Quarter 3 / 2009 insights from global retailers

in this issue... Great Atlantic & Pacific Tea Company, Follett, Gordmans, Under Armour, Eldorado, University of Parma, Mahaveer Wines, Sensormatic do Brasil Eletronica Ltda., Terry White Chemists

also... Now Asian Retailers Can Achieve Better Inventory Management Welcome to a new edition of In-Store, your gateway to the latest trends, news, and insights in global . As the retail cli- mate evolves, so does technology. In today’s tough economic times, more and more retailers are investing in retail solutions that maximize profitability, improve shrink and help them be better positioned for future growth.

This issue takes you on a worldwide journey, showcasing some of the world’s leading retailers. Experience first-hand as they share business challenges and successes they have achieved through implementing different in-store electronic security technologies.

We greatly value your feedback. If you have comments or ideas for stories you would like featured in future editions, please email us at [email protected]. Stay tuned... there’s plenty more In-Store!

2 The Great Atlantic & Pacific Tea Company Adds Over 400 Stores to a Growing Base of More Than 16,000 Stores Worldwide Currently Monitored by Sensormatic® Analytics to Help Control Shrink and Boost Profits

In today’s tough economic times, more solution. According to Don Terreri A&P’s and more retailers are investing in busi- senior director of asset protection, “The ness intelligence to help control shrink Sensormatic Analytics suite helps meet and boost their profits. Recently The Great both our short-term and long-term objec- Atlantic & Pacific Tea Company (A&P), a tives, offering us solutions that can moni- leading U.S. retailer and business unit of tor not only our POS activities, but also the Tengelmann Group of Germany, de- our pharmacy and direct store delivery The Great Atlantic & Pacific (A&P) Tea ployed Sensormatic Analytics business areas.” Company, Inc., founded in 1859, is one intelligence solutions. A&P will utilize these comprehensive tools to monitor His statement is reflective of responses of the nation's first chains. cashier activities in a combined total of in a recent study by Retail Systems The Company operates 436 stores in 8 more than 400 outlets, increasing the Research (RSR), “Loss Prevention and states and the District of Columbia Sensormatic Analytics global customer Beyond: Survival of the Fittest,” spon- under the following trade names: A&P, base to more than 16,000 stores. sored by Sensormatic Retail Solutions. Waldbaum's, , Best Cellars, Seventy-one percent of all respondents , Super Foodmart, As a reporting and performance improve- said they frequently use exception analy- Super Fresh and . To learn ment tool for retail loss prevention and sis reporting, a key business intelligence more about A&P, visit operations, the Sensormatic Analytics tool, as a critical technology in their loss http://www.aptea.com/. suite provides retailers with essential data prevention arsenal. Fifty-three percent of to help uncover various sources of store all respondents cite better business intelli- losses and reduce shrink. When com- gence as needed to make effective use of bined with business intelligence it can as- the vast amounts of loss prevention data sist in meeting profit margin goals. that exists, especially from video surveil- lance systems. Founded in 1859, A&P is one of the na- tion's first supermarket chains. The Great In tough economic times many retailers Atlantic & Pacific Tea Company’s family of have been forced to reduce staff levels 53% of all respondents cite better includes A&P, Waldbaum's, while facing the reality of rising shrink. In- business intelligence (RSR) Pathmark, Best Cellars, The Food Empo- vesting in store business intelligence rium, Super Fresh and Food Basics which technologies is one of the best ways to collectively now operates 444 stores. As maximize profitability, improve shrink and the largest food retailer in the Northeast be better positioned to survive the eco- U.S., A&P needed a corporate-wide solu- nomic turmoil. tion to address internal shrink. A&P also sought a customizable application that For more information on Sensormatic could be tailored to the needs of various Analytics powered by Retail Expert visit 71% of all respondents frequently user levels. http://www.sensormatic.com/Products/St use exception analysis reporting (RSR) oreBusinessIntelligence2/SBI_home.aspx Based on these requirements, A&P chose the Sensormatic Analytics NaviStor® POS The Sensormatic Analytics suite helps meet both our short- “term and long-term objectives, offering us solutions that can monitor not only our POS activities, but also our pharmacy and direct store delivery areas. Don Terreri, Senior Director of Asset Protection, A&P”

3 NORTH AMERICA Sensormatic® Analytics and Retail Operation Services Helps Leading U.S. Retail Chains Follett Higher Education and Gordmans Depart- ment Stores Reduce Theft and Boost Store Performance

