With credit-card skimming thieves eluding law enforcement, state lawmakers are targeting the devices themselves.
Two bills before the Florida Legislature this session, SB 766 and HB 343, would make it a third-degree felony to possess or sell credit-card skimming devices in Florida.
“These devices are designed to specifically collect and steal consumer data,” said the sponsor of the Senate bill, state Sen. Jose Rodriguez, D-Miami. “There is no other place in the market where you need a device like this.”
Rodriguez said Thursday much of the work behind the legislation was focused on tightening the definition of the skimmer itself so it would not impede the needs of retailers and anyone else involved in credit-card transactions.
“There are two parts to this legislation,” he said. “Part of it is to precisely and better define what is legal and what is illegal. The other part is criminalizing the sale of and use. There is no legitimate need for these skimming devices.”
He added that cracking down on the installing and use of the skimmers to steal credit-card information from gasoline pump machines and ATMs, which is illegal, is difficult because police have to catch the thieves in the act.
By making the possession and sale of the devices illegal, he said police would have a more effective tool. Both the Senate and House versions have one more committee hurdles to clear, perhaps as soon as next week, before they can make it to floor votes in each chamber.
The 2017 Florida legislative session marks the second year in a row that lawmakers have sought legislation to attack credit-card skimming.
Just this past spring, Gov. Rick Scott signed into law a bill designed to protect consumers from skimmers at gas station pumps.
That legislation, sponsored by State Sen. Anitere Flores, R-Miami, and Rep. Dana Young, R-Tampa, required gas stations to have security devices on pumps to combat skimmers and it toughened penalties for credit-card fraud.
It was also supported by Florida Agriculture Commissioner Adam Putnam, whose agency has largely led the effort to crack down on skimmers.
James Miller of the Florida Retail Federation and the Florida Petroleum Marketers and Convenience Store Association said the organizations “fully support any legislation that cracks down on gas-pump skimming devices, punishes those caught using them, and protects Floridians and visitors.”
Miller said card skimming is a nationwide problem, but Florida, with the third-largest population and more than 100 million tourists, and more than 10,000 convenience stores statewide, presents significantly more opportunities for skimming devices to be used.
He said the organization seeks other ways to combat skimming fraud. This includes training sessions for convenience store owners and their staff year round throughout the state to help them identify potential scams, and arm their employees with knowledge and steps they can take to protect their store, their merchandise and their customers.
They also regularly communicate with local, state and federal law enforcement “on tips and identifying new technology or new ways that thieves are using skimmers,” he added.
Jeff Lenard, the vice president for Strategic Industry Initiatives at the National Association of Convenience Stores in Alexandria, Va., said the organization focuses on federal issues so it has not specifically followed the new Florida legislation.
However, he pointed out skimming tends to a be a problem because criminal groups come to an area and “work it” until they move on to another location. Florida, he said, is one of the areas that has more problems, perhaps because there is more of a transient population and newer neighborhoods.
How to avoid falling victim to a skimmer, and what to do if you do
If you think your credit card number might have been stolen or otherwise compromised, report it to your credit card company.
If you believe you might have found a skimmer, contact the gas station manager, local law enforcement or the department’s consumer protection and information hotline at 800-435-7352.
mypalmbeachpost | Antonio Fins and Susan Salisbury
It was a record-breaking year for in-store convenience store sales, which hit $233bn in calendar year 2016, data from the National Association of Convenience Stores (NACS) 2016 indicates. Among the top performers were non-alcoholic beverages and sweet and salty snacks. read more
The Florida Petroleum Marketers and Convenience Store Association cares about the success of our members and their families. For 36 years, we have granted academic scholarships exclusively to FPMA member company owners, employees and their children to attend college and become successors of the family business or entrepreneurs of their own.
If you fall into this close-knit community and can show achievement in the classroom with a GPA of 3.5 or higher, you are at a great advantage! While most public and private scholarship dollars are open to thousands of eligible high school and college students, our support stays within the Florida Petroleum Marketers and Convenience Store family. We are excited to announce we are accepting Scholarship applications now through May 5, 2017.
FPMA Scholarship Requirements:
To be eligible to receive an FPMA Scholarship, an applicant must be a Florida resident meeting one of following criteria below and enroll in a minimum course load of 12 hours.
Two (2) FPMA Scholarships will be awarded on the morning of the 2017 Sunshine EXPO, Sunday July, 23rd at Gaylord Palms Resort in Kissimmee, FL. Winners will be contacted on May 17th by Scholarship Committee Chair, Marc Gomes. The recipients’ hotel accommodations are taken care of by FPMA for the night prior to the award presentation.
Best of luck and begin the application process by clicking here.
