provider that reaches out to you, whether or not you are going to do business with them or have an immediate need. He always said they

LP MAGAZINE

MAY–JUNE 2019 2019

have a job to do, and you just never know when you will need what they provide. I took this to heart and built some very strong relationships in my career based on his mentorship and advice. EDITOR: Are there differences between being a great sales person and an exceptional solution provider? HENDERSON: Yes. An exceptional solution provider is willing to see the payoff way down the line and has the ability to give their clients things they didn’t even know they needed. LEWIS: There shouldn’t be. If you are truly interested in your customer, want to solve their issues, and recognize that sometimes that means walking away from a sale to do the right thing, then a great sales person can be an exceptional solution provider. RAMOS: No, they’re both good listeners and put the customer first.

PARTNERING WITH RETAILERS ROSENTHAL: I believe there is. A great sales person bases success on sales results, no matter how they get there. That is part of the job, and I am not diminishing the fact we are in this to make money. However, on top of being a great sales person, to be an exceptional solution provider you must also have integrity, be a great listener and communicator, and work in a collaborative manner. You need to anticipate the needs of your customer and be one with your customer. By this, I mean what is important to your customer must be important to you. In my career I want every customer I or my team work with to feel we are part of their team and working in their best interest.

internally. We work with our customers to understand who uses the solution the most, who is generating the most value, and who needs help generating more value. We help document the ROI and its impact on the company. This is very different from a salesperson who only looks to make the deal before moving on to the next customer. An exceptional solution provider builds relationships and stays with his or her customers. The relationship between a vendor and a customer is best measured when things do not go as planned. When everything is great, the relationship grows; when things go wrong is the true test of a partnership. Together, no matter what the circumstances, we are a team. Our customers’ success is our success.

●

EDITOR: What personal qualities or characteristics do you think most important for a solution provider to possess? LEWIS: Listen. You can’t understand your potential customer’s needs if you don’t listen. Do what you say you will do, on time, and follow up without being a pain in the neck. Act honestly and don’t be afraid to admit if you don’t have the right solution.

“The physical safety of our LP professionals is of big concern to me. With all the safeguards that the profession has already put in place, there seem to be more attacks at malls, churches, and entertainment events. The people perpetrating these attacks seem to be getting bolder. Figuring out how to keep our LP professionals safe needs to remain a priority in our industry.” Patrick Henderson, Protos Security WOELFEL: The big difference is that as a solution provider you have to focus on value generation. You can’t just make the sale, sign the papers, and collect a check. If you want to keep the customer, you need to ensure that users stay engaged, build value, and share successes

RAMOS: Our approach is to ask questions to understand the needs of the customer first before doing anything else. If we don’t think there’s a need or the right fit, we will let the customer know. The success of our company is aligned with the success of our customers. A good solution provider needs to remember this; otherwise, they’re just selling. ROSENTHAL: Integrity, honesty, listening, and great communication skills are critical characteristics for a solution provider to possess. If you have all of these and you are good at them, you will be successful as a solution provider and will be the one called for a solution, question, or consultation. One other point: you must love what you do and have fun at it. WOELFEL: Some basic and obvious stuff is that a good solution provider MAY–JUNE 2019

LOSSPREVENTIONMEDIA.COM

should be a better listener than talker. They should have a solid understanding of the business and its challenges and need to love building relationships and trust. To be successful, they have to have excellent follow-up and consistency. They need to believe in the philosophy of keeping promises and commitments. Finally, they should be able to develop honest and transparent relationships that ensure win-win situations for both the customer and the solution company. HENDERSON: I think grit and a never-give-up attitude. Also, a partner or someone to run the race with. I could not imagine doing this without Chris. The biggest compliment Chris and I get is that people come up to us and say that they see us as genuine guys. EDITOR: Tell us something about yourself that most people in our profession do not know? RAMOS: I help run a very large youth soccer program in New Jersey. Also, I like cigars, but anyone who has met me probably knows that already. ROSENTHAL: I am an avid baseball fan and have seen a baseball game in all but four major league stadiums, which includes every older stadium and all but four of the newest. I will get to those in the next year or so. WOELFEL: I originally went to Boston University for electrical engineering. I chose that major because I loved computers and math. I switched to business in my junior year after I realized that engineering wasn’t people-oriented enough for me. So now I use computers and technology every day in a different way. HENDERSON: I really wish I could be a stock broker, but my wife says that I do not currently have a very good track record in the stock market. LEWIS: I am a huge F1 motor racing fan and have visited several countries to watch the races.

Stand out from the crowd

Unlock your full potential with the LPQualified or LPCertified certification course Join over 1,900 of your professional colleagues who have earned their LPQ or LPC certification. Those letters after your name show employers as well as your peers that you have the knowledge needed to

succeed in the constantly evolving loss prevention industry. That’s why dozens of retailers prefer applicants with these certifications. Stand out from the crowd—start your certification journey today.

Visit www.losspreventionfoundation.org for more information.

Educating an industry one leader at a time.

SUPPLY CHAIN

Supply Chain Continues to Change

By Rod Fulenwider Fulenwider is executive director of D&L Protective Services where he is responsible for executive and workplace protection, investigations, surveillance, security consulting, and active-aggressor training. Prior to D&L, he was managing director for Pinkerton Consulting and Investigations. Fulenwider has served in loss prevention and security management positions with companies such as Blockbuster Entertainment, Loomis Fargo, Exel Logistics, Sears, and Neiman Marcus. He is the cofounder and past chairman of the International Supply Chain Protection Organization and served on the advisory board to the University of North Texas School of Criminal Justice. He can be reached at rodf@dlesi.com.

uch more attention is now being paid to supply chain than ever before. That is evidenced in the pages of this magazine where the editors are focusing more and more articles related to supply chain security and on-shelf availability. Today, supply chain is a different animal than it was just a few years ago. Below are my observations on how supply chain continues to evolve in our industry.

Analytics

A number of us have been using analytics in the supply chain for many years. Here’s the difference: on the standard retail model (store side), vendors have produced software packages for years. Those packages were developed strictly for store-side use, and they have done a good job with the product mix over the years. Having said that, those same software producers have not produced workable products for the supply chain, which has forced those of us on the supply chain side to get creative. Many of us have worked with our individual IT and operations departments to create our own in-house analytical platforms. For instance, when I was at Blockbuster (as it was growing and at its peak), we created our several very specific data drives to earmark potential issues. We knew that internally the highest likelihood of internal losses occurred in the consolidation area of our distribution center (DC) in McKinney, Texas. This area of the DC consisted of fifty-two aisles where employees consolidated product (such as videos, DVDs, games, and so forth) that would be shipped to 4,800 US-based stores as well as some stores in Mexico and Canada. We created our own exception reports that pinpointed loss ratios and the highest days of the week for losses. We worked with Sensormatic and installed the first wireless track camera system in the US. Between the exception reports and the use of the new camera technology, we were able to eliminate the loss in consolidation by 82 percent. While our exception system was good, it was by no means great. I have known Glenn Master for over twenty-five years and can say firsthand that he has continually created

MAY–JUNE 2019

analytical systems at various companies. I would say that he is one of the best if not the best in implementing these systems within the supply chain. When we discuss supply chain, we are most certainly looking at an enormous animal with not only lots of moving parts but also a significant number of companies/vendors in a given system. Using Blockbuster as an example, we found that from the time a product was shipped to us (for example, a specific movie title, say Batman) for distribution, it would be touched by multiple companies just getting to us. Then we would have to handle and prepare the product for delivery to thousands of stores, which meant the product had to be touched by multiple delivery companies. We

We recently finished a case at a DC where the company had a system in place. The system showed losses totaling just over $200,000. Our investigation revealed losses in excess of $2,000,000 and resulted in the arrests of nineteen employees. cannot forget that all of the companies involved either did not utilize scanning equipment or the equipment involved was from various platforms. In the end we created a multiuse scan tag that was equipped on the doorframe of every US store in the system so that we could verify all packages were scanned for receipt at store level. The technology was important, but the ongoing relationship and teamwork with operations and IT was critical.

Language and System

Today the supply chain faces issues that many people just do not understand or cannot keep track of. Recently I was performing a security vulnerability assessment at a distribution center. The DC had experienced a series of significant losses, and they had not been able to resolve

LOSSPREVENTIONMEDIA.COM

After A Robbery It Can Be Business As Usual ...

these losses internally. Their biggest problem turned out to be language and attitude. It turns out that their policy (which is like many companies) dictates that once the product is placed on the trailer, then it no longer belongs to the company; the product is now the responsibility of the carrier. In this case, the carrier would take the product back to their own central DC where they would break the product down for delivery to twenty-five other DCs around the country. They would use multiple carriers to transport the product to these twenty-five DCs, and each DC would break the product down into quantities for delivery to smaller regional DCs to be handled and redistributed to the final-mile carriers, which in this case meant an additional number of people handling the product. By the way, the product was pharmaceutical drugs. Language-wise the company had serious losses that they needed to explain internally as well as to the Drug Enforcement Administration, yet they had not even attempted to create a system for clear tracking within their own four walls nor a system for tracking once the product hit the first outbound trailer. When I was at Exel Logistics, we had to create our own system to track goods from cradle to grave. I do not know what that system looks like today, but companies like Exel have been dealing with these issues for years. I know that Pitney Bowes is expanding their system and language around this subject.

The Challenge

Finding a software or hardware company that has the knowledge and depth to create intricate tracking and exception-based reporting systems for the supply chain and to create those systems that can be purchased at a reasonable rate is challenging. There may be systems out there that address the real issues, but I am still seeing systems with lots of holes in them. We recently finished a case at a DC where the company had a system in place. The system showed losses totaling just over $200,000. Our investigation revealed losses in excess of $2,000,000 and resulted in the arrests of nineteen employees. Additionally, we identified two primary locations where the stolen products were being delivered to, both of which were customers. The exception system failed to flag this as a problem, and employees used the hole to exploit the company. No system is perfect, and there are good loss prevention and asset protection professionals working aggressively to make the systems better. The LP and AP folks making the biggest improvements are like the system—they must be smart and able to change and respond to new technology immediately. It is a new day for LP and AP people in supply chain. It is also these very issues that drove us to start the International Supply Chain Protection Organization with a focus on advancing supply chain loss prevention professionals and their teams.

LP MAGAZINE

When you have 3SI GPS Trackers! Our specialized technology uses GPS to automatically detect a robbery and silently alert law enforcement to TRACK and RECOVER your stolen assets.

Recover Stolen Assets. Apprehend Criminals. #SaferWorld info@3si.com |

MAY–JUNE 2019 2019

FUTURE OF LP

Using Artificial Intelligence to Catch Shoplifters in the Act

By Tom Meehan, CFI

rtificial intelligence is a trending topic in both the tech and security industries, but how exactly can it help us in the retail loss prevention industry? Like most emerging technology, it has a lot of potential for growth—and a lot of potential for misconceptions. Artificial intelligence, commonly referred to as AI, refers to the capability of a machine to imitate intelligent human behavior. In practice, artificial intelligence has a very broad meaning, which allows marketers and salespeople to stretch its definition to suit their needs. For those of us in retail, the first thing that might come to mind when we hear the term AI is its applicability to data analytics. More specifically, we want to know what AI can do for asset protection, from predictive analytics to true prescriptive analytics, as mentioned in an earlier article I wrote in LP Magazine Online in April 2018. In this case, AI promises to take the collected data, analyze it with “machine-learning” algorithms, and help the retailer make the right decisions. Machine learning is what gives computer systems the ability to progressively improve performance on a specific task, or “learn,” without being explicitly programmed to do so. Like all technology, machine learning has some challenges. One problem in a retail environment is that data is often too vague to translate directly into machine learning. Another problem is that the people who create algorithms often don’t have clean data to work with, which could lead them to create an imperfect or biased algorithm.

Practical Applications

But AI has a lot more potential beyond being used to crunch the numbers. Last month, a Japanese startup called Vaak developed an artificial intelligence software they claim can catch shoplifters in the act by alerting staff members, so they can prevent thieves from even leaving the store. CEO Ryo Tanaka said his team used 100,000 hours of surveillance data to train the system to detect suspicious activity using more than 100 behavioral aspects, including how people walk, hand movements, facial expressions, and even clothing choices. Vaak claims that shoplifting losses dropped by 77 percent during a test period in local convenience stores, demonstrating how this technology could help reduce global retail costs from shoplifting, which hit $34 billion in 2017 according to the Global Shrink Index. Furthermore, implementing AI-based shoplifting detection technology would not lead to a significant increase in costs because security cameras, which comprise most of the required hardware, are usually already in place at retail stores.

MAY–JUNE 2019

Meehan is retail technology editor for LP Magazine as well as chief strategy officer and chief information security officer for CONTROLTEK. Previously he was director of technology and investigations with Bloomingdale’s, where he was responsible for physical security, investigations, systems, and data analytics. He currently serves as the chair of the Loss Prevention Research Council’s innovations working group. Meehan can be reached at TomM@LPportal.com.

Vaak’s technology demonstrates how artificial intelligence can work with facial recognition software, which scans “faceprints,” a code unique to an individual, just like fingerprints. Unlike fingerprints, faceprints can be scanned from a distance, which opens the possibilities of facial recognition’s applications in fields such as security and law enforcement. According to a December 2018 Forbes article, several local public security bureaus in China have started implementing the use of augmented reality glasses, created by the Xloong company, which are able to cross-reference faces against the national database to spot criminals. This isn’t the first time AI has been used to fight retail shrinkage. Last summer, another Japanese company, the communications giant NTT East, launched AI Guardsman, a camera that uses similar technology to analyze shoppers’ body language for signs of possible theft. AI Guardsman’s developers said the camera cut shoplifting by 40 percent.

Ethical Considerations

Installing artificial intelligence and facial-recognition software does raise some questions about the ethics of the technology, especially when it comes to customer consent. Customers are typically willing to sacrifice some privacy for convenience when they are aware the technology is being used. Most retail stores already post signs about the presence of security cameras, so resolving this concern could be as simple as adding a notice about facial recognition to these signs. Despite how far science has come, AI does not truly think like a human being just yet. This could lead to a bias in a system’s algorithm. However, just as artificial intelligence can be inadvertently given a bias, it has the potential to be less biased than a human being. This is simply a case of auditing the algorithms to root out any potential bias before training the artificial-intelligence system. Artificial intelligence in retail isn’t a hypothetical anymore. Today, AI algorithms run inventory management, delivery optimization, and customer-support chatbots on websites, which we are all too familiar with. When paired with facial recognition software, artificial intelligence can even eliminate the need of salespeople, best shown in Amazon’s self-service brick-and-mortar stores that use image and video sensors to shape the customer experience. With artificial intelligence entering the retail loss prevention sphere, we’re going to see great change in how our departments catch shoplifters and combat retail shrinkage.

