Holiday Retail Sales On Upward Trajectory Even If Not Back To Pre-Pandemic Level

Holiday Retail Sales On Upward Trajectory Even If Not Back To Pre-Pandemic Level

By Terri Jo Neff |

In October, the National Retail Federation projected nearly $860 billion in 2021 holiday sales, bolstered by customers planning to spend more than 2020. Online retailers and the brick-and-mortar type retailers were also told to expect one-half of shoppers to begin their holiday purchases even before Thanksgiving. 

Many economists also forecasted that holiday shoppers will be purchasing fewer items but would be willing to spend money for better quality and more substantive items, if supply chain problems don’t get in the way. All of which means a lot of eyes were focused on the results from the key Thanksgiving holiday shopping days including Black Friday, Small Business Saturday, and Cyber Monday. 

Sensormatic Solutions provides services to retailers in the areas of inventory intelligence, shopper experience, loss prevention, and operational effectiveness.  According to Sensormatic, shopper activity on Nov. 26 through Nov. 28 increased more than 34 percent compared to 2020. During the same three days, however, traffic at brick-and-mortar stores was 21 percent lower than in 2019.

It is unknown whether the decision by most major retailers to remain closed all of Thanksgiving Day had any impact on buyer decisions. But one retail executive says December 2021 still provides unique opportunities and challenges for retailers.

“Shoppers are returning to stores, but there are still lingering health and safety concerns making some cautious of traditionally crowded shopping days,” said Brian Field, senior director of global retail consulting for Sensormatic. “With a data-driven understanding of customer concerns, retailers can implement processes to help make shoppers feel comfortable in stores – via occupancy monitoring, temperature checks, extended hours and a seamless contactless shopping experience.”

Sensormatic also looked at Cyber Monday data. One change over 2020 is that many retailers with physical stores made their online sales pricing and special offers available to in-store shoppers. But those Cyber Monday offers did not help generate additional foot traffic, which ended up being similar to a typical fall day.   

“Though the mix of weekday shopping had been on the rise throughout the pandemic as shoppers take advantage of more flexible work schedules and try to avoid weekend crowds, Cyber Monday typically has no impact on in-store traffic and the same was true of this year,” Field said.

Yet according to Field, the overall data shows retailers should breathe a sigh of relief with the direction holiday sales are taking.  

“Over the past month, in-store traffic has progressively improved as consumers have started their holiday shopping early,” Field said. “Retailers are seeing positive change year over year, and the Black Friday weekend data shows an upward trajectory toward pre-pandemic levels.”

Protecting Arizona Businesses And Public Entities From Growing Threat Of Ransomware Attacks

Protecting Arizona Businesses And Public Entities From Growing Threat Of Ransomware Attacks

By Terri Jo Neff |

According to cybersecurity experts, anyone with a computer connected to the internet is at risk of a ransomware attack which involves a malware designed to encrypt files on a victim’s device, rendering the files and ultimately the systems which rely on them unusable.

The criminal or criminals who placed the malware via an email attachment or a download which appeared to be safe then exhorts the victim by demanding ransom in exchange for a decryption key or file to “recover” the system.  

Most people think of homeland security in terms of enhancing border security and preventing terroristic attacks in Arizona. But cybersecurity is a critical element in protecting Arizona’s infrastructure as well as economic security, according to Ryan Murray, deputy director of Arizona Department of Homeland Security (AZDOHS).

And at the same time that major companies and large government entities are strengthening their IT protocols, cyber criminals are focusing on smaller businesses, local non-profits, and public bodies such as school districts and fire departments, all of which generally don’t have a dedicated IT specialist, or a good understanding of the threat posed by a ransomware attack.

Such targets are easy pickings, Murray told AZ Free News. Adding to the problem is that many cyber attackers are no longer interested in simply holding a company’s IT system hostage until a ransom it paid. They are now incorporating data theft to the attack, Murray said.

Which is what happened in May when a ransomware attack hit Desert Wells Family Medicine in Queen Creek and led to the shutdown of the company’s IT system and left thousands of patients’ health records corrupted after the files were stolen.

In the end, Desert Wells had to manually “rebuild” its 35,000 patient records through other venues such as pharmacies, hospitals, and laboratories because none of its records were recoverable prior to May 21, the date of the hack.

With the scourge of ransomware attacks hard to stop -80 to 90 percent of cyberattacks originate overseas, says Murray- it is imperative for all companies, non-profits, and government entities large and small to understand how to reduce their vulnerabilities. And know what to do when an attack hits.

