One of the kids has been identified and his mother was interviewed by KPTV. She says, “he didn’t steal anything and he doesn’t deserve to be punished for the bad choices other kids made”, also saying “he was just in the wrong place at the wrong time and now you see the consequences behind it.”

In LP speak, we classify these as a multiple offender crime, where a pre-existing group – everyone from gangs to teenagers to robbery crews – engages in illegal activity. While there are distinct differences in how the groups organize, multiple offender crimes may involve serious criminal behavior including assault, theft and vandalism. In addition to the financial losses they cause companies, multiple offender crimes disrupt the normal flow of business in stores and shopping centers and create significant safety concerns. Some of these traditional multiple offender crimes are being organized with flash mob tactics.

Last year, NRF conducted research and created guidelines for retailers to consider when enhancing theft, civil disturbance, crowd management, workplace violence and safety policies. The report, released in August 2011, was based on 106 U.S. retail companies surveyed about multiple offender crimes following a wave of incidents from Los Angeles to Washington D.C. Over three-quarters (79%) of retailers reported being a victim of a multiple offender crime in the past 12 months. Half of these companies have experienced 2-5 incidents in the same period.

On a far more positive note, this year we’ve been reading about “cash mobs,” defined by Wikipedia, as a group of people who assemble at a local store and all buy items from that business. The purpose of these mobs is to support both local businesses and the overall community, as well as provide social opportunities. Inspired by flash mobs, it’s nice to see communities identifying a negative trend and making something positive out of it. Perhaps the cash mob trend will take off – and juveniles who contemplate participating in flash mob vandalism will have a change of heart.

NRF Information

• Continuing the trend for 2012, NRF’s 4-5-4 calendars were another big hit in March as visitors wanted to be sure they have the correct dates starred for when retailers report the previous month’s sales numbers.
• The release of NRF’s Easter survey conducted by BIGinsight was popular as retailers were excited to see that rising gas prices weren’t going to deter spending on Easter goodies. Shoppers said they intend to spend $16.8 billion this Easter, a record for the survey
•  The exciting news of February marking the 20th consecutive month of growth for the retail industry saw also saw a large amount of traffic last month. According to NRF, February industry sales (excluding automobiles, gas stations and restaurants) increased 0.5% in a month favored by unseasonably mild weather.
• Gearing up for NRF’s Loss Prevention Conference and EXPO, June 20-22 in New Orleans, retailers wanted to know more about honoring loss prevention and law enforcement professionals for their outstanding work with NRF’s 2012 Loss Prevention Awards. The two awards recognize LP cases and a law enforcement professional or agency that has made a positive impact on their company, community and the retail industry as a whole. The winners are recognized on stage in front of more than 2,700 of their peers
•  As NRF led the buzz in discussing the dirty laundry on Tide thefts in America, retailers turned to NRF’s 2011 Organized Retail Crime Survey for insights and statistics from senior loss prevention executives representing 129 retail companies. The survey chronicled retailer and legislative efforts in battling organized retail crime rings across the country last year. Stay tuned for the release of the 2012 survey this summer.

Top blog posts from Retail’s BIG Blog and Shop.org:

• The dirty laundry on Tide thefts and organized retail crime
• Retailers: What’s your Pinterest strategy?
• How Warby Parker and Under Armour win with social media
•  Sears Holdings SVP: Supply chain fulfills the promise of integrated retail
•  KPMG Global Retail Director discusses industry trends for 2012

Top retail news stories in NRF SmartBrief:

• Lululemon does CRM the old-fashioned way
• Will millennials change the face of retail?
• Retailers change policies to cope with extreme couponer
• Nordstrom sends used shoes to the Rack
• Home Depot launches “Spring Black Friday” promotion

On Wednesday March 21, teamwork and collaboration paid off with the arrest of seven alleged members of a jewelry theft ring. Investigators from the bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Washington Field Division and more than 15 law enforcement agencies at the federal and local level demonstrated how determination and communication can defeat even the most organized and violent criminals. The jewelry industry’s traveling sales teams have long been the target of these hardened criminals who attack the salespeople when they  travel in and out of specialty jewelry and departments stores. These thieves are notorious for being violent yet sophisticated in their robberies and this gang is accused of stealing more than $4.6 million in jewelry in no less than six states.

In conversation with John Kennedy, President of the Jewelers’ Security Alliance, he stated that this was a hugely successful strike against these organized criminals and law enforcement working with the jewelry industry are to be commended for this outstanding case.

