3rd man, with the signal heart.diamond, takes the watch, that's a weird guy. He puts it in the closed store's display. He picks up the newspaper, and his body blocks the view of another smaller window that slides in, with a hole. The light changes subtly when the hole reaches his hand. With his back blocking, the original slides back as he pulls his hand out, the light changing again.
And suddenly, somehow, the newspaper has a hole in it.