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Maximize Retail Profits document sample
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Quarter 1 / 2009
insights from global retailers
• Maximize Profits
• Reduce Shrink
• Improve Operations
in this issue...
RSR, VDC Research, Gatekeeper Systems, Nespresso, Grupo Cortefiel,
BGN, ASPIAG, Sportshouse, Frost & Sullivan, Nuance Group
NORTH AMERICA
Industry Study Finds 71% of Retailers Use Exception
Reporting As Critical Business Intelligence Tool to
Improve Shrink and Maximize Profits
Retail Systems Research (“RSR”) Study Also Finds That Top Retailers Use Electronic Article Sur-
is the only research company run veillance Three Times More than Underperforming Retailers
by retailers for the retail industry.
RSR provides insight into business A recent study by RSR, “Loss Preven- With the troubled economic climate
and technology challenges facing tion and Beyond: Survival of the more retailers are seeking to improve
the extended retail industry, and ”
Fittest, sponsored by Sensormatic Re- their gross margin and reduce em-
thought leadership and advice on tail Solutions, revealed substantial dif- ployee and customer shrink; thus fuel-
navigating these challenges for ferences between top retail ing the need to leverage existing LP
specific companies and the indus- performers – those whose sales tools as well as invest in the latest
try at large. To learn more about growth outpace the 3% industry aver- technology. The reach and efficiency of
RSR, visit www.retailsystemsre- age – and retailers below that average. traditional loss prevention tools like
search.com. Findings indicate that 71% of all re- EAS anti-theft systems can be further
spondents said they frequently use ex- extended and maximized by strategic
ception analysis reporting - a key deployments of store business intelli-
business intelligence tool - as a critical gence platforms.
In-Store, your information technology in their loss prevention (LP)
highway to the latest trends, arsenal (see chart below). Another find- “Greater usage of business intelli-
news, and insights in global ing is that nearly three times the num- gence tools has improved the effi-
retail, takes you on a world- ber of top performing retailers utilizes ciency of our other loss prevention
wide journey. In this issue, Electronic Article Surveillance (EAS) technologies and delivered a strong re-
we present some of the technology as compared to underper- ”
turn on investment, said David
world’s leading retailers as formers. George, vice president of Asset Pro-
they share their business tection for Harris Teeter. “Business in-
challenges and successes
achieved through implement-
ing different in-store
security technologies. Most Important Tools Used for Loss Prevention
Frequently Sometimes Never
We appreciate your feedback.
If you have comments or
Video Surveillance 57% 40% 8%
ideas for stories you would
Procedural review 38% 51% 11%
like featured in future
editions, please email us “Low tech” theft deterrents (locked cabinets, etc.) 31% 58% 11%
at InStore@Tycoint.com. Cash management systems 49% 40% 11%
Returns and void management 62% 28% 11%
Read on….there’s plenty Exception Analysis Reporting 71% 17% 12%
more In-Store!
Sales audit 44% 41% 14%
More frequent physical inventories 30% 55% 16%
Pre-employment screening systems 40% 41% 19%
On-hand adjustment audits 22% 56% 22%
Source: RSR Research, November 2008
2
NORTH AMERICA
telligence solutions such as Sensor- to underperformers, but they also ning retailers in investing in intelligent
matic Analytics tied to our CCTV sys- tend to do different things: “(They) solutions. More compelling is that only
tems have enabled our operators and think differently, plan differently and 17% of underperforming retailers em-
loss prevention teams to quickly iden- respond differently. ” brace EAS to protect their stores com-
tify and address both operational and pared to 48% of winning retailers – a
loss prevention issues in each of our “In tough economic times, shrink con- strong case for why underperformers
stores and across the entire chain. The ”
tinues to rise, said Paula Rosenblum, are missing opportunities from new
technology enablers. ”
“Greater usage of business intelligence tools has improved the Sensormatic® Analytics powered by
efficiency of our other loss prevention technologies and Retail Expert offers a comprehensive
suite of store business intelligence
delivered a strong return on investment.” solutions to provide retailers the
David George, vice president of Asset Protection, Harris Teeter means to measure their performance
objective, manage their store opera-
tions and ultimately, improve their
profitability and performance.
