Retailing: Win the Fight

LPRC in Action

Innovate

Collaborate

Evaluate

LP/AP Capabilities Integration Center

Fielding priority R&D Innovation Chains in 4 Domains

1. Theft Control: Internal and external theft and burglary.

2. Fraud Control: In-store, supply chain, and online.

3. Violence Control: Robbery, parking lot crime, resisting thieves.

4. Strategy and Leadership: Guide organizational development: how leaders visualize, understand, decide, and direct protective activities at strategic and operational levels (i.e. SOCLab- Detection, Definition, Decisions)

LPRC’s Weekly Connect eNewsletter

• Have your entire team keep up with LPRC research projects

• Follow links into new reports, video clips and news reports

• Showcase your team, objectives and upcoming events

LPRC IMPACT Conference

• Join over 300 LP industry professionals to learn together in Learning Lab and panel breakouts how retailers practically use rigorous LPRC research; and engage in planning the future of evidence-based LP/AP

LPRC’s Monthly Research in Action Webinars

• Current research and action for practical field use is discussed for 30 minutes each month on the LPRC Research in Action series

Research Outlets

Knowledge CenterWe are excited to launch this user-friendly website exclusive to LPRC members. This site will serve as our database, project management, and e-learning center.

Contact jessi@lpresearch.org for access.

• Google style research database w/ over 300 research reports and articles• Over 300 offender interviews

• Working group and action team documents

LPRC 2017 RESEARCH PLAN

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1. Theft Control

2. Fraud Control

3. Violence Control

4. Strategy and Leadership

LPRC/UF Innovation Chains

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UF & LPRC iLab

Nearby store or DC

Challenging stores or DCs

Large-scale RCT

LPRC/UF Innovation Chains

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•2003-2010 Several SP’s R&D next generation solution in AP

•2003-2009 LPRC & EMA lead the effort

•2009: multiple solution providers attend LPRC IMPACT conference

•2010: Tim Fisher publishes a Benefit Denial article in Retailer Solutions

•2011-2012: Dr. Hayes publishes several articles promoting BD, spurring growth & development

•2012: Best Buy runs a 2-store trial in the Boston Area

•2013 Josh Machtinger builds the infamous ‘benefit denial tablet bar’

•2013 Technology evolves & SP’s consolidate

•Developed a Universal Logo defining BD to consumers & offenders

•Phase I: Pilot Testing in 1 Store

•Phase II: Testing in 20 stores throughout the US

BENEFIT DENIAL – THE JOURNEY CONTINUES…

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Nationwide Adoption of version of technology informed by research

LPRC Working Groups

Product Protection

Supply Chain

Data Analytics

LP Innovation

Organized Retail Crime

Retail Fraud

Violent Crime

LP Strategic Partnerships

Objectives▪ Determine product focus for PP, select top solutions, trial and measure

▪ Olay Regenerest, Nail Polish, Energy Drinks, Apparel▪ Proliferate BD box mark to Dark Web

▪ PoSA electronic Benefit Denial store test▪ Integrate Packaging & Merchandising

Mission Statement

The PPWG develops packaging, benefit denial, and other product protection technology innovations, to cost effectively reduce merchandise shortage while improving sales and the customer experience.

Current Projects▪ Customer detection technology test▪ Mascara/ Olay Regenerest Protection▪ Identical Tag Test▪ PPWG/ORC top 20 High loss items seasonally

PRODUCT PROTECTION WORKING GROUP

Mission StatementRetailers require an efficient and secure supply chain to feed critical merchandise to their stores. This working group is designed to enhance supply chain efficiency, accuracy, and security by conducting R&D and evaluation on best practices and emerging technologies.