LOSSPREVENTIONMEDIA.COM

FEATURE

THE NEW GENERATION OF LOSS PREVENTION

ARE WE ON THE SAME PAGE? By Jacque Brittain, LPC, LPM Editorial Director

THE NEW GENERATION OF LOSS PREVENTION

he retail landscape is changing every day, with new ways to shop, pay for goods, interact with customers, and deliver commodities to the consumer. We have innovative items for sale that are changing the world we live in, creative services that can deliver to your car door or your front door, and amazing technology that allows us to scan and purchase merchandise with a phone and a fingertip. With every revelation comes new opportunities for growth and invention—and new challenges for the new generation of loss prevention/asset protection. The evolution of loss prevention is an ongoing and important topic that draws considerable attention across the profession. As has become the norm throughout the industry, a proactive approach rather than a reactive response has become the method of choice in our ongoing quest for a seat at the table and a voice in the room. We are looking to the future and exploring the many ways that our role may change to meet the emphatic needs of a transforming business. However, as we look to the future, we can’t overshadow the importance of where we are today. The fact is, we are deep into a new generation of loss prevention. Our role in the field, our place in the business, and our seat at the table have all progressed well beyond the responsibilities and expectations that were conventional prior to the new millennium. Our commitment to growth and dedication to collaboration and partnership have offered a new perspective of our significance within the retail landscape. We are entering a new chapter as a profession and with the dynamic changes that are currently taking place across the retail industry, loss prevention professionals must have a shared mission and vision as we drive forward. But as we take our next steps, when considering the many important subjects that need our attention and support, are we on the same page? Are the policies and objectives defined at the corporate level the same messages being implemented in the field? Do we see critical subjects under the same light? Do we agree on what’s most important? How should that influence our decision-making?

This year LP Magazine, the Loss Prevention Foundation, and leaders from across the loss prevention industry have come together to explore just how the loss prevention community perceives key subjects facing the profession today, and whether we share a common theme across all levels of leadership.

The 2019 Survey

As the industry has evolved, doors have opened to reveal a new and exciting culture. Today’s loss prevention professional is expected to be multidimensional, open-minded, global-thinking, enterprising, and intelligent, serving as an integral component of the retail world and part of the foundation for a successful business plan. The retail enterprise understands and respects the importance of protecting a company’s assets against the challenges of total retail loss. This has encouraged a new and improved retail industry where effective loss prevention strategies are viewed as an integral part of a successful business model. While tremendous strides have been made, we must maintain our focus and attention on every aspect of what we do. Asset protection is not a singular function but a binding objective that is a key aspect of profit enhancement. As part of a global retail culture, this way of thinking must be shared across the loss prevention community and supported by company leadership. There will always be things to work on. There will always be different approaches and opinions on how things should be done or what priorities should come first. But when it comes down to it, loss prevention professionals at all levels of leadership should have a fundamental agreement—or at least an understanding—of what we do, where we are, and where we’re going. Relatively speaking, if we’re not on the same page, it makes it much more difficult to move forward. The goal of the 2019 survey is to provide an objective window into the thoughts, ideas, and opinions of loss prevention professionals at all levels of leadership regarding these key areas and open doors for additional discussion. By gaining a more comprehensive

MAY–JUNE 2019

LOSSPREVENTIONMEDIA.COM

understanding of how loss prevention professionals collectively and independently perceive these important questions—and whether we see these issues in the same light—perhaps we can spark fresh thoughts and ideas on the best ways to move forward and how we can best address these topics to further enhance our loss prevention teams.

The Question-Writing Process The survey itself was constructed by leaders across the loss prevention industry to provide a list of questions that they felt represented important and productive topics relevant to the ongoing goals and objectives of the loss prevention profession. Leaders representing many different types of retail backgrounds and a diverse scope of retail organizations were involved in the development process. Several of these leaders further encouraged key members of their teams to participate in the process as well, resulting in a wide spectrum of topics. For practical purposes this was then narrowed to a pool of fifty-five questions, with the final product submitted to these leaders for additional feedback prior to distribution. All of the those participating in the question-writing process have remained anonymous.

Survey Distribution

Invitations to participate in the survey were extended through mailing lists, extensive social media outlets, and LP Magazine’s LP Insider. Industry leaders representing retailers across the country were also contacted directly and encouraged to share the survey with all members of their loss prevention teams. Participation was encouraged for all those involved in the loss prevention and asset protection profession and those in roles directly related to the profession. All participants were informed that their participation would remain anonymous to further encourage honest, open, and complete responses. While department store and specialty retailers were most common, respondents with retailers across the industry were widely represented.

ARE WE ON THE SAME PAGE?

Which of the following best describes your role in loss prevention/asset protection? VP, Director, or Corporate LP Regional or Division LP District or Area LP Manager LP Manager or Equivalent Other 0%

10%

Collecting and Reporting Survey Results

Construction of the survey and the collection of survey results was managed through a professional survey platform to further protect the accuracy of the results, the integrity of the process, and the anonymity of the survey respondents. Well over 600 loss prevention professionals participated in the survey, representing different levels of experience, diverse backgrounds, different positions, different aspirations, and every level of career responsibility. Only minor edits were made to respondents’ comments to correct spelling and grammar, further protect the anonymity of the respondents, and alleviate similar concerns. Otherwise, the thoughts and opinions shared in these comments are strictly those expressed by the individual respondents as they completed the survey. The content summarized here represents a high-level overview of the survey results. Those interested in a more detailed perspective of survey results and comments should visit LossPreventionMedia.com for a full report on the survey.

Career Development

The process of career development is important in many ways, with the need for both employees and employers to be prepared, keep up with the changing environment, and respond accordingly.

20%

30%

40%

50%

Employees need to upgrade their skills and competencies on an ongoing basis to meet current and future demands, whereas organizations must hire, develop, and retain employees who can successfully handle those changing needs and move the business forward. Ultimately, this opens doors to new and different opportunities for all involved. How do loss prevention professionals feel about their career prospects and the need to continue to develop and refine professional skill sets? Several questions focused on gauging responses concerning this topic. ■■ Loss prevention professionals at every level of leadership feel they have the opportunity to further their careers in loss prevention if they choose to do so, with those in high-level positions slightly more confident in their prospects. ■■ Generally speaking, loss prevention professionals at all levels of leadership tend to feel that they have the respect and support of supervisors regarding career aspirations ■■ Overall, 75 percent of those participating in the survey indicate that they have had one or more mentors that have influenced their professional careers. This trend appears to be fairly consistent at every level of loss prevention leadership, with the numbers increasing slightly at the higher levels. Many comments supported the concept of mentorship programs as a development tool. LP MAGAZINE

Career growth and development remains a primary objective of most loss prevention professionals. In general terms, loss prevention professionals at all levels of leadership strongly emphasize that they seek out opportunities for continuing education to support growth and investment in their careers. ■■ Loss prevention professionals at all levels support an ongoing commitment to professional growth and development through the certification process. Overall, nearly 70 percent of those participating in the survey have either earned an industry-related certification or are currently pursuing an industry-related certification, and just over 1 in 5 indicate that they hold multiple certifications. Those at the higher levels of leadership were slightly more likely to hold these designations. ■■ Similarly, loss prevention professionals at all levels of leadership showed an interest in pursuing one or more of the industry certifications over the next twelve months. Interest in pursuing these certifications did vary slightly based on the particular level of leadership involved, with those at the higher levels of leadership slightly less likely to show interest in pursuing additional certifications. However, this would actually align with those leaders indicating that they have already earned designations. ■■ Overall, 85 percent of those participating in the survey agree that using online tools and social media is an important way to remain educated and current. Interestingly, this trend appears to increase in importance among LP professionals as they progress up the career ladder. ■■ Loss prevention professionals at all levels of leadership tend to agree that two or three regional loss prevention conferences per year designed for up-and-coming professionals would be a valuable, effective, and worthwhile way to develop talent. This trend also appears to increase in importance among LP professionals as they progress up the career ladder. ■■ There was disagreement as to whether most loss prevention professionals are legitimately prepared for the changes that will take place across the profession over the next five to ten years, with numbers for those that agree (37%) ■■

MAY–JUNE 2019 2019

THE NEW GENERATION OF LOSS PREVENTION

Most loss prevention professionals are legitimately prepared for the changes that will take place across the profession over the next five to ten years.

Company Support

Strongly Agree

Agree

Neutral

Disagree

Strongly Disagree 0%

10%

20%

30%

40%

50%

With the dynamic and ongoing changes across the landscape, retail companies should do more to support continuing education opportunities for their loss prevention teams. Q1: VP, Director, or Corporate LP

Q1: Regional or Division LP

Strongly Agree Agree Neutral

Q1: District or Area LP Manager

Disagree Strongly Disagree

Q1: LP Manager or Equivalent

Q1: Other

very similar to those that disagree (38%). However, results remain fairly consistent when breaking down the numbers by leadership position.

20%

40% MAY–JUNE 2019

60% |

80%

100%

LOSSPREVENTIONMEDIA.COM

Company support is and will remain a primary concern to the health of the loss prevention profession. For the loss prevention program to be successful, the company must be committed to communicating the purpose and importance of the program and instilling a culture that reaches all levels of the organization. However, it’s just as important that this commitment is made to those responsible for carrying out the plan and moving the program forward. Do loss prevention professionals believe they have the support of their companies in terms of professional development and career advancement? Let’s take a closer look. ■■ Loss prevention professionals at all levels of leadership overwhelmingly believe that retail companies should do more to support continuing education opportunities for their loss prevention teams, with 95 percent in agreement. ■■ While loss prevention professionals at all levels of leadership did reveal a slightly positive response in how they rank their company with respect to developing talent for leadership roles, there is some opportunity for improvement, with respondents indicating 6.5 out of 10. These numbers were consistent across all levels, with every level of leadership falling between 6 and 7 out of 10. ■■ With respect to promoting diversity in loss prevention, survey respondents graded their companies at 7.8 out of 10. These numbers were consistent across all levels, with every level of leadership falling between 7 and 8 out of 10. ■■ Support for women in loss prevention was also encouraging, with respondents grading their companies overall at 8.1 out of 10. These numbers were very consistent across all levels of leadership. ■■ Survey respondents had a very mixed response in regard to whether they believed that they have experienced or witnessed signs of discrimination when they or others were considered for hire or promotion. Overall, 35 percent of those participating in the survey indicate that they have experienced or witnessed signs

ARE WE ON THE SAME PAGE? of discrimination, 50 percent disagreed, and 15 percent offered a neutral response.

Retail Support

CONTROL ACCESS

We often discuss the importance of the evolving role of loss prevention—how this impacts our jobs, how we perceive our role within the business model, and the importance of working hand in hand with our sales and operations peers to achieve the goals and objectives of the organization. Partnerships and cooperation will remain a big part of that moving forward, but the way that retailers in general understand and respect the role of loss prevention will also remain a key aspect of our success. ■■ As a whole, loss prevention professionals feel there is some opportunity for improvement with the retail industry’s support of loss prevention, ranking that support as 6 out of 10. While survey respondents ranked the importance of having a strong understanding of loss prevention as a retail professional as a 9 out of 10, only 64 percent feel that their sales/operations peers have an understanding and respect of the role of loss prevention in the overall success of the business. These numbers remained consistent across all levels of loss prevention leadership. ■■ Overall, survey respondents had a very mixed response as to whether the loss prevention department is undervalued within their company—42 percent agree that LP is undervalued, 41 percent disagreed, and 17 percent offered a neutral response. These numbers remained fairly consistent across all levels of leadership. ■■ Survey respondents ranked the importance of loss prevention professionals having a strong understanding of retail as a 9.3 out of 10. They ranked the importance of loss prevention professionals having the ability to build strong partnerships with their operations peers as 9.61 out of 10. ■■ Seventy-eight percent feel that most loss prevention professionals have a strong respect and understanding of their retail partners and the retail profession as a whole, while 74 percent feel that they

ON-THE-GO

Remotely control who has access and when, right from your smart phone

WiFi ENABLED

open EDGE CG with InstaKey® User-Rekeyable SFIC Override

The loss prevention department is undervalued within my company.

IT Closets • Cash Offices •

Strongly Agree

Indoor/Outdoor • PCI Compliance

Agree

LEARN MORE info.instakey.com/remotelock-lpm 1-800-316-5397

Neutral

Disagree

Strongly Disagree 0%

10%

20%

30%

40%

50%

continued on page 48 LP MAGAZINE

see it in NRF PROTECT

ACTION AT MAY–JUNE 2019 2019

JUNE 11-13, 2019 | ANAHEIM, CA

BOOTH

631

THE NEW GENERATION OF LOSS PREVENTION continued from page 47

have the respect and cooperation of their sales/operations partners. Training and awareness programs that emphasize the role of reducing losses as part of successful sales and profit enhancement models have widely been seen as an important part of a robust loss prevention program. While these results would indicate that respondents believe that respect and cooperation are at strong levels of support, results would further suggest that greater emphasis on shrink management and the value of these programs within our sales and operations teams would appear to be an area of opportunity. In other words, while respondents believe there is a willingness to partner and learn, the level of understanding isn’t where it needs to be amongst our sales/operations peers.

Leadership and Communication

One of the most critical aspects of determining whether or not loss prevention professionals at every level of leadership are on the same page is through our ability to effectively communicate our mission, vision, and culture throughout all levels of the organization. Even when we agree on the fundamental concepts of loss prevention as a profession or the retail business in general, without the ability to effectively communicate our message or channel our ideas and opinions, we will continue to face challenges moving forward. ■■ Perhaps not surprisingly, loss prevention leadership was much more likely to believe that they do an effective job of communicating the goals, mission, and other critical objectives of the department to the loss prevention team in the field. However, while 83 percent of department leaders feel they do an effective job, only 65 percent of those in the field believe the goals, mission, and objectives are effectively communicated. ■■ Generally speaking, the results were very similar when respondents were asked if loss prevention leadership has a firm grasp on the way that LP policies and procedures are actually carried out in the field and in the stores. While 80 percent of department leaders feel they have a firm grasp on the way that policies

I feel that loss prevention leadership at my company does an effective job of communicating the goals, missions, and other critical objectives of the department to the loss prevention team in the field. Vice President/ Director, Corporate LP or equivalent Everyone Else 0%

10%

20%

30%

and procedures are carried out, only 63 percent of those in the field believe this to be the case. ■■ Survey participants are also less likely to believe that their supervisors are open to new and creative ideas from members of the loss prevention team. While 84 percent of department leaders state that they are open to new and creative ideas from members of the loss prevention team, only 67 percent of those in the field believe this to be the case. ■■ While 83 percent of department leaders state that they agree with the goals, mission, and approach that their company holds with respect to loss prevention, only 69 percent of those in the field agree. It’s not uncommon for senior leadership to have slightly different opinions based on their experience and unique exposure and perspective to all areas of the business. There are many different factors that come into play, many different responsibilities that are faced, and a litany of considerations that most in the field will fail to fully appreciate or understand. Unfortunately, this does appear to be an ongoing area of opportunity. However, this is a shared responsibility across all levels of leadership. There are areas that can be improved upon—both at the corporate level and in the field—that can help bridge some of these gaps.

General Loss Prevention

Where do we stand on many of the more fundamental concepts of loss prevention? Where do survey respondents believe we have the greatest opportunities for improvement? How closely aligned are

MAY–JUNE 2019

LOSSPREVENTIONMEDIA.COM

40%

50%

60%

70%

80%

90%

we with these concepts across the various levels of loss prevention leadership? Let’s take a closer look. ■■ Overall, survey participants rate importance of having a strong and successful background in interviewing as a loss prevention professional as 8.3 out of 10. This remains in concert with their views regarding the role that internal theft plays in the overall shrink performance of their company as a 7.4 out of 10. These ratings were consistent across all levels of leadership. ■■ Participants also view the importance of the audit function and strong operational controls as an important function in the overall shrink performance of their company, rating this as a 7.7 out of 10. This ranking was consistent across all levels of leadership. ■■ Survey participants ranked the role of shoplifting as 7.4 out of 10 in the overall shrink performance of the company and the ability to identify and apprehend shoplifters as a 6.7 out of 10 for loss prevention professionals. These numbers were fairly consistent, although not surprisingly, that role was seen as slightly more important at the lower levels of loss prevention leadership. ■■ However, when asked whether retailers should put less emphasis on apprehending shoplifters and more emphasis on deterring theft in the stores, agreement amongst survey participants varied considerably by level of leadership. Eighty-four percent of top loss prevention leadership were in agreement, while less than 50 percent of those in store-level positions were in agreement. Very few believe that loss

ARE WE ON THE SAME PAGE?