end result is two-fold: improved shrink RSR’s managing director and widely For a free copy of the report visit
reduction and better performing store recognized as one of the top analysts http://www.retailsystemsresearch.com
operations.” in the retail industry. “With the slow-
ing economy many retailers have cut For more information on Sensormatic®
RSR conducted the online survey dur- back on staff and now will be relying Analytics visit http://www.sensor-
ing September and October, 2008, in- on technology to help control theft. matic.com/Products/StoreBusinessIn-
cluding respondents from retailers Smart, winning retailers know the best telligence2/SBI_home.aspx.
with stores around the world. Among way to maximize profitability and im-
its findings: prove shrink is to leverage existing as-
sets and improve store intelligence. ”
• Employee theft of goods and cash
are top retailer concerns, with in- Rosenblum added, “Underperforming
ternal theft as number one source retailers are significantly behind win-
of shrink, shoplifting second and
internal theft of cash third.
• While almost half of top perform-
ers use EAS to control shrink, only
17% of underperformers use EAS.
• Top performers use business intel-
ligence tools like returns and void
management technologies 46%
more than underperformers.
• 53% of all respondents cite better
business intelligence as needed to
make effective use of the vast
amounts of loss prevention data
that exists.
According to the report, this discovery
was consistent with many other find-
ings that top performers don’t merely
do the same things better compared
Source: RSR Research November 2008
3
NORTH AMERICA
White Paper from VDC Research Reveals Need for Retailers to
Embrace Real-Time Inventory Visibility Solution to Drive
Operational Efficiencies and Profitability
Recently VDC released a compelling
white paper “Chaos in the Retail Investments in improving item-level
”
Cosmos, sponsored by Sensormatic visibility can provide retailers with im-
Retail Solutions details the acute mediate benefits according to VDC’s
requirement for improved inventory analysis. When carefully staged and
visibility and management on the retail managed, with the cooperation of trad-
floor, representing retailers’ best ing partners, increased item-level visi-
opportunity to make meaningful im- bility can lead to material
VDC Research Group (VDC) is a provements to their efficiency and improvements in planning, forecasting,
technology market research and profitability. As the title of the paper merchandising and execution, creating
strategy consulting firm that ad- suggests, the global economy contin- a viable source of competitive differen-
vises clients in a number of tech- ues to struggle through one of the tiation: item-level intelligence.
nology markets. Using rigorous most chaotic fiscal climates in history.
primary research and analysis VDC’s research reveals the benefits re- One retailer experiencing the benefits
techniques, VDC helps its clients tailers realize by investing in item-level of item-level visibility is Boekhandels
identify, plan for, and capitalize on RFID inventory management solutions Groep Nederland (BGN), the Nether-
current and emerging market to overcome operational challenges lands’ largest book retailer. According
opportunities. To learn more about and the requirements for achieving the to Jan Vink, CIO for BGN, “We partici-
VDC, visit www.vdcresearch.com. highest possible ROI. pated in this important industry re-
search to share our experience
According to Tom Wimmer of VDC, implementing item-level RFID within
“Out-of-stocks, misplaced merchan- our stores. With the deployment of the
dise, shrink and vendor fraud are ongo- TrueVUE RFID platform, we realized an
ing challenges for retailers that can increase in inventory accuracy from
adversely impact sales and profitability. 65% to 97 .5%, while reducing our re-
Given the current economic outlook, ceiving process to less than 20 min-
retailers need to consider investing in utes. Our investment in item-level
a new breed of inventory management RFID has created opportunities for us
solutions that are capable of address- to reduce inventory carrying cost, and
ing these challenges head-on, while enhance revenue capture with each
enhancing the customer’s shopping ex- ”
customer visit. The Sensormatic Solu-
perience and creating opportunities to tion, powered by the TrueVUE™ RFID
capture incremental revenue. ” platform, is offered by ADT.
According to the January 2008 study run jointly by IHL Consult-
ing Group and RIS News, “retailers in the Americas lose
$93 billion annually to out-of-stocks.”
Greg Buzek, president, IHL Group
4
NORTH AMERICA
In focusing on the requirements for ing and addressing the commercial Interested in learning more? For a
successful implementation and ROI requirements of all stakeholders. The complimentary copy of the white
generation, the paper recognizes the very best solutions harness the item- paper visit:
importance of partnering with suppli- level intelligence provided by these http://www.sensormatic.com/cp/VDC_
ers and integrators that have the tech- systems to inform and empower de- WhitePaper.aspx
nical and commercial capabilities to ploying companies, their trading part-
deliver, deploy and manage these so- ners and ultimately their customers. For more information on Sensormatic
lutions with or for their customers. Item Level Intelligence visit
VDC presents a framework for suc- http://www.sensormatic.com/Prod-
VDC recognizes that many vendors cessful deployment of item-level in- ucts/RFID/RFID_home.aspx.
now have the technical expertise re- ventory management solutions using
quired to meet retailers’ immediate case studies to demonstrate the incre-
requirements for item level manage- mental benefits tech savvy retailers
ment in a cost effective manner, but are deriving through thoughtful plan-
maximum ROI hinges on understand- ning and execution.
