ETD: 728 Higher Theft Losses From Shoplifters; e-Commerce Powerhouse; Gift Industry in Decline; Harmonic Environments, Inc.; 10 Trends in 30 Minutes

E-Tailer's Digest etd_post@gapent.com
Thu, 09 Oct 2003 06:19:30 -0400


  E-Tailer's Digest --- Everything for the  Retailer
  Issue #0728                     October 9, 2003
  George Matyjewicz, Moderator         mailto:georgem@gapent.com
  Published by:  GAP Enterprises, Ltd.  http://www.etailersdigest.com
==================================================================
   CONTENTS

  [1]  Greetings
  [2]  Retailers Continue to Experience Higher Theft Losses From Shoplifters
  [3]  e-Commerce Powerhouse
  [4]  Report Says Gift Industry in Decline
  [5]  Harmonic Environments, Inc.
  [6]  10 Trends in 30 Minutes

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  [1]  Greetings.
==================================================================
Hi All:

I'm back from my latest journeys - retreat in Connecticut and major 
presentation in Atlanta.  We will know by the end of the week whether or 
not we got the job.  Wish us luck.

I read some interesting print material on the plane.  One article that 
surprised me was who is the e-Commerce powerhouse guru?  It really 
surprised me, especially since I was involved in the original development 
of their site.

As we all know, shrink (theft) is high in retailing.  In giftware it can be 
as high as 4% of sales.  Over $4.7 billion was lost to shoplifting and 
employee theft in just 25 U.S. retail companies in 2002, with only 2.43 
percent of those losses resulting in a recovery.  What's it like in your 
store?  What do you do to prevent theft?

Add to the theft issue the decline in the gift industry as reported by Pam 
Danziger, and we may get to wonder why we do it?  Then again, maybe the 10 
Trends in 30 Minutes may help your business.   How is your business doing?

Don't forget to tell us a little about your business.  In addition to 
letting us all know what you do, you will be listed for posterity at 
our  "Members: Who Are You?" 
http://etailersdigest.com/resources/members/index.htm   And we have a form 
there for you to tell us about you.  As I said when I first proposed this 
idea, we have "known" each other for a long time, yet we often don't know 
anything about each other.   So, tell us who you are and what you do.

Now, let's get to everything for the retailer.

Sincerely


George Matyjewicz, PhD
Chief Global Strategist, GAP Enterprises, Ltd.
mailto:georgem@gapent.com
http://www.etailersdigest.com


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  [2]  Retailers Continue to Experience Higher Theft Losses From Shoplifters
==================================================================
Over $4.7 billion was lost to shoplifting and employee theft in just 25 
U.S. retail companies in 2002, with only 2.43 percent of those losses 
resulting in a recovery, according to the 15th Annual Retail Theft Survey 
conducted by Jack L. Hayes International, a leading loss prevention and 
inventory shrinkage control consulting firm.

"The losses are staggering and continue to amaze us," said Mark R. Doyle, 
Vice President at Hayes International. "Both the number of shoplifters 
apprehended and the dollars recovered from those apprehensions increased 
for the second year in a row. In addition, for the sixth consecutive year 
the dollars recovered from shoplifters where no apprehension was made 
increased significantly over the prior year."

Mr. Hayes added, "Shoplifting and employee theft are serious crimes which 
continue to negatively impact the bottom-line profits of many retailers. 
These crimes continue to hurt our economy, costing consumers higher prices 
at the cash register, and causing a loss of jobs when retailers are forced 
to close stores or even go out of business."

This highly anticipated annual survey reports on over half a million 
apprehensions taking place in just 25 large retail companies representing 
10,243 stores with combined 2002 annual sales in excess of $396 billion. 
Some of the major results from this survey are:

• Total shoplifter and dishonest employee apprehensions in 2002 increased 
7.11% (562,022 vs 24,731), while total dollar recoveries exceeded $114.8 
million, an increase of 7.50% over prior year.

• Survey participants apprehended 505,010 shoplifters in 2002, which 
reflects an 8.55% increase over their 2001 shoplifter apprehensions (465,253).

• Dollars recovered from shoplifting apprehensions totaled $58,198,969 in 
2002, an increase of 12.22% over 2001 recoveries ($51,859,300).

• For the 6th consecutive year, the dollars recovered from shoplifters 
where no apprehension was made increased substantially (29.82%) over the 
prior year.

• Dishonest employee apprehensions decreased 4.15% in 2002 (57,012 vs 
59,478) and the dollars recovered from those apprehended employees 
decreased 6.66% ($37,623,661 vs $40,307,964).