Retail should put less emphasis on apprehending shoplifters and more emphasis on deterring theft in the stores. Vice President/ Director, Corporate LP or equivalent Regional/Divisional Loss Prevention District/Area LP Manager or equivalent LP Manager or equivalent Other 0%

10%

20%

30%

prevention professionals should have the discretion to pursue shoplifters beyond the boundaries of the store. ■■ Ninety-two percent of survey respondents believe that organized

40%

50%

60%

70%

80%

90%

retail crime (ORC) is a real and growing problem in today’s retail environment. Eighty-nine percent believe that it’s important and valuable to have members of our loss prevention

teams active in organized retail crime associations (ORCAs). ■■ Just over 6 out of 10 (62%) of respondents agree that incidents involving violent behaviors have increased in their area of responsibility over the past twelve months. Sixty-five percent believe shoplifting incidents involving those addicted to opioids and other addictive drugs have increased over the same period. Approximately 7 in 10 agree that this is influencing the way their companies are approaching shoplifting incidents. These beliefs were consistent across all levels of leadership. ■■ Only 61 percent believe that their loss prevention team is adequately trained and prepared to handle disruptive behaviors/incidents if they occur in the stores. Even more significant is that only 29 percent believe that store management/associates are adequately trained and prepared to handle disruptive behaviors/incidents if they occur in the stores. Although top levels of leadership were slightly less likely to be in agreement (25%), these beliefs

Pusher The SONR™ Pusher is a flexible and open security system integrated into new or existing product pushers that notify store associates of activity at the shelf and store level. Retailers can scale the SONR™ Pusher to adhere to their needs, from a singular facing to a complete shelf. It works with the SONR™ Echo Box to relay alerts across the store. Find out how SONR Pusher can protect your merchandise and increase sales!

SONR™ Pusher is wireless, and can be easily installed to protect as many or as few products as needed.

Call us at 800.422.2547 or visit www.siffron.com

LP MAGAZINE

MAY–JUNE 2019 2019

THE NEW GENERATION OF LOSS PREVENTION

I believe that store management/associates are adequately trained and prepared to handle disruptive behaviors/incidents if they occur in the stores. Strongly Agree

Agree

Neutral

Disagree

Strongly Disagree 0%

10%

were also consistent across all levels of leadership. ■■ Loss prevention professionals across all levels of leadership believe that the overall responsibilities of loss prevention will show significant changes over the next five to ten years, with 92 percent in agreement. Ninety-six percent feel it’s becoming much more important for loss prevention professionals to learn more about information technology and the retail supply chain, while 81 percent feel that they have adequate understanding and training regarding the technology and other resources used to accomplish loss prevention goals. ■■ Just over 1 in 5 respondents (22%) state that they have experienced or witnessed incidents of sexual harassment in the workplace over the past twelve months. These responses were consistent across all levels of loss prevention leadership. ■■ Only 34 percent of respondents feel that there is adequate staffing and resources to accomplish the goals of the loss prevention department. Seventy percent agree that there are times when the ability to use/access contract security guard services to complement loss prevention efforts is essential to the operation and protection of retail locations. ■■ Overall, 68 percent of respondents believe that when used correctly, merchandise protection standards (EAS and other security measures) are truly effective in

20%

30%

40%

50%

deterring theft in retail stores. Those at the higher levels of loss prevention leadership held stronger beliefs that these measures are effective (75%). ■■ Seventy percent of survey respondents feel that legislative changes, changing demands on police, and police response are negatively impacting our ability to effectively protect retail stores. While those at the higher levels of loss prevention leadership were in higher agreement (75%), responses were highly consistent among all levels of leadership ■■ Eight-seven percent of respondents agree that providing loss prevention professionals an opportunity to voice their ideas and opinions can and will have an influence on LP leadership. Ninety-three percent of those at the highest level of loss prevention leadership agree that this is accurate.

What Does It All Mean?

The survey process offers practitioners a forum to share their true thoughts and opinions on a variety of critical loss prevention subjects. Yet while having the information is always important, the ability to take that information, interpret what it means, and apply it in a pure, logical, and meaningful way takes things to an entirely different level. Leadership and responsibility should always go hand in hand, and it all comes down to what we do with the information that’s presented to us.

MAY–JUNE 2019

LOSSPREVENTIONMEDIA.COM

We should be encouraged that in most areas important to the health and well-being of the profession, the survey would appear to indicate that, whether a positive trend or an area of opportunity, we are fundamentally in agreement. In fact, in some areas it was astonishing just how closely aligned the responses were across all levels of loss prevention leadership. But there are still some critical areas that we need to work on. There are a few areas where we are not on the same page, and some of these inconsistencies can present hurdles. It’s not simply that we disagree—there will always be areas where we disagree for any number of reasons. In fact, there are times when having alternative opinions can have a healthy and positive influence. It’s when we don’t know we have a difference of opinion or perspective that can lead to more serious challenges, some of which that can be difficult to overcome. For example, if loss prevention leadership believes that they are doing an effective job of communicating critical objectives of the department, but those in the field don’t necessarily agree with that perspective, this can lead to serious concerns in any number of ways. Self-reflection is always an important element of growth. While the survey offers us a great deal of raw information, it’s what we do with that information that will make a difference. So what do you think? We encourage you to take a deeper look at the survey results as part of the free special report available at losspreventionmedia.com, which provides more detailed information on each survey question along with comments offered by the loss prevention community. You should also look for leadership response to the survey results in the next issue of LP Magazine. JACQUE BRITTAIN, LPC, is editorial director for LP Magazine. Prior to joining the magazine, he was director of learning design and certification for Learn It Solutions, where he helped coordinate and write the online coursework for the Loss Prevention Foundation’s LPC and LPQ certifications. Earlier in his career, Brittain was vice president of operations for one of the largest executive recruiting firms in the LP industry. He can be reached at JacB@LPportal.com.

Connect With Your Crew Let your audience choose their preferred platform to increase awareness and participation. Offer engaging e-learning and communication tools to inspire exploration and growth. Feature built-in feedback applications to obtain their creative input. At LPM Media Group, our mobile and digital solutions move meaningful connections from possibility to reality.

#connectwithyourcrew Digital Magazines

Digital Signage

Mobile Awareness Solutions Custom Animation & Video

Online Learning Management

www.LPMmediagroup.com

PERSPECTIVES By Jacque Brittain, LPC Brittain is editorial director for LP Magazine. Prior to joining the magazine, he was director of learning design and certification for Learn It Solutions, where he helped coordinate and write the online coursework for the Loss Prevention Foundation’s LPC and LPQ certifications. Earlier in his career, Brittain was vice president of operations for one of the largest executive recruiting firms in the LP industry. He can be reached at JacB@LPportal.com.

Negotiating with Procurement

egotiations between retailers and solutions providers is often a tricky dance. Many times the subject-matter experts, such as asset protection, operations, or information technology, begin the process by engaging with vendors they know who provide the type of solution they need. But most retailers also engage procurement professionals to negotiate the final contracts who may place reducing costs above achieving the right solution for a fair price. We asked three individuals with significant background in the retailer-vendor negotiation process to provide their insights into achieving the right balance for both parties. Robert Kleinman has been associated with AFA Protective Systems his entire career. Thomas Nimblett has twenty years’ experience in sourcing and procurement of technology for companies such as Lowe’s and Home Depot. Prior to becoming president of the Loss Prevention Foundation, Terry Sullivan, LPC, spent fifteen years in management with Lowe’s loss prevention department, the last three as director of LP operations where he was responsible for the department’s capital expenditures.

Robert Kleinman CEO and General Counsel, AFA Protective Systems

Thomas Nimblett Terry Sullivan, LPC Director, Senior Lead President, The Loss Business Manager, Prevention Foundation Office of COO IT, TIAA

What are your primary objectives when negotiating a contract for a retailer and a solution provider?

KLEINMAN: We always hope to end up with a contract that reflects a true partnership—one where the solution provider has the ability to make a reasonable profit in return for the retailer receiving the services they desire at a fair price and at a high level of service. When we can achieve all these metrics, we know both parties are satisfied, and the relationship can and will grow. NIMBLETT: Objectives will vary based on the business area’s objectives and the company’s sourcing/procurement objectives. Many procurement groups are focused on cost

MAY–JUNE 2019

savings, and many business areas will have an objective of functionality. While it is possible to bring both objectives together, the challenge comes when neither group understands what the cost baseline is and how functionality is tied to this baseline. What should be the cost and what functionality does the business really need immediately versus long term is a tough equation to solve. The objectives are also impacted by what it is being purchased. Many times the combination of assets and services makes the overall negotiation a complex one, especially when the assets are purchased from one company and services another. If assets are the focus, per asset cost will be critical along with the need for asset protection, such as warranties, returns, and defects. If services are being completed by the asset seller, the expectation is the subject-matter experts should be able to show a complete installation and maintenance life cycle without making the purchase difficult. My primary objectives always target a flexible and thought-provoking supplier when bringing the details above together. If the solution is simplified and the supplier is willing to work with the customer, then the objectives of cost and functionality will certainly be achieved. SULLIVAN: At the end of the day, you will get what you pay for. As a retailer, you should always look for the win-win with the solution provider partner. You have to look at all relationships as partnerships. The primary focus has to be the people you serve. As the director of loss prevention operations for Lowe’s, I was serving the stores all day every day. Any pain point they would have would ultimately become my pain point.

What are some of the missteps you have seen from your peers when negotiating a contract?

NIMBLETT: The biggest misstep is always the planning of the negotiation and balancing the amount of time needed. Many peers fall into a trap of thinking the technology and the services are similar to other negotiations recently done. Many do not realize things are changing quickly, and solutions that were popular last year are not the same solutions this year. Planning to review the changes, understand the changes, and having a way to benchmark the details is critical to setting up the timelines. When the timing is squeezed and the thought is based on “end of year” or “end of quarter” deals, the negotiation will be a tough one because it becomes all about cost.

LOSSPREVENTIONMEDIA.COM

“We always hope to end up with a contract that reflects a true partnership—one where the solution provider has the ability to make a reasonable profit in return for the retailer receiving the services they desire at a fair price and at a high level of service.” – Robert Kleinman, AFA Protective Systems

see something they like and don’t take the time to see what similar solutions are being offered. When you are spending your company’s capital, you must treat it like you are spending your own money. KLEINMAN: Sometimes a peer provider is so consumed with securing a new foothold, they will compromise commonly accepted industry standards by loss leader price cutting or exposing themselves to severe potential loss liability by virtue of agreeing to contract terms that reputable providers would normally never consider. Not only does this result in a one-sided deal against the provider, but also it can permanently jeopardize how the retailer will forever view that provider and maybe even the entire industry.

What are some of the missteps you have seen from companies submitting RFPs that are clear signs to stay away from?

A negotiation is a planned engagement; it takes time to do things right, and both sides need to be honest with the outcomes. If basic protections for both companies are unattainable from the beginning, the negotiations quickly derail, and frustration will be introduced. This misstep causes delays in time, and many times, ultimatums that neither party wants are positioned and throw the planned negotiation timeline out. SULLIVAN: When bringing in new products or solutions, it is a major misstep not taking the time to meet with several solution providers to find the best product at the best price. Sometimes people take the easy route and

LP MAGAZINE

SULLIVAN: The most common is when a vendor’s price is drastically low and unattainable to provide the service requested in the RFP. In that case, they likely just want your business and will not be able to deliver. At Lowe’s, if an RFP came with a major business impact, such as fire, burglary, CCTV, or EAS, we could override a procurement recommendation if we could show there was a business case that could cause an impact to the business beyond the potential savings of another solution provider. I am not sure that option exists in a lot of companies.

MAY–JUNE 2019 2019

KLEINMAN: Some companies mandate that a potential provider agree to their formal terms and conditions verbatim, regardless of the industry the provider is in. Certain industries and their providers cannot realistically provide the quality of service and associated pricing desired by the retailer when the retailer is not flexible with other terms in such instances. The perfect example is the allocation of risk with respect to liability emanating from the service. When a provider comes across a retailer that wants the highest level of service at a competitive price, but also expects that provider to, in effect, be its insurer, it shows there can never be a true partnership, and the reputable provider should stay away. NIMBLETT: My favorite is the fluff. Time is always of the essence, but reading through fluff can really sidetrack the reader from the core message being delivered. Many times too much information about nothing is not what the reader is looking for. This doesn’t mean you answer with, “Will provide during vendor meeting.” You need to clarify and simplify the message. If there is fluff and a request to meet to discuss further, then the supplier did not put in the time to respond and likely will not put time into the next tasks required. Also, vendors must show what makes you different from your competition in the written response. If you do not know who your competition is, then the reader will figure it out for you and build out a comparison table. Guide the reader to your solution. If the details are vague and the response is all about the next meeting, the reader will be left trying to determine the next step for you. Knowing who your reader is, a dedicated professional skilled in the solutions or a corporate sourcing professional who sees one of these every few years will make a big decision on next step. From the procurement perspective, my favorite responses are ones that help me understand the solution against the competition and show how the price is tied to the benefit.

“The biggest misstep is always the planning of the negotiation and balancing the amount of time needed. Many peers fall into a trap of thinking the technology and the services are similar to other negotiations recently done. Many do not realize things are changing quickly, and solutions that were popular last year are not the same solutions this year.” – Thomas Nimblett, TIAA 54

MAY–JUNE 2019

“It is very important to take care of solutions partners who have taken care of your company. If they have proven over time to deliver great products or services at a competitive price, I found that rewarding these partners with longer-term contracts was a great best business practice.” – Terry Sullivan, LPC, Loss Prevention Foundation What are some final thoughts on the negotiation process and partnering with providers?

KLEINMAN: Retailers, especially the larger ones, should be cognizant that procurement decisions made in a vacuum strictly based on price are not necessarily in their company’s best interest. Retailers need to consider not only price but also a provider’s reputation and past experience, including longevity, service capability, and responsiveness. In the long run, spending a little more for the “better” quality provider up front will in all likelihood end up being the most cost-effective choice for any retailer, since that extra investment will be rewarded many times over with resulting savings from better service. That in turn saves their operations department’s future expenditures and makes them more efficient. In other words, do not be penny wise and pound foolish. NIMBLETT: Retailers should not be afraid to walk away from a negotiation. There are numerous warning signs—from the supplier’s unwillingness to share risk in the environment to cost being unclear and setup as a constant revenue stream. When negotiations start by focusing only on cost and there is no plan to truly educate and provide an understanding of the solution, the negotiation planning piece is lost, and a good sourcing/procurement professional should walk away. Given the need for a solution is still required, if the retailer has the correct partnerships in place, the procurement professional should be able to identify another provider who likely will be willing to come back to the table with a concession. SULLIVAN: It is very important to take care of solutions partners who have taken care of your company. If they have proven over time to deliver great products or services at a competitive price, I found that rewarding these partners with longer-term contracts was a great best business practice. It shows your commitment to them as a true partner and provides a true win for the stores because you’ve minimized business interruption while maintaining a valuable service to the stores.

