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December 2, 2010

Loss Prevention & Safety Recruiters Since 1983

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News Brief -
Sponsored by WG Security Products, Inc.

With the WikiLeaks release of secret government communications this past weekend, there's nothing to say that your company won't be the next victim of a disgruntled insider and by poorly crafted security policies.  With the right access, a cheap thumb drive and a vendetta are the only ingredients an insider needs to obtain and leak secrets.  And even when security technology is doing its job, it's a poor match if someone with legitimate access decides to go rogue.  At risk are your entire company's plans, emails, documents, databases, internal websites, new product rollouts, just about every piece of information your company has and that your competitor would love to see.  We merely need to look back one week at the SAP-Oracle law suit for validation.  What's your team doing and are you involved in the planning processes?  Interestingly enough, recently we learned of a senior LP executive's departure from a major retailer when the Daily bounced back and referred us to another individual before the LP team had even been notified of the senior's departure themselves.  (Source Associated Press)

MasterCard Advisors' Spending Pulse, which tracks spending across all transactions including cash, released data Thursday showing spending on family and children's clothing rose more than 10 percent in November, with all types of clothing recording growth. Teen clothing was particularly strong, up 12 percent. Women's clothing was up about 4 percent and men's clothing was up 7 percent.  (Source Associated Press)

New survey by Towers Watson shows U.S. companies expect their budgets for salaries to rise about 2.9% for 2011.  The survey only shows companies who plan increases, with 5% of the companies saying they've frozen increases for 2011.  12% of companies surveyed froze salaries in 2010 and a huge 32% froze salaries in 2009.  Taking into consideration retail is a more tightly controlled business, these numbers may be a little high actually and we would forecast a 2% to a 2.5% increase for retail in 2011, with relocation budgets still significantly reduced over 08' and job growth extremely sluggish.  (Source Associated Press)

Quarter 3 Report

Zumiez 3Q reports same store sales up 14.4% with revenue up 20%
Express 3Q reports same store sales up 2% with total revenue up 6%
Rue21 3Q reports same store sales up 1.8% with revenue up 20%
Collective Brands 3Q reports revenue up 2%
Jo-Ann's 3Q reports revenue up 5.1%
Aeropostale 3Q reports same store sales flat with online sales up 17% and revenue up 6%
Kroger 3Q reports same store sales up 2.4% (without fuel) with sales up 5.9%

November Sales Report

Abercrombie & Fitch November same store sales up 22%
Pier 1 November same store sales up 10.2%
Limited Brands November same store sales up 10%
JCPenney November same store sales up 9.2%
Costco November same store sales up 9%
Dillard's November same store sales up 8%
The Buckle November same store sales up 7.9%
Wet Seal November same store sales up 7%
Kohl's November same store sales up 6.1%
Target November same store sales up 5.5%
Saks November same store sales up 5.3%
Cato November same store sales up 5%
BJ's Wholesale November same store sales up 5%
Gap November same store sales up 4%
Destination Maternity November same store sales up 4%
TJX November same store sales up 3%
The Bon-Ton November same store sales up 2.9%
Stage Stores November same store sales up 2.4%
Hot Topic November same store sales down 2.1%
Rite Aid November same store sales down1.3%

November results -- These are strongest November numbers since 07' going into the holiday season, but even if we hit the NRF's 2.3% increase in holiday sales, we won't see any loosening of capital budgets until 2012.

The FTC is proposing a "Do Not Track" tool for the internet so U.S. consumers can prevent marketers from tracking their web browsing habits.  (Source Associated Press)

Stolen credit card swipe terminal from ShopRite Supermarkets in Linden, N.J. this past May used to produce $80,000 in gift cards and male arrested selling them to customers this past weekend.  (Source

Online advertised vacancies rose slightly by 47,400 in November to reach 4,457,200 advertised openings.  That equates to 10.4 million more unemployed than advertised vacancies.  (Source

A design flaw in the iPhone, which their security team says they won't change, makes it vulnerable to web attacks that allow malicious websites to masquerade as trusted pages maintained by banks, stores, and other sensitive organizations.  The cause of this vulnerability is a design decision by Apple:  "The Safari browser on the iPhone allows websites to scroll the real address bar out of view," Dhanjani wrote in an email to The Reg. "This can allow a malicious website to display a fake address bar thus tricking the user to thinking they are browsing a legitimate site when they are not."  (Source

Oracle is rolling out a new interactive mobile marketing strategy that works on smart phones and is being used in Europe right now.  It truly integrates the consumer in the store with products, programs, coupons, messaging, and store information that goes to a whole new level.  (Source