Objectives▪ Conduct benchmarking surveys, pilot tests, and RCT’s

▪ DC Safety Benchmark▪ Employee Training/Awareness Program Test

▪ Conduct deviant trucker/DC worker project▪ Focus on Transit

▪ Truck Driver Project, Offender Interviews▪ Identify two short term goals to supplement long range projects

Current Projects

SUPPLY CHAIN WORKING GROUP

Mission StatementIdentify relevant store-level metrics, mitigate risks and vulnerabilities which reduce inventory shrink. To anticipate the future needs of stores and Verizon investments where they will have the greatest impact.

Objectives

▪ Increase group membership through educational and interactive monthly sessions

▪ Encourage discussion through case studies and best practices for implementing model findings

▪ Educate members on basic modeling concepts and theory

▪ Identify key variables of study for market segments

▪ Improve data collection throughout group to improve model outcomes

▪ Develop process for summarizing big data into actionable info

Current Projects▪ Shrink metrics worksheet▪ 2016-2017 webinar schedule (ongoing)

DATA ANALYTICS WORKING GROUP

Mission StatementReduce the impact of ORC on retailers through the collaborative research of data and emerging trend analyses, while sharing best practices.Objectives

▪ The ORC working group is a forum where new groups and ideas have emerged within the LPRC

▪ New LPRC ORC-based initiatives: ORC Mobile-Theft Task Force and roi Convenience Store Imitative

▪ ORC Awareness/Collusion Investigation oriented-working with Houston FBI Field Office, FDLE and US Secret Service

▪ Conducted very first ORC Panel Discussion at IMPACT 2016▪ Populated and surveyed over 20 major retailer chains to ascertain within 35

different categories the most sought-after high-theft items

Current Projects▪ ORC Panel-Prosecution and Investigation Probe▪ Multiple Industry Cross-Analysis-High-Theft item survey▪ Social Media Monitoring Webinar Series▪ Networking source list for ORCAP outreach

ORC WORKING GROUP

RETAIL FRAUD WORKING GROUPMission statementThe Retail Fraud Working Group is a group that aims to provide a platform for

retailers to benchmark with one another. The group members cooperate to benchmark on mitigation strategies of various fraud types.

Objectiveso This The Retail Fraud Working Group is a newly established group that

aims to provide a platform for retailers to benchmark with one another. The group members cooperate to develop and enhance methods and technologies to prevent/reduce retail fraud.

o Currently discussing topics of return fraud and gift card fraud.o Targeting different aspects of return fraud and the appropriate mitigation

measures to combat said frauds.

Current Projects∙ Return fraud best practices white paper∙ Return fraud investigative questionnaire ∙ Gift card fraud survey

Mission StatementChallenge ourselves to leverage systemic and technological advancements that deliver the greatest value and productivity benefits to our organizations and customersLeverage technology to challenge how we think about productivity, staffing and capital

Objectives▪ Provide a forum and standards to better incorporate LP/AP people, systemic,

and technological design to support retail strategy and performance▪ Direct R&D and field evaluation research on creative and innovative

concepts that enable retailers with changes in payment, reporting, and product delivery systems via process and technological advancements

Current Projects▪ Zones of Influence command operations center/ SOCLab▪ Bio and Social Signatures Initiative▪ Innovation Lab 4.0 Priorities▪ In-store behavior: RFID, video analytics, mac address analysis research▪ Zones of Influence webinar series

LP INNOVATION WORKING GROUP

Mission StatementThe LP Strategic Partnerships group aims to bring together a wide cross-section of retailers into a single forum to share commonalities in theft and other relevant LP-related topics with the primary objective being the exploration, testing, and implementation of new and innovative solutions geared towards resolving identified wide spread issues within the industry and producing useful results that can be readily used amongst multiple retailers.

LP STRATEGIC PARTNERSHIPS WORKING GROUP

Objectives• Working to form internal and external strategic partnership to accomplish

goals• Complete and publish Merchant Training LMS Module / Video / Slide Deck• Discuss the best methods to deliver the significant performing metrics to

merchants and develop an user-friendly dashboard to help merchants obtain these data

Current Projects• Merchant training module• Merchant dashboard

LPRC Merchant Training Module

Mission StatementConduct offender-focused R&D and evaluation research to improve pre and onsite violent crime deterrence.

