The Year in LP

Happy New Year! The past four months have been filled with doom and gloom, so rather than dwell on the obvious I thought this might be a good time to reflect on some of the successes of last year and provide a glimpse at what’s to come in 2009.

In late November, a national audience of retail executives was asked to name the issue they expect will grow in importance in 2009: Outside of the economy, loss prevention was ranked the top issue for this year. Whether it is responding to crisis situations like natural disasters, combating organized retail crime rings or mitigating damages from workplace violence issues, protecting their people, assets and brand is of utmost concern to retailers.

Last year began with the arrests of members of a Florida organized retail crime (ORC) ring responsible for the theft of merchandise valued at between $60 million and $100 million. The NRF ORC Survey published in June noted that 85 percent of retailers were victims of ORC in the previous 12 months.

In July, three pieces of federal legislation aimed at combating ORC and e-fencing were introduced in the House and Senate. Feedback from a September hearing on the proposed bills was favorable to the retail industry, and I’m confident that the new Congress will be supportive of our initiatives when the legislation is reintroduced this year.

Several key retailers teamed with NRF and the International Council of Shopping Centers (ICSC) to create an ORC training video. The video has been distributed to mall security professionals, retail LP and law enforcement officers throughout the country, and is being integrated into the standard training regimen for mall security.

In October, NRF and ICSC jointly created an Active Shooter Response Protocols Guide. As we saw again during the holiday season, mall shootings have become an unfortunate reality, but planning and preparing for these incidents can make a huge difference during a crisis situation.

Returns fraud decrease
The 3rd Annual Returns Survey, published in mid-November, found that returns fraud cost retailers an estimated $3.54 billion this holiday season and $11.8 billion in 2008. Despite these record numbers, retailers seem to be gaining a handle on the problem: returns fraud was expected to decrease to 7.5 percent of holiday returns, down from 8.9 percent the previous year.

I expect many, if not most, of these trends to continue in 2009. We have received feedback from the industry about shoplifting and employee theft trends; by all accounts, not only are we seeing more cases across the country, but a more aggressive style and combative response, as well. Expect this to continue, and prepare your associates for this unfortunate reality.

To ring in the New Year, January 20 is expected to be a hectic day for department store and mall operators. Settlement of a multi-million dollar class action suit requires certain department stores to distribute $175 million worth of high-end cosmetics and perfumes on a first-come, first-served basis while supplies last, beginning that day. In partnership with ICSC, planning sessions and conference calls began late last year to prepare and educate retailers and consumers on the potential impact of “Distribution Day.”

LP Conference planning
Although it is still six months away, the NRF Loss Prevention Conference planning team is ready for action. We have added more sessions to the agenda, negotiated new prices with the hotels and developed admission packages for every professional level, every size department and, most important, every budget.

Speaking of the Conference, it’s once again time to nominate candidates for the Law Enforcement Retail Partnership Award, LP Case of the Year, LP Ring of Excellence and LP Volunteers in Action. These programs recognize you, our partners in law enforcement and leaders throughout the industry. Please submit your nominations now so that deserving professionals can be recognized. Visit www.LPinformation.com for all of the important details.

This year we will be in my home town of Los Angeles from June 15-17, so take advantage of the early registration rates and book your hotel room now.