Bitters,Harrah-ORCInvesitgationPrograms

Loss Prevention,
Auditing & Safety Conference 2009
Title Sponsor:
ORC Investigation Programs
“A Specialty Retail Perspective”
Kevin Bitters
Nelson Harrah
Retailers: what do we have in common?
Abercrombie & Fitch vs.
§ Large (big box) retailers
§ Mid-size retailers
§ Specialty apparel
§ Food
§ Pharmaceutical
§ Auto
“Greeter’s”
“Greeter’s”
“Animals used in marketing”
“Animals used in marketing”
“E-Commerce”
“E-Commerce”
“Store experience”
“Store experience”
“#1 Commonality”
Organized Retail Crime
“Strength through Partnerships”
Over the last 5 years Limited Brands, Gap Inc. and
Abercrombie & Fitch have partnered together to conduct
ORC blitzing operations throughout the U.S.
Based on each company’s own internal data analysis,
stores would be selected and suggested as potential
area’s to conduct an organized blitzing operation.
ORC Blitz: education
With every successful blitz, we began to learn that our
individual brands were the secondary layer of selection by
the ORC groups as the Mall properties that housed our
stores were always noted as the primary identifier.
This was evident through:
- Mall names documented on recovered note pads
- Malls identified on maps or within a road atlas
- Mall addresses loaded and saved in GPS devices
Data Sharing: history
In 2006, Gap Inc. ORC Analytics Manager, Chris Kidd
& Limited Brands LP Analyst, Jonathan Kellogg
collaborated on a data sharing idea to identify Mall based
properties being targeted by ORC groups.
The result, a Top 25 Mall ORC Theft report.
Data from both companies would be combined and
weighted based on the total number of hits at a single Mall
location as well as the total dollar loss sustained.
You’re Invited
In 2007, Abercrombie & Fitch was
invited to participate in the data
sharing.
3 Company’s / 14 Brands
Over 7,000 stores
Today
15 Company’s / 43 Brands
Over 16,000 stores
About the report
1. Every other week, data is collected for the prior two
weeks worth of recognized ORC theft activity.
2. The data is combined and weighted, 40% (total hits)
and 60% (total dollar loss).
3. Targeted locations are then listed to create the Top 25
Mall report, as well as reporting on the Days of Week
and Times of Day in which ORC theft activity occurs.
4. The report is delivered to all contributors and Mall
Developers.
ORC Dollars by Company
ORC Thefts: day of week / time of day
ORC Mall Listing
National Map
ORC: top markets
New York City
667
$810,480 (includes portions of NJ)
Los Angeles
460
$714,684
San Francisco
221
$343,869 (includes San Jose)
Boston
215
$376,249
Miami
170
$233,596
Chicago
169
$255,429
Market Analysis
Market education:
New York – Long Island – 2008
Frequency of hits:
§ On average each of the 3 primary locations were hit once every
seven days
§ Three distinct breaks occurred with no activity
§ April 11th – May 16th (Pre-Summer floor set)
§ July 17th – Aug 20th (Pre-Back to school floor set)
§ Oct 8th – Nov 6th (Pre-Christmas floor set)
§ Following each large break in activity, we recognized a small break
in activity of approximately 15 days
§ Following each small break, we noted the frequency of hits to be 2.5
days
Report use:
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Advise Mall Security teams of ORC trends and activity
Support Retailers with coordinating blitz strategies
To gain Operational support on ORC initiatives
Educate store employees and raise awareness to the
activity occurring within the Malls their stores are based
§ Adjustments to management coverage based on Day of
Week and Time of Day trends
§ Negotiate for capital spends in consistently targeted
locations
§ Evidence trail to link apprehended ORC teams to prior
theft activity
Report future
§ Welcome more Specialty Retail participation
§ Market analysis and trend identification
§ Map development and major highway/interstate trends
§ Communicate to State Law Enforcement
§ Mall partnerships
§ Identify repeat locations and look for opportunities on
both the retailer side and the mall property side
“Contributor Recognition”
“Expanding Partnerships within our Malls”
Joint Mall Operations
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A&F, Gap, Limited Brands
Mall Security & Law Enforcement
All Entrances Covered
Teams in Parking Lots
Surveil and Arrest ORC Actors
Significant Results
Be Non-Traditional!
ORC Operation Video
ORC Operation Video
ORC Operation Video
ORC Operation Video
ORC Operation Video
Joint Operation’s Results
Mall Security Partnership
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A & F, Gap and Limited Brands
GGP, Macerich, Westfield and Simon
Common External Threat
Created and Launched Training
ICSC ORC Video Created
400 People Trained in 4 Major Cities
Train the Trainer Format
150,000 Mall Security Personnel
“Best in Class” Partnerships
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Oakbrook Mall, Oakbrook IL
Northeast Mall, Hurst TX
Palisades Mall, Clarkstown NY
Victoria Gardens, Rancho Cuc CA
Aventura Mall, Aventura FL
Northstar Mall, San Antonio TX
Valley Fair Mall, San Jose CA
What’s Next?
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Dedicated Personal Training
Remote Market Support
Influence Retailers to Report Crimes and Prosecute
Trespass Offenders More Broadly
Conduct Operations in Top Reporting Malls
Continue to Incorporate Additional LP Teams on Mall
Operations