Organized retail crime (ORC)—defined as professional shoplifting by organized crime rings—is growing, with 83% of 59 merchants surveyed reporting an increase in the past year, according the National Retail Federation’s “12th annual ORC study,” conducted July 20-Aug. 19, 2016.
Sean Sportun, ICPS manager, security & loss prevention for Mac’s Convenience Stores in Canada, noted ORC is an evolving issue for the c-store industry.
While ORC usually targets big box chains with high volume items “what most fail to realize is the c-store/gas industry are the initial target for these groups when it comes to fraud payment cards and robberies,” Sportun said. “C-store retailers must ensure they have a training program in place and that it is current—this will enable employees to combat these crimes and remain safe if they encounter an incident.”
Mac’s is renowned for fighting crime, from inviting communities to take ownership of neighborhood convenience stores by participating in painting a store mural to posting images of thieves to Mac’s Crime Stoppers social media pages, so members of the community can identify them for a reward.
“Mac’s is now being studied by Harvard University on the crime prevention program’s effectiveness in reducing incidents of crime,” Sportun said. The Harvard Business Study should be available this summer.
Mac’s is also using a Tobacco Tracker program to monitor stolen tobacco cartons—a “huge success,” both in the recovery of assets and in the apprehensions of suspects. Security expert Chris McGoey, president of McGoey Security Consulting, said while ORC is an age-old issue, the label is often overused, especially in relation to convenience stores.
“What’s happening (at c-stores) is plain old shoplifting. It’s the same old story: if you have one person on duty and that person is overworked, they’re not going to be able to pay attention to potential shoplifters,” he said.
McGoey said he sees theft overall trending upward. There are more items today, more inventory issues to contend with and products are more expensive—which means theft dollar totals are higher—all contributing factors.
C-stores must also contend with employee theft. The “28th Annual Retail Theft Survey” conducted June 2016 by loss prevention consulting firm Jack L. Hayes International, found one out of every 38 employees was apprehended for theft from their employer in 2015. The survey was based on approximately 3 million employees.
“The convenience industry is hit particularly hard with employee theft because of the nature of a c-store. They’re designed to be operated by one person often times without supervision,” McGoey said.
Mac’s is using technology to help matters.
“The loss prevention department implemented a variety of preventative measures to identify this type of crime, but our most effective initiative has been the introduction of our 24/7 monitoring room, which has the ability to remote access into stores through the DVR system,” Sportun said.
While ongoing advancements in video surveillance ability and quality continue to improve, McGoey warned some retailers invest too much capital in technology and then fail to use it, thinking just having the technology is a deterrent. McGoey said sticking to the basics of counting inventory, implementing cash controls, hiring and training well and monitoring customers are crucial in preventing theft. (read more)
Click this video and see what you missed from this year’s Retail Days. FRF Chair Dan Doyle and a host of attendees give you the inside scoop on what took place at this year’s event. If you weren’t able to join us this year, start making plans to attend next year’s Retail Days taking place January 2018!
FRF & FPMA are excited to announce our 2017 Legislative Agenda! This diverse agenda - which was created based solely on feedback from you, our members, and voted on at our October Fall Retail Summit - highlights the issues that our influential Governmental Affairs Team will be focusing on this upcoming session in supporting the needs of retail businesses in Florida and ensuring you remain successful. (*This list does not include issues that may pop up as we get closer to session or during it*)
We are proud of our legislative impact and successes in recent years and we look forward to working with the Governor's Office and state legislators on passing legislation that will benefit our members and strengthen Florida's retail industry.
GENERAL RETAIL BUSINESS
Nearly 70% of retailers are hopeful about their business prospects, thanks to the combination of convenience and an enhanced food offer.
ALEXANDRIA, Va. – Low gas prices helped drive sales increases at convenience stores in 2016, and retailers expect those strong sales to carry over into 2017, according to the December 2016 NACS consumer sentiment survey.
More than two in three convenience retailers (68%) say that their fuels sales increased in 2016 and nearly the same percentage (63%) say that foodservice sales increased.
“The continued improvement of the economy and low gas prices gave our customers more confidence to buy inside,” said Aloha Petroleum’s Richard Parry (Honolulu, HI). He said that he expects “better-for-you” items to help continue to drive strong sales in 2017.
Industry-wide, better-for-you items like fruits and vegetables, yogurt, nuts and health bars saw strong sales in 2016: 63% of retailers reported that sales of these items increased in 2016. Only one retailer surveyed said that sales were down in 2016. “Healthier-for-you items are beginning to gain some traction,” said Mike Zielinski with Retail Management Services Inc. (New Lenox, IL).
Retailer confidence about the U.S. economy also surged. A record 79% of retailers say they are optimistic about the U.S. economy—a 26-point jump from last quarter. This surge in retailer optimism mirrors the optimism of their customers. A record 60% of U.S. fuel consumers said they are optimistic about the U.S. economy, according to the NACS survey.