Like so many other cases brought to conclusion in retail, the success always comes from good communication and collaboration with our law enforcement partners – and NRF works hard to recognize these outstanding professionals with the Law Enforcement Partnership Awards (LERPA) program awarded each year at our annual Loss Prevention Conference held this June in New Orleans.

We owe quite a bit of gratitude to the law enforcement partners that work hard to put a stop to organized retail crime rings and keep retail staff and customers safe.

Organized retail crime affects virtually every retailer in America, costing the industry tens of billions of dollars each year and a majority of companies reporting the problem is getting worse, not better. It impacts everything from the bottom line to the safety of people in the stores. As criminals become more brazen, retailers are working fervently to cut down on organized retail crime activity in order to ensure the safety of their associates and shoppers.

In NRF’s 2011 Organized Retail Crime Survey, Tide was not listed specifically on the NRF’s list of top items targeted by organized retail crime groups, however it does fit the profile and some organized retail crime cases were publicized in the local coverage today. Last year, I discussed what retailers are doing on the legislative front to combat this multi-billion dollar problem on CNBC’s Squawk on the Street.

Criminals are keen on obtaining the hottest-selling merchandise because of its high resale value. Trends retailers have identified in top-fenced merchandise include the desire for all branded merchandise, particularly exclusive licensed goods. Consumable products such as over-the-counter medications, infant formula, high-end technology devices and designer denim are some of the top targeted items to be fenced. Retailers are constantly experimenting with ways to protect targeted items. Many stores reposition products where employees can keep a watchful eye on them, others limit quantities on display, while several use special locking devices such as secure caps and a few are locking them up.

As retailers continue to build their defenses against the growing problem of organized retail crime, criminals are finding myriad ways to work around the system. Over the past five years, many Loss Prevention experts have adjusted their tactics to prevent, detect and investigate these costly crimes by working with industry groups, stepping up legislative efforts and partnering with law enforcement. This is not a problem easily solved by working alone and demand collaborative solutions. Industry leaders at NRF’s 2012 Loss Prevention Conference and Expo will discuss the over-arching trends of asset protection and share strategies for retailers to prepare and respond to any organized retail crime situation.

Whether it’s Tide, designer jeans, electronic games or vacuum cleaners, the dirty laundry on these criminal groups will come out in the wash eventually. To see progress that’s been made, check out CNBC’s Crime Inc: Stolen Goods for exclusive interviews with retailers and law enforcement, as well as footage of organized retail crime raids and cases.

We’ve talked about “ban-the-box” on Retail’s BIG Blog before – and the impact it could have on businesses across the country. As the head of NRF’s Loss Prevention community – and former retail loss prevention executive – I can say for a certainty that this issue is one that could have quite an impact on the safety of shoppers and store associates across the country.

Would you want a child sex offender employed in a children’s toy store or dressed up as the Easter Bunny? Do you like the idea of a convicted ID thief assisting you as a cashier or handling your credit cards and personal information? Of course not.

No retailer – no business, in fact – can make decisions without all the relevant and necessary facts, and just like public sector and government-mandated background checks, every private sector screening is conducted with all due diligence in a serious and prudent manner that is both fair and equitable. Trust me; nobody wants to get it wrong.

Today I had the opportunity to participate in an all-day U.S. Chamber of Commerce-hosted symposium on the importance of employment screenings and criminal background checks, which featured industry experts and trade association executives, as well as officials from the EEOC. During a panel on Why Businesses, Non-Profit Agencies, and Government Entities Need Access to Criminal Background Checks, I shared the results of NRF’s 2011 Background Screening survey, which found that nearly all retailers (96.6%) utilized background screening as part of their applicant hiring process – a testament to the commitment of retail companies to protect the public.

As the EEOC considers this issue in the future, it is my hope that the commission fully understands that retailers (and businesses across the board) have an obligation to their employees and customers to create and maintain a safe workplace. And employment screenings and criminal background checks do just that.

Rich is the real deal. His experience spans three decades with executive leadership positions at Macy’s, The Bon-Ton Stores and Woodward & Lothrop. He came to NRF after 12 years with Helzberg Diamonds, having most recently served as Divisional Vice President of Loss Prevention. Prior to that, Rich was Divisional Vice President of Loss Prevention and Security for The Bon-Ton Stores and Regional Director of Security for Macy’s East.

