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How Retailers Can Better Mitigate Black Friday Risks

Black Friday Shopping Risks

With the biggest shopping events of the season, retailers face tremendous amounts of both risk and reward as sales and door-busters draw in eager consumers all week. In 2013, Thanksgiving deals brought in 92.1 million shoppers to spend over $50 billion in a single weekend, the National Retail Federation reports.

The National Retail Federation issued crowd management guidelines for retailers and mall management officials to use when planning special events, including Black Friday, product launches, celebrity appearances and promotional sales. General considerations to plan for and curtail any crowd control issues include:

  • Remind and retrain all employees about your store’s emergency protocols to address potential risks facing employees and customers.
  • Dedicate knowledgeable employees to communicate and manage crowds, from arrival to departure, and resolve any potential conflicts that may arise.
  • Strategically place sale items throughout the store to help disperse crowds and manage traffic flow.
  • Request the assistance of local law enforcement if large crowds are expected and arrange for additional security services.
  • Educate employees about relevant policies and procedures and advise them who to contact in the event of a situation.

Last week, the U.S. Department of Labor’s Occupational Safety and Health Administration also issued a public letter to retailers urging companies to plan ahead for better in-store safety for both employees and customers. According to OSHA’s “Crowd Management Safety Guidelines for Retailers,” crowd management plans should, at least, include:

  • On-site trained security personnel or police officers
  • Barricades or rope lines for pedestrians that do not start right in front of the store’s entrance
  • The implementation of crowd control measures well in advance of customers arriving at the store
  • Emergency procedures in place to address potential dangers
  • Methods for explaining approach and entrance procedures to the arriving public
  • Not allowing additional customers to enter the store when it reaches its maximum occupancy level
  • Not blocking or locking exit doors

Brick-and-mortar retailers are not the only ones at greater risk. Companies that operate call centers must also be prepared for a drastic increase in customer inquiries and purchases. According to communications intelligence firm Cognia, 69% of U.S. contact centers carry out credit card payments over the phone and 84% record calls, making their archives particularly vulnerable to potential breaches.

“The first thing to highlight with respect to call center compliance at peak times is that this pressure is unlikely to create new issues, but will amplify existing ones. Attackers / threat actors (the bad guys) will also be aware that this is the time at which procedures are most likely to slip, and social engineering vulnerabilities that have previously been identified can be exploited,” said Tom Evans, Cognia’s chief security officer.

“There are challenges but, from a risk perspective, there is also an opportunity to fine-tune the risk management system under pressure. At these peak times, issues will be visible that would go undetected during business as usual operation,” Evans noted. “There is an opportunity to be proactive and to use the pressure around these peak sales times to identify bad practice that, during less pressured periods, is probably limited to one or two individuals or occasional occurrences, and therefore very hard to spot. Even the most dependable employee under the pressure on big queues may resort to a shortcut to get the job done. Identifying these means that controls can be put in place to prevent them being used again, and therefore the overall risk management position improved.”

To improve security and PCI compliance, Evans recommends that companies focus on areas that have lower security controls overall. For example, seasonal employees, over-spill call centers, and work at home agents may all be components of a contingency plan for peak periods that introduce vulnerability that can be mitigated.

Gearing Up for Black Friday on Thursday

Remember when Thanksgiving was one of the few days of the year where every store was closed and Black Friday mayhem was reserved for, well, Friday? Well, not anymore. These days more and more stores are starting their Black Friday sales on Thursday – sometimes as early as 6 a.m. At least it’s good to know we have options when we get tired of turkey and/or family.

If you are one of the 140 million people that the National Retail Federation expects to shop this weekend (33 million of whom are planning to shop on Thanksgiving Day), remember to have fun and, most importantly, stay safe. To that end, insurer Chubb has provided the following infographics for both retailers and consumers who want to stay out of harm’s way and make sure their experience is a success.

Happy Thanksgiving.

 

Flash Mobs and Black Friday: Retailers Prepare!

The term “flash mob” was coined in 2003 to describe a sudden, large-scale gathering of people in one specific location to perform an unusual and sometimes pointless act for a brief period of time. With the growing popularity of Facebook, Twitter and viral emails, flash mobs have grown much larger and, in some cases, dangerous.

Though most of these events are organized solely for the purpose of artistic expression or to merely entertain passers by, some flash mobs have become “flash robs” — where groups descend on stores and other venues to, in most cases, steal merchandise. These events can easily injure employees and customers and cause monetary loss through theft and damage to property. And the threat is real. In fact, Marsh recently released Responding to Flash Mob/Rob Events, which, among other things, outlines steps retailers should take before, during and after a flash mob event, such as:

  • monitoring of social media websites to identify potential threats
  • reviewing business interruption plans and insurance programs with regards to partial or full shutdown of a location
  • providing training to employees related to disorderly conduct, assault, theft and looting
  • developing internal and external communications plans before an event
  • communicating frequently with local law enforcement

With Black Friday just two days away, the threat of flash robs is on the minds of retailers, and if it’s not, it should be. The National Retail Federation has compiled guidelines and protocols of more than 100 retail companies to better understand how to respond.

Now let’s take a look at three videos. The first is an example of a peaceful flash mob, the second is an example of a dangerous flash rob and the third is an analysis of the flash mob epidemic as a spiritual issue.

Staying Safe on Black Friday

Every year it seems like Christmas shopping season kicks off earlier and earlier. When I went to pick up Halloween candy last month, I could have sworn there were more candy canes than candy corn. (Much to my dismay since I’m probably one of the only people on the planet who actually likes candy corn. I should have bought some anyway just to confuse trick-or-treaters.) But despite retailers’ seeming desire to start the Christmas shopping season in the summer, the traditional beginning of the season is still the day after Thanksgiving, otherwise known as Black Friday.

Unfortunately in recent years, Black Friday has come to stand less for the effect is has on retail balance sheets and more for the incidents of tragedy that have befallen shoppers caught up in the buying frenzy. Reports of injuries, tramplings and worse have become all too common. One of the most infamous incidents occurred two years ago when a seasonal worker at a Valley Stream, New York Walmart was trampled to death after shoppers broke down the doors to the store in their rabid hunt for bargains.

This year, in an effort to prevent another tragedy OSHA has sent a letter to the CEOs of 14 national retailers, including Walmart, Target, Macy’s and Best Buy, encouraging them to take proper precautions to protect the safety of workers and customers. OSHA also included a fact sheet entitled, “Crowd Management Safety Tips for Retailers.”

OSHA has prepared these guidelines to help employers and store owners avoid injuries during the holiday shopping season, or other events where large crowds may gather. Crowd management planning should begin in advance of events that are likely to draw large crowds, and crowd management, pre-event setup, and emergency situation management should be part of event planning.

OSHA tips concern the proper training of workers, suggestions for the use of barricades to control the flow of crowds and the importance of communication with customers, employees and security personnel.

The National Retail Federation expects that 138 million shoppers will head out to the stores on Black Friday this year, up from the 134 million that had planned to go out last year. It’s bound to be chaotic but let’s make sure that the holiday season kicks off safely.

And if you want to pick me up something nice, I won’t mind.

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