LOSSPREVENTIONMEDIA.COM

FEATURE

LP CHALLENGES IN A “SECURE” ENVIRONMENT

A LOOK INSIDE AIRPORT RETAIL AND RESTAURANTS By Chris Rathgeb, Senior Director of Loss Prevention and Safety, Paradies Lagardère

LP CHALLENGES IN A “SECURE” ENVIRONMENT

aradies Lagardère is the North American division of Lagardère Travel Retail. We have 10,000 associates in more than 850 retail stores and 170 restaurants and bars in 100 airports across North America. Paradies Lagardère delivers the very best solutions—a favorite local concept or a highly desirable international brand—that exceed expectations for our airport partners and travelers. Paradies Lagardère specializes in three key airport concessions areas: dining, travel essentials, and specialty retail. Within travel essentials and specialty retail, we offer a diverse mix of categories, including fashion, luxury, electronics, convenience, sports, luggage, jewelry, and souvenirs. Paradies Lagardère also delivers high-end restaurants, quick-serve and casual restaurants, and quality bars, including local, national, and international brands that provide travelers delicious dining options.

In the Beginning, There Was Retail While attending college, I began working for JCPenney in the credit and catalog department. This was the start of my retail career. While at JCPenney, a store loss prevention officer (LPO) approached the credit and catalog department team about a credit card fraud case that we might Chris Rathgeb come into contact with and asked us to inform them if the person showed up to retrieve a catalog order. I ended up being the person who waited on them. I can still remember the feeling when I heard the name and turned around to find the order and realized who I was assisting. It was at that moment—and the moments after as that situation played out with the arrest of the person by law enforcement as they exited the doors of the store—that I thought of loss prevention as a position I would enjoy.

I would have to wait another year before getting the opportunity to transfer schools and begin working at a different JCPenney. At my new store, I discovered they didn’t have any loss prevention presence and inquired with the store manager about the possibility of adding the position. We were nearing the holiday season, so he agreed to place me in the role. I stayed in that store for several months, and during that time I realized catching shoplifters was a lot more difficult than I understood. I ended up transferring back to my original store and met with my first loss prevention teacher, Marcia Rexford. She was the LPO who worked on the credit card fraud case and ignited my passion for loss prevention with her guidance. She was instrumental in helping me understand what to look for in a shoplifter, including behavior and actions, but it was just scratching the surface on how loss prevention impacts companies. After four years with JCPenney, I accepted an entry-level LP role with Famous Barr, a division of May Company, and met the manager that had the biggest impact on my development and understanding of loss prevention, Mark Stebbe. He and John Lillard, the vice president of loss prevention, had created a team environment and a culture of learning in which I thrived. I decided during my time at Famous Barr that loss prevention was going to be the career for me.

The Airports Came Calling

After spending some time at Famous Barr, I decided to join a loss prevention program in the airport concessions industry. That was nearly twenty years ago, and I have never had any doubt that I made the right choice. I worked for HMSHost as they were restarting their loss prevention department. I was given the opportunity to create a program for a single airport with about thirty different restaurant concepts. Through a promotion to my first regional loss prevention manager role, I was able to expand the program to a group of airports in the company. After a year at HMSHost I was approached by the new director of loss prevention at The

MAY–JUNE 2019

LOSSPREVENTIONMEDIA.COM

Paradies Shops. He was tasked with building a loss prevention program from the ground up and believed I would be a good fit to assist him. It’s not often that you are given an opportunity to create a department’s mission and purpose through ideas you have crafted in your mind on “how I would do it” from its inception. It was too good an offer to pass up. Fast forward almost nineteen years later, and I am now the senior director of loss prevention/safety and lead a team of thirteen professionals in the areas of loss prevention, safety, general insurance claims management for worker’s compensation, general liability, auto, and property, and lead business continuity for the organization. In addition, I oversee facilities management for our three support center offices and supply chain for our retail division.

Some Things Never Change

There are several similarities between airport concessions and conventional retail and restaurants in the LP world. Airport concessions offerings have evolved over time to stay current with popular street retail and restaurants. Paradies Lagardère’s stores sell high-end electronics such as MacBooks and iPads in our iStores, premium apparel in our Brooks Brothers stores, and high-end handbags and jewelry in our Brighton Collectibles and Pandora stores. You can also find must-have travel products in our CNBC, Trip Advisor, and locally themed travel-essential stores. We have losses that include outright theft from registers, failing to record sales, taking merchandise, fraudulent refunds, moving items across multiple checks, bartering in exchange for goods, or giving away items or meals, as well as shoplifting. Customers and airport workers have stolen from us. Granted, it isn’t to the degree that you see street side, but it does happen. We experience credit card fraud, primarily in our retail division. We have had organized retail crime groups buy cheap airline tickets with the sole purpose of defrauding us. Some will simply go through security with their boarding passes, make a number of fraudulent purchases, and exit, never

LP CHALLENGES IN A “SECURE” ENVIRONMENT

stepping foot on a plane. Others will make multiple stops across the country and make purchases along the way. One of our core roles is the identification and resolution of internal theft. Our ability to prosecute is based on knowing the jurisdictional guidelines of all the airports we support. In most cases, local law enforcement patrols the concourses. We build relationships with law enforcement as part of our routine. While they vary from state to state and province to province, we must know each jurisdiction’s requirements. Our ability to leverage the criminal justice system is dependent on the relationships we build with law enforcement. We established a process in the last four or five years where we will meet with local law enforcement prior to interviewing a dishonest associate. This may seem counterintuitive to contact them before you interview, but we recognized that officers are fluent in the law but not necessarily retail or restaurant theft. By taking the time in advance of our interview to explain what is happening, when it’s happening, and how we are handling it internally, it makes the after-interview process much quicker and more successful. It has been well received by our law enforcement partners in the airport.

Our ability to prosecute is based on knowing the jurisdictional guidelines of all the airports we support. In most cases, local law enforcement patrols the concourses. We build relationships with law enforcement as part of our routine. While they vary from state to state and province to province, we must know each jurisdiction’s requirements. We experience operational loss such as short shipping, receiving mistakes, and so forth. Stock shortage, because of operational inefficiencies, is a part of any retail landscape including an airport environment. We are challenged with training gaps, employee turnover, and typical receiving mistakes that hamper any retail operation. We have established a corporate committee specifically designed to look at operational loss related to process gaps. This has been a significant cross-functional effort that has yielded favorable results and systemic improvements. We are constantly focused on training and use audits to help gauge compliance. LP MAGAZINE

MAY–JUNE 2019

Some Things Always Change To help explain our specific challenges, I think it is important to provide a landscape of operating in an airport. As concessionaires, Paradies Lagardère has two customers. We have the customer who comes into our store or restaurant and pays for merchandise or services rendered. We also have a second customer, which is the airport governing body that decides which concessionaires get to do business at a specific location. Both of those customers are equally important to our success. So much so that our mission statement is “to maintain first-class standards that exceed the expectations of the customers and business partners we serve.”

LP CHALLENGES IN A “SECURE” ENVIRONMENT Street retailers often purchase the store site or negotiate a lease for a space. In the airport concessions environment, we are unable to make site purchases. Our business is dependent on a multiyear store lease based on winning a contract through a request for proposal. At the conclusion of the lease, other airport concessionaires may bid on new lease options proposed by the airport governing body. Paradies Lagardère’s retail and restaurant models are always in a state of renewal, and I need to make sure the loss prevention and safety strategies are meeting the needs of this changing environment. No two airports are the same, and no two restaurant or store layouts are

the same either. We fit our stores into the space provided by the airport. Because each restaurant or store has a different layout, we have to adjust to each space. We must customize our camera design and integration, which requires an additional labor investment for each store opening. We allow a high degree of functionality on our registers for our associates. Our customers are looking for speed of service. They are typically waiting to catch a flight and can’t be held up waiting on a supervisor to approve the transaction of an associate. This allows opportunity for our associates to conduct fraudulent activity in our stores.

As concessionaires, Paradies Lagardère has two customers. We have the customer who comes into our store or restaurant and pays for merchandise or services rendered. We also have a second customer, which is the airport governing body that decides which concessionaires get to do business at a specific location. Both of those customers are equally important to our success.

MAY–JUNE 2019

LOSSPREVENTIONMEDIA.COM

Big Airports, Big Challenges Our stores and restaurants are open 365 days a year. In our largest operations, we have over forty stores and restaurants. These facilities are spread out to presecurity and postsecurity and could be spread over several concourses or terminals. The concourses and terminals, at times, are not physically connected to each other. The opening and closing times of our operations vary within in each airport. This can change if we experience airline delays. We are there to provide service to the traveling public, so our hours of operation remain fluid to allow for these changes. All of these factors can make communication with our team members a challenge. Communication has to be filtered through others. It can be difficult to ensure that the original message gets to everyone in the same context. Because of this, we have to be strategic about our messages to the team. In larger airports, most of our inventory is stored at an off-site warehouse anywhere from five to twenty minutes from the airport. We can’t secure our inventory by locking or sealing the transport truck because the truck must be inspected before it can enter airport space. We have had instances of those trucks making unscheduled stops along their route to the airport to offload product to a waiting vehicle. Once the product arrives at the airport, it can go

LP CHALLENGES IN A “SECURE” ENVIRONMENT directly to a store or be placed in on-site stockrooms throughout the airport. In street retail, it is typically contained within four walls. In our environment, it can be spread between an off-site facility, on-site stockrooms, and multiple stores of an airport. This product is moved around between concourses and stores, depending on where it is needed, and we can lose visibility to where that product goes. On the street side, unpaid-for product has no reason to leave the four walls. In our environment, it will leave one lease line and be moved to another lease line with potentially a lot of space between the two.

The Secret to Having No Secrets Our approach to loss prevention in our retail and dining divisions is transparency. We openly discuss internal theft. We list in our internal employee communication the different ways employees can steal. We do this for multiple reasons. Our thought is

We list in our internal employee communication the different ways employees can steal. We do this for multiple reasons. Our thought is that dishonest employees already have that knowledge of how to steal, but our largely honest population may not recognize what they are seeing when another associate commits an act of theft. that dishonest employees already have that knowledge of how to steal, but our largely honest population may not recognize what they are seeing when another associate commits an act of theft. By providing this information to our associates, we now have 10,000 people understanding how theft in the workplace occurs. When they observe it, they will know how to respond. This also shows the dishonest associate that we’ve seen it before. It’s not new. We

LP MAGAZINE

MAY–JUNE 2019

want them to know they aren’t the first and won’t be the last. Finally, it shows a level of trust with our employees. The team recognizes we are equipping all of our associates with understanding on how to steal. But when you show trust in your employees, amazing things can happen. They feel empowered and more connected to the organization. This fits with Paradies Lagardère’s core values of TRIFIC: trust, respect, integrity, first class, innovation, and commitment.

LP CHALLENGES IN A “SECURE” ENVIRONMENT

Giving Credit Where Credit is Due

Every great leader has great support. The leaders who report to me include: ■■

Lilly Noyan-Paddyfoote, safety and loss control manager, who has responsibility for safety and claims management (worker’s compensation, general liability, auto, property) for the organization.

■■

Billy Childers, loss prevention and safety operations manager, who has responsibility for loss prevention/safety centralized programs and services, CCTV, and retail supply chain.

■■

Annette Barry, regional loss prevention/safety manager of dining, who has alignment with the western half of the dining division.

■■

Doug Martinez, regional loss prevention/safety manager of retail, who has alignment with the western half of the retail division. Doug is supported by market managers Eric Tullis in the Texas and Southwest regions, Diane Valdez in the California region, and Rick Wittman in the Mountain Plains and Western Canada regions.

■■

Bret Graddy, regional loss prevention/safety manager of retail, who has alignment with the eastern half of the retail division. Bret is supported by market managers Marcos Lozano in the Southeast and Florida regions, Steve Mathieu in the Great Lakes and Eastern Canada regions, and Martin Davis in the Northeast and Ohio Valley regions.

In our environment, [inventory] can be spread between an off-site facility, on-site stockrooms, and multiple stores of an airport. This product is moved around between concourses and stores, depending on where it is needed, and we can lose visibility to where that product goes. To go along with our transparency approach and emphasize the company stance on theft, Paradies Lagardère made the conscious decision to prosecute those who defraud the company. That decision is known throughout the organization. The financial dividends obtained through our shrink results reinforce this was the right decision. Since making this change five years ago, we have seen a steady decline in our shrink number. With each successive year, we have broken the record set in the previous year for lowest shrink number in company history. Another important point in how we achieve success is our relationships with our business partners. The entire team recognizes the role we play as a support function. The team develops strong relationships with their operations partners, HR partners, and LP/safety team members and works regularly in MAY–JUNE 2019

LOSSPREVENTIONMEDIA.COM

cross-functional committees to strengthen and create new and existing relationships.

Tapping into the Hub of Knowledge Since the restaurant industry is so much different than retail, I find it essential to surround myself with experienced restaurant-specific professionals that I can connect with through the Restaurant Loss Prevention and Security Association (RLPSA). Networking with like-minded professionals is the key to any loss prevention leader’s success. Attending the RLPSA’s annual conference has provided me with not only an unprecedented networking ability but also education and insight from other restaurant loss prevention programs facing similar challenges. To me, that is invaluable.

If foodservice is on your plate, RLPSA should be on your schedule.

40th

Annual Conference

The Restaurant Loss Prevention & Security Association (RLPSA)

Downtown Nashville August 4 – 7, 2019

Attend the only conference covering the hottest issues in loss prevention, safety, and risk management for restaurant and foodservice professionals! Our conference also features special tracks for franchisees, grocers, and travel/non-traditional foodservice experts.

EVIDENCE-BASED LP

Protective Signage Research

by Read Hayes, PhD, CPP 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. © 2019 Loss Prevention Research Council

uman behavior in our lots, offices, distribution centers, and stores is LP’s business. We’re supporting more good activity and less bad behavior by shaping people’s perceptions and our capabilities. We use physical place design, digital and physical messaging, purposeful people tasking, and of course technologies to accomplish this end. As part of a situational crime-prevention process, we strive to understand all place-users’ (shoppers, employees, and offenders) perspectives of and likely responses to our efforts. Shoppers, employees, and other visitors, including offenders, all contribute to in-store behavior and outcomes, and what we do and how we do it can support our enterprise’s success if fewer bad guys disrupt our business. Protective signage is designed to credibly warn offenders that their contemplated criminal act will be quickly detected and seriously responded to. Signage can also prime or reinforce other interventions like CCTV or EAS. In addition to the quantitative analysis of the impact of various product protection interventions on shrink and sales in a set of large retail stores, the LPRC research team conducted interviews with twenty-six randomly selected store customers to obtain their perceptions of prevention signage interventions. The purpose of customer interviews is to better understand their awareness and understanding of each intervention; their likely reaction to the interventions; their understanding that signage and other tactics can reduce theft, allowing desirable merchandise to be more easily accessed for scrutiny and purchase, rather than kept locked or behind the counter; their likely willingness to purchase signage-protected products; and the impact of the signage treatment on their perceived personal safety in the store.

Results

Customer Awareness of Security Measures. The first question in the customer survey asked the customers what security measures they noticed in the location in the store where the interviews took place, to note whether shoppers perceived the signage as well as other deployed treatments. More than four-fifths (84.6%) of interviewed customers noticed the special signage in this section in the store. About three-fifths of the customers noticed “banding or packaging solutions” (61.5%) or “protective display fixtures” (61.5%) were present.

