Retailers and Suppliers Convey Extensive Benefits of EAS Source Tagging at 2014 Symposium
Supermarkets, Pharmacies, Dollar Stores and CPG Firms Reduce Labor Costs and Shrink, Protect Brands and Improve In-Store Shoppers Experience
THOROFARE, N.J. – June, 3, 2014 – Checkpoint Systems, Inc. (NYSE:CKP), a leading global supplier of merchandise availability solutions for the retail industry, today released some of the conclusions reached at the recently held 2014 National Source Tagging Symposium sponsored by the company and hosted by CVS Caremark Corp.
Attended by participants representing a wide range of retailers, consumer package goods (CPG) manufacturers, and packaging companies, the audience benefited from the knowledge and experience of subject-matter experts, including Mike Silveira, vice president, Loss Prevention CVS/Caremark; Erin Knight, director, product protection, CVS/Caremark; Wendy Marshall, general manager, Myer Australia; Bob Oberosler, group vice president, Asset protection, Rite Aid; Mark Mellor, divisional vice president, Loss Prevention, Family Dollar; and Neil Mathews, vice president product development, of Checkpoint Systems.
The speakers shared their implementation experiences, best practices and measurable benefits of visible source tagging. Bottom line, by implementing a comprehensive Electronic Article Surveillance (EAS) system, including labels, deactivation and antennas, retailers can confidently open-display their merchandise, enhancing their shoppers’ experience and increasing sales. Source tagging shifts the EAS tag application process from the store to an automated process at the point of manufacture, allowing store associates to focus on servicing their shoppers rather than applying tags. In addition, source tagging saves retailers a considerable amount in labor costs while ensuring application compliance, protecting brand presentation and enhancing their customers’ shopping experience.
Industry standards for application at source and performance at retail stores are critical components for the implementation of source tagging by retailers, CPGs and packaging suppliers. One standard discussed was the use of visible source tagging, which is utilizing a visible clear (circuit) label to provide a visual deterrent to potential shoplifters while protecting the look and feel of the merchandise. Clear labels do not interfere with existing retail packaging, branding, barcodes or product information, and have been proven in retailers’ pilot studies to significantly reduce pilferage. Research conducted with a Fortune 500 retailer found that 90 percent of store managers believe that external clear labels are effective at deterring theft, while 68 percent believe that shoppers prefer to see visible product protection. One pharmacy retailer noted that source tagging alone has reduced the pilferage of high-risk items by 44 percent. Food and drug retailers also discussed the value of visible labels in deterring and apprehending the growing number of organized retail crime (ORC) perpetrators, since these items are more easily tracked and identified when resold to wholesalers, flea markets and online auctions.
A Fortune 500 retailer wrapped up his session by noting that EAS and source tagging are the backbone of his company’s merchandise protection program. He noted that source tagging provides the first line of deterrence and detection of shoplifting activities and that visible source tagging was proven to provide even greater deterrence over hidden labels. He concluded by urging suppliers to support visibly EAS source-tagged high-risk products.
According to Farrokh Abadi, president and COO, Checkpoint Systems, “We were excited to partner with CVS in offering this educational symposium so retailers and suppliers could share best practices and better understand how an effective source tagging program can increase sales and decrease shrink. Attendees also learned how other retailers measure and track the return on investment (ROI) of source tagging programs for their organizations. Overall, the symposium was a tremendous success for all involved. In the near future, Checkpoint will be publishing a white paper on source tagging best practices so the entire industry can benefit from the knowledge shared at these events.”
About Checkpoint Systems, Inc. ( www.checkpointsystems.com )
Checkpoint Systems is a global leader in merchandise availability solutions for the retail industry, encompassing loss prevention and merchandise visibility. Checkpoint provides end-to-end solutions enabling retailers to achieve accurate real-time inventory, accelerate the replenishment cycle, prevent out-of-stocks and reduce theft, thus improving merchandise availability and the shopper’s experience. Checkpoint’s solutions are built upon 45 years of radio frequency technology expertise, innovative high-theft and loss-prevention solutions, market-leading RFID hardware, software, and comprehensive labeling capabilities to brand, secure and track merchandise from source to shelf. Checkpoint’s customers benefit from increased sales and profits by implementing merchandise availability solutions to ensure the right merchandise is available at the right place and time when consumers are ready to buy. Listed on the NYSE (NYSE: CKP), Checkpoint operates in every major geographic market and employs more than 4700 people worldwide.