Checkpoint Systems Helping Retailers Grow Profitably 1 About Checkpoint Checkpoint Systems is a global leader in shrink management, merchandise visibility and apparel labeling solutions. Checkpoint enables retailers and their suppliers to reduce shrink, improve shelf availability and leverage real-time data to achieve operational excellence. Checkpoint solutions are built upon more than 40 years of RF technology expertise, diverse shrink management offerings, a broad portfolio of apparel labeling solutions, market-leading RFID applications, innovative high-theft solutions and its Web-based Check-Net data management platform. Listed on the NYSE (NYSE: CKP), Checkpoint operates in every major geographic market and employs more than 5000 people worldwide. 2 Checkpoint®: Visibility from source to store DC Shipping Manufacturer Retail Store Receiving Distribution Centre DC Receiving Retail Store 3 Checkpoint® Enables Digital Retailing Checkpoint®: Track, Trace & Protect Merchandise Source Tagging & Labelling RFID: Visibility in the Front & Back of Store CCTV High Theft Solutions EAS/RFID Reader Visitor Counting Data Analysis Software 4 The Compound Effect of Shrink… Direct Loss Unaccounted for Shrink The Direct Loss is Only the ‘Tip of the Iceberg’ Inventory Inaccuracy Poor Replenishment (Silent) Stock-outs Indirect Loss 30 Times Greater* “About 60% of our business is derived from replenishment. Our customer expects us to be in stock on the white, non-iron, button-collar dress shirt in 16 34/35 whenever he walks in the door.” -- Executive Vice President, $800 million apparel retailer *Source: MIT AutoID Center Study 5 Checkpoint® Retail Solutions The new paradigm: Digital Retailing Fundamentals of optimising retail operations Sales Customer Satisfaction Shelf Availability Visibility Shrink Management Identification Prevention Shelf Availability Response Protection 6 EAS RF Solutions from Checkpoint Systems: New RF Solutions from Checkpoint Systems: “To have a world class range of solutions tailored to meet our customers individual needs, focused on their own product protection issues, operational and store design needs, and their Loss Prevention Teams overall strategies” Trend PX Plus QX New Street Classic range: Offers the recognised benefits of Checkpoint Design, Quality and Detection in three affordable design options Street New Style New Classic IP range: Offers the recognised benefits of Checkpoint Design, Quality and Detection in two attractive design options complete with data connectivity for seamless management control P10 P20 P20S G10 G20 EVOLVE range: Checkpoints Premier range, designed with maximum detection and maximum control with clear KPI driven management tools. Comes complete with full range of data accessories to really help retailers to really grow profitably. S10 E10 WX W10 W11 EVOLVE EX Exclusive range An Exclusive collection of designer based solutions. For retailers who store designs require something more exclusive. All based on EVOLVE technology for the best of the best. Checkpoint’s commitment to the environment • Checkpoint is committed to reducing the impact its global activities have on the environment through it’s ECO initiative. • We have become an ECO corporation: • • • Environmentally Committed Organisation • All programs meeting these commitments carry the Checkpoint ECO logo. • ECO Electronics are now available is all antenna ranges. Visitor Counting • Knowing how many people have entered a retail store is a vital piece of data. • This foundation data starts to paint a picture about the ultimate profitability of that store, and the entire retail chain. • Visitor Counting helps to reveal the complete picture of: • Sales potential • Sales conversion ratios • Regional and National benchmarking • Marketing campaign success • Store resources planning EVOLVE MetalPoint™ – integrated booster/foil bag detection • • • • • A favoured method of theft for professional thieves. Foil lined bags or clothes are used to reduce EAS system effectiveness. EVOLVE has the option of effective integrated foil bag detection using MetalPoint™ technology. This provides early warning of possible ORT theft attempts seamlessly alongside the standard EVOLVE functionality. Linked to external pagers and alerts, this discreet warning can be acted upon immediately and the possible theft attempt deterred. Hard Tag@Source • Checkpoint’s industry-leading Hard Tag@Source (HT@S) program combines the benefits of a strong visual theft deterrent with point-of-manufacture tagging. • Checkpoint’s specially designed hard tags withstand the product lifecycle of apparel merchandise, from factory to store. • Core to a comprehensive source tagging program • An environmentally friendly solution, built on reusing tags • A global solution where top retail brands have created a fast moving shared pool of tags • Total Quality Management-compliant, meeting strict process, environmental and quality control standards • Real-time EDI-capable • An extension of shrink management into the supply chain 17 What are Hard Tags? • Hard tags come in different styles. They are made of high impact proof ABS plastic and are secured to stock with either a pin or a lanyard made of steel. Available in RF and AM Formats. • Keepers come in different sizes and are available in RF or AM formats. • Hard tags are re-useable and are removed from merchandise at the point of sale using a magnetic detacher. • 3 Alarm Technology • Available in RF and AM format • Protects your merchandise three ways: • Early Detection – alarms when merchandise is tampered with in-store. • EAS Protection – activates EAS alarm if breach occurs. • Extended Range – self- alarms if merchandise is removed from store. What is Source Tagging? • Paper-thin RF-EAS tags can be embedded seamlessly virtually anywhere on any product, inside branded tags or in any type of packaging. • They can be applied at production line speeds and can be overprinted with variable data. Many packaging partners are certified to apply Checkpoint RFEAS labels. • Checkpoint’s Enhanced Performance (EP) labels are more environmentally friendly than traditional labels; they contain less aluminum, less paper and less plastic. • Checkpoint have a dedicated Source Tagging specialist who will deal with your suppliers directly. Source Tagging With Checkpoint RF source tagging, retailers receive all the benefits associated with EAS, along with some significant additional advantages. Checkpoint source tagging helps retailers: • Reduce shrinkage from shoplifting and internal theft by as much as 50% • Protect virtually any type of merchandise • Increase sales 75% to 100% by taking merchandise out of lock-up • Reduce labor costs for in-store tagging • Boost profit per square foot • Reduce stock-outs Retail Leaders on Checkpoint Checkpoint’s Evolve (EAS system) gives CVS enhanced capabilities of networked data collection, improved detection/performance and a unique EAS signal that we will use to identify pharmacy theft. Integrated people counting and intelligent deactivation will provide us with actionable data to reduce cashier sweet-hearting and improve customer service. Jon H. Roberts, CVS Manager Product Protection. Over the years, Checkpoint has developed into a strategic partner for our activities worldwide. The company has been heavily involved in the implementation of various RFID projects, including the rollout of UHF RFID portals at our Real hypermarkets and distribution centers in Germany…and the Tag It Easy project to help Asian suppliers to implement RFID. Checkpoint has been actively working with us on source tagging using their Check-Net online platform. Gerd Wolfram, Managing Director Metro MGI 21