MAY–JUNE 2019

What security measures do you notice? 84.6%

Signage

50%

Camera domes Banding or packaging solutions PVMs

61.5% 0%

Protective display fixtures

61.5% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

Customer Reactions to the Sign. Customers who did not notice the sign were shown the security measure, and all customers were asked for their immediate reactions to the sign. Generally, respondents offered positive or neutral initial remarks about the sign indicating electronic theft protection. Many noted the theft-deterrent benefits of the sign and indicated it made them feel like the store was doing something about shoplifting. Several respondents said the sign made them feel more “safe.” Most of the negative reactions to the sign related to feeling nervous or worried about being watched or about interacting with products that are electronically protected. Follow-up questions indicated only 6 of 26 respondents felt at all worried or anxious about being “watched” by surveillance of some type. Nine respondents felt somewhat concerned about their “privacy” in a public place. Only one of the customers mentioned electronic product protection was worrisome, while three mentioned they didn’t feel safe or secure when thinking about the sign. Customer Reactions to Wording and Images on the Sign. Customers were next asked, “What do you think of the wording and images on the sign?” A series of follow-up questions probed for customers’ perceptions about whether the sign was clear or confusing; whether the sign distracted or annoyed them, or if they don’t really notice it; and whether the sign changed their shopping experience in any way. Two of the twenty-six respondents indicated the sign’s wording and images were unclear or confusing in any way, and none indicated not understanding the sign. About 30 percent of the respondents (N=8) said they didn’t really notice the sign, and a similar number (N=7, 27%)

LOSSPREVENTIONMEDIA.COM

indicated they did prefer signs and electronic theft protection to having products behind a counter or in a locked display. Impact of Signs on Customer Shopping Behavior. The customers were next asked if the electronic theft-protection sign would make them more likely, equally as likely, or less likely to purchase the product at this store. A third (30.8%) indicated the sign would make them more likely to buy the product at this store, while more than two-fifths (42.3%) said equally likely, and one-quarter (26.9%) said less likely.

said the sign did not distract them. While one respondent indicated the sign “draws me to look at the items a little,” ten reported the sign distracted them in some way, or they found it “annoying.” Despite this, only two of the customers we talked to said the sign changed their shopping experience in any way; both indicated they would be less likely to purchase items because of the sign. The other twenty-four respondents noted that the sign didn’t change their shopping. Customer Opinions on Changes to the Sign. Customers were next asked, “Do you think the sign could or should be changed in any way to make it more effective?” Three interviewed subjects (11.5%) indicated the sign could or should be changed in any way to make them more effective. These three respondents were asked to indicate the ways in which the sign could or should be changed. Their responses appear below. ■■ “If you steal, we will know.” ■■ “It should be gone.” ■■ “Make more of them (signs).” Customer Beliefs about Truthfulness of the Sign. Customers were next asked: “Do you believe there are actually nearby electronic theft-protection devices?” More than two-thirds (69.2%) indicated they did believe there was electronic theft protection on the products in this location in the store. Less than one-tenth (7.7%) did not believe the products in this location were electronically protected, while nearly one-quarter (23.1%) said they didn’t know if the products were electronically protected. The two customers indicating they did not believe the products are in fact electronically protected were asked to indicate why they felt this way. Their responses appear below: ■■ “Because it’s not needed.” ■■ “Too many other deterrents.”

Likeliness to Purchase with Signage 45%

70& 60%

25% 20%

26.9%

30.8%

10% 5% 0%

The seven customers who indicated that they would be less likely to buy the product at the store with the sign were next asked, “Would you prefer to buy the product at a store without signs indicating electronic theft protection?” Three of them said yes, while two said no. Customer Perceptions of Store Safety with Signage. Customers were next asked if the electronic theft-protection signs made them feel more safe, equally as safe, or less safe than they might otherwise feel in the store. One-half (50.0%) of the customers we interviewed indicated the sign made them feel more safe than they might otherwise feel in the store.

Perception of Safety in Store with Signs Indicating Electronic Theft Protection

Yes 69.2%

60%

40%

30%

More likely

15%

50%

10%

Don't know

30%

50%

20%

42.3%

35%

Do You Believe There Are Actually Nearby Electronic Theft-Protection Devices? 80%

Equally likely

40%

No 7.7%

30%

Don't know 23.1%

More safe Equally safe 50% 42.3%

20% 10% 0%

Customer Preference for Signage or Locked Displays. The customers were next read the following statement: “Use of signs and electronic theft protection as a security measure allows the store to make the product available to you on the shelf, rather than keeping it behind a counter or in a locked display that requires you to ask for employee assistance to access the product.” Customers were then asked if they preferred this type of security measure to keeping products behind a counter or in a locked display case. Half (53.9%) LP MAGAZINE

Less safe Don't know 0% 7.7%

Due to the relatively inexpensive signage production and deployment costs compared to their influence, our University of Florida and Loss Prevention Research Council teams continue to work with online, outdoor, and indoor priming signage dosing options, including symbology, colors, size, unit placement, numbers per store, constant slight changes to maintain freshness, and aural and visual priming cues to boost the treatment’s noticeability and credibility. |

MAY–JUNE 2019

SOLUTIONS SHOWCASE THINKLP

Have Your Case and Analytics Too

recent study found that 61 percent of professionals need to access four or more systems on a regular basis to accomplish their work, and 13 percent need to access eleven or more systems to get the information they need to do their jobs. A full 26 percent of the week is spent searching for information that already exists, then consolidating and analyzing the information. Most shocking is that only 16 percent of time is spent actually performing job-based tasks. Retail loss prevention teams work in complex environments, and there is a great need to simplify the complexity and automate routine tasks in order to maximize time spent proactively reducing loss. Significant value can be unlocked in utilizing a powerful and unified loss prevention software: point-of-sale exception reporting and big data analytics, case and incident management, audit management, civil recovery, team management, and everything else an LP team needs to operate all in one place.

on an analysis of the data. Machine learning is the core driver of artificial intelligence, using algorithms to tell you something insightful about your data. Artificial intelligence (AI) sounds like a great idea, but in reality, it is not yet being used by most loss prevention teams. Our analytics platform combines the different types of analytics into a central platform to consolidate data and create visually stunning, action-oriented, and AI-driven insights without the need for a data scientist.

Empowering Loss Prevention Teams with Awesome Software

Your solution needs to be able to address problems today and in the future. It needs to be infinitely configurable, work on any device, comply with global information security and privacy standards, and engage your end users, all while allowing you to run your business your way. ThinkLP is a powerful loss prevention management platform, and you can implement as little or as much functionality as you wish, in whichever order you choose. Our team believes in empowering loss prevention professionals with awesome software.

Big Data, Small Data, All Data

The hype of big data in recent years has caused a shift in teams across all departments. It’s not just about big data but also about small data, dark data, hidden data, long data, or any other name you use. It is the variety of data and not the amount that is most challenging. Many teams have a range of tools in place to support loss prevention but are struggling to keep pace with business needs. Employees want immediate and mobile access with tools that are as easy to use as Facebook and Instagram. Consolidating data in a single platform unifies your team and provides a platform to work effectively while offering immense value to your internal business partners.

Beautiful Analytics and Artificial Intelligence for Every LP Team

ThinkLP is making it easy and cost effective to adopt big data analytics, case management, audit management, and artificial intelligence. The speed of innovation has disrupted the loss prevention software industry. We’re humbled by our amazing client-partners who share our vision for the industry and have adopted the technology globally. Our mission is to serve loss prevention teams with awesome loss prevention software. We hope you’ll consider joining us. You’re going to love it. Visit www.ThinkLP.com to learn more.

There are four main categories of analytics: Descriptive, Directional, Prescriptive, and Predictive. Descriptive analytics tells us what and why it happened. Directional analytics tells us where we should concentrate our resources. Prescriptive analytics suggests what we should do to improve the desired outcome. Predictive analytics suggests what could happen based

MAY–JUNE 2019

It’s Time to ThinkLP

LOSSPREVENTIONMEDIA.COM

SOLUTIONS SHOWCASE INSTAKEY

Delivering Cloud-Based Controls for Mechanical Keys with a Human Touch

These goals are common among organizations, but capital is hard to come by. InstaKey® Security Systems became TFM’s chosen vendor because they provide custom key-control programs complete with user-rekeyable mechanical locks; restricted, serialized keys; records-management software to back it all up; and most of all, a passion for partnership. With this new key-control program now in place for TFM, we will explore how the best solutions come from open collaboration and human interaction, and review how they utilized numerous innovative technologies to achieve on-time and on-budget full-store rollout completion.

ith our growing dependence on automation, service bots, and artificial intelligence, it can be rare to find a vendor that delivers innovative solutions through partnership. Thingamajigs, widgets, and bots can bring us all efficiency, but there is still magic in the human element that can’t be quantified. In May 2018, The Fresh Market (TFM), a North Carolina-based specialty grocery chain, looked to enhance and simplify distinct areas of operations with simple security upgrades. With limited human capital, they leaned on vendor partners to help. TFM leadership wanted vendors who provided best-in-class service and partnership to work with their asset protection and operations teams. By aligning these resources, TFM was able to define a full 160-store conversion to a modern key-control program. Each store required an initial cost-effective site survey solution, prompt materials turnaround, coordinated installation, and on-site training of new procedures designed to culminate in an advanced key-control program.

Digital Site Survey (DSS) Process

Asset protection and InstaKey collaborated on combining two survey practices: (1) a user-friendly lock hardware site survey form listing all doors in the store and (2) taking pictures of all door-lock types. Rather than spending budget dollars on having locksmiths perform these surveys, TFM AP conducted them at the stores and utilized a free third-party smart phone app called Tiny Scanner to upload and transmit the site survey form and digital images from their phones. This app serves as a portable document scanner, creating PDFs from photos, which were uploaded directly to InstaKey’s SecurityRecords.com® Key Control software. Upon receipt, InstaKey personnel were able to remotely evaluate all lock types from the survey information and imagery. For any outlying locations where AP personnel couldn’t reach, InstaKey utilized local locksmiths to collect the surveys using the custom site survey form process. This automation technique using internal resources saved TFM thousands of dollars upfront.

By August 2018, TFM began designing their key-management processes to create a more secure environment for their stores and to use a product-service offering that achieved an ROI after the implementation. LP MAGAZINE

Project Management and Tracking Process

To best coordinate the rollout, InstaKey and TFM AP managed a master conversion list (MCL) designed to track |

MAY–JUNE 2019

SOLUTIONS SHOWCASE

all phases of each store’s progress. This allowed visibility from data collection to product shipment/delivery and installation coordination. It also accounted for budget management and tracking the project’s pace. This MCL was reviewed weekly between the teams to share overall progress and delays.

Digital Key Holder Assignments and Tracking Prior to deployment, asset protection and InstaKey discussed how to best capture the user population (in other words, key holders). Knowing that data is only useful when it’s updated, asset protection provided a human resource data feed to InstaKey, creating a dynamic user population. Data can be shared via API or SFTP interface. Once uploaded into SecurityRecords. com, any serialized key can be assigned to only authorized employees. This forethought solution allowed for dynamic changes and keeps the key management fresh daily. With the documented assignment of a unique serial-numbered key to a key holder, the key holder’s

accountability improves for the security of that specific key. SecurityRecords.com’s Key Holder Update module digitally assigns and tracks keys to the distinct user or key holder. The best part of this solution is that keys can now be assigned to authorized key holders remotely via any smart device. A URL link is sent via text or email directly to the key holder, where the module captures their signature digitally accepting the key assignment. No apps, no PCs, just smart people using their smart devices. Store management and asset protection can now remotely track each key, who has it, and what it opens in real time through SecurityRecords.com.

MAY–JUNE 2019

“Converting an entire company in under three months has to be some type of world record. Every time I work with InstaKey, their commitment to clients and to projects shines through with personal and corporate integrity." – Joe Oliveira, The Fresh Market Results

This strategic combination of human capital, innovative technologies, and open collaboration made it possible for TFM to standardize their processes and procedures around key management and immediately create the secure environment for their 160 stores in only twelve weeks. When a client can improve security, establish an accountable culture to keep track of keys, prepare for future cost-effective rekeys when keys are lost, and give tools to operations that help simplify the management, there is sure to be an ROI. Proof will be in the continued partnership and future assessments of this key-control program. After the conversion project was completed, Joe Oliveira, CFI, TFM’s director of asset protection, expressed his satisfaction by saying, “Converting an entire company in under three months has to be some type of world record. Every time I work with InstaKey, their commitment to clients and to projects shines through with personal and corporate integrity. The program is a huge success, has become part of our culture, and is helping us better protect our team members, guests, product, cash, and data. We couldn’t have done it without the help and support of such a great partner.” With a project of this scope and timeline, InstaKey’s focus on consistent communication and dedication to maintaining the deliverables were critical components in making sure the outcomes TFM sought were achieved. Also critical to the success of the project was the technology utilized within the cloud-based records management SaaS software, SecurityRecords.com, which was used to organize and streamline the rollout, providing simpler oversight of the program thereafter.

LOSSPREVENTIONMEDIA.COM

ASK THE EXPERT Interview with Kevin O’Brien O’Brien has been with LPI/DTiQ for over seventeen years and is responsible for sales within the retail enterprise markets. Drawing on over thirty years of loss prevention and operational experience, including leadership roles with The Home Depot, Bradlees Department Stores, Ames Department Stores, and Lord & Taylor, O’Brien marries clients’ goals and objectives with the correct custom programs and technology. His extensive background in program development, training and education, shrink reduction, food cost improvements, investigations, and auditing provides customers with access to advice that nets results.

All Hands on Deck What are some of the LP challenges you’ve witnessed in recent years?

Retailers need to invest now in partnerships and technology to enable the insight they need at a price and scale that they can take on. On-the-ground LP managers can only be in one place at a time, so they need to have analytics-driven dashboards, intelligent video/point-of-sale verification, and on-demand expertise where and when they need it. It’s the only way they’ll be able to scale to meet the needs of tomorrow.

Retail LP has changed a lot over the last decade, and it continues to do so at an ever-increasing rate. A 2018 National Retail Federation survey described the 2017 fiscal year for US retailers with some pretty serious numbers, putting the average shrink cost at 1.33 percent of sales, which translates to $46.8 billion in avoidable losses in the US alone. There is far more pressure on LP than ever before to combat loss, and the concerns continue to expand even though budgets for additional staff are not keeping up with the need for them and therefore having to do more with less.

What new skills are necessary in today’s LP world? There’s no doubt that the skills needed for success are changing, and the bulk of retailers are unable to hire every new LP competency in-house. The retail organizations I work with repeatedly cite the need for analytical expertise and actionable performance reporting. These can enable management to make timely, informed decisions and focus on the specific mitigation activities that will yield the largest return.

What do retail LP organizations need to do now to prepare for the coming years? Building on what I said above related to skills and budgets, retailers need to invest now in partnerships and technology to enable the insight they need at a price and scale that they can take on. On-the-ground LP managers can only be in one place at a time, so they need to have analytics-driven dashboards, intelligent video/point-of-sale verification, and on-demand expertise where and when they need it. It’s the only way they’ll be able to scale to meet the needs of tomorrow.

are monitored alongside other vital metrics—such as conversions, speed of service, and dwell times—the entire management team can participate in planning for the next stages of progress. Loss is not just about shrink, after all. Other studies also estimate: ■■ $37.7 billion is lost due to long checkout lines. ■■ $1 trillion is lost because stores don’t have stock of what customers want to buy. ■■ 74 percent of in-store customers leave without buyin when they don’t get timely assistance. So we need all hands on deck with LP front and center and leading the charge with real-time, actionable data.

