STORES Magazine - May 2008 - (Page L13)

25-30% Most retailers now designate personnel within their companies to fight ORC; some are even creating separate divisions. Nadeau, program manager of the FBI’s Organized Retail Theft Program, has told the consumer press that of goods being sold boosters can walk out with “$5,000 on auction websites to $10,000 worth of merchandise are stolen or each time they leave a store.” The fraudulently obtained same team might hit several stores in a day — and the same store once a month. “A really good professional thief can make between $100,000 and $200,000 a year,” he says. In response, retailers are increasing their collaboration with local law enforcement, the FBI and fellow retailers, as well as lobbying for stiffer penalties against those that commit ORC. And the results, while scattered, are encouraging. In January, law enforcement teams throughout central Florida arrested 18 people related to a multi-million dollar retail theft ring and fencing operation involving health and beauty aids and over-the-counter medicines. Estimated retail value for the goods, stolen over a five-year period, is between $60 million and $100 million. Each suspect is being charged with one count of felony racketeering, which carries a maximum penalty of 30 years in prison, and one count of felony conspiracy to commit racketeering, which carries a maximum penalty of 15 years in prison. A month later, an investigation in Rocklin, Calif., resulted in the arrest of three individuals who allegedly were part of an ORC ring stealing products like Prilosec, Crest White-Strips and Oil of Olay from Longs and Safeway stores. Target recently cooperated with California law enforcement in a sting involving 13 street gang members (Tony Heredia, director of assets protection for Target, would not say where it occurred because the case was still being prosecuted). As recently as three years ago, only a small handful of retailers had ORC units. “That was one of our biggest problems, says Frank Muscato, ORC investigations supervisor for Walgreen. “If we couldn’t get retailers to recognize how big a problem ORC is, how could we get law enforcement to recognize it?” Today, he says, “pretty much every major retailer has people assigned to fighting organized retail crime within their company, and more companies are creating a separate division within loss prevention to fight ORC.” FBI ORC division arlier this year, the FBI took a major step in recognizing the seriousness of ORC by establishing a division dedicated to inSTORES / MAY 2008 E WWW.LPINFORMATION.COM L13 http://WWW.LPINFORMATION.COM

Table of Contents Feed for the Digital Edition of STORES Magazine - May 2008

Stores - May 2008 Contents Executive Editor's Page President's Page Contrasting C-Level Compensation Across Segments What Shoppers Think 10 Things You May Have Missed Numbers Worth Counting Full Price/Markdown Retail People Cover Story: Concepts That Clicked Concept2Watch Kiosks Artificial Intelligence Tech Support Online LPinformation Data Synchronization Human Resources Site Selection POS Selection Communications Biometrics Networking Systems Credit Loeb Retail Letter Arts Update Point of View NRF News Retail Crossword Retail Industry Calendar Last Laugh

STORES Magazine - May 2008

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