5
NORTH AMERICA
Nineteen of the Top-Twenty Cart-Based Retailers Worldwide Rely
on the Gatekeeper Advantage Now Bolstered by Sensormatic
Solutions for Operational Improvement
Through an industry alliance, Gate- ers more enterprise level intelligence,
keeper Systems and Sensormatic are enhanced data reporting capabilities,
now helping retailers improve opera- and improved visibility to store level
tions by offering a range of integrated events, such as pushout theft. By
end-to-end cart containment and loss joining the two solutions retailers can
prevention solutions that blend tech- benefit from improved operational
nological sophistication and ease-of- performance, while achieving a maxi-
use. Today’s retailers are plagued by mum return on investment with mini-
shopping carts increasingly used as mal capital outlay. Also, retailers can
Gatekeeper Systems is the leading the tool of choice among shoplifters leverage the additional functionality of
provider of intelligent cart solutions or organized retail theft rings called the American Dynamics® Intellex
for retailers to prevent shopping cart "boosters." From organized theft rings brand intelligent video management
loss and merchandise theft. Gate- to individual repeat offenders, untold system to capture more significant
keeper’s patented GS Technology amounts of stolen goods literally are details of pushout theft events for
Platform is the solution of choice for rolling out of retailers’ front doors. forensic analysis.
19 of the top 20 Global Retailers.
Gatekeeper has offices located in Shoplifters use carts to appear less A recent research study by RIS News
the U.S., Canada, Europe, and Hong conspicuous in order to steal large and IHL Group stated that spend on
Kong as well as global distribution quantities of high-value merchandise, business intelligence software is
outlets, allowing solutions to be often escaping with hundreds of dol- planned to grow over 50% in 2009 as
easily accessed by major retailers lars worth of goods. Utilizing its retailers look to improve efficiencies
worldwide. For more information, patented technology, Gatekeeper’s during the economic downturn.
visit www.gatekeepersystems.com. purchek® prevention system provides More information on the study can be
cost-effective protection against found at www.ihlservices.com.
pushout theft while preserving a cus- According to Greg Buzek, president
tomer-friendly shopping experience. of IHL Group, “As business intelli-
purchek®, the industry's leading in-
store, anti-theft solution with an inte-
grated self-locking wheel, dramatically
reduces cart-based theft.
Retailers struggle with improving op-
erational efficiency while maintaining
visibility of store level events. Now re-
tailers can take advantage of Sensor-
matic SmartEAS® (electronic article
surveillance) business intelligence
platform offered by ADT, to seam-
lessly integrate the Gatekeeper line of
cart-based technology solutions. Inte-
grating the SmartEAS platform into
Gatekeeper’s technology offers retail-
6
NORTH AMERICA
“With over 1.2 million shopping carts protected worldwide, ”
ture deployment, according to
purchek® product manager Craig
Gatekeeper can now combine the GS Technology Platform with Greenberg.
the flexibility of Sensormatic’s open architecture, solutions to
reduce the total cost of infrastructure deployment.” “To improve operations, Gatekeeper’s
purchek® system is integrated with
Craig Greenberg, purchek® product manager the Sensormatic UltraLink SmartEAS
enabling customers to transition
labor-intensive manual paper logs that
gence becomes more IT-centric can gain efficiencies in a similar way are often incorrect to more accurate
strategic partnerships like Gatekeeper they that they have seen by adopting real-time tracking and data capture
and Sensormatic make sense for integrated software suites for their enterprise reporting for improved
retailers to achieve operational im- merchandising and inventory control data integrity and better visibility of
provement. Retailers worldwide face initiatives. ”
daily events, added Greenberg.