Scrap yard owner who steals 100 tons of nickel worth $2.6 million by simply cutting the chain link fence and hooking up the trucks and driving off shortly after Labor Day in Baltimore is caught trying to sell the nickel thru emails to suppliers.  (Source Associated Press)

Return Fraud to cost Retailers $3.7 billion this Holiday Season (Source NRF Survey)

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Vendor Spotlight

By Matt Steinfort, President and CEO, Envysion

Unlock the Hidden Loss Prevention Value in Your Video Surveillance

There's power in that surveillance video -- power to improve profitability 10-15%. Envysion customers are realizing the value of video surveillance with Managed Video as a Service (MVaaS), a video management solution that makes video and business insight available via the Internet. First and foremost, MVaaS is not CCTV and is unlike any other video offering on the market. With MVaaS, customers can rapidly scale to hundreds or thousands of users and sites making it ideally suited for enterprise use. Envysion's MVaaS solutions put video surveillance into the hands of the entire organization, extending the capabilities of loss prevention professionals. With Envysion's MVaaS solution, every function can engage in loss prevention activities to create a virtual army of support across the enterprise to accelerate and extend loss prevention results. Different from CCTV, MVaaS does not record video just in case; Envysion's MVaaS solutions are designed to be used every day and designed to help loss prevention professionals be more efficient and effective at their jobs.

Unlike traditional video and stand-alone loss prevention applications, Envysion integrates managed video surveillance with point of sale (POS) systems to provide a robust set of exception reporting, alerting and search capabilities. In addition to the customary benefits of video surveillance -- increased security and reduced loss from vandalism, theft and unfounded liability claims -- Envysion enables customers to automatically track potentially fraudulent transactions such as voids, returns, discounts and coupons. For example, Envysion's solutions make it easy for loss prevention professionals to create alerts for large percentage discounts. When a site or employee passes the acceptable threshold for these discounts, Envysion sends the loss prevention team a notification. A loss prevention professional can then review the video of the event and determine if it warrants further action. Because the Envysion application quickly pinpoints video of important events, the retailer can effectively manage down exceptions and improve the average dollars per transaction. Envysion's retail, restaurant and hospitality customers typically drive one to three percent of sales to the bottom line with the company's MVaaS application.

Endorsed by loss prevention advisors and partners including David Gorman and King Rogers Group Analytics, Envysion provides secure instant access to live or recorded video at multiple, geographically dispersed locations from anywhere with an Internet connection. This feature yields several advantages for strained loss prevention professionals. Among these efficiency-building benefits are the ability to quickly isolate video evidence of employee fraud, build cases against shoplifters in less time and perform loss prevention audits faster. For instance, loss prevention professionals can augment in-depth, on-site audits with targeted, virtual audits in between site visits. The online MVaaS platform also lends itself to improved collaboration among the loss prevention team allowing users to immediately and securely share key video surveillance inside the company or with law enforcement.

Designed to be enterprise grade, Envysion's MVaaS expands the use of video into every aspect of the organization from operations and risk management to marketing and human resources. As retailers continue to cut costs and scrutinize standalone systems, this is an important shift in how organizations think about surveillance video. Envysion transforms video surveillance from a niche application used for specific situations, such as investigations or litigation, into a broadly used tool with multiple, proactive business improvement applications.

For more information on Envysion's MVaaS solutions for loss prevention, email

Featured Job Listings
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appearing today only

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Store LP and Safety Mgr
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Tip of the Day

Managing your career upwards is a difficult task because it requires absolute commitment in every situation and environment.  You have to stay focused on what's in front of you and make sure your attitude matches your actions.  And remember always be West Point.  There's a reason every single U.S. citizen respects graduates of West Point.  It's almost a universal code so to speak.  Clean, crisp, sharp, alert, intelligent, and always a gentleman or gentlewoman.  More on this topic tomorrow.

Just a thought
Gus Downing

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UpComing Articles

Coming tomorrow
Barry Grant
Sr. VP LP & Operational Support, CPI Corp.

Jodie Murphy
Sr. Mgr. Investigations, Gap

Paul Jones
Head of Global Asset Protection, eBay, Inc.

LP Program Spotlight
eBay's PROACT Team

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NRF Women in LP Caucus
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NRF LP Professional Development Conference Call
February 1, 2011, at 2 pm Eastern

NRF 2011 LP Conference and EXPO
June 13-15, 2011
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RILA Loss Prevention, Auditing & Safety Conference 2011
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Lake Buena Vista, FL 32830

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