• On a per-company basis, one in every 30 employees was apprehended for 
theft from their employer (based on over 1.8 million employees).

For more survey results please visit Jack L. Hayes International's Theft 
Surveys.
http://clk.about.com/?zi=1/XJ&sdn=0&zu=http%3A%2F%2Fwww.hayesinternational.com%2Fthft_srvys.html 



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  [3]  e-Commerce Powerhouse
==================================================================
Guess who's the number one e-commerce powerhouse?  Amazon?  Ebay? Yahoo?

Nope.  It's Barry Diller's InterActiveCorp.  Diller owns Home Shopping 
Network (HSN), a cash cow His cash cow that churns out profits he can use 
to throw his net ever wider on the Web (in a previous engagement, our 
company developed the e-commerce site for HSN).

Business Week has Barry as the cover boy (October 13 issue).

Thanks to a two-year-long buying binge, IAC is becoming the world's largest 
consumer e-commerce business. With an eclectic combination of businesses, 
ranging from the online travel powerhouse Expedia to the Net dating service 
Match.com, InterActiveCorp's revenues are on track to surge 34% this year, 
to $6.2 billion -- which would make it bigger than e-commerce giants Yahoo! 
(YHOO ), eBay (EBAY ) and Amazon.com. IAC's Expedia and Hotels.com  are the 
two most profitable online travel agencies. Ticketmaster gives him a 
dominating 90% share of ticket sales for concerts and sporting events. 
LendingTree Inc., an online mortgage-referral service, also provides an 
entr้e into real estate.

And this relentless dealmaker, with $5 billion in cash, is still shopping. 
On Sept. 21, he announced a deal to buy Hotwire.com, a Priceline.com Inc. 
(PCLN ) rival, for $665 million, giving him 3 of the top 10 most-visited 
travel sites. "I cannot imagine the year will end without our making an 
acquisition or a series of acquisitions in the billion-or-so-dollar range," 
he says. He is eyeing acquisitions in travel, finance, and classified ads 
-- and plans to push hard overseas. Ben Tompkins, an investment banker at 
Broadview Associates, says one attractive target is job-hunting site 
CareerBuilder.com.

Behind the wheeling and dealing is a shrewd strategy to make IAC into 
something entirely new -- a powerful combination of businesses focusing 
solely on e-commerce. For this, Diller is positioning himself as a new kind 
of cyber-middleman. He starts by picking highly fragmented industries, such 
as travel, personal finance, and local entertainment. His companies 
intermediate between travelers and hotels, borrowers and banks, music 
lovers and concert halls. Think eBay, not Amazon.com Inc. Diller does not 
want to warehouse products like Amazon. Instead, he uses the immense power 
of the Web to gather boatloads of customers and deliver them, en masse, to 
sellers of products and services เ la eBay.

What makes Diller unique is his willingness to meld the ruthlessness of a 
Hollywood mogul with the power of the Internet. While eBay Chief Executive 
Margaret C. "Meg" Whitman strives to keep the online auction site's 
community of buyers and sellers happy, Diller throws his weight around much 
like Wal-Mart Stores Inc.  -- squeezing suppliers so he can take a bigger 
slice of the pie. He grabs extra profits by giving prime billing on his Web 
sites to suppliers that offer him the fattest discounts, from flights to 
concert tickets. "In every one of our businesses, we're playing a role in 
defining the economic laws," he says.

Details at (may require subscription)...
http://www.businessweek.com/@@0XWQSWUQr8JwUBMA/premium/content/03_41/b3853001_mz001.htm

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  [4]  Report Says Gift Industry in Decline
==================================================================
Stevens, PA — Total sales in the gift and decorative accessories industry 
for 2002 were $54.3 billion, a drop of 1 percent from $54.7 billion in 
2001, according to a report from Unity Marketing. "The giftware market 
peaked in 2000, but has been on a downward trajectory since," said Unity's 
president, Pam Danziger. "The industry's biggest challenge is that many of 
the products and the way it sells them, primarily through small specialty 
gift stores, does not connect with consumers." According to Danziger, 
shoppers want convenience and value pricing, which they find at discount 
department stores such as Kohl's, Target, and Wal-Mart, rather than the 
local Hallmark store. She also cites a consumer trend toward "uncluttered" 
lives that dispense with purely decorative, non-utilitarian items. 
Magazines such as Real Simple and television shows such as HGTV's Mission: 
Organization and The Learning Channel's Clean Sweep reflect the movement 
toward household organization. While shoppers are turning to new retail 
venues, giftware companies remain dependent upon specialty gift stores for 
about half of their total sales, although this is a shrinking channel of 
distribution, Danziger added. According to the International Council of 
Shopping Centers (ICSC), the number of gift and home furnishings stores 
that closed in the first half of 2003 was significantly higher than the 
number of stores that closed in 2002.

