Canadian Retailer - Fall 2013 - 34

LOSS PREVENTION

When it happens, Rodrigues says, he wants it to be earned.
"I would love to know that in every organization LP sits at the
table where strategy is laid, decisions are made, as a dominant
player in that business. But I also say that it needs to be earned
because when it is earned it comes with more value. Our mission
in LP is to continue to demonstrate the value and let the rest of the
business heads see what value we can bring."

RINGS AROUND THE RETAILER
Organized crime makes good business of
retail's business
DURING the prohibition era, the mob found it cheaper and easier
to kill rum runners and take their booze than to set up their own
supply chain. It was an innovation.
Today, organize criminals continue to invent new gambits to
maintain the supply of illegal goods to the underground economy.
Nobody uses Tommy guns to tatter up transports anymore. Instead, networked criminal enterprises punch holes in retail profitability with ever more innovative strategies for stealing goods
and diverting legitimate sales to the black market.
Nature of the criminal

right infringement has become the bailiwick to
organized crime to the point that they are really
monopolizing counterfeits on the markets today,"
says Schneider.
Disrupting the networks

Over the last five years, the Canadian retail
industry has taken steps to organize in efforts to
combat organized crime. It is a topic of constant
conversation at industry meetings between LP,
retailers and police, and the consistency of networked crimes has led most large retailers to
dedicate a line on their budgets to dealing with
organized crimes.
As Yeager sees it, the key to disrupting the networks is to shut down the fencers. The fencers sit
at the middle of the network and connect thieves
with the people who peddle stolen and counterfeit goods-the flea markets, street vendors and
pop-up stores of the sub-economy. He says that
LP can understand how organized crime hits
their business by thinking like economists and
studying illegal markets.
"Who's buying? Who's fencing? Where are
the retail losses falling?" he asks. "Look at the
enterprise, the sub-economy-I won't call it the
underworld-and you can start to see how demand meets supply for stolen goods."
"That is the key to shutting down the whole
operation."

The criminal enterprises that target retail operate as a network,
says Matthew Yeager, a criminologist at Western University who
studies gangs. These networks might segment according to ethnic or racial lines, but more often today, organized criminals build
networks around job functions, with people who specialize in
theft, smuggling, money laundering, hacking, fencing, and other
elements in the supply chain.
"They shift their enterprises based on oppor"The scale of the cargo theft and the
tunities," says Yeager.
Any large-scale crime with any amount of solevel of organization have reached new
phistication is likely the work of these organized
levels that have become quite worrisome
criminal networks. The two crimes that do the
to police, to truck drivers, and to all
most damage to Canadian retailers are counterthose that use the tractor trailers"
feiting and cargo theft, says Stephen Schneider,
a researcher at St. Mary's University in Halifax
- STEPHEN SCHNEIDER
who studies organized crime in Canada.
St. Mary's University in Halifax
Cargo theft is hot right now, he says, because
of the huge margins, the relative ease of committing the crime and the lax penalties associated
with the crime. The vast majority of tractor trailers targeted are SUPPLY CHAIN LOSSES
carrying high value retail items.
Cargo theft accounts for significant
"The scale of the cargo theft and the level of organization have damage to bottom line results
reached new levels that have become quite worrisome to police, to
truck drivers, and to all those that use the tractor trailers," points IN early September 2013, thieves stole 40,000
out Schneider.
pounds of Texas beef from a shipping lot in AnCargo theft is a right hook and counterfeiting is a left jab. caster, ON. The beef, valued at $100,000, was beSchneider calls counterfeiting "a huge industry in organized ing stored at the facility until its delivery date
crime" and says that the loss of legitimate sales of legitimate the following week.
product to legitimate retailers is enormous. And on top of the
What makes this theft notable is the planning
sales, counterfeiting, especially in pharmaceuticals, are a danger involved in the crime-the thieves knew the beef
to consumers and retailers who let the fakes slip into their stores. was in the lot, knew the delivery schedule and
"From the retail perspective, product counterfeiting and copy- gained access to the gated facility.

