STORES Magazine - April 2011 - (Page 58)

LOSS PREVENTION / ONLINE “They have reached out to us and said, ‘Hey, there is this particular account selling Claritin and Prilosec at these low prices and you may want to look into that person.’ It wasn’t our investigators that found this incident. eBay actually gave us the information, giving us the option of doing our own investigation.” Shaking Hands, Not Fists Retailers work with eBay to thwart sales of stolen merchandise — Tony Sheppard, CVS Caremark S BY LIZ PARKS omeone once said that if all the people of Earth had a common enemy, there would be no war between nations: Everyone would come together to vanquish the threat. As it turns out, most (if not all) retailers have a common nemesis — and it’s the same one that victimizes the world’s largest e-commerce site, eBay — organized retail criminals. Based on FBI and other estimates, total annual retail losses attributable to organized retail crime (ORC) range from $15 billion to $30 billion, says Joseph LaRocca, senior asset protection advisor for the National Retail Federation. In the 2010 NRF ORC survey, two-thirds of the 90 percent of retailers who reported being the victims of ORC reported that they had identified or recovered stolen merchandise and/or gift cards that were being “e-fenced” online. 58 STORES / APRIL 2011 Two years ago, eBay brought Paul Jones, who has managed loss prevention strategy for Limited Brands and Sunglass Hut International, into its management ranks. eBay’s senior director of global asset protection was given a mandate “to work cooperatively and in unprecedented ways with retailers, provided the issues were real crime issues,” he says. A call for collaboration Retailers like CVS Caremark, The Kroger Co. and The Home Depot have been helping eBay strengthen its retail asset protection program, PROACT, partly by developing sophisticated fil- ters to identify suspicious sellers so they could be investigated before being allowed to post. Tony Sheppard, nationwide manager, organized retail crime for CVS Caremark, and members of his LP team were among the first to hold formal collaborative discussions with eBay. The auction giant’s staffers “walked us through all the different things that they can do, and we sat down with them to discuss what products for us were at high risk,” he says. If an eBay seller “offers a box of 42count Prilosec at a price that is below what high-volume retailers can buy it for, that’s an indication that this may be WWW.STORES.ORG http://WWW.STORES.ORG

Table of Contents for the Digital Edition of STORES Magazine - April 2011

Stores Magazine - April 2011
Editor’s Page
President’s Page
Retail People
Chain of Uncertainty
Digital Couponing
Energy Management
Social Media
Cross-Channel Metrics
Broadband Bonding
Workforce Management
Alternative Payments
Divisional Update
NRF News
Point of View
Retail Industry Calendar
End Cap

STORES Magazine - April 2011