Objectives

▪ The Violent Crime Working Group will review and discuss current violent crime trends and prevention research findings to shape improvement R&D efforts

▪ Research projects include collecting data about violent crime events inside and outside of the store premises to identify trends in repeatedly robbed stores and where violent crime events occur in parking lots

▪ Participants are encouraged to drive problem and prevention conversation, share their crime event and protective effort information, and participate in onsite violent crime prevention R&D

Current Projects▪ Drugstores robbery prevention project▪ Houston robbery prevention summit▪ Baltimore robbery prevention summit▪ Baltimore R&D cluster▪ Kroger’s Atlanta parking lot project (ongoing)

VIOLENT CRIME WORKING GROUP

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DSThe University of Florida Supports Retailing!

UF Research Support:• Computer Science/Engineering- Cyber Threat Protection Research• College of Engineering- Supply Chain Innovation; Cold Chain• College of Pharmacy• College of Design, Construction and Planning• College of Business- Consumer Behavior/Marketing, Supply Chain Operations• College of Liberal Arts and Sciences- Crime Control, Survey Research,

Mapping, PsychologyUF Training Support:

• College of Continuing education• UF Evidence-based LP Course Certificate

• College of Business• MBA Programs

UF Talent Support:• UF CLAS Internship Program- Criminology, Psychology, Anthropology,

Geography, Sociology• UF Retailing Center Internship Program- Retailing, Marketing, Management,

Finance, Accounting• UF Career Resource Center

Impact Conference

Impact Conference

Impact Conference

Impact Conference

UF and LPRC Innovation Lab

UF and LPRC Innovation Lab

• The LPRC Founded in 2001 by 10 leading retailers and Dr. Read Hayes

• Founding retailers include Target, Walmart, OfficeMax, CVS, Home Depot, Beall’s, Gap, and Barnes and Noble

• Prior to forming, no academic resource for LP/AP research and innovation

• Idea sharing wasn’t formalized – predominately one on one interactions once or twice a year at trade shows or shorter-term committees

• Industry relied heavily on in-house research which sometimes lacks academic rigor (grounded and systematic).

Background

1. Ahold Delhaize 2. Ascena Retail Group 3. At Home4. AutoZone5. Best Buy6. BJ’s Wholesale Club7. Bloomingdale’s8. CVS9. Chico’s

10. City Gear11. Cracker Barrel12. Dick’s Sporting Goods13. Dollar General14. DSW 15. eBay16. General Growth Properties17. JC Penney18. Kroger Company19. Lbrands20. Loblaw Companies Limited21. Lowe’s Home Improvement22. Luxottica (Sunglass Hut, Pearle Vision, LensCrafters, Target Optical, Sears Optical)23. Macy’s24. Meijer25. Michaels Arts & Crafts26. Office Depot/Max, Inc.27. Pier 128. Price Chopper Super Markets29. Publix Super Markets30. Raise Marketplace31. REI32. Rite Aid33. Signet Jewelers (Zale's, Kay, Jared, etc.)34. Target35. T-Mobile36. Toys”R”Us / Babies”R”Us37. The Home Depot38. The TJX Companies (TJ Maxx, Marshalls, HomeGoods and Sierra Trading Post)39. Tractor Supply Company40. Ulta Beauty Stores41. Verizon Wireless42. Walgreens43. Walmart/Sam’s44. Wesfarmers Limited45. 7-Eleven

