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”

“Animals used in marketing”

“E-Commerce”

“Store experience”

“#1 Commonality” O rganized R etail C rime

“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 Analysts, 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 City667$810,480 (includes portions of NJ) Los Angeles460$714,684 San Francisco221$343,869 (includes San Jose) Boston215$376,249 Miami170$233,596 Chicago169$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 11 th – May 16 th (Pre-Summer floor set)  July 17 th – Aug 20 th (Pre-Back to school floor set)  Oct 8 th – Nov 6 th (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:  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  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

Joint Operation’s Results

Mall Security Partnership  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  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?  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