What changes in the retail LP industry are you excited about? LP professionals are increasingly being invited to the table for business discussions that encompass more than their traditional LP concerns, and I think that is a very good thing. When LP key performance indicators LP MAGAZINE

MAY–JUNE 2019

ASK THE EXPERT

Seen and Unseen LP Strategies

Interview with Mike Isch Isch is vice president of sales for STANLEY Security based in Baltimore, Maryland. He is a member STANLEY’s senior leadership team and is responsible for developing strategic retail partnerships with the company’s largest customers. He has worked for Stanley Black and Decker for over twenty years and holds a bachelor’s degree in business from Indiana University.

Can you provide strategy examples that help retailers reach their loss prevention goals? Most of STANLEY Security’s customers are operating from tight margins, which means the loss of inventory can make the difference between staying competitive or closing the doors. We help our customers with both seen and unseen strategies to reduce shrink.

You mentioned technology. What types of innovation are you seeing in retail security?

Tell us more about the difference between seen and unseen strategies. Seen strategies are being more visible on the floor from an employee perspective. Saying hello in a department or offering to help a customer find something isn’t just good customer service—it’s also an opportunity to reduce shrink. If a thief knows someone is in the vicinity, they may be less likely to steal. Unseen strategies are often security technologies where innovation is used to monitor surveillance and record evidence. It’s never appropriate to allow

One of the more important facets of retail career development is customer management skills. Do they understand how to speak to customers they may feel suspicious about? We need to instill in them a culture of loss prevention, so they recognize even the smallest loss still risks the future of the company.

MAY–JUNE 2019

technology to interfere with the customer experience, so we recommend video cameras are installed accordingly and security automation is used to ensure devices are working properly. However, we’re still prepared for anything because organized crime is growing at a pace we’ve never seen before.

STANLEY has a business-intelligence software that has been received well by our retail customers. It incorporates exception-based reporting with video surveillance to help reduce shrink at the cash register. For example, if an employee is entering a customer return, but no actual customer is standing at the register, the intelligent analytics recognize the empty checkout lane and sends investigation alerts with video to corporate asset protection teams. That’s leveraging business intelligence beyond what we imagined ten or fifteen years ago.

How do we help our younger generation in loss prevention recognize the impact they can make? One of the more important facets of retail career development is customer management skills. Do they understand how to speak to customers they may feel suspicious about? We need to instill in them a culture of loss prevention, so they recognize even the smallest loss still risks the future of the company.

Finally, what are other easy tips for retailers that can accelerate their security strategy? I would examine your floor plan and merchandising strategy. We recommend that your staff should be able to scan a department quickly from a distance or walking up and down aisles. Make it harder for criminals to hide their intentions—and then record it on video surveillance when you catch them in the act.

LOSSPREVENTIONMEDIA.COM

C-SUITE & SENIOR LEVEL EXECUTIVES ONLY

CYBER SECURITY SUMMIT 2019 PROTECT YOUR BUSINESS FROM CYBER ATTACKS FR E E

RANSOMWARE

Use Code: LPMAG2019 for FREE Admission. (Standard Admission: $350)

ADMISSION

INTERACTIVE PANELS

To Pay or Not To Pay That is the Question!

INSIDER THREAT 6 CPE CREDITS

Full day attendance earns 6 credits following the Summit

Protect Your Enterprise from the Human Element ORCHESTRATION

2019 CYBER SECURITY SUMMITS

Dallas, TX - May 16

New York, NY - October 3

Seattle, WA - June 25

Scottsdale, AZ - October 17

DC Metro, VA - July 16

Boston, MA - November 6

Chicago, IL - August 27

Houston, TX - November 21

Charlotte, NC - September 17

Los Angeles, CA - December 5

THOUGHT LEADERS INCLUDE

CISO & Sr. Leadership’s Best Approach to Cyber Defense CLOUD INSECURITY

Common Pitfalls that Organizations Make when Moving to the Cloud and How to Avoid Them INCIDENT RESPONSE

Sheraun Howard Ryan Spelman Special Agent, Cyber Task Force The FBI, Dallas

Senior Director Center for Internet Security

Paola Saibene

Head of Data Privacy & Data Protection Flowserve Corp.

David Cass

Chief Information Security Oﬃcer IBM

Brian Sanders

What to do Before, During, and After a Breach

Electronic Crimes Task Force U.S. Secret Service

This Pass is for C-Suite & Sr. Level Executives only and includes a Catered Breakfast, Lunch & Cocktail Reception. Sales/Marketing professionals will Not admitted.

CyberSummitUSA.com

To Speak or Exhibit at a future Summit, contact: MHutton@CyberSummitUSA.com

CASE STUDY

New Solution Protects Today’s “New Jewelry Store”

By Garett Seivold Seivold is senior writer for LP Magazine. He is a trained journalist who has been covering corporate security for industry professionals for eighteen years. He formerly served as the principal writer and editor of Security Director’s Report, a monthly publication highlighting trends and best practices in corporate security management. Seivold has been recognized by several organizations for outstanding writing, investigative reporting, and instructional journalism. He has authored dozens of survey-based research reports and best-practice manuals on security-related topics. He can be reached at GarettS@LPportal.com.

A T-Mobile Premium Retailer Turns to a Benefit-Denial Solution to Combat Theft and Increase Sales, Store Safety, and Customer Experience

t is surely a sign of the technology-driven times we live in that a cell phone retailer might have the same value of product on the floor as the jewelry store down the street. “We carry premium electronics and accessories on our sales floor to allow for an enhanced customer experience, and at any given time we have tens of thousands worth of merchandise out,” explained Roy Herrera, corporate loss prevention manager for Amtel LLC, a T-Mobile Premium Retailer. “The game has changed. As the wireless industry has evolved, prices have increased Roy Herrera substantially. The demand for high-end devices sometimes approaches a frenzy-type situation.” This evolution has not been lost on thieves. In recent years, phone stores have become preferred targets for robberies, joining—and often supplanting—banks, liquor stores, and jewelry shops. “You do the math,” said Dermot Shea, chief of detectives of the New York Police Department, after a rash of cell phone robberies. “You hit a store and steal seventy-five of those. Even if robbery crews unload them for only 25 percent of their store price, it’s a good hit,” he told the New York Times (“Detective’s Death Shows How Cellphone Stores Are Now ‘Easy Target’ for Robberies,” Feb. 15, 2019).

With those goals in mind, the retailer had to look beyond traditional product protection. A barrier-based solution, like putting high-end phones in display cases, puts staff at higher risk in robbery events, frustrates customers, and dampens sales. Physical protection strategies also do nothing to generate data for compliance tracking and device interaction.

Finding a Unique Solution

Unit prices and high demand have created a dangerous mix for retail outlets. In South Dallas, for example, one Amtel store was being hit by thieves two to three times per week, Herrera noted. Banks have dye packs. What option does a cell phone store have? The retailer knew it needed to curb losses, but that was only one of the goals Herrera had in mind as he searched for a modern approach to prevent theft of cell phones from stores. “Most importantly, we wanted to have a safe working environment for our associates. We also wanted to improve compliance with T-Mobile requirements, and we wanted to enhance the customer experience,” Herrera said.

MAY–JUNE 2019

Strictly from a loss prevention perspective, it’s already been successful for Amtel. Those stores in South Dallas that were being hit multiple times per week? In less than thirty days after installing BricTECH on high-end phones, unit theft dropped 60 percent. LOSSPREVENTIONMEDIA.COM

Amtel employed Sennco Solutions’ BricTECH benefit-denial solution to safeguard merchandise, deter thieves, improve worker safety, and generate analytics to facilitate compliance. The company started rolling out the solution in October 2018 and currently has it activated in eighty-eight stores. Using any Android device as an install “wand,” an Amtel store manager can activate the application via Bluetooth or near-field communication (NFC) on any Samsung device. Once BricTECH is activated, the phone has several locking features that essentially render it worthless—via a “this phone is the property of” display— if someone unplugs it from a display or takes it outside a defined geofence. That makes it a universal deterrent to opportunists, grab-and-run thieves, and organized retail crime alike. The geofencing feature can also be disabled, so instead of making a phone immediately worthless, LP investigators can follow and track stolen phones to break up crime rings and aid arrests. “We’ve called people to remind them they are in possession of stolen merchandise,” said Herrera. “We’ve actually had people take stolen phones back to the store, and word has also gotten out on the street that it’s impossible to erase the software because it’s built into the phone, and you can’t tell which phones have this feature.”

business value, said Herrera. It’s one of his favorite features, along with not needing a special type of device to install the software or needing supporting infrastructure to activate geofencing. “One thing that’s so great is that it’s not just about deterring theft, but the analytics also support the merchandising side of it,” said Herrera. “If there are issues or questions regarding the phones we have on display, it gives us data to utilize.” It also supports compliance. For example, T-Mobile specifies a certain number of high-end phones should always be available for customers to touch and try; data from BricTECH shows if stores are meeting that standard. “If we see a store has four instead of the five phones they need to meet standards, we can call up the store to ask, ‘Hey, why isn’t this device up?’” “Once installed we can look virtually at each device we have in each store,” explained Herrera. “It allows us to intertwine the product protection aspect with the merchandising, compliance, and servicing customers, who demand being able to interact with phones.” The business value is additive. Strictly from a loss prevention perspective, it’s already been successful for Amtel. Those stores in South Dallas that were being hit multiple times per week? In less than thirty days after installing BricTECH on high-end phones, unit theft dropped 60 percent. Amtel is one of T-Mobile’s largest premium retail partners and operates in over 152 locations nationwide. Partners Ehab Sweis and George Tadros only see Amtel growing in the coming years.

Return on Investment

But theft isn’t necessary for a return on investment. Immediately upon activation, the software starts providing

LP MAGAZINE

MAY–JUNE 2019

LPM DIGITAL

Bad News, Good News, and Some Terrific Content

t is with a heavy heart that I announce my departure from the LP Magazine team. After careful consideration, I’ve decided to accept a new role that will give me an opportunity to grow and progress to the next phase of my career journey. It’s an exciting change, but it is not a decision made lightly. I have truly enjoyed the past four years as online managing editor of this publication. Please do keep in touch. You can find me on LinkedIn or on Twitter at @kelslizkane. As I wrap up projects in my final few weeks here, I am pleased to share the thrilling news that we have recently made some tremendous improvements on our digital hub. If you’re a subscriber to our daily e-newsletter (and you should be!), you have likely noticed that losspreventionmedia.com has a brand-new look with a complete redesign of the site. With these changes, the site is faster, more mobile-friendly, and more streamlined in terms of features like subscription processes and navigation. Plus, we think the overall look is cleaner and more contemporary. Visit the site to gain access to all our content, including all print articles with no login required. And make sure you’re subscribed to the LPM newsletter so that you can stay up to date with the news and original content we post daily. You can also follow us on Facebook (search LP Voices), Twitter (@LPMag), LinkedIn, and Instagram. The following articles are just a small taste of the excellent content that you can see on losspreventionmedia.com every day.

Cathy Langley Promoted to VP of AP at Rite Aid Cathy Langley, LPC, has been promoted to vice president of asset protection at Camp Hill, PA-based Rite Aid. She was most recently senior director of loss prevention for the company. Langley has spent her entire career with Rite Aid, starting as a restitution coordinator and taking on positions with increasing responsibility to include office manager within the loss prevention department, corporate director of loss prevention, and director of loss prevention analytics. Langley attended the Consolidated School of Business in York, Pennsylvania, and also holds the LP Certified certification from the Loss Prevention Foundation. Cathy was also recently featured in “Getting to Know You: Three Executives Reflect on Their Careers in Loss Prevention” in the November–December 2018 issue of LP Magazine and was also a recipient of a 2018 Magpie Award for Excellence in Leadership.

Mark Stinde, MBA, LPC, has been named senior vice president of asset protection at JCPenney. Stinde was most recently vice president of asset protection at Dallas-based 7-Eleven. He started his loss prevention career as a key store investigator with Mervyn’s in 1988 before moving to Lamont’s Apparel as a regional loss prevention manager in 1991, and then to Toys“R”Us as a regional MAY–JUNE 2019

Seidler is managing editor, digital. She manages the magazine’s digital channels that includes multiple daily e-newsletters featuring original content and breaking news as well as pushing content to various social media platforms. Seidler recently earned her master’s degree in technology and communications through the University of North Carolina’s School of Media and Journalism. She can be reached at KelseyS@LPportal.com.

loss prevention manager in 1995. From there, Stinde has held leadership positions with The Home Depot, Circuit City, and Protiviti in business development before joining 7-Eleven as senior director of asset protection in 2010. He was then promoted to vice president of asset protection in 2012. Stinde is active across the loss prevention community, serving as an asset protection leadership council member with the Retail Industry Leaders Association (RILA), a member of the board of directors with the Loss Prevention Foundation, and as an editorial board member with LP Magazine. He holds a bachelor’s degree in business management from DePaul University and recently earned a master’s in business administration and management from Southern Methodist University, Cox School of Business.

Mark Stinde Named Senior Vice President of Asset Protection at JCPenney

Kelsey Seidler

continued on page 74 |

LOSSPREVENTIONMEDIA.COM

Tournament Sponsors PLATINUM

GOLD

SILVER

BRONZE

Your participation in the 2019 Swing for Certification golf tournament at the NRF Protect conference benefits the Bob MacLea scholarships for loss prevention and asset protection professionals who want to advance their careers by obtaining their LPQ or LPC certifications. Proceeds will also benefit the Loss Prevention Benevolent Fund. Hosted by the Loss Prevention Foundation for the second year, the tournament takes place at Coyote Hills Golf Club in Fullerton, CA, on June 10 prior to the start of the NRF Protect conference. The event begins at 1:00 p.m. with lunch and a shotgun start. Prizes and awards will be handed out at a food and cocktail reception following golf.

June 10, 2019 Registration begins at 11:00 a.m. Lunch on all carts Shotgun start 1:00 p.m.