a host of challenges in order to
remain competitive and protect the “With over 1.2 million shopping carts For more information on Sensormatic
bottom line. protected worldwide, Gatekeeper can SmartEAS solutions visit
now combine the GS Technology Plat- http://www.sensormatic.com/Prod-
By leveraging the collective solution form with the flexibility of Sensor- ucts/StoreBusinessIntelligence2/SBI_
capabilities of these two industry matic’s open architecture, solutions SEASProducts.aspx.
leaders for loss prevention, retailers to reduce the total cost of infrastruc-
7
EUROPE
Leading Global Retailers Including Nestle Group’s Nespresso
Boutiques Embrace Sensormatic® Ultra•Exit Retail Anti-Theft
Systems to Help Control Theft and Maintain Profits
This challenge required a labeling so- of a concealed system that was per-
lution that was not only small enough ”
fect for one of our stores in Spain.
to fit inside compact products with-
out covering the brand or content in- Ultra•Exit delivers one of the highest
One of the latest international retail- formation, but also would be levels of anti-theft detection capabili-
ers to embrace ADT’s Sensormatic detected in and around the metallic ties available today – a top priority
Ultra•Exit solution is Nespresso, with packaging of these products. In addi- shared by leading retailers. Acousto-
more than 120 sales boutiques and tion to all of the important benefits magnetic (AM) EAS systems are the
boutique bars in key cities around the Ultra•Exit offered, we had the choice preferred anti-theft technology for re-
world. As the fastest growing operat-
ing unit of the Switzerland-based
Nestlé group, Nespresso sells sophis- “We needed an EAS solution that could offer wide exit protection
ticated coffee machines, accessories
and premium portioned coffees.
in a stylish design that blended into our unique café environment”
Nespresso
To protect their high valued products
from theft while preserving their
stores’café appeal, Nespresso re-
quired the right EAS solution. Ne-
spresso tried Radio Frequency (RF)
systems but were dissatisfied with
their performance.
“We needed an EAS solution that
could offer wide exit protection in a
stylish design that blended into our
”
unique café environment, said Ne-
spresso.
“Another key criterion was a hard tag
capable of protecting our high-end
coffee machines and accessories, ”
they added. “Also a significant consid-
eration is our popular assortment of
cookies and chocolates openly dis-
played for our guests’ convenience.
8
EUROPE
tailers, especially for those like Ne- Other leading global retailers with ex- For more information on Sensormatic
spresso selling metal-based or metal- tensive international presence include Ultra•Exit solutions visit
packaged goods. Compared to RF Grupo Cortefiel, Inditex, Mango and http://www.sensormatic.com/Prod-
systems, AM systems have the high- Marionnaud. All have recognized the ucts/EAS/DetectionSystems/Pedestal-
est detection rate to protect all types benefits of the Sensormatic Systems/PedestalSystems_home.aspx.
of products. In particular, they can de- Ultra•Exit anti-theft system in helping
tect security tags inside foil-lined them preserve store aesthetics, im-
bags or tagged products containing prove store operations and protect
non-ferrous metal. their profits.
9
EUROPE
Grupo Cortefiel Implements Business Intelligence to Improve
Store Operations in Europe
Grupo Cortefiel is one of Spain’s Installed in the Cortefiel, Springfield, For Cortefiel the most attractive as-
largest fashion retailers and one of Pedro del Hierro, Milano and pect of this type of system is the
Europe’s leading retail companies in women´secret stores, the Sensor- value added option of the Smart EAS
the specialty chain category. Through matic® SmartEAS® solution can be alarm management module, in addi-
its five brands Cortefiel, Pedro del Hi- used to monitor the flow of people in tion to the people counting system.
erro, Springfield, women´s secret and stores and analyze and manage the Smart People Counting provides traf-
Milano together with Fifty Factory anti-theft alarm systems. fic flow information and store conver-
Outlet, Grupo Cortefiel operates a sion rates in order to measure
network of more than 1,590 stores in SmartEAS® takes the data obtained performance levels and optimise the
56 countries. Given Grupo Cortefiel’s from each Grupo Cortefiel store and organisation of tasks, evaluate mar-
extensive geographic presence, they automatically generates exception- keting campaigns and improve sales.
required a solution to protect their based reports that can be used to
valuable products while also offering help enhance the efficiency of the Together with its source tagging pro-
vital business intelligence to help anti-theft systems and reveal how gram and its Sensormatic® anti-theft
drive sales and improve operational sales figures compare to store traffic. systems which are also provided by
efficiencies.