Quinn Halford, Editor In Chief
Matthew Kalash, Editor
Gifts & Dec Direct
www.giftsanddec.com

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  [5]  Harmonic Environments, Inc.
==================================================================
Our moderator wrote...
 > I visited your site and am very impressed.  Folks, these are not desktop 
waterfalls.
 > Have your wall covered with a waterfall.
 > Can you give us a ballpark price?  Let's say I want that corner 
waterfall displayed with
 >the piano.  How much?

All of our products can be customized, but the one you've selected would 
cost about $25,000, including installation.

I talked with you a couple of years ago about moving to the islands and 
since moved to Stuart, FL, on the Indian River.  It's beautiful here and 
time to take up boating.......

Prices are on an individual basis, depending upon size, design, and 
materials, starting about $15,000 including installation for a stainless 
steel waterfall.

Example: Condell:  http://www.harmonicenvironments.com/portfolio.htm

They can be $20,000 to $100,000 (or more) for products in our Translucence 
Series, which are designed to divide spaces, with water visible from two sides.

Example:  http://www.harmonicenvironments.com/portfolio.htm
Click on first box on left in the third row - Blanchard

All are customized to the setting.....

Kind regards,
Steven
-- 
Harmonic Environments
the premier maker of indoor waterfalls
26 Simara Street   Stuart, FL 34996  USA
772. 223.9011 p    772.463.6422 f
waterfall@harmonicenvironments.com
http://www.HarmonicEnvironments.com

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  [6]  10 Trends in 30 Minutes
==================================================================
New York--Could you summarize the nation's zeitgeist--and the likely effect 
on shopping habits--in a half-hour? Marian Salzman, chief strategy officer 
of Euro RSCG Worldwide, managed that feat during her luncheon presentation 
Sept. 25 at the Shop.org Annual Summit.

Before detailing 10 trends that she said would change retailing, Salzman 
summed up the philosophy of today's consumer by quoting a saying on a 
T-shirt that she'd seen in London: "I ask only that you treat me like you 
treat the Queen."

As for those 10 trends...

#1: The return of the '80s. Not only the fashions (big hair, asymmetrical 
shirts, neon colors, Lacoste polo shirts) but also the conservative values 
of the Reagan era.

#2: Rampant obesity. Salzman cited statistics that more than 60% of women 
and teens in the U.S. wear plus-size apparel.

#3: The young are getting older faster, and the old are staying younger 
longer. Even as adults are delaying marriage, parenthood, and retirement, 
preteens are becoming sexually aware much earlier than in generations past. 
A study that Salzman's company conducted earlier this year found that 
children and their parents have overlapping tastes in music, TV, and other 
interests. As a result, she said, target marketing based on age no longer 
makes sense.

#4: Metrosexuality. "Metrosexuals" are heterosexual men who are "in touch 
with their feminine side," as the saying goes: They are interested in 
grooming, enjoy shopping, and keep in shape by practicing yoga.

#5: "Buzz marketing": Because consumers are overwhelmed with promotional 
messages via so many media, advertising is losing its effectiveness. A more 
effective, albeit trickier, marketing method is to almost invisibly create 
favorable word of mouth--giving celebrities free apparel in order to make 
the clothing brand appear trendy, for instance.

#6: A subtler type of "experience " retail: Instead of theme restaurants 
and stores with flashy gimmicks, consumer prefer mass merchants that 
creatively offer deals (such as Target) and local boutiques that give 
shoppers a sense of exclusivity.

#7: Concerns about the nation's security and economy.

#8: Renewed focus on the home as a haven.

#9: Ethnic evolution and influence: The Hispanic population is growing four 
times as quickly as the U.S. population at large, Salzman noted. And though 
Americans "aren't interested in going to foreign places," she said, "we're 
interested in bringing the culture home to us." Hence the popularity of 
Asian-influenced design and ethnic cuisines.

#10: "I'm my own best brand": Customerization and personalization, Salzman 
said, are more important than ever.

http://retailtrafficmag.com/ar/retail_trends_minutes/index.htm

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