As we gear up for the biggest LP event of the year, NRF’s Loss Prevention Conference & EXPO, June 20-22 in New Orleans, I asked Rich about what led him to this point in his career, what’s in store for the NRF LP Community, and what to expect at this year’s LP Conference.

Rich Mellor, NRF Vice President of Loss Prevention

Your career spans more than 30 years and includes executive positions at major national retailers. What about your experience makes you a good fit for the role of NRF Vice President of Loss Prevention?

Since my first career was in law enforcement, I have a natural camaraderie with law enforcement that helps me more readily build relationships with these important partners outside the retail community. I’ve been fortunate to work for a mix of retailers in my career, which has given me a broad exposure to issues facing loss prevention teams at different types of companies. Together with the experience of working on the NRF LP Advisory Council for more than 20 years, I feel like this position was meant to be.

What are you most excited about for your new role?

Working more closely with my former peers in the retail community and helping them bring about positive change in the industry.

You’ve worked with NRF for many years on the LP Advisory Council. What did you take away from that experience?

How to interact with and conduct myself effectively with colleagues of similar experience who have very different opinions concerning the initiatives and focus of the NRF Advisory Council and NRF. The knowledge I have gained over the years from the members of the Council has been immeasurable and a major factor in my success. The positive peer pressure to do more for the industry benefits us all.

What do you think are the most pressing issues facing retail LP professionals right now?

Effective use of time and resources in an ever-changing retail environment. The role of loss prevention in all organizations has grown in responsibility and complexity. As a result, the job requires an expanded knowledge on legal issues, technology, safety, business continuity, physical security and information security. This means LP leaders have to continue to constantly broaden their knowledge by seeking out information and learning from their peers. You learn best sometimes by listening to your peers who have experienced these issues first-hand. That’s why conferences like ours are so important.

What opportunities or issues are you tackling first in your new role at NRF?

Our 2012 Loss Prevention Conference is a very important part of what we do, and I aim to continue to improve the value of education, peer networking and collaboration on industry concerns for our members and the potential members who attend our conference. It is my top priority, followed by realigning our LP committees to serve the members most effectively.

The NRF Loss Prevention Conference & EXPO is coming up June 20-22 in New Orleans. Tell us a little bit about what to expect this year and what you’re most looking forward to at the event.

Something new always takes center stage at our conference. One important focus this year will be emerging technologies and how they have changed the way retailers do business. While LP teams benefit greatly by advances in technology, it is moving so rapidly that the job of protecting the company assets and information has become dramatically more challenging. The best example is mobile point of sale devices. It’s great for customers, but it presents many challenges for LP because we lose all the security and surveillance capability that’s built into a POS station.

Personally, I’m looking forward to discussing all these new technologies and where retail is going in the future. The excitement and energy will be multiplied by having this event in a great venue like New Orleans.

How did you get your start in the retail loss prevention field?

I grew up in a family of police officers—my father, grandfather, uncles—so I always knew I would become a police officer. When an injury on the job forced a career change, retail loss prevention, although very different, had many of the same challenges and, back then, it aligned closely with police work. It was a natural decision for me when seeking a new career. It has been a rewarding experience and continues to be exciting and challenging every day.

What advice do you have for young people who are starting out in the retail loss prevention field?

This field has grown as fast as any in the retail community, and it has been a rewarding career choice for many of my good friends and colleagues. The more formal education young people can bring to the work place the better, but you don’t necessarily need criminology and criminal justice degrees. Business administration, IT and finance degrees are also desirable in the LP field. Loss prevention is wide open for advancement and has cross-over opportunities to every function within retailing, such as store operations, HR and administration. Many LP professionals have advanced to the highest levels of management in retailers across the globe. It is an exciting field to be in, and the interaction and alliances formed with agencies like the Department of Homeland Security, FBI, Secret Service, Police and NRF certainly makes it even more fulfilling.

As you might suspect, the incident caused panic and confusion among everyone involved. Instantly I was reminded about the importance of retailers’ safety protocols and active shooter guidelines.  During any emergency, a retailer’s top concern is the safety of their employees, customers and even the suspected shoplifters. For law enforcement officials, the safety of everyone involved is also a top priority.

The decision to confront someone committing a crime is never taken lightly, and we appreciate the difficult work of law enforcement professionals. When an officer feels their life is in danger, they may use deadly force.

Retail criminals know that if they are apprehended they face arrest, prosecution, bail and even jail. Oftentimes, they will stop at nothing keep from getting caught. Unfortunately, some of these crimes are committed through acts of violence and can endanger the lives of others.

