By Ian Sherr

When Whole Foods Market Inc. opened a store in San Francisco’s Haight-Ashbury early this year, many locals and community leaders hoped it would help improve a grungy corner of their famous neighborhood. Nearly a year later, they’re still waiting.

Since the upscale market opened in February across from a section of Golden Gate Park known as Alvord Lake, known for attracting drug dealers and homeless people, crime within a 500-foot radius of the store has shot up, according to the San Francisco Police Department. At the same time, Whole Foods hasn’t lifted the overall neighborhood’s business prospects, sales-tax receipts data from the San Francisco Comptroller’s Office show.

While the Whole Foods store has brought new customers to the neighborhood, changing the feel of the area, “the riffraff hasn’t gone away,” says Joe Goldmark, who co-owns an Amoeba Music store across the street from the store.

For its part, Whole Foods has tried to meet these challenges. It hired security guards and one plainclothes officer who are at the store throughout the day. The store’s management also regularly confer with police about crime in the area.

The company has also tried to help improve the local economy in Haight-Ashbury by partnering with local food producers in its efforts to offer healthy food to customers. “We’re always concerned about the neighborhoods we’re in,” said Libba Letton, a Whole Foods spokeswoman, who added that the store’s managers are always looking for more ways to help the community.

Whole Foods’ experience in Haight-Ashbury so far shows how nearly a half-century after the 1960s “Summer of Love,” when thousands of people swarmed the neighborhood as part of the counterculture movement, the area is still grappling with the uneven gentrification unfolding there.

Today, vacationers flock to the area to snap pictures of the famous intersection at Haight and Ashbury streets. The neighborhood has become a destination for tech workers, as well as aging hippies and runaway youths. Amid that mix, property values have risen over the years, but some areas, like the end of Haight Street that Whole Foods inhabits, have improved at a snail’s pace.

To read the rest of the story, either contact me directly or read more online at the WSJ: here. (subscription required)

(Originally published Dec. 8, 2011, in the Wall Street Journal.)

By Ian Sherr

Plaintiffs lawyers are targeting Sony Corp. with class-action suits after a breach of the company’s online-game network compromised the personal information of millions of users.

In one lawsuit, filed in the U.S. District Court’s Northern District of California, videogame player Kristopher Johns said Sony’s security was negligently poor and the company failed to encrypt personal information.

The lawsuit, which was filed Wednesday against Sony’s U.S. entertainment unit and seeks class-action status, also alleges Sony failed to notify customers of the breach in a timely manner.

“This has caused, and continues to cause, millions of consumers fear, apprehension, and damage,” the filing said.

To read the rest of the story, either contact me directly or read more online at the WSJ: here. (subscription required)

(Originally published April 29, 2011, on the Wall Street Journal website.)

By Nick Wingfield, Ian Sherr and Ben Worthen

A hacker stole the names, birth dates and possibly credit-card numbers for 77 million people who play online videogames through Sony Corp.’s PlayStation console, in what could rank among the biggest data breaches in history.

Sony, whose gaming network has been offline for six days, disclosed Tuesday that an “illegal and unauthorized intrusion” between April 17 and April 19 resulted in the loss of a significant amount of personal information that could be used in identity theft.

The PlayStation Network is used by owners of the company’s game machine to play against one another, chat online and watch movies streamed over the Internet. Sony warned users the intruders may have accessed billing addresses, purchase histories and account information for their children.

Fueled by fast Internet connections, online-gaming services have become global social hubs for tens of millions of people who spend hours competing and cooperating on fantasy quests, combat missions and other activities. People across the globe pay monthly fees to play online-computer games like “World of Warcraft.” Most titles for the PlayStation 3 and Microsoft Corp. Xbox 360 have online components.

Sony warned members of its PlayStation Network and a related entertainment service called Qriocity to closely watch their credit card statements for unauthorized charges. It also told members to be on guard against email, telephone and postal scams aided by the lost personal information.

“While there is no evidence at this time that credit card data was taken, we cannot rule out the possibility,” Sony said in a blog post.

The PlayStation Network, meanwhile, remains out of commission, sowing frustration among gamers. In the blog post, Sony spokesman Patrick Seybold said the company has a “clear path” to restore “some services within a week.”

The incident is a major black eye for the Japanese electronics giant, locked in an increasingly heated battle with Microsoft, Nintendo Co. and other companies in the gaming market. The breach also highlights the trove of personal information stored in online-gaming services.

E.J. Hilbert, a former agent with the Federal Bureau of Investigation who is now a senior vice president at security consulting firm Arixmar, called the compromise of as many as 77 million users accounts “huge.”

To read the rest of the story, either contact me directly or read more online at the WSJ: here. (subscription required)

(Originally published April 27, 2011 on the front page of the Wall Street Journal.)

By Ian Sherr

CHICAGO (Reuters) – Walking the pharmacy aisle of a Target Corp discount store, shoppers can’t miss the many anti-shoplifting measures: locked display cases, alarm cords around boxes of expensive merchandise, display hangers with locks on the end.

Those represent only a fraction of the anti-theft advances created over the years to protect stores against shoplifters and organized retail theft gangs.

But what about the determined insider?

(more…)