They installed Sensormatic®
SmartEAS® technology from ADT
throughout their chains in Spain,
France, Germany, Belgium, Luxem-
bourg, Czech Republic, Poland, Aus-
tria and Hungary due to it being the
most beneficial and effective prod-
uct, offering the maximum
advantages.
The solution links information from
anti-theft, alarm management, peo-
ple counting and point-of-sale (POS)
systems with the SmartEAS® plat-
form to provide business intelli-
gence that can be used to optimize
processes and improve profitability.
Among the key benefits, this solu-
tion set will help decrease shrink
significantly and also better manage
hundreds of employee working
hours per year.
10
EUROPE
ADT, Grupo Cortefiel has introduced “Delivering business intelligence is the next step in terms of
an integrated solution for loss preven- loss prevention.”
tion and business intelligence which
can be used to deliver outstanding Ricardo Arroyo, ADT director of strategic accounts (Retail)
protection for its entire network and
improve store operations.
“Delivering business intelligence is and POS systems. This integration For more information on SmartEAS
the next step in terms of loss preven- provides real-time intelligence at solutions visit http://www.sensor-
”
tion, says Ricardo Arroyo, ADT Direc- store, region and corporate level, en- matic.com/Products/StoreBusinessIn-
tor of Strategic Accounts (Retail) for ”
abling the ability to act quickly. telligence2/SBI_SEASProducts.aspx.
Southern and Western Europe. “Our
SmartEAS® technology will allow For more information on Grupo
Grupo Cortefiel to efficiently link and Cortefiel visit http://www.grupocorte-
use the information from its anti-theft fiel.com/.
11
EUROPE
BGN Boosts Sales with Item-Level Intelligence Solutions
Complete Enterprise Inventory Visibility Solution Helps BGN Drive Inventory Visibility to
97.5%, Improving Operational Efficiency, Profitability and Customer Service
BGN, the Netherlands’ largest book With the deployment of the TrueVUE
retailer, deployed a Sensormatic item- RFID platform, BGN will realize the fol-
level intelligence solution to support lowing capabilities delivered through a
dramatic improvements in efficien- single, standardized solution:
Boekhandels Groep Nederland (BGN), cies and sales. The Sensormatic solu-
a Dutch chain of 442 bookshops situ- tion, powered by the TrueVUE™ RFID • Enterprise-level reporting pro-
ated throughout the country with a platform, provides BGN with item- viding item-level intelligence
yearly turnover of € 200 million. The level visibility across its chain. BGN across all stores
company owns and operates a chain has increased inventory visibility from
65% to 97 .5%. Also it has increased • In-store receiving to provide
of bookstores that together receive automated “proof of delivery”
about 11 million visitors a year. receiving accuracy to 100% while dra-
matically reducing employee inven- of incoming books
tory time. Most importantly, BGN has • In-store cycle count and real-
significantly increased sales as well. time inventory management
of all store inventory
As a leading adopter of item-level • Real-time tracking of special
RFID, BGN’s objectives are to inte- order items utilizing smart
grate the supply and demand chain, surfaces and wireless net-
automate the ordering and replenish- working devices
ment process, enhance productivity
• Tracking of inventory move-
and improve the customer shopping
ment from the back room to
experience.
the sales floor to improve
store replenishment
Currently all books are source-tagged
with RFID labels from BGN’s distribu- • Enterprise-level device man-
tor, received into inventory, and cycle agement and monitoring
counted continuously within the
store. In addition, the item is tracked According to BGN's CIO Jan Vink,
at the point-of-sale (POS) as well as “To date we have processed more
when it leaves the store. than two-and-a-half million books.
“With smart shelves, hand-held devices and kiosks, we have re-
duced our weekly inventory to less than two and one-half hours
per store while inventory accuracy increased from 65% to 97.5%.”
Jan Vink, CIO, BGN
12
EUROPE
With smart shelves, hand-held de-
vices and kiosks, we have reduced
our weekly inventory to less than two
and one-half hours per store while in-
ventory accuracy increased from 65%
to 97.5%. Also, our receiving process
was reduced to less than 20 minutes
with an accuracy rate of 100%, culmi-
nating in an increase in sales. As a re-
sult of this success, we are confident
in our commitment to roll out item-
level RFID across all of our retail loca-
tions by utilizing the Vue platform
from Sensormatic as a single-source
for RFID hardware, software and
services to facilitate our enterprise
deployment. ”
Talk about an interesting setting,
BGN’s Selexyz Dominicanen book
store in Maastricht, Netherlands was
erected inside a former 800 year old
Dominican church. This book store is
said to hold the largest stock of books
in English in Maastricht, one of the
oldest cities in the country, transform-
ing reading literally into a religious ex-
perience!