Retailers also are very optimistic about the overall convenience retailing industry. More than three in four convenience retailers (78%) said they are optimistic about the industry’s prospects in the first quarter of 2017, a 7-point jump from three months ago.
New investments in technology related to loyalty programs and enhanced customer experiences are central to the strategy of growing convenience store sales in 2017. Continued technology enhancements surrounding digital advertising, consumer awareness and loyalty are a priority at Casey’s General Stores (Ankeny, IA), according to company representative Terry Handley. Meanwhile, David Oswald of A.H. Jamra Company (Toledo, OH) said they are investing in point-of-sale technology. “Go high tech or go blind,” was the advice from Mohammad Khan with Shahani Inc. (Branford, CT).
Retailers said that new investments in food and beverage equipment are also growing sales. Kwik Trip (La Crosse, WI) saw strong sales from its high-end hot beverage sales with its Franke machines and is investing in new beverage offers to continue the momentum. “We expect explosive growth from our new cold-brew coffee and smoothies in 2017,” said Steve Loehr of Kwik Trip.
Ready-for-you meals will be a big industry trend in 2017, according to Sam Odeh with Power Mart Corp. (Elmhurst, IL). Meanwhile, products produced locally—whether snacks, merchandise or even craft beers—are gaining in popularly, according to Todd Kunkel at Handy Mart (Durand, WI).
Increased investments in their stores may have helped reduce retailer concerns over competition. Overall, 39% of retailers cited competition from other convenience stores as a concern, down from 47% who cited industry competition a year ago. Meanwhile, 33% cited concerns over competition from other channels like drug stores or dollar stores. However, the new Amazon Go concept “could be a game-changer down the road,” said Lisa Dell’Alba with Square One Markets Inc. (Bethlehem, PA).
Retailers are much more concerned over threats to their business that are less in their control. A majority of retailers (55%) said that they are concerned about regulations and legislation that could affect their businesses. And 53% are concerned about labor issues, a sharp increase from the 41% who cited labor as a concern a year ago.
Despite concerns over threats to their businesses, 69% of retailers are optimistic about their own business prospects in the first quarter of 2017, largely because of the combination of convenience and an enhanced food offer.
“More convenience stores are adding foodservice, and our industry is moving to a one-stop shop for local communities,” said Nishant Chudasama with Cadnicks (Orange, CA).
“I truly think food will continue to be the trend in 2017—but it’s going to take ingenuity and creativity to continue to entice people to visit convenience stores for lunch and dinner. We’ll need to continually adapt to reflect trends and customer preferences—whether it's a new burger or a new healthy option,” said Dennis McCartney with Landhope Farms (Kennett Square, PA).
The quarterly NACS Retailer Sentiment Survey tracks retailer sentiment related to their businesses, the industry and the economy as a whole. A total of 81 member companies, representing a cumulative 4,052 stores, participated in the December 2016 survey.
This summer, more than 215 million gallons of wastewater poured into the Floridan Aquifer when a sinkhole opened up at the Mosaic fertilizer plant in Polk County.
Also this summer, Hurricane Hermine flushed tens of millions of gallons of raw and partially treated sewage into Tampa Bay.
Governor Rick Scott swung into action with an emergency rule forcing polluters to notify the public within 24 hours of a major spill. But last week an administrative law judge sided with business groups and said Scott had no legal authority to act.
Republican Representative Kathleen Peters of South Pasadena says she’s working on legislation to fix that.
“Because that’s the goal and I know that’s the governor’s goal to ensure that there’s transparency and that the citizens have the opportunity to protect themselves if they need to.”
The heavy hitter of the Tallahassee lobby corps, Associated Industries of Florida, the National Federation of Independent Businesses, and the Florida Retail Federation, fought to kill the emergency rule. They argued it would force convenience store owners to call a press conference every time a customer overfilled a gas tank.
Peters says she’s still working on thresholds for triggering public notice, and what the warning should say. But she thinks boil water notices are a good model.
“It’s amazing how when a water main breaks the media is reporting on that so quickly. And it seems to be quite seamless. And so can’t we get the same kind of system on a spill if it’s a health issue so that we can get the word out quickly.”
NFIB Florida executive director Bill Herrle said small business owners had a lot of concerns about the emergency rule. A diesel mechanic, Herrle says, isn’t always going to be the best interpreter of toxic thresholds.
Florida Retail Federation spokesman James Miller agrees, saying business owners would much rather notify regulators and leave the public relations to someone else. “We feel that DEP, they’re the experts in this kind of situation. And they’re the ones that know the appropriate media to call and they’re the ones that have the best examples of getting this information out to the locals in an area.”