Joining soon: COTY, lululemon, Advance Auto

Current Retail Members

46. 3SI Security Systems47. 7PSolutions48. AccuBANKER49. All-Tag Corporation50. ALTO51. APG Cash Drawer52. Appriss Retail53. Avery Dennison54. Axis Communications55. Blue Line Technology56. Bosch Security57. CAPIndex58. Captis Intelligence59. Centronex60. Checkpoint/Alpha61. CIS Security Solutions62. Click-It63. Clinton Electronics64. ControlTek65. Corrective Education Company (CEC)66. CSI Protect67. Digilock68. Digimarc69. Digital Safety70. FFR Merchandising71. FaceFirst72. Gatekeeper Systems, Inc.73. Hanwha Techwin74. Hikvision75. InComm76. Indyme 77. InstaKey Security Systems78. InVue Security79. IPConfigure80. Johnson Controls Security Products81. LNL Systems, Inc.82. LP Innovations83. LiveView Technologies84. Location, Inc.85. Master Technology Group86. MapLarge87. Medeco Security88. Midwest Security Products89. Nedap Retail90. Oncam Grandeye91. Paige Electric92. PICA Product Development93. Prime Communications94. Protection 1/Cam Connections95. Protiviti96. Protos Security97. ReconaSense98. Rocateq99. Sekura Global

100. SOS Security101. Southern Imperial102. Stanley Security103. TEB CCTV104. The Zellman Group105. Turning Point Justice106. U.S. Security Associates107. Universal Surveillance Systems108. Verisk Retail109. Voyager Analytics110. Window Film Depot111. Woodview Intelligent Design Systems112. Wren Solutions

Startup +Protection113. RetailNext114. SpotCrowd115. Suspect Technologies116. Detective Analytics

Manufacturer Members 117. Mead Johnson118. Procter & Gamble119. The Duracell Company

Industry Leaders120. LP Magazine121. NRF – National Retail Federation122. NSSF – National Shooting Sports Foundation123. RILA – Retail Industry Leaders Association124. LP Foundation125. D&D Daily

LPRC Board Of AdvisorsBOA Purpose Statement: The Board of Advisors champions the longevity of research-based decision making through collaboration, advice and support to the Loss Prevention Research Council’s Director’s mission.

Company BOA Member Title BOA Alternate Title7-Eleven Byron Smith Corporate AP Manager Ascena Retail Group Brian Bazer VP Asset Protection and Safety Best Buy Erik Buttlar Senior Director AP Bloomingdale's Chad McIntosh VP of LP & Risk Management CAPIndex Steve Longo VP Strategic Initiatives Cracker Barrel Jackie Cato Manager of LP Dick's Sporting Goods David Lund VP of LP

eBay Hawken Averett Supervisor of GAP & Criminal Investigations Kroger Mike Lamb VP of AP Kevin Larson Sr. Manager, LP OperationsLowe's Scott Draher VP of LP John Doggette Director of LP LP Magazine Jack Trlica Editor and Publisher Mead Johnson Barry Poole Director, Broker Sales Division

Meijer Paul Jaeckle VP of AP Matthew Yanoschik AP Analytics ManagerMichaels Scott Springer Director of LP Office Depot, Inc. Shannon Hunter Sr. Director Loss Prevention & Safety P1/CCI Bobby Bull VP Garret King Business Development ManagerParty City John Voytilla SVP Price Chopper Scott Ziter Director of AP Procter & Gamble Krista Monnin NA On Shelf Availability Leader Publix Super Markets Dennis Wamsley Director of LP & Safety REI Perry Resnick DVP of AP Signet Jewelers Mark Neopolitan Sr. Director LP Dave Collins Sr. Manager LPTarget Dan Geiger Sr. Director Field Operations Emy Johnson Dir, Theft & Fraud Ops APThe TJX Companies Rick Peck SVP LP Director Titus Consulting William Titus Managing Director Toys R Us Mark Robinson Executive Director AP Tractor Supply Steve Scott VP of LP Tyco Randy Dunn Sales Director, North America Ulta Julie Giblin VP of LP Walmart Joe Schrauder VP of AP & Safety Gary Smith Sr. Director AP

TO LEARN MORE, CONTACT: OPERATIONS@LPRESEARCH.ORG