For more information on Sensormatic
Item Level Intelligence visit
http://www.sensormatic.com/Prod-
ucts/RFID/RFID_home.aspx.
13
EUROPE
ASPIAG Realizes the Benefits of EAS Investment by Significant
Shrink Reductions and Improved Productivity
permarkets, hypermarkets and other Ultra•Exit antennas to deliver one of
retailers that require lane protection, the highest levels of anti-theft detec-
the Ultra•Lane® slim yet durable de- tion capabilities available today for
ASPIAG is part of the SPAR Austria sign offered ASPIAG minimal impact wide exit protection.
Group with over 13,500 outlets in on shopping cart passage at the POS,
33 countries, ranging from small utilizing an aesthetically pleasing look. The Return on Investment
local grocers like the Italian DeSPAR Another important benefit of According to Massimo Salviato,
stores to large EUROSPAR stores Ultra•Lane was the easy integration contract director for Aspiag Service,
and INTERSPAR hypermarkets. of the deactivation antenna into check “as a retailer committed to offering
stands for fast and simple deactiva- its customers a satisfying shopping
In Italy, the DeSPAR brand is repre- tion of tagged products, enabling experience, ASPIAG pays very close
sented by 12 regional retail formats customers to move through the POS attention to reducing theft. By deploy-
connected to the Consortium more quickly and efficiently. ing the Sensormatic Ultra•Max AM
DeSPAR Italy. The largest is ASPIAG solution, with a labeling program for
with stores most often run by inde- AM systems offer the highest detec- the most stolen items, we discovered
pendent retailers in the "Triveneto" tion rate to protect all types of prod- our investment in the technology was
area and in the Ferrara province with ucts. For ASPIAG that meant the covered with a remarkable reduction
approximately 570 DeSPAR, EU- ability of the Ultra•Max AM system in shrink. We are very pleased with
ROSPAR and INTERSPAR stores. to detect security tags inside foil- the benefits this high performance
lined bags or tagged products con- solution offers in effectively decreas-
The Challenge taining non-ferrous metal as well as ing inventory differences as well as
In recent years, the ASPIAG group metal shopping carts. To protect their detecting metallic-based products. ”
was challenged with inventory differ- entrances and exits ASPIAG selected
ences that affected their profits. As a
growing retailer they focused their ef-
forts on combating inventory reduc- “By deploying the Sensormatic Ultra•Max AM solution...we
tion, placing particular attention on discovered our investment in the technology was covered with a
selecting a technology solution capa-
ble of supporting their need to reduce
remarkable reduction in shrink.”
shrink. After careful analysis they de- Massimo Salviato, contract director for Aspiag Service
termined the high valued items
shoplifters found attractive, which ul-
timately reduced profits. As a result,
ASPIAG turned to ADT to design a
plan to effectively reduce the percent-
age of inventory shortages.
The Technology Solution
To help reduce shrink the ASPIAG
group selected ADT’s high perform-
ance Sensormatic Ultra•Max
acousto-magnetic (AM) anti-theft
system to protect 67 of their largest
stores. Designed specifically for su-
For more information on Sensormatic EAS solutions, visit http://www.sensormatic.com/Products/EAS/EAS_home.aspx.
14
ASIA
Sportshouse Helps Improve Shrink and Boost the Bottom Line with
ADT’s Sensormatic® Ultra•Exit Retail Anti-Theft Systems
As one of the biggest sportswear re- shoplifting at 51.3%. To protect their protect all types of products while
tail groups, Sportshouse sells differ- high valued products from theft, making them conveniently accessible
ent international brands of fanciful Sportshouse required the right Elec- for customers to purchase. The
and fashionable sports and causal tronic Article Surveillance (EAS) solu- Ultra•Exit detection system provides
wear including Adidas, Asics, Nike, tion for their shops. Given their wide more than two meters of coverage
Puma, Birkenstock and more. Estab- range of highly pilfered merchandise, between pedestals, which offers
lished in Hong Kong in 1985, Sportshouse chose the Sensormatic Sportshouse a high flexibility for shop
Sportshouse opened a chain store Ultra•Exit system based on its highly design and the ability to create their
.U.
