The Bunker Blog

As I was doing my usual daily search of the web for all things LP related, I came across several interesting stories today. As I read and made my notes, I realized that there was a very clear theme to what I was seeing. In case you didn’t know it, Loss Prevention is a dangerous job. I am pretty sure that everybody I know in the loss prevention industry who has ever worked in a retail store has at least one “close call” story. We have all had those apprehensions that went bad; where we were either threatened or even injured by a shoplifter who decided to fight.

Most times, the shoplifter who fights is just trying to get away, and it all begins with a simple threat, showing a weapon, or maybe a push. But today in a Colorado Springs Walmart, we got reminded that some shoplifters carry firearms, and sometimes those firearms get used. Thank goodness nobody got hurt. Police are searching for the two suspects in that case.

Then in Oshawa, Ontario, at another Walmart, a shoplifter broke away from LP in the parking lot and jumped into a waiting vehicle, driven by a second suspect. The two then led police on a high speed chase that was stopped by police for safety reasons. The two suspects were both arrested a short time later in an apartment complex nearby.

In Atlanta, GA, a bold shoplifter has been blatantly stealing from a local Target. On one occasion when he was approached by loss prevention personnel, he pulled out an ASP baton and threatened LP. He then proceeded to take the merchandise and leave in a vehicle.

These are just a few examples of what shoplifters are capable of. We’ve written here many times about shoplifters who have used violence to escape and have injured store employees or loss prevention personnel. The question comes to mind whether it is a growing problem. I think it may be, but I wonder if the current economy or maybe the general impression of the state of the economy is driving people to justify stealing as a means to support themselves.

I mean, when a 62-year-old woman from West Linn, Oregon can net $215,000.00 in 2 years stealing high end merchandise and selling it on eBay, there is obviously a financial incentive to steal. When this incentive outweighs the risk, people will be more likely to take the chance.

So what are your thoughts? Do you think these incidents are the exception to the rule? Or, is this just another day in the life of the LP Professional? Comments below, please.

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Here’s an interesting story and video out of Las Vegas. Police recovered 2000 bottles of shampoo from this ring of thieves, who were stealing and then selling at swap meets, flea markets, and online.

Police there are considering charging shoplifters with burglary because, according to police, the shoplifters enter the establishment with the intent to commit a larceny. According to the police source, that’s burglary in Vegas. Not sure how that’ll stick, though.

We have also seen an increase in employees getting involved in these kinds of cases, and in some cases, even selling the items themselves. It’s happening out there folks, and each of us in the business is affected by these people in one way or another.

Organized Retail Crime is real, and it is having a negative impact on retail shrink. Some are being affected more than others. Anybody want to share an experience with ORC? Leave a comment.

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A couple of days ago, I wrote about Rosita Davani, the regional Loss Prevention Director for Nordstrom who, along with other former LP agents, was operating a theft ring that stretched from Pennsylvania into Virginia and Maryland. In all six people have been arrested in connection with this case, with possibly more arrests to come.

Here is another case where at least one employee is involved in an organized retail theft scheme targeting his company. Safeway employee Anthony Ruiz has been arrested, along with three other individuals, for stealing cosmetics, over-the-counter drugs, and other merchandise, which was then sold through online auction sites. Estimates are that Ruiz stole more than $60,000.00 worth of merchandise.

Several years ago, before all the buzz about organized retail theft, I was involved with a case where an employee was pushing merchandise out of a store, where it was loaded onto a van, shipped to a storage facility, then sold off at flea markets or online. The employee admitted to stealing $80,000.00 in merchandise. It was a huge case, but it was also very frustrating to know that he had been able to take tens of thousands of dollars worth of merchandise out before we identified the issue.

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As I wrote about on Monday, September 22nd, The House Judiciary Committee’s Subcommittee on Crime, Terrorism and Homeland Security held a hearing on Monday at 4:00PM EDT to address three bills introduced that would help fight organized retail crime. If you missed the webcast, you can watch it, and read the testimony given by all witnesses here. 

There is no doubt that this is a huge issue for retailers, and the problem is growing. The FBI estimates that retailers are losing $30 billion a year to ORC. During his testimony, Congressman Brad Ellsworth of Indiana stated that the state of Indiana lost $40 million in tax revenue in 2006 due to ORC. 

What do you think?  Leave us a comment.

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My good friend Rick McCann at PrivateOfficer.com sent me an email today about this story. Apparently, Rozita Davani, Regional LP Director for Nordstrom’s in King Of Prussia, PA, was operating an organized retail theft ring, using loss prevention agents to steal merchandise. As of today, police had arrested Davani and 5 other suspects in this case, and one is still being sought. 

According to Police, Davani was the ring leader of a ring of thieves made up of loss prevention employees who would steal items from the store’s mail room, then give the items to relatives, who would return the items for cash or store credits. Police recovered $25,000.00 in stolen designer clothing from a car and from Davani’s home.

That brings me to a question: How does a retailer protect against these kinds of attacks? I mean, when the regional LP director is directly involved, and using current and former LP agents to steal merchandise, who is watching the store? 

I have to think that a good awareness program would go a long way toward stopping these types of theft, but I have to tell you, I’m not sure how a retailer would prevent this type of crime. This is a tough situation for any retailer to be in. I have to wonder if there were any indicators, whether personal or at work, that these employees may have been on the take. Loss Prevention is, and should be, in a position of trust. When this trust is betrayed, it affects us all. 

Anybody want to comment on this one?

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