Checkpoint Systems, the global leader in product identification and shrink management solutions, has been selected by METRO Cash & Carry to launch a global shrink management and source-protection program in Europe, Asia and Africa. The strategic agreement, which includes worldwide store installation of NDRF (New Digital Radio Frequency) technology and source tagging, will help METRO Cash & Carry to minimize shrinkage and reduce operational costs by using only one supplier, Checkpoint Systems, and implement source tagging, with the ultimate aim of improving their customers' shopping experience.
Installation of 3G NDRF (called "Liberty PX" in North America ) antennas and deactivators is planned for the more than 425 Cash & Carry self-service wholesale stores in 28 countries, making it the most international EAS (Electronic Article Surveillance) roll out of its kind.
The global shrink management solution provides METRO Cash & Carry (under METRO and MAKRO brand names), with product protection throughout the entire supply chain, from manufacturing and distribution to the point of sale, where the RF tags on the item are deactivated. This eliminates the need for employees to spend time physically securing the tags in-store or removing them at point of sale.
"Protection of products right from manufacture is now essential to minimise shrinkage, and improve processes," said Gerhard Friedrichs, Corporate Head of Security of METRO Cash & Carry.
"Traditionally across METRO security was managed in-store, using a number of different technologies and methods, such as AM (Acousto-magnetic) and RF, from different suppliers. Partnering with Checkpoint will allow METRO to have a consistent product protection solution across its entire international estate."
Source tagging ensures that the presentation of a product is not altered as the tag can be applied onto, or integrated directly into, a product's label or packaging. This provides a discreet security solution that enables the retailer to display the products freely, giving customers easy access to products.
Products prone to theft will be protected first, such as garments, shoes, razor blades, wine, spirits, liquors, and high-value meat. The Benelux nations, which have already commenced their source tagging program are protecting high risk items like batteries, ink cartridges, garments and cosmetics.
A large proportion of METRO Cash & Carry's product range will be tagged and the security added to the product will be adapted to each country's specific needs. A variety of unique source tagging solutions from Checkpoint will be used by METRO, including high speed auto-apply labels, fully integrated hang tags, shoe and woven labels with or without variable data to be applied on apparel, within apparel or into the shoe items.
Checkpoint is also able to provide METRO Cash & Carry with tags through its Global CheckNet Service Bureau, which can print virtually any label or ticket upon demand from any of the five continents. This will help to increase the quality of METRO's manufacturing phase, enabling products to reach stores much quicker and with the right level of product protection.
METRO Cash & Carry has built an internal team to handle the implementation of the project and Checkpoint is supporting the program with it's own source tagging team, including source tagging advisors based at METRO's Buying Offices around the world.
George Off, CEO and Chairman of the Board of Checkpoint Systems Inc., said, "Our strategic partnership with METRO Cash & Carry shows that both parties have invested for the long term to help secure merchandise better, while also improving the customer shopping experience. This program demonstrates the advantages that RF source tagging can deliver. With this bold move by METRO Cash & Carry, as well as announcements by other global retailers over the past 12 months, RF source tagging has clearly been established as the industry standard in Europe , and in many vertical markets globally."
About Checkpoint Systems Inc.
Checkpoint Systems Inc. is the global leader in shrink management solutions for the retail industry and its supply chain. Checkpoint's services are aimed at increasing sales and protecting the profits of its customers. Listed on the NYSE, Checkpoint operates in every geographic market and employs 3,600 people worldwide. Checkpoint specializes in source protection of consumer goods, EAS (Electronic Article Surveillance), RFID (Radio Frequency Identification) and merchandising solutions. CheckNet is Checkpoint's strategic platform for its source tagging service, a global network for real-time delivery of critical information and protection applied on products at the point of manufacture. www.checkpointsystems.com
About METRO Cash & Carry
METRO Cash & Carry is the international market leader in self-service wholesale business for professionals. It is the biggest sales division of German-based METRO Group, the Top 3 retailing group worldwide. METRO Group had annual sales of ? 55.7 billion in 2005 and covers the sales formats METRO/Makro Cash & Carry, Real/Extra food retail, Media Markt and Saturn as well as Galeria Kaufhof department stores. More information at www.metrogroup.de or www.metro-cc.com