C.P in 2001 to satisfy the needs of effective Ultra•Max acousto-magnetic unique theme.
the younger demographic for trendy (AM) anti-theft technology, wide exit
casual wear, supplying brands like coverage and contemporary design “The high quality acrylic construction
Arnold Palmer, Dr. Martin, Jimmy that blends with their store setting. and sleek design ensure the
Black, Red Wing and Pierrotti. Ultra•Exit system blends into our
As a leading retailer, Sportshouse re- store to provide us with a pleasant
According to the 2008 Global Retail lies on Ultra•Exit systems to deliver professional retail shop appearance
Theft Barometer, the shrink figures by one of the highest levels of theft de- while still offering a strong visual
country report Asia Pacific as having terrence available today. AM systems ”
deterrent, said Iris Choi, general
the largest percentage of theft due to provide the highest detection rate to manager for Sportshouse.
With the Sensormatic Ultra•Exit sys-
“...the Ultra•Exit system blends into our store to provide us tem, Sportshouse is able to preserve
with a pleasant professional retail shop appearance while still their store aesthetics, and increase
offering a strong visual deterrent.” sales by improving their operations to
achieve better customer satisfaction.
Iris Choi, general manager, Sportshouse
Visit http://www.sensormatic.com/Products/EAS/DetectionSystems/PedestalSystems/PedestalSystems_home.aspx.
15
ASIA
Frost & Sullivan Study Reveals India’s Organized Retail
Market Looks to Security Solutions as It Expects
44% Growth by 2012
Recently Frost & Sullivan published a Between 2003 and 2007 organized
major market study for Sensormatic retail formats (characterized as chain
Frost & Sullivan, the Growth Partner- that identified the need for loss pre- stores and stores that are subject to
ship Company, enables clients to ac- vention solutions in India. To gain fur- central ownership or franchisees) ex-
celerate growth and achieve best in ther insight into the Indian retail perienced a Compounded Annual
class positions in growth, innovation markets, the study explored retailers’ Growth Rate (CAGR) of 19.5%. By
and leadership. Frost & Sullivan pain points along with their loss pre- 2012, the organized retail market ex-
leverages over 45 years of experi- vention and operational needs in vari- pects to increase at a more aggres-
ence in partnering with Global 1000 ous retail segments. Research sive rate, projected at 44% CAGR --
companies, emerging businesses revealed in 2007 total sales for the prompting retailers to look for effec-
and the investment community India retail market, comprised of or- tive and innovative loss prevention
from 31 offices on six continents. ganized and unorganized retailers, methods.
To join our Growth Partnership, visit were $339.7 billion.
http://www.frost.com According to the study, shoplifting in
By 2012, the retail market is projected the Indian retail market accounted for
to grow to around $551.4 billion. In a over 50% of loss, which remains the
country with over one billion inhabi- number one source of inventory loss.
tants, consumer retail demand is EAS is designed to help retailers pre-
growing rapidly as the region modern- vent losses due to external theft –
izes, paving the way for retail expan- India’s most significant challenge im-
sion. With swift industry pacting retailer profitability and inhibit-
development, the majority of retailers ing future growth. Employee theft
focus on improving loss prevention represented the second largest
solutions that maximize growth and source of inventory loss at 20%.
profitability.
Indian Retail Market Overview
Organized retail consists of 4% of the total Indian retail
market and is expected to grow to 15% by 2011.
2009 - 2011 are estimates.
F&S sources: CSO, NSSO and Technopak Advisers Pvt. Ltd.
16
ASIA
“To help combat their greatest partment stores, which stock large current challenges in the global retail
sources of loss due to shoplifting and number of products, has made EAS ”
environment, according to Frost &
employee theft retailers are relying a must-have technology to prevent Sullivan chairman David Frigstad.