Last night’s incident should serve as a reminder to retail associates and loss prevention professionals that it pays to be prepared. Retailers should make sure their staff is adequately trained and knowledgeable of what to do in these instances. Most importantly, retailers should take extra time to make sure their loss prevention staff are aware of the company policy regarding shoplifting, as many companies these days actually enforce a ”hand-off” approach so as to lessen the danger potential for other shoppers, store employees and even the suspected shoplifter.

NRF’s active shooter guidelines are a great resource for retailers and their staff when preparing their emergency and crisis management plans. Email Angelica Rodriguez at rodrigueza@nrf.com to receive a copy of the guidelines.

Although there are risk management concerns with technology such as Wi-Fi, new payment technologies are an area that yesterday’s panelists expressed particular concern with. They’re also part of a surge in new technology innovations that are coming to market much faster than they have ever before. Retailers need to plan for every inevitability – and introducing emerging technology to your store can bring with it a plethora of new options for criminals.

Consider some of the applications of mobile payment. In-aisle purchasing is a hot topic now. But what happens after a customer has made his or her purchase in aisle? Does he or she simply leave the store, holding the item? Will your staff assume a person who didn’t go through traditional checkout is shoplifting? Do you have a process in place for making sure that item was paid for? There are no right or wrong answers here, but panelists urged us to rethink loss prevention policies when introducing emerging technologies.

There is no one-size-fits-all solution in this scenario. Some retailers may want a greeter at the door to double check purchases as people leave. Others may want to have a staffer monitor all in-store purchases on a tablet device. Still others may see a need to readdress security cameras when dealing with this issue.

Other questions, of course, remain. How do you prevent your staff from confusing a legitimate mobile purchaser with a thief? How do you handle the new window of opportunity for fraudulent returns? Moderator Evan Schuman, of StorefrontBacktalk.com Retail Technology Blog, raised the question of dealing with consumer devices and the complications that may entail. Criminals are savvy and capable of developing fake receipts and other images on their phones before they even enter the store.

While this sounds like a lot of potential security concerns, Joe LaRocca, NRF’s Senior Asset Protection Advisor, raised an excellent point in favor of all of these new technologies. The U.S. has already undergone three major changes in currency: from coins to paper to card. Now the U.S. is beginning to change its currency to be virtual. There have always been individuals who want to scam the system, and there always will be. Retailers have always had to trust that consumers’ offered currencies aren’t fraudulent, and that will continue to be true.

Overall, these new technologies serve to enhance customer experience, said LaRocca. Loss prevention is not about preventing purchasing – it’s about protecting the interests of the retailer and the consumer.

The number one suggestion that all of today’s panelists shared was that you need to get LP involved in mobile conversations from the very beginning. They approach new technology with a very different set of questions than the rest of your company, and getting those questions answered earlier rather than later can prevent a lot of headaches – and crime.

That’s where Good360 comes in. The organization, which used to be known as Gifts In Kind International, is a full-service product donation company that makes the process as easy as possible for retailers. Their partners include many of the top retail brands including Walmart, Gap, Kohl’s, Williams-Sonoma, The Children’s Place, CVS and more.

Cindy Hallberlin, Good360 President and CEO

With many companies thinking about product donation in the run up to the holiday season, we reached out to Good360 President and CEO Cindy Hallberlin to share details about what retailers can gain from product donation (hint: it’s not just about the warm and fuzzies – there are sustainability and tax benefits too) and how businesses can go about sharing unwanted goods with people who really do need them. Read on for her insights.

What types of products can retailers donate during the holiday
season to best meet the needs of the nonprofits you work with?

Because we serve more than 22,000 nonprofits, product needs are broad. Women’s shelters need clothes, personal care products, mattresses and bedding. After-school programs need books, sports equipment, and toys. And communities trying to rebuild from floods, hurricanes, fires and earthquakes need building supplies, tools, housewares or home furnishings. But one thing is certain: everyone needs technology—whether new or refurbished—and especially computers.

How does the holiday season compare to the rest of the year in terms of donations? Is this a busier time of year for you?

This season is our busiest because our corporate donors want to quickly turnover year-end inventory, including holiday returns, and garner the enhanced tax benefits from product donation. At the same time, nonprofits are desperate to get goods to those in need to make the season jolly and help keep people safe, healthy and warm. Mix it all together and you have a very dynamic environment at Good360!

What are some of your favorite stories about the communities and individuals retailers have helped during the holiday season?