However, Miller and Herrle insist they’re not opposed to the legislation. Herrle says he’s eager to help sponsors craft the language.
Legislative process as resulting in better public policy than just letting a state agency have a go at it.”
And that’s what worries Clean Water Network activist Linda Young the most. She’s afraid business interests will water down the legislation until it’s practically meaningless. A “may” instead of a “shall,” could make all the difference in the world, Young says.
“If this legislation is going to be meaningful, if it’s going to be protective and it’s going to accomplish what the public would like to have in place, there’s going to have to be very, very close scrutiny of every word.”
Governor Scott can be expected to do just that with every bill that crosses his desk. read more
A new whitepaper discusses how the health of consumers is driving retail.
As consumers strive to live more healthful lifestyles, their purchasing behaviors are changing rapidly, driving every buying decision. More than ever, consumers want—and expect—retailers and manufacturers to assist them on their health and wellness journey inside the store.
“As consumers around the globe search for better, healthier and smarter solutions that fit their lifestyle, the motivation for brands and stores to meet these needs means modeling an experience they cannot achieve with e-com,” said Global Market Development Center (GMDC) President and CEO Patrick Spear, in a press release.
Within the $3.4 trillion global wellness market: $1 trillion annually is spent on beauty and anti-aging; $574 billion is spent on healthy eating, nutrition and weight loss; and $433 billion is spent on preventative and personalized health.
The macro-level trends driving the enormous spending are happening so rapidly. Consumers are taking back the power to decide and are immersing themselves in knowledge and facts through technology and shared learning from friends and family.
GMDC’s whitepaper, “Next Practices: The Health & Wellness Consumer, Helping Trading Partners Shape the Future…Today,” showcases the trends shaping the new consumer-driven health and wellness movement:
It’s clear that health and wellness are fueling all purchasing decisions—shoppers expect retailers and manufacturers to offer a holistic, healthful experience that inspires them and speaks to their aspirations—from the entrance to the checkout line. “Health and wellness is a foundational element in everyone’s daily lives,” said Mark Mechelse, GMDC’s director of research, industry insights and communications. “For consumers to change behavior, they must have the motive, means and messages to do so. That is the essence of opportunity for collaboration between trading partners.”http://www.nacsonline.com/Media/Daily/Pages/ND1221166.aspx?utm_content=NACS%20Daily%20122116:%20newsarticle6%20(Consumers%20Hold%20Retailers%20Accountable%20for%20Their%20He)&utm_source=NACS%20Daily&utm_campaign=NACS%20Daily%20122116&utm_medium=email&utm_term=552364#.WFrX_LGZNE5
WESTPORT, Conn. — Foodservice will take center stage for convenience stores in 2017, predicts King-Casey, a retail consulting and design firm for the c-store industry.
"Innovative c-stores — such as Sheetz and American Natural — have led the way in improving their food and foodservice offerings," said King-Casey principal Tom Cook. "Now the rest of the industry has noticed, with the result that foodservice will be the primary area of focus for c-stores looking to build their brands and bottom lines."
According to Cook, c-stores will place a concentration on providing prepared foods, made-to-order sandwiches, fresh ingredients, healthy options, quality baked goods and barista-style coffee, espresso and tea beverages.
Although foodservice offerings will play a significant role in 2017, c-stores will also have a competitive edge over quick-service restaurants (QSRs) and fast-casual restaurants as they continue to revamp their interior atmospheres to make them more inviting and improve the customer experience, the principal said.
"This will change attitudes and behaviors over time, as customers spend more time in the stores talking, working and lingering over their food and beverages," Cooked noted. "The historical lines of distinction between c-stores and QSRs and fast-casual restaurants will continue to blur."
Supermarkets will also feel the heat of competition from c-stores, as consumers begin to see more c-stores without gas pumps with non-fuel locations. This will be especially true of urban areas were millennials — the heaviest users of c-stores — are concentrated.
Other King-Casey C-store predictions include:
Demographic shifts: With significant improvements in foodservice offerings, store design and environments, customer demographics will change. More women, with and without children, will visit more often. Smart operators will differentiate their brands by adapting their offerings to the unique needs of this customer segment.
Exterior appearance: Innovative c-store brands will increase drive-up and drive-by appeal with new, contemporary designs that incorporate large amounts of glass and windows that enable consumers to see the interior environment and store experience.
Drive-thru growth: Currently, Sheetz, Wawa, Parker’s and a handful of other c-store brands offer drive-thru service. "We see dramatic growth in this area as savvy brands realize that drive-thrus offer the best way to meet the customer demand for convenience, as well as a way to differentiate themselves and generate incremental foodservice sales," Cook noted.