on EAS solutions to help improve pilferage. As more retailers become
”
their bottom line, states Frost & Sul- educated on the benefits of EAS “The business intelligence and con-
livan senior research analyst Archana technologies, we expect further in- sulting expertise that Frost & Sullivan
Amarnath. “Since organized retail vestment in superior solutions with provides can help Sensormatic fur-
accounts for 4% of the total Indian greater integration and data analytics ther understand current and emerg-
retail market and is expected to capabilities. ing trends in the Indian retail and EAS
increase to 15% by 2011, there is a markets. This knowledge will serve
huge potential for growth and an ex- “With the retail boom over the last as a foundation for future product de-
citing opportunity for Sensormatic to three to four years there has been an velopment and marketing efforts, tar-
educate the market and support influx of world-class malls and shop- geted specifically for the Indian EAS
”
retailers’ loss prevention goals. ”
ping centers, states Amarnath. market. ”
“With a larger shopping area, multi-
Additionally the study revealed 45% ple entrances, and an open counter For more information on the Sensor-
of the retailers that currently use EAS format, it has become difficult to matic retail solutions portfolio or to
rank it as the second most important deter shoplifting activity – driving the download a summary of the Frost &
technology, second only to POS, to need for EAS. ” Sullivan study please visit www.sen-
deliver benefits like shrink reduction sormatic.com.
and increased profitability. The rising “More and more companies are look-
prevalence of hypermarkets and de- ing for growth opportunities given the
17
AUSTRALIA
Nuance Group Airport Duty Free Stores
Air Side
Case Study written by John Adams, Editor, Security Electronics & Networks Magazine
ADT Security has installed major RETAIL security is a major challenge the clash between accessible retail
Sensormatic brand Electronic Article for end users and integrators. A suc- display and the principles of security.
Surveillance (EAS) retail security cessful retail environment is built But there’s more to this story than
systems at multiple sites in 4 major around giving customers a powerful that. These Nuance Group stores
airports around Australia for duty retail experience – that means a close carry a range of portable high value
free retailer, the Nuance Group. The encounter with the items they want items including fragrances, alcohol,
installation incorporates Sensor- to purchase. But by its very nature se- cigarettes, electronics and other
matic’s new Floor-Max under floor / curity applications are restrictive. The luxury goods – all of these are prime
concealed EAS system, and repre- typical layered security system if targets for thieves.
sents the first time EAS has been taken to its natural end would lock re-
used in such a large application in tail items inside displays protected by Making things more challenging still,
an air side at airports. electronic detection and surveillance the Nuance Group’s duty free stores
systems. The merchandise would be aren’t bundled up on Main St with a
safe but there would be no sales. ceiling, 4 walls and restricted access
points lending themselves perfectly to
What all this means is that any EAS typical EAS applications. Instead
application is a search for balance in these stores are in major Australian
18
AUSTRALIA
airports – and they’re not all in classic “As it stands this (Sensormatic) installation is excellent. The sys-
retail environments. The biggest of
them sprawls across hundreds of tem works, everyone is happy and we’ve reduced shrinkage by over
square metres of open terminal smack 50% in the first year – obviously we are delighted with that.”
in the entry and exit thoroughfares of
Australia’s largest airport. It has no
Nuance Group, January 2009 Security Electronics & Networks Magazine
ceilings, no walls and no single entry
and exit points.
Logically at airports, passenger thor-
oughfare is the central function and
the Nuance Group’s retail security
needs take second place to the air-
ports’ demand for efficient passenger
movement. And we’re not talking
about just a few passengers. At major
Australian airports multiple large air-
craft arrive at the same time. In all,
around 15,000 passengers pass
through Sydney Airport each day and
all must go through the Nuance
Group’s stores. If you can visualise
200 or 300 shoppers pouring through
a retail environment simultaneously in
a stream constantly replenished by
the arrival of new flights then you’re
starting to get the picture.
To read the article in its entirety
please access http://www.sensor-
matic.com/SensormaticGetDoc.aspx?
FileID=22307 .
19
Quarter 1 / 2009
We hope you have enjoyed reading this issue of In-Store, featuring insights from global retailers. We welcome your comments or
suggestions on future stories by emailing InStore@tycoint.com.
If you have questions on any of the technologies discussed in this issue, by region, please visit
http://www.sensormatic.com/whoweare/Contactus.aspx or contact the following regional marketing representative:
North America Latin America
Lee Pernice Carolina Garcia
E-mail: lpernice@adt.com E-mail:carogarcia@tycoint.com
Phone Number: 1-561-981-4275 Phone Number: +56 24246734
Europe Australia
Daxa Patel Tamora Wells
E-mail: dvpatel@tycoint.com Phone number: +61 2 9947 7239
Phone Number: +44 1943 743002 E-mail: tamwells@tycoint.com
Asia New Zealand
Joyce Lim Natalie Greaves
Email: retail.asia@tycoint.com E-mail: ngreaves@tycoint.com
Phone Number: +65 6389 8225
/instore.sensormatic.com
http:/
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