Prize Opportunities • Closest to the pin • Longest drive • Beat the pro • Golf cannon

• Post-golf raffle (tickets included for all golfers; must be present to win)

BEVERAGE CART

LUNCH

POST-GOLF RECEPTION

GOLF CANNON

BEAT THE PRO

Retailers Register Today All retailers are urged to register early as this event is sure to sell out.To register, go to www.swingforcertification.org.

continued from page 72

New Court Cases Show Liability for Security Lapses Can Go Beyond What Retailers Might Expect By Garett Seivold, LPM Senior Writer

Three recent verdicts exemplify the importance of proactive security, as plaintiff’s attorneys often find ways around efforts to limit liability. In one case, after an employee assault on a coworker, a retailer learned it must face a lawsuit without its insurance carrier. In another, a state Supreme Court issued a verdict that reflects a growing intolerance for employer security breaches involving employee data. Lastly, despite a favorable ruling in the US Supreme Court, retailers learned they can still be on the hook for time that workers spend in post-shift anti-theft security lines. Case 1: When Insurance Protection Fails When prevention fails, and workers are hurt on the job, retailers often hope to mitigate their losses through liability limits afforded under state workers’ compensation schemes or company insurance policies. In many cases, they keep losses in check; but as a recent case in Texas suggests, protection sometimes has gaps. Workers’ compensation usually provides employees an exclusive remedy for injuries sustained on the job, including injuries caused by on-the-job violence. Under certain circumstances, however, laws allow employees to sue their employers for injuries that were intentionally inflicted or due to the employer’s negligence. Some of the possible legal rationales under which a retailer might be sued or face penalties for violence-related injuries sustained by employees include foreseeable violence, sexual

harassment, negligent hiring, retention, training, and supervision. Kent Distributors, a convenience store chain in Texas, faces just such a lawsuit. A store clerk sued the retailer, claiming that another Kent employee from a different store attacked and sexually assaulted her while she locked the store at closing time. The worker alleged that Kent negligently hired, retained, trained, and supervised its employees; failed to identify the threat posed by the employee; failed to warn her of the threat; failed to correct the dangerous condition; and that she sustained physical and mental injuries as a result. Still, the retail chain probably hoped to limit financial harm from the incident. It had purchased two liability policies from United Fire and Casualty Company, a commercial general liability policy and a commercial liability umbrella policy. Hit with the lawsuit, the retailer turned to its insurer to defend it in court and to indemnify it under those policies. United initially agreed to defend Kent but later denied coverage and withdrew from the defense, asserting that the employee’s claims against the retailer were excluded from coverage under both insurance policies. Kent then sued the insurance carrier. In its verdict in January, the Fifth Circuit affirmed that United had no duty to defend or indemnify the retailer in the lawsuit, agreeing with a Texas federal judge that the worker’s claims fall within policy exclusions. The first, the Employer’s Liability Exclusion, excluded coverage for an employee’s “bodily injury” suffered during employment or while “performing duties related to the conduct of” the business. The second, the Texas Abuse or Molestation Exclusion, excluded coverage for molestation or actual or threatened abuse of anyone in Kent’s “care, custody, or control,” or arising out of Kent’s negligence in the employment, investigation,

supervision, or retention of the alleged assailant. The retailer tried to argue that the assaulted worker did not specifically allege “abuse” or “molestation” and that it was unclear if she had finished her work duties at the time of the attack. However, on both points, the Fifth Circuit court concluded that the facts alleged “unambiguously exclude coverage under Kent’s insurance policies” (United Fire and Casualty Company v. Kent Distributors, Incorporated, United States Court of Appeals for the Fifth Circuit, Case No. 18-50134, Jan. 11, 2019). Case 2: An Employer’s Duty to Protect Employee Data On the issue of data breaches involving employee data, several courts have held the risk of future harm is insufficient to give workers the standing to sue. This view has shielded employers from expensive class action claims in the past. However, a new ruling by the Pennsylvania Supreme Court suggests the tide may be turning in favor of employee victims. In Dittman et al. v. University of Pittsburgh Medical Center, the court reversed two lower court decisions and concluded that employers have an affirmative legal responsibility to protect the confidential information of their employees. The justices ruled that by collecting and storing employees’ personal information as a precondition to employment, employers had the legal duty to take reasonable steps to protect that information from a cyber attack (Case No. 43 WAP 2017, Nov. 21, 2018). Some legal analysts suggest the case could be a watershed. “The Pennsylvania Supreme Court has drastically changed the data breach litigation landscape by holding that an employer has a common law duty to use reasonable care to safeguard its employees’ personal information stored on continued on page 76

MAY–JUNE 2019

LOSSPREVENTIONMEDIA.COM

PRODUCT SHOWCASE

THE EVOLUTION OF LP TO SUPPLY CHAIN 7PSOLUTIONS HAS YOU PROTECTED AT HOME AND AROUND THE WORLD.

www.7Pgps.com

2019

Respond to Customers in a

Product Showcase and Resource Guide

LP MAGAZINE

MAY–JUNE 2019

continued from page 74

an Internet-accessible computer,” according to a research note by the Privacy and Data Security Group at labor law firm Ballard Spahr LLP. “This decision is likely to have a very significant impact on cyber-security-related litigation in and beyond Pennsylvania, as negligence is now a viable cause of action for inadequate data security under Pennsylvania law.” The firm expects to see a spike in data breach-related claims brought in Pennsylvania courts and under Pennsylvania negligence law, and that entities that operate in Pennsylvania or collect personal information about Pennsylvania residents need to review the reasonableness of their current cyber-security policies and procedures to protect personal information from unauthorized access or acquisition. Case 3: Security Screenings and Compensated Time Following eight years of litigation, in 2014, the US Supreme Court ruled that a staffing company’s employees, working in Amazon warehouses were not entitled to be paid for the time they spent in anti-theft security lines at the end of their shifts. That did not end the matter, however. The Sixth Circuit Court of Appeals revived the workers’ claims under Nevada law because time undergoing a security screening is compensable according to that state’s wage law. The court noted that some state laws don’t apply the same test as federal law when determining whether certain time at the workplace is considered work time that must be compensated. So Amazon and its staffing company may have to pay warehouse workers for their time going through anti-theft security screenings at the end of their shifts, the federal appeals court ruled. “Employers must carefully scrutinize the interplay between applicable federal and state laws

to ensure they are in compliance,” said Elayna Youchah, an attorney with the law firm Jackson Lewis, in an analysis of the verdict (Busk v. Integrity Staffing Solutions, 6th Cir., No. 17-5784, Sept. 19, 2018).

Return Fraud: An Analysis of a Chicago ORC Group By Stephanie Lin

Return fraud is a growing concern and costly challenge for many retailers. Losses to retailers from return fraud are astronomical, costing retailers billions of dollars every year. While it is crucial to enhance security and employee trainings to mitigate return fraud, it is also imperative to comprehend the routine behaviors and the techniques offenders use to conduct returns. To better mitigate return fraud in a brick-and-mortar setting, the Loss Prevention Research Council (LPRC) conducted a series of offender interviews. The intent of the project? To understand the implications behind return fraud and the mechanisms by which return offenders circumvent store’s return policies and complete fraudulent returns. Case Study: A Chicago ORC Ring During the interview process, the LPRC researchers discovered an organized retail crime (ORC) ring based out of Chicago and were able to investigate this group closely to learn more about their return methods and routines. The organization has been established for about four years and comprised of five to six people. The leader of the ring used to work for the loss prevention team of a drugstore. The organization operates under the notion that “big corporations rip off their employees and cheat people out of their money.” They therefore rationalize their unethical behavior by the belief that they are not taking from the people but rather from immoral corporations. MAY–JUNE 2019

LOSSPREVENTIONMEDIA.COM

Recruitment The organization specifically targeted active cashiers of various retail stores. The technique the recruiters use to recruit members is to approach the store cashiers during a casual conversation, ask the cashier about their job and salary satisfaction, and tell them lies to attract them to the organization. The leader of the group makes the final decision on whether to accept the candidate. The leader makes his decision based on observations of various tasks and seeks people who can most effectively and accurately complete these tasks under ten minutes. Tasks might include: ■■ A game of chess, to see how quickly and efficiently their brain would work. It didn’t matter if they won or lost. ■■ Mapping out the floor plan and laying out the place that the group needed to hit efficiently under two minutes. Candidates need to locate the cameras, identify where the team is needed, and select what they want to steal. The ultimate goal of these exercises is to find someone who is: ■■ Upbeat, willing, and determined. ■■ Able to communicate effectively. ■■ Capable of articulating situations during a theft operation. The people who are recruited by this organization tend to share a set of beliefs regarding the immorality of large corporations. They believe their actions are justified because of this. Similarly, they view stealing as their “compensation package” (metaphor of the ledger) and regard it as their right to take some items for themselves at the expense of the company to justify the company’s unethical behaviors. Retail Targets and Methods of Theft The targeted stores include but are not limited to drugstores, department stores, supermarkets, and big-box stores. Typically, this group has

CALENDAR access to an employee who works for the retailer from whom they plan to steal. The employee will have access to receipts, keys to merchandise, and access to the store’s floor map. Methods of operation include: ■■ Sweeping merchandise off the shelves at the end of the night by working with a dishonest employee and returning merchandise the next day using fake receipts. Fake receipts were obtained using a stolen register. ■■ Buying goods with counterfeit money with the help of a friend (employee) and returning the items the next day using receipts. Rehearsal This group streamlines their operation by conducting rehearsals and training. Rehearsals are often carried out in rural areas with limited or broken security features. In addition, the group reports that employees usually don’t care or pay attention to the store surroundings in those areas. Trial runs can sometimes be performed using empty lots of an abandoned church to make sure the team completes tasks efficiently. Time Preference The group reports boosting most often in the early summer and during buy-one, get-one-free (BOGO) sales periods. The group claims to accumulate five times more profits during BOGO sales because stores tend to have more merchandise on the shelves and are generally busier. Store Evaluation Pre-day store evaluation is often required by the organization for a “big job.” The evaluation includes scouting the store to identify camera position, product placement, greeters, secret shoppers, and people who check off receipts. Tools used

by this organization include walkie-talkie apps, EAS tag removers, and counterfeit money. Closing Thoughts Offenders adopt various methods to commit return fraud, and it is not realistic to eradicate all existing problems or address all vulnerable areas. However, it is incumbent upon LP associates to reduce the opportunity for return fraud by implementing common-sense measures. Many offenders point out that they specifically targeted a store when the return policies are liberal and when employees are negligent and ignorant about fraudulent return behaviors and practices. Targeted improvements in return policies combined with better awareness training for employees could make it tougher for offenders to commit return fraud and would therefore mitigate this issue at retail stores. It is also important to create an environment that is conducive to honesty and loyalty, as employee theft and fraud present a challenge to many retailers.

More on LossPreventionMedia.com For more original news content, see the following articles: ■■ Crisis Management Missteps: This Time It’s Boeing ■■ The Retail Robot Revolution Is Underway ■■ Internet Hoaxes and What They Teach Us about Using Social Media to Monitor Potential Threats ■■ Why a Career in Retail Loss Prevention ■■ ISCPO 2019 Conference Emphasizes the Evolution of E-Commerce Security ■■ The Texas ORCA: A Shared Vision ■■ The First LPF Learning Day of 2019 a Hit in Indianapolis ■■ 300 Students Attend University of Cincinnati Criminal Justice Career Expo LP MAGAZINE

MAY–JUNE 2019

May 5-8, 2019 Retail Industry Leaders Association Retail Asset Protection Conference Gaylord Rockies Resort Denver, CO rila.org May 6–8, 2019 Retail TouchPoints Retail Innovation Conference Convene, New York City retailinnovationconference.com May 16, 2019 Cyber Security Summit: Dallas Sheraton Dallas (TX) Hotel cybersecuritysummit.com May 23, 2019 Checkpoint 6th Annual National Source Tagging Conference Thorofare, NJ checkpointsystems.com June 11–13, 2019 National Retail Federation NRF PROTECT Conference and Expo Anaheim (CA) Convention Center nrfprotect.nrf.com June 25–26, 2019 University of Indianapolis Midwest Loss Prevention Conference Sponsored by Macy’s Indianapolis, IN cvent.me/Elkvm July 16, 2019 Cyber Security Summit: DC Metro Ritz-Carlton, Tysons Corner McLean, VA cybersecuritysummit.com July 18, 2019 Cyber Security Summit: Seattle Sheraton Grand Seattle (WA) cybersecuritysummit.com August 4–7, 2019 Restaurant Loss Prevention & Security Association RLPSA Annual Conference Renaissance Downtown Nashville (TN) rlpsaannualconference.com August 27, 2019 Cyber Security Summit: Chicago Hyatt Recency Chicago (IL) cybersecuritysummit.com September 8–12, 2019 ASIS International GSX Global Security Exchange McCormick Place Chicago (IL) gsx.org September 25, 2019 Cyber Security Summit: Charlotte The Westin Charlotte (NC) cybersecuritysummit.com

PEOPLE ON THE MOVE Colin Stewart, CFI was promoted to senior director of AP for EU, Middle East, APAC, Brittney Kotteles was promoted to district manager of AP, and DeAndre Davis was promoted to senior AP investigator at Abercrombie & Fitch. Jonathan Stone is now a market LP manager at Academy Sports + Outdoors. Brian Quast, CFI was promoted to LP manager, international and field, and Matthew Harper was promoted to retail LP and business continuity planning manager at Ace Hardware. Ray Adams is now CEO, and Bob Hull and Stefan Weitz are now board members with ALTO US. Amazon announced the following changes: Angela Rueber was promoted to global security operations manager; Brett Detzer is now investigations manager, global security operations; Agnes Pienio-Ganthier, LPC was promoted to regional LP manager; Lee Davies, CPP was promoted to head of safety and LP investigations, EMEA (UK); Kyle Skardon, Gary Senior, CPP, and Richard Anstey were promoted to cluster security and LP managers (UK); and Rachel Goldstein, CPP, MS is now an LP specialist. Sean Kostashuk, LPC and Geoff Gilbert-Differ were promoted to regional LP managers at Amazon Robotics. Brittany Adams is now a partner success manager at Appriss Safety. Robert Solarczyk, MBA is now director of AP, worker’s compensation, and general liability at Banfield Pet Hospital. Mark-Anthony Jack was promoted to director of operations at Barneys New York. David Branum CFI was promoted to regional LP manager, and Roman Canales was promoted to LP market manager at Bealls. Erik Ruiz, CFI is now investigations manager at Bed Bath & Beyond. Dave Cheema, LPC was promoted to senior manager of LP inventory control and e-commerce fraud operations at Best Buy Canada. Jared Farrally is now corporate LP manager at Bi-Mart. Dennis Gibbons, LPC was promoted to lead shrink specialist, and Rafael Martinez and Weston Pate, LPC are now regional AP managers at BJ’s Wholesale Club.

Jason Jordan was promoted to senior director, environmental health and safety at Blue Apron.

Randy Guarneri, CFE, CFI named VP of LP at Fresh Value Marketplace.

Tyrese Williams was promoted to AP operations manager at Century 21 Department Stores.

Debra Martin was promoted to senior director of AP at Fresh Thyme Farmers Market.

Frank Panebianco was promoted to VP sales ICS, NA at Checkpoint Systems.

Chris Batson, CFI, MBA was promoted to director of LP, institutional shrink, and analytics, James Dwyer, CFI was promoted to global investigations manager, Matthew Santry was promoted to regional LP manager for digital, and Jay Ganal, CFI, CORCI was promoted to multiunit crossbrand LP manager at Gap, Inc.

Steven Morand, CFI is now manager of LP at Chico’s. John Roaix, CFI is now director of profit protection at Christmas Tree Shops. Ralph Frangioni is now a district LP manager at Citi Trends. Amanda Bowen, LPC was promoted to manager of investigations at Coinstar. Daniel LaBerge was promoted to senior manager of highrisk product strategies, asset analytics, and insights, Katherine Jurkas was promoted to regional AP leader, and Joe Hall is now a multidistrict AP leader at CVS Health. Anthony Rodriguez was promoted to senior director of LP, commerce, and operations at David Yurman.

Eghele Martin Egbo is now an AP investigator at Goodwill Industries. Mike Keenan, CPP, CFI, LPC is now president and CEO at Goodwill Industries of the Greater East Bay. Leo Anguiano, LPC is now director of LP and corporate security for Goodwill of Central and Southern Indiana. David Moore is now a regional security project coordinator at H&M.

Carl Stahl is now a LP lead at DICK’S Sporting Goods. Mark Dixon is now a regional LP manager at DHL Parcel (UK). Jon Goodrich, CFI is now a regional LP manager, and Gina Warren, CFI was promoted to senior analyst of LP at Dollar General.

Matt Laycock was promoted to group head of profit protection at Halfords (UK). James Kralik is now director of LP at Hamrick’s. Kelly Hunt and Rayon James are now regional AP managers at Hannaford Brothers.

Kurt Maier is now director of environmental health and safety at Domino’s.

Erin Dugan was promoted to district AP specialist at Harris Teeter.

Linda Campbell, CFI was promoted to senior manager of field AP at DSW.

Gregory Croxton is now a special services department lead, and Benny Iradi is now senior investigator for rental at The Home Depot.