Which is why Murray’s team is developing a soon-to-be-launched website that provide a wealth of information on protecting against, responding to, and surviving a ransomware attack. The agency will also provide guidance on how to conduct an assessment of the vulnerabilities and strengths of a company’s website, email system, and workstations.

There will also be a speakers’ bureau to provide outreach across the state, says Murray.

And if a ransomware attack or data breach is suspected, local law enforcement officers can contact cyber security specialists as AZDOHS’s new Cyber Command Center which teams with various local, state, and federal agencies. In fact, many police department and sheriff’s offices in Arizona have a designated Threat Liaison Officer, or TLO, who has undergone training in how to respond to a reported cybercrime.

For now, information about what a ransomware attack involves, how to identify an attack, and what to do if victimized by such an attack can be found at www.stopransomware.gov

The combination of ransom demand and data theft which hit Desert Wells Family Medicine was reported to patients as well as the U.S. Department of Health and Human Services three months after it started. A wide range of information was accessed in the attack, including social security numbers, birthdates, names and addresses, and billing account numbers. 

Patient medical account numbers as well as diagnostic and treatment information were also hacked, the notice said. The medical clinic had its patient information backed up, but the hacker also corrupted that data.

Private businesses are not required to report whether any money was paid directly or indirectly in response to a ransomware attack. How the unknown hacker or hackers got into the medical center’s system -and its backup data- has not been publicly disclosed.

In the past, companies could turn to their insurers for “cyber coverage” to reimburse the costs associated with ransomware attacks. Some insurers even paid the ransoms in order to recover a client’s system, finding it the cheaper option.

But with the number of such attacks increasing in frequency and cost, it is becoming more expensive for businesses and governments to afford such coverage, if they can even get it. For those lucky enough to have cyber coverage, they will likely see premiums doubled in 2022 with policy limits significantly scaled back.

USBP Tucson Sector Chief Reveals Border Crisis One Social Media Posting At A Time

USBP Tucson Sector Chief Reveals Border Crisis One Social Media Posting At A Time

By Terri Jo Neff |

While President Joe Biden continues to ignore pleas from Arizona’s sheriffs to take back control of the southern border, one top federal law enforcement official in Arizona is revealing the true nature of the border crisis, one social media posting at a time.   

John R. Modlin is the Chief Patrol Agent of the U.S. Border Patrol’s Tucson Sector and its 3,600 employees assigned to cover Cochise, Pima, and Santa Cruz counties. His frequent use of Twitter features significant arrests and apprehensions by his agents, while also highlighting efforts by local USBP to keep local residents and the country safe.

On Tuesday, Modlin announced that agents with the USBP Brian A. Terry Station in Cochise County arrested Jesus Tafolla-Beana near Naco. Records show Tafolla-Beana, a Mexican citizen, was previously convicted in Utah of felony unlawful sexual activity with a minor and then deported. As a result, Tafolla-Beana was unlawfully in the United States when taken into custody.

Cochise County Sheriff Mark Dannels told AZ Free News that USBP’s arrest of Tafolia Beana illustrates the continued dangers of an unsecure border. It is a concern Dannels and other border sheriffs have spoken about since Biden took office, particularly after he nominated Alejandro Mayorkas to be Secretary of the U.S. Department of Homeland Security.

“A secure border promotes safe communities and their quality of life,” Dannels said. “Border security shall never be discretionary, but a mandate by all elected officials, local, state and federal.”

Unfortunately, local and state law enforcement leaders have had little success getting the Biden Administration to engage in constructive discussions about the border or to even admit there is criminal activity occurring at the border. Modlin’s social media efforts are seen as a realistic, albeit small, glimpse of what is really happening.   

“Beana is just another example of the aggravated criminals breaching our southern border,” Dannels said. “I applaud our Border Patrol agents for all they do in protecting our borders during a time where historical intrusions are challenging their efforts.”

Modlin’s disclosure about Tafolla-Beana’s arrest came about 24 hours after he shared a photograph of 166 undocumented migrants apprehended in a remote area west of Sasabe by agents with the USBP Three Points Station.  More than 70 minors were in the group, Modlin noted.

Earlier this month, journalist Terence Jeffrey reported in The Daily Signal that from February to October of this year, 23 undocumented migrants with prior homicide convictions have been taken into custody in Arizona. The 23 have since been charged in U.S. District Court with the federal crime of illegally reentering the United States after deportation.  

