Forty-five Percent of Top 50 Global Retailers Using Checkpoint Systems’ Source Tagging Services
December 08 2014 - 8:02AM
Business Wire
Resulting in Dramatic Reductions in Shrink,
Decreases in Merchandise out-of-Stock, Increases in Sales and
Customer Service
Checkpoint Systems, Inc. (NYSE:CKP), a leading global supplier
of merchandise availability solutions for the retail industry,
today announced that 45 percent of the top-50 global retailers as
identified by Deloitte are now source tagging some merchandise
categories using Checkpoint Systems processes.
Source tagging shifts the security tag application process from
a manual labor-intensive process at the store to an automated
process at the point of manufacture, allowing store associates to
focus on servicing their shoppers rather than applying tags. With a
source-tagging throughput between 15,000 and 30,000 labels per
hour, the process saves retailers a considerable amount in store
labor costs while ensuring application compliance, protecting brand
presentation and enhancing their customers’ shopping
experience.
“Why source tagging? It seems like a ‘no brainer’ to me. Today,
it remains a driver of incremental sales as much as it is a
shortage management tool,” said industry expert Robert L.
DiLonardo, principal of Retail Consulting Partners, LLC.
Checkpoint’s source tagging program is used by 45 percent of the
top-50 global retailers throughout the world as identified by
Deloitte in recent research. These retailers represent different
vertical markets, from drug/pharmacy, to discount store formats, to
supermarkets, to general apparel and specialty accessories like
shoe stores. For example, U.S. retailers include CVS/Caremark and
Family Dollar among many others.
At a recently held 2014 National Source Tagging Symposium
attended by a wide range of consumer package goods manufacturers
and retailers, including Mike Silveira, vice president, Loss
Prevention CVS/Caremark and Mark Mellor, divisional vice president,
Loss Prevention, Family Dollar, a Fortune 500 retailer noted that
EAS and source tagging are the backbone of his company’s
merchandise protection program. He added 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. Attendees, who met
again this month, agreed that visible source tagging should be the
key focus of the industry.
In fact, globally, millions of SKUs are being source tagged
annually using Checkpoint’s program. Over the past 20 years,
Checkpoint has evaluated over 75,000 different merchandise
categories in its globally located Source Tagging Evaluation
Centers.
“We know that if we protect high-value merchandise, there’s a
corollary impact on sales and gross margins. High-value merchandise
can be out on display, yet protected, creating a better in-store
experience and improving our in-stock position,” commented Julie
Giblin, VP of loss prevention at Family Dollar.
Internationally, retailers like the Bennet Group in Italy have
had positive results with source tagging. Luigi Forgione, a
director of the Bennet Group, said, “Checkpoint’s support has been
invaluable. The company has worked closely with our technical team
to create a solution, which offers superior merchandise protection
without affecting the store aesthetics.”
Berlucchi, an Italian winery company, is source tagging today
its Cuvee Imperiale Brut and Cuvee Imperiale bottles. The company
protects at source its bottles against theft without compromising
the aesthetics or the image of the brand on the bottle.
Among the reasons for the rise in source tagging use by
retailers and CPGs is that product categories that were previously
considered too difficult to tag, such as liquids, perishables, some
specialty apparel, hard and soft goods, meats and even small
cosmetics can now be source tagged. The sales velocity for some of
these merchandise categories make it difficult to tag at the store,
but without protection, the merchandise became an easy target for
shoplifters creating out-of-stock situations and negatively
affecting shopping experience.
According to Per Levin, president and chief sales officer for
Merchandise Availability Solutions for Checkpoint Systems,
"Checkpoint's source tagging program is a proven and evolving
high-impact program both on store sales and for a reduction in
shrink around the world. New products in combination with new
methods and more partners are creating increasing momentum in the
market place, making it further attractive to join this program
today."
A source tagging guide from Checkpoint that includes best
practices on how to implement a source tagging program is available
here.
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.
Twitter: @CheckpointSys
GCC, Inc. (for Checkpoint)George Cohen,
617-325-0011george@gccpr.com
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