Austin Crager is now a regional LP auditor at DTiQ. Marco Alongi is now profit protection manager EMEA at Dyson (UK). Alexander Snyder, CFI is now a regional LP manager at Express. Tina Sellers, LPC has been named VP of LP, and Derrick Boyd was promoted to regional LP manager at Family Dollar Stores. Stephen Feldman was promoted to regional LP and security manager at Fanatics. Matt Dorgan is now corporate investigations coordinator at Five Below. Silvana Baxter, LPC is now an AP division manager at Food Lion.

MAY–JUNE 2019

Nate Frazier, LPC, CPP has been promoted to senior VP of operations, and Tony Maddox , LPC, CFI is now a regional LP manager at GNC.

Pamela Hodges, CFI was promoted to senior AP operations and safety manager, Robert Holmes, LPQ was promoted to enterprise resilience analyst, Michael Peixoto was promoted to market ORC manager, and Keith Martin was promoted to district AP manager at Lowes. Bernie Bulos, CFI was promoted to manager of central investigations, and Tina McHale was promoted to regional ORC manager at Macy’s. Anthony Vanderhorst is now senior manager of corporate security at Mattress Firm. Chris Rodriguez was promoted to VP of global security operations at MedMen. Martin Downey was promoted to head of LP-KSA at M.H. Alshaya Co. (UK). John Sanchez is now a LP technology specialist at Michaels. Jim Figueredo is now director of AP at Mister Car Wash. Chad Tucker is now a regional AP investigator at Mobily. Patrick Gertjejansen, Dirk Winkel, MSA, and Robert Taylor are now district LP managers at NAPA Auto Parts. Rob Thomson, CFE, PCI, CFI was promoted to director of LP for Asia Pacific and Latin America, and Brandon Kushins, LPQ is now a district LP manager at Nike. Juan Fernandez was promoted to area LP manager at Nordstrom. Idmelda Perez, LPQ has been promoted to director of audit at Northgate Markets. Lisa Candelaria, LPQ was promoted to emergency response and safety manager at Office Depot. Julia Foggo was named head of operational services at the Office for National Statistics (UK).

Jennifer Welch was promoted to corporate investigations manager for the Southwest Region at Hudson’s Bay Company.

Andrew Robinson, LPQ was promoted to institutionalized shrink analyst at Old Navy.

Juan Morejon is now AP manager for Invicta Stores.

Chuck Bowers, LPC was promoted to regional LP manager of supply chain at Penske Logistics.

Stuart Thomas is now a district AP manager, and Debbie Ho is now a field investigator at JC Penney.

Paul Spring was promoted to district leader ID/MT at PetSmart.

Michael Shrider, Zachary Klaine, and Armando Morales are now LP managers, and Brian Kennedy and Dalena Webster are now LP analysts at Journeys.

James Stark was promoted to VP of LP and risk management at Pier 1. Chad Sweigert is now a regional LP manager at PSEB Group.

David Robbins is now corporate LP manager at Loomis.

Franklin Klink, MA is now an LP security manager at the RealReal.

Ian Colling is now national profit improvement manager at Lloyd’s Pharmacy (UK).

Rite Aid announced the following promotions: Cathy Langley, LPC to VP of AP, Sherry Sims

LOSSPREVENTIONMEDIA.COM

to AP district leader-IT/regional analyst, and Jason Conaway to senior leader of investigations and ORC (Pacific Northwest). Brian Aquilina was promoted to VP of organizational safety, security, and investigations, Trisa Gildard was promoted to senior regional LP director, Ramon Jara, Tayton Fain, Alex Alaniz, David Burton, and Berneka Davis were promoted to regional LP directors, and Malo Taumua and Nelson Badillo, CFI, LPC are now area LP managers at Ross Stores. Hutch Hillebert is now a senior regional LP manager at Rue21. Scott Martignetti, CFI was promoted to regional LP manager, Delia Valadez, LPQ was promoted to senior district LP manager, and Conor Cox is now a district LP manager at Sephora. Nate Shinsky, CFI, CFE was promoted to senior director of LP, and Derek Davis, CFI, CFE was promoted to corporate director of LP at Sherwin Williams.

Chris Anderson, CFI is now director of AP at SmileDirectClub.

operations, and communications manager at TJX Europe.

Steven Roberts is now a district AP manager at Smith’s Food and Drug Centers.

Ruben Quinonez, LPC is now a senior investigator, special investigations unit at Uber.

Steve Gaughan, CFI is now LP professional at Southeast QSR.

Brian Wedoff was promoted to director of LP, Vincent DiSalvo and Guillermo Rivera are now area LP managers, and Khalid Carpenter is now supply chain LP manager of transportation at Ulta Beauty.

Garret Watson was promoted to area AP manager at Stein Mart. Melissa Hoffmeister was promoted to AP director, and Brent Pack is now lead information security analyst at Target.

Nicholas Cranfill is now a regional LP manager at Variety Wholesalers. Timothy Larsen is now a corporate investigator at Verizon.

Rhett Asher is now VP of strategy at ThinkLP.

Kevin Seaton is now an area AP manager at Victoria’s Secret.

Matthew Christman, LPC, CFI and Karyn Cruz, CFI are now district LP managers, Jennifer Briggs, MBA was promoted to manager of investigations, Marmaxx, US, and Julie Saitta is now an ORC investigator at TJX Companies.

Chris Waiters is now an AP solutions partner at Walgreens. Steve Ellis is now a developmental market manager, Troy Vanover was promoted to senior manager, Walmart e-Commerce, and Matthew Walsh was promoted to global investigator III at Walmart.

Matthew Christie is now manager of LP for TJX Australia. Cass Morgan was promoted to European Central LP,

Andrea Cunningham was promoted to VP of parks and resorts international at The Walt Disney Company. Andy Hind is now company LP manager at Waterstones (UK). Paul Evans, CFI, LPC is now a district AP manager at Weis Markets. David Kelly, APCIP is now LP auditor at The White Company (UK). Josh Crippen was promoted to senior regional AP manager at Whole Foods Market. Nick Seaman is now profit protection operation manager at Wilko (UK). Stephen Page was promoted to national investigations manager at Woolworths Supermarkets (Australia). Jason Tulinski is now regional security manager corporate services North America at Zebra Technologies.

To stay up-to-date on the latest career moves as they happen, sign up for LP Insider, the magazine’s daily e-newsletter, or visit the Professional Development page on the magazine’s website, LossPreventionMedia.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

MAY–JUNE 2019

ADVERTISERS

Subscribe for Free

3SI.....................................................................41 info@3si.com 3XLogic............................................................25 3xlogic.com 7PSolutions.....................................................75 7pgps.com AFA...................................................................75 afap.com ADT Commercial............................................59 adt.com/commercial Appriss Retail...................................................5 apprissretail.com CAP Index........................................................21 capindex.com Checkpoint......................................................37 checkpointsystems.com CIS Security Solutions....................................9 pmorello@cisssinc.com ClickIt...............................................................13 clickitinc.com CONTROLTEK....................................................1 controltekusa.com Cyber Security Summit.................................69 cybersummitusa.com Detex..................................................................7 detex.com/latch5 DTiQ....................................................................2 dtiq.com/lpm Jahabow..........................................................23 jahabow.com InstaKey Security Systems..........................47 info.instakey.com/remotelock-lpm JVCKENWOOD...............................................35 kenwood.com/usa Loss Prevention Foundation...................29, 39 losspreventionfoundation.org LPjobs..............................................................79 lpjobs.com

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

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

❍ Yes, I would like to receive/continue to

receive Loss Prevention FREE of charge. ❍ No thanks.

❍ Yes, I would also like to receive/continue to receive your e-newsletter FREE of charge.

❍ No thanks.

Please fill out completely: Signature___________________________________________________________ Date___________________ Telephone__________________________________________________________________________________ Fax________________________________________________________________________________________ Email_______________________________________________________________________________________ First__________________________ Middle______________________Last______________________________ Title________________________________________________________________________________________ Company___________________________________________________________________________________ Address1___________________________________________________________________________________ Address2___________________________________________________________________________________ City________________________________________________________________________________________ State/Province__________________ Zip/Postal Code____________________Country ❍ USA ❍ Canada You must answer both questions to receive Loss Prevention magazine. 1. What is your company’s primary business? (Check one only) Retail ❍ (A) Department store/mass merchandiser ❍ (B) Discount/wholesale club/outlet/

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

❍ (C) Specialty apparel/footwear/gifts/

❍ (12) DC/logistics/supply chain

❍ (D) Home center/hardware/appliances/

❍ (19) Other LP manager

Securitech.......................................................19 securitech.com/trident

❍ (E) Drug store/pharmacy/vitamins ❍ (F) Office supplies/electronics/videos/

Security Resources.......................................83 securityresources.net

❍ (G) Grocery/supermarket/

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

SENNCO Solutions.........................................71 sennco.com

❍ (H) Restaurant/hospitality/

Swing for Certification..................................73 swingforcertification.org

❍ (X) Other retailer_____________________

LPM Media Group..........................................51 lpmmediagroup.com Protos Security.................................................3 protossecurity.com RITRON Wireless Solutions.........................75 ritron.com/quickassist RLPSA..............................................................61 rlpsaannualconference.com siffron...............................................................49 siffron.com

Sensormatic....................................................84 sensormaticsolutions.com/infuzionlp ThinkLP............................................................75 thinklp.com Wicklander-Zulawski....................................27 w-z.com

LOSS PREVENTION MAGAZINE

off-price

jewelry/sporting goods furniture

music/books

convenience store entertainment

Non-Retail ❍ (N) Consulting/integrator ❍ (P) Product manufacturer ❍ (R) Services/outsourcing ❍ (S) Law enforcement/government/military ❍ (T) Education/library/media ❍ (Z) Other non-retail ________________

MAY–JUNE 2019

LOSSPREVENTIONMEDIA.COM

associate manager

________________________________

Non-Retail ❍ (30) Vendor executive/owner/

manager

❍ (31) Consultant ❍ (32) Sales/marketing manager ❍ (33) Police officer/active military ❍ (34) Educator/student/librarian ❍ (39) Other non-retail manager

________________________________ Fax to 714-226-9733

VENDOR SPONSORS

OUTSMART CRIME

VENDOR ADVISORY BOARD 3SI Security Systems Dan Reynolds Vice President, Retail Sales ADT/Protection 1 Rex Gillette Vice President of Sales ALTO Karl Langhorst, CPP, CFI Executive Vice President Appriss Retail Tom Rittman Vice President, Marketing

Axis Communications Hedgie Bartol, LPQ Business Development Manager, Retail

ControlTek Steve Sell Vice President, Global Sales & Marketing

CAP Index Stephen B. Longo Vice President, Strategic Initiatives

Detex Ken Kuehler General Manager

Checkpoint Stuart Rosenthal Vice President Sales

DTiQ Steven May President/CEO, LPI (retired)

ClickIt Inc. Jim Paul Director of Sales

InstaKey Security Systems Cita Doyle, LPQ Vice President, Sales & Marketing

LP MAGAZINE

MAY–JUNE 2019

Protos Security Kris Vece, LPQ Vice President of Client Relations Security Resources Britney Ryan Director of Client Relations Sensormatic Solutions Joan Sparks Director of Marketing, Vertical Leader for Americas Siffron Robb Northrup Director of Marketing Communications & Support

PARTING WORDS

D-Day: A Planned Success

une 6 will mark the seventy-fifth anniversary of the Allied invasion of Normandy, France. This likely will be the last significant gathering of surviving veterans. US, British, and Canadian events will take place honoring this special memory of those who remain and those who fought the battle to take back Europe from Hitler’s regime. This brilliantly planned and executed invasion took several years to put in place. Roughly 156,000 troops landed in Normandy on D-Day. An impressive 11,500 Allied aircraft took part, carrying 23,760 airborne troops. Nearly 7,000 Allied vessels were utilized in the invasion. At the end of the day, more than 10,000 Allied and a similar number of German casualties were sustained. It would take another ten months before Germany was defeated and peace restored. I have always contended that we can learn a lot about implementing business strategies by studying military history. The components of the Normandy invasion were planning, preparation, logistics, execution, and evaluation. Now with every project, program, or presentation that asset protection makes, I suggest all these components be considered. This is true for single-store managers as well as district, regional, and corporate executives regardless of the battle that needs to be fought. Briefly, let’s look at them individually. Planning. You will increase your success rate tenfold if you involve others in the development of the plan— operations, stores, IT, supply chain, merchants, and most importantly the expertise of solution providers. You can get expert advice from each of these areas in putting together an acceptable return on investment with your financial partners. Don’t shortcut the planning process. More is better than less. Go the extra mile. Preparation. This is the preparation required to be successful. Nothing is more important than

MAY–JUNE 2019

Jim Lee, LPC Executive Editor

engaging those who will be the implementors, from the lowest-level LP associate to the hourly associates. Training and educating these people will get their buy in. General Eisenhower, the supreme commander of the Allied troops, often would say that the battle will be won by the foot soldiers, not the commanders. Logistics. Every successful retailer I know has strong logistics teams and efficient programs. Often, a simple question to these experts—“How would you do this?”—will put you way ahead of the game and enhance your success rate. Execution. If you have done your planning and preparation and sought out advice, your execution is just a matter of saying, “Let’s go.” Evaluation. Every program, project, or presentation must be reviewed often. Shout out your successes and learn from those things you need to do better. Remember that statements on success start with the word “we,” and statements on setbacks start with the word “I.” As an amateur World War II military historian, I have so much admiration for those involved in the planning, preparation, and execution of the Normandy invasion. And as an observer of asset protection practitioners who utilize all at their disposal to implement successful plans, I have the same admiration. Lastly, I know a guy who is celebrating his fiftieth year in this business of loss prevention, and I want to say congratulations to him for his survival. Well done.

LOSSPREVENTIONMEDIA.COM

GO AHEAD, GO HOME. We’ve got you covered. When our people protect your people, you can rest easy knowing your property and brand are safe, too.

(8777 47779683 TALK TO A REAL PERSON IN OUR NJ HEADQUARTERS ANYTIME, ANYDAY

Headed to NRF Protect? June 11 – 13, 2019 Visit us in Anaheim, California Booth #730 www.SecurityResources.net

ALWAYS

CALL US TO REQUEST A QUOTE

Listening. Innovaang. Improving.

Blink and you’ll miss it.

The revolutionary Sensormatic InFuzion tag speeds POS activity with up to a 54% decrease in detach time*. This patented, one-piece, defeat-resistant tag, features an integrated pin and speeds POS activity with quick tag removal. A simple button push makes attaching just as easy. The integrated pin design helps eliminate the cost of replacing lost or broken pins, and there is no need to sort or store separate pins and tags. In addition, the new, thinner pin makes InFuzion tags safer for fine garments, such as baby clothes and delicate women’s apparel. It’s even available in AM or RF technology, so it’s compatible with many different loss prevention systems. Visit SensormaticSolutions.com/InfuzionLP for more information. INFUZ IO N MAG NETIC TAG

IN FU ZION SU PERTAG

*Tag application and removal times are based on a usability study conducted by a third party (US ergo, 2018) using Sensormatic 2-piece tags and Sensormatic InFuzion series tags. Actual labor and cost savings may vary. © 2019 Johnson Controls. All Rights Reserved. Tyco Retail Solutions, Sensormatic, TrueVue and ShopperTrak are marks and/or registered trademarks. Unauthorized use is strictly prohibited. All other marks are the property of their respective owners.

May - June 2019

Articles inside

LPM EXCELLENCE