The uncontrolled border situation recently prompted the Western States Sheriffs’ Association to issue a statement of No Confidence in Mayorkas’ leadership.

The group, which represents sheriffs in 17 states, called on the President to take immediate steps to remove Mayorkas. The statement also noted there already has been more than one million illegal border crossings this year, with “hundreds of thousands of illegal immigrants” who local authorities know were not intercepted by federal law enforcement at the border.

“After witnessing this disaster over the past several months and listening to the continued rhetoric and intellectual dishonesty from Secretary Mayorkas, the Western States Sheriffs’ Association and its membership must emphatically state our position of having NO confidence in the ability of Secretary Mayorkas, and his leadership within the Department of Homeland Security, to affect any positive outcome on this matter,” the statement reads.

Lawsuit Reveals Efforts By Several Gilbert Officials To Silence Bond Opposition

Lawsuit Reveals Efforts By Several Gilbert Officials To Silence Bond Opposition

By Terri Jo Neff |

When a longtime resident sued the Town of Gilbert, its mayor, and six councilmembers last week, the public was provided an in-depth look at efforts taken to silence an opponent of a bond measure that tops out at more than one-half billion dollars.

Jim Torgeson, who owns Mesa Sign Shop, undertook an individual effort to post signs around town advocating against the town’s effort to raise $515 million via general obligation bonds to fund various capital improvements. Many of his signs were removed by town officials in the days leading up to voting after Torgeson was accused of violating state law.

Torgeson is asking Judge Jay Adlerman of the Maricopa County Superior Court to declare that town officials, acting individually, collectively, and on behalf of the municipality, violated Torgeson’s free speech rights, broke state law, and engaged in election misconduct to such an extent that the Nov. 2 bond election results must be annulled.

“To be sure, annulling an election is a radical remedy, but the law supports it here,” Torgeson’s Nov. 22 lawsuit states. “The bottom line is that the right to vote, the elective franchise, means little if the government is allowed to stamp out speech that advocates opposing views. It is the uniquely bad acts of the Town of Gilbert that has forced the need for the drastic judicial action that is requested.”

Due to questions about whether the bond election was tainted, Gilbert councilmembers Laurin Hendrix and Aimee Yentes voted against approving the canvass of votes. Until the matter can be fully litigated, Torgeson wants Adlerman to issue an injunction barring town employees, elected officials, and other agents from taking any steps to move toward having bonds issued.

Adlerman has scheduled a Dec. 8 hearing on Torgeson’s requests. As of press time, Gilbert officials had not filed a formal answer to the lawsuit.

Voting in Gilbert’s recent town election was by mail only. Officials reported that the bond question passed by only a 164-vote margin out of nearly 41,400 votes cast. (Another 917 voters took part in the town election but did not cast a vote on the bond issue.)

The lawsuit notes Mayor Brigette Peterson and four councilmembers—Scott Anderson, Yung Koprowski, Scott September, and Kathy Tilque—publicly supported a “Yes” vote. Koprowski and Tilque even served as co-chairs of a pro-Bond political action committee (PAC) called Yes for Safe and Efficient Gilbert Roads which raised nearly $55,000 despite no organized bond opposition.

Town Attorney Chris Payne is working with privately retained legal counsel to respond to Torgeson’s lawsuit. In the meantime, a statement issued last week on behalf of the Town of Gilbert takes issues with the legal and factual assertions contained in the lawsuit. Officials are “confident that the election results will be upheld,” according to the town’s statement.   

Torgeson moved to Gilbert in 2008 and has been active in town affairs much of that time. He ran for council in November 2016, receiving 24.55 percent of the vote (he needed 26.01 percent to get a seat).

Peterson has been criticized by Torgeson in the past for her ethics and leadership of Gilbert, which is Arizona’s fifth-most populous municipality with nearly 250,000 residents. The town’s decision in June to seek voter approval of the bond question caught the attention of Torgeson, who supported a smaller, more manageable bond limit.

His anti-bond signs started going up around Gilbert in mid-September, just two weeks before ballots were scheduled to be mailed out. In place of his name, Torgeson printed “Private Citizen” on the signs next to his phone number, which he intended to have up at 100 high-visibility areas.

But town officials alleged Torgeson’s signs violated the law due to the absence of his name. As a result, 57 “non-conforming” signs were removed from town right of ways and later given back to Torgeson.