34 |

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Canadian Retailer - Fall 2013

Table of Contents for the Digital Edition of Canadian Retailer - Fall 2013

PUBLISHER’S DESK
RETAIL CURRENTS
RETAIL: AT ISSUE
THE EVOLUTION AND INNOVATION OF THE RETAIL SUPPLY CHAIN
THE CHANGING FACE OF RETAIL IN AN OMNICHANNEL WORLD
PwC REPORT OFFERS INSIGHTS INTO TODAY’S CONSUMER
MPLOYEES WHO STEAL
INTIMATE RELATIONSHIP WITH THE CUSTOMER AND PRODUCT KEY TO 50 YEARS OF SUCCESS
THE NEW FACE OF RETAIL LOSS PREVENTION
THE CHANGING FACE OF THE LP PRO
REBOUNDING AFTER DISASTER
ADVERTISER'S INDEX
Canadian Retailer - Fall 2013 - cover1
Canadian Retailer - Fall 2013 - cover2
Canadian Retailer - Fall 2013 - 3
Canadian Retailer - Fall 2013 - 4
Canadian Retailer - Fall 2013 - 5
Canadian Retailer - Fall 2013 - PUBLISHER’S DESK
Canadian Retailer - Fall 2013 - 7
Canadian Retailer - Fall 2013 - RETAIL CURRENTS
Canadian Retailer - Fall 2013 - 9
Canadian Retailer - Fall 2013 - 10
Canadian Retailer - Fall 2013 - 11
Canadian Retailer - Fall 2013 - RETAIL: AT ISSUE
Canadian Retailer - Fall 2013 - 13
Canadian Retailer - Fall 2013 - THE EVOLUTION AND INNOVATION OF THE RETAIL SUPPLY CHAIN
Canadian Retailer - Fall 2013 - 15
Canadian Retailer - Fall 2013 - THE CHANGING FACE OF RETAIL IN AN OMNICHANNEL WORLD
Canadian Retailer - Fall 2013 - 17
Canadian Retailer - Fall 2013 - 18
Canadian Retailer - Fall 2013 - 19
Canadian Retailer - Fall 2013 - 20
Canadian Retailer - Fall 2013 - PwC REPORT OFFERS INSIGHTS INTO TODAY’S CONSUMER
Canadian Retailer - Fall 2013 - 22
Canadian Retailer - Fall 2013 - MPLOYEES WHO STEAL
Canadian Retailer - Fall 2013 - 24
Canadian Retailer - Fall 2013 - 25
Canadian Retailer - Fall 2013 - 26
Canadian Retailer - Fall 2013 - INTIMATE RELATIONSHIP WITH THE CUSTOMER AND PRODUCT KEY TO 50 YEARS OF SUCCESS
Canadian Retailer - Fall 2013 - 28
Canadian Retailer - Fall 2013 - 29
Canadian Retailer - Fall 2013 - 30
Canadian Retailer - Fall 2013 - 31
Canadian Retailer - Fall 2013 - THE CHANGING FACE OF THE LP PRO
Canadian Retailer - Fall 2013 - 33
Canadian Retailer - Fall 2013 - 34
Canadian Retailer - Fall 2013 - 35
Canadian Retailer - Fall 2013 - 36
Canadian Retailer - Fall 2013 - 37
Canadian Retailer - Fall 2013 - REBOUNDING AFTER DISASTER
Canadian Retailer - Fall 2013 - 39
Canadian Retailer - Fall 2013 - 40
Canadian Retailer - Fall 2013 - 41
Canadian Retailer - Fall 2013 - 42
Canadian Retailer - Fall 2013 - 43
Canadian Retailer - Fall 2013 - 44
Canadian Retailer - Fall 2013 - ADVERTISER'S INDEX
Canadian Retailer - Fall 2013 - 46
Canadian Retailer - Fall 2013 - cover3
Canadian Retailer - Fall 2013 - cover4
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