There are many but one in particular comes to mind.  Last fall, Anna’s Linens found themselves with brand new fleece blankets that they were not able to sell because of a misprint on the packaging. They contacted Good360 and we were able to find groups that could go directly to one of their nearly 300 stores to pick up the blankets. As a result, we helped Anna’s Linens distribute tens of thousands of fleece blankets to individuals just in time for the coldest months and were able to clear out the stockrooms in time for the holiday rush.

You work with many big names from the retail world – The Home Depot, Disney, Bed Bath & Beyond. What about smaller retailers? Can they donate smaller amounts of goods on a more local basis through your website?

Absolutely. It’s as easy as going to our website. We have a team that will vet each donation opportunity, whether it’s one-time or ongoing, to make sure that it matches the needs of our nonprofits.

The concept of retailers donating excess inventory to causes has been around for a while. How has it evolved over time?

For us, we’ve really seen the conversation shift from just asset management to how product donations can advance the business in a more strategic way. Retailers can achieve multiple objectives including waste diversion, loss prevention, brand enhancement, employee and community engagement, energy and bottom line savings. In fact, Indiana University recently completed some research that will be released shortly, which lays out a compelling business case for product giving.

As well as helping people in need, donations from retailers can also have positive effects on the environment. Can you tell us more about this?

Each year, we divert literally tons of products from landfills into the hands of those who need them most. A perfect example is The Home Depot’s Framing Hope Program that has saved $1.4 million in energy costs, about 2500 garbage trucks worth of landfill space, enough power to cover 119 homes a year, 3.3 million kWh of energy consumption, and CO2 emissions equivalent to planting 517 acres of pine forest!

Good360 has been named one of Forbes top ten managed charities. Congratulations! What are some of the secrets to your success?

Our success is in our people and their unwavering dedication to helping nonprofits help those they serve. Their passion builds resilience during tough economic times and creates a culture of continuous improvement; we are constantly in search of creative ways to improve efficiencies and reduce expenses.

Some retailers may find the prospect of donating excess inventory a little daunting, as there must be a lot of work involved in terms of tracking donations and distributing goods. What does Good360 do to help retailers walk through these processes?

That’s exactly why we’re here—to make donating products as easy and impactful as possible for companies. We listen to what donors want and customize solutions in response. We provide a turnkey, full-service operation, that includes vetting all recipient charities to ensure they are qualified 501(c)(3)s, schools or libraries and understand donor restrictions around use of the products donated. We handle logistics, tracking, distributing, monitoring, reporting and troubleshooting for every donation.

How did you get involved in the charitable giving business?

I was a Chief Ethics and Compliance Officer at US Foodservice and, in that capacity, I started the company’s first corporate charitable giving program. In less than a year, we donated over $4 million in food to Feeding America. I experienced first-hand the tremendous satisfaction in donating goods for the greater good. This led me to my current position as CEO of Good360.

Tell me something retailers might not know about charitable giving.

Product giving is becoming a movement… in fact it’s a growing portion of the overall charitable pie. Today’s economic realities mean that companies have less cash to give—not less heart. And now there’s actually a business case that lays out the ROI of product philanthropy that makes it a compelling option over liquidation, and a slam dunk over disposal. Every day, someone or some community is experiencing a crisis or disaster. That’s why Good360 is here – to help fill the product gap when needs are acute, for those crises that don’t rise to national or international attention; or when media attention wanes after a disaster and communities begin to rebuild. That’s when the needs are often greatest but the desire for action has dissipated.

Any good crisis management plan involves planning and testing. With new technology available and following years of work collaborating with broadcasters, the government is ready to hit the button.

On November 9 at 2:00pm Eastern, the Federal Communications Commission and the Federal Emergency Management Agency will conduct the first nationwide test of the Emergency Alert System. The test will include transmission of a “live” Emergency Action Notification alert code to all EAS participants and a notice to the general public that the EAS has been activated for a national emergency, along with an audible notice that “this is a test.” The test will not be carried on NOAA Weather Radios.

Because this is a “live code” test, the automatically generated EAS text crawl on TV screens will display as an actual Emergency Action Notification. Nothing in the text crawl will indicate that the alert is a test. Broadcasters are encouraged to use a text slide in conjunction with the crawl, but they are not required to do so. The test will last approximately three minutes. The FCC and FEMA have requested that broadcasters air public service announcements in advance of the test to assure the public that this is only a test.

Please help get the word out to your stores and employees, “This is only a test.”