At the time, Torgeson’s attorney Timothy La Sota shot back at the town’s position, noting the Arizona Revised Statute about names on political signs cited by town officials only requires a name of a candidate “or campaign committee contact person.” Neither applied to Torgeson’s effort, La Sota noted.

“In this instance, there was no ‘candidate’, nor was there a ‘campaign committee contact person’ that was required to be listed under [ARS 16-1019] section (C)(5),” according to Torgeson’s statement of election contest. “As it was, Torgeson did include a valid telephone number on the signs, and there was no valid reason to move his signs or even contact him at all with regard to his signs.”

A few days after La Sota got involved, Gilbert officials responded with “an unconditional and complete reversal,” according to the lawsuit, although the town’s attorneys disputed Torgeson’s claim of violations of any U.S. and Arizona laws.

A subsequent public records request by Torgeson led to the discovery of an email from a town administrator to several other Gilbert employees about the possibility of having employees work overtime on Friday or the weekend to hurriedly remove Torgeson’s signs. (Town offices are open Monday through Thursday only.)

At one point, 15 employees or elected Gilbert officials “had some level of involvement in the effort to get rid of Torgeson’s signs,” the lawsuit states.

Torgeson adds that ARS 16-1019 was passed by the Arizona Legislature “to protect those engaged in free speech from overzealous regulatory efforts by municipalities, efforts that history has shown have not been applied evenly, and application has varied depending on the message conveyed in the sign.”

The lawsuit also alleges Gilbert officials distributed an improperly written informational pamphlet about the bond election. Such pamphlets are allowed by state law but must present “factual information in a neutral manner.”

According to the lawsuit, the pamphlet was written by the town not as “a presenter of neutral and factual information” but as an advocate promoting a “Yes” vote by describing bond approval as necessary to ensure Gilbert’s “quality of life for its residents” and the town’s “long-term sustainability.”

The result, Torgeson alleges, was voter disenfranchisement due to the town “putting its thumb on the scale.”

Small Business Saturday Seeks Shoppers’ Attention Amid Black Friday And Cyber Monday

Small Business Saturday Seeks Shoppers’ Attention Amid Black Friday And Cyber Monday

By Terri Jo Neff |

With the National Retail Federation estimating that 2 million more people will do holiday shopping between Thanksgiving Day and Cyber Monday, Arizona’s leading small-business association is reminding shoppers of the upside to reserving some of that money for Small Business Saturday on Nov. 27.

Started by American Express as a post-Thanksgiving, pre-Cyber Monday marketing gimmick in 2010, Small Business Saturday is now officially co-sponsored by the U.S. Small Business Administration. In 2019, Small Business Saturday shoppers at “mom and pop” type independent retailers and restaurants spent nearly $19.6 billion, which was topped last November at $19.8 billion despite ongoing pandemic challenges.   

Michigan State University’s Center for Community and Economic Development has reported that of $100 spent at a locally owned business, $73 remained in the local economy in the form of higher wages, re-spending, and an improved tax base.

“Dollars spent at small, locally owned businesses are not sent to some out-of-state corporate parent,” said Chad Heinrich, Arizona state director for the National Federation of Independent Business (NFIB). “Those dollars stay local and support the community.”

Earlier this month NFIB released the latest findings of its special COVID-19 polls showing 62 percent of small-business owners say their supply-chain disruptions are worse than three months ago. And 90 percent of respondents expect the problem to continue for the next five months, if not longer.

Equally troubling, according to Heinrich, is that NFIB’s Small Business Economic Trends report found the percentage of small-business owners expecting better business conditions in the coming months has fallen to its lowest level since November 2012.

That is why getting a large share of the nation’s estimated 158.3 million holiday shoppers to shop local small businesses is important, especially in Arizona where so many businesses continue to struggle post-pandemic.

“Shopping at small businesses helps the Arizona economy,” said Heinrich. “This is a tough time for our mom-and-pop businesses. If Arizonans focus on shopping local, this could be a jolly holiday season for all.” 

According to American Express, last year’s Small Business Saturday exceeded expectations despite the pandemic due to small businesses pivoting to online sales and utilizing non-traditional advertising such as social media to stay connected with customers.

“In addition, small business owners rolled out a variety of giveaways and special offerings to consumers, a smart strategy as 43% of consumers reported that they took advantage of special offers or promotions from small businesses on the day,” AMEX reports.