As retailers brave the challenging eco- exception reporting and performance im- • Data analysis nomic climate, many are cutting back on provement solution for retail loss preven- • Assessment of the program de- staff to curb operating costs and help im- tion, provides retailers with intelligent signed around the use of the profit prove profits. To weather the storm they data to help meet their profit margin navigation systems are relying on smart technology tools to goals. deliver actionable intelligence to prevent • System administration loss and enhance store performance. To complement its Profit Navigation Sys- • General LP procedure and program Across many vertical markets, retailers tems product family, the retail operation evaluation worldwide are experiencing a boost in services team is comprised of experi- • Consulting related to physical inven- productivity through Sensormatic enced retail loss prevention (LP) person- tory preparation, execution and Analytics expanded services offered by nel who have successfully managed and shrink analysis ADT. improved loss prevention programs at both the corporate and the field level. Follett Higher Education, the largest col- With Sensormatic Analytics retail With solid experience throughout the re- lege bookstore retailer in North America, operation services, retailers can get up tail industry from big box to specialty, gro- augmented their Sensormatic Analytics to speed faster by working with a team cery to hard lines; they’re ready to NaviStor program with the support of re- experienced in generating effective re- navigate retailers to the profits and per- tail operation services by developing im- porting. Leading retailers such as Follett formance they need to compete in the re- proved key performance indicators and Higher Education and Gordmans are tail industry by designing and supporting stronger exception reporting approaches taking advantage of the teams’ skills to customer programs that include: through dashboard customization. make effective use of vast amounts of data to drive operational efficiencies. • Proficiency training on understand- Since deploying NaviStor exception re- Sensormatic Analytics, a comprehensive ing data and making it work porting capabilities, Follett Higher Educa- tion, the largest college bookstore retailer Follett increased its exception detection rate by 87% and in North America, increased its exception “ detection rate by 87% and showed a de- showed a decrease of 46% in average admission dollars indicat- crease of 46% in average admission dol- ing that they were uncovering cases much earlier. lars indicating that they were uncovering cases much earlier. With the additional Tom Provost, Senior Manager Loss Prevention, Follett ” support of Sensormatic Analytics retail operation services, Follett improved its key performance indicators and strength- ened its exception reporting approaches with dashboard customization.

Follett Corporation is a $2.3 billion, privately-held company that provides products, services and solutions to the educational marketplace. Follett Corpora- tion was founded in 1873, and is head- quartered in River Grove, Illinois. To learn more about Follett, visit, http://www.follett.com.

NORTH AMERICA 4 “Our largest growth has occurred over conducting proficiency training on their direction, Sensormatic Analytics retail op- the last 20 years resulting in over 800 NaviStor POS exception reportingmodule, eration services provides the analysis and stores and high volume e-sales,” said Tom Gordmans reaped the benefits of the retail measurement assessment to generate Provost, Sr. Manager Loss Prevention, operation services teams’ unique set of productive reports from retailers data. Follett. “In terms of loss prevention re- skills. sources we are spread very thin to deliver “Our retail customers gain a tremendous bottom line shrink numbers. Retail opera- “To help us interpret data from a statistical advantage in tapping the analytical skills of tion services coupled with a solution like perspective to create more useful and the team,” said Bill Handy, a member of NaviStor, with investigative capabilities for meaningful exception reports and score- the Sensormatic Analytics retail operation identifying fraud, provided an optimum cards, the team performed valuable re- services team. “The retail operation serv- return on investment (ROI) without having fresher and proficiency training for our ices experts can maximize the capabilities full-time dedicated resources found in Asset Protection corporate users as well of our store business intelligence tech- larger retail operations. Now we can iden- as Asset Protection District Managers and nologies to create effective reporting that tify fraud and in turn create meaningful Market Managers. Their efforts resulted in helps drive operational efficiency and prof- exception reports. Our investment has educating our group in documenting areas itability for retailers today – at a critical more than paid for itself.” of exposure and following up on identified time when they need immediate results suspect activity to produce more action- to be better positioned for future growth.” The retail operation services team con- able data to achieve operational improve- sults with retailers to help develop an ef- ments,” stated Jeff Hunter, Manager of For more information on our retail opera- fective exception reporting program in Investigations for Gordmans. tion services contact Bill Handy at order to expedite and maximize their ROI. [email protected] and Corey Adams Whether they are looking to create an ex- “Through their on-site training on data at [email protected]. ception reporting program or further re- analysis, exception reports and scorecards fine an existing program, the team will we are able to better analyze our own data, For more information on work with retailers to establish a strong make better decisions on what and how Sensormatic® Analytics visit foundational LP approach while still ad- much information to look at and ultimately http://www.sensormatic.com/Products/St dressing any challenges unique to their how to measure and score the information oreBusinessIntelligence2/SBI_home.aspx store operations. The program can be cus- to make it even more meaningful across tomized to include an analysis of the en- the organization,” added Hunter. tire LP effort depending on retailers’ By combining good data with intelligent needs. The retail operation services team helped us interpret data Gordmans, a U.S. chain with 65 depart- “ ment stores represented in 16 states, fea- from a statistical perspective to create more useful and meaning- tures a wide selection of merchandise. By ful exception reports and scorecards to achieve operational improvements.” Jeff Hunter, Manager of Investigations, Gordmans

Gordmans features a large selection of the latest styles and name brands at up to 60 percent off department and spe- cialty store prices every day. The wide range of merchandise includes apparel for all ages, accessories, footwear, home fashions, gifts, designer fragrances, fash- ion jewelry, bedding and bath, accent fur- niture and toys. Founded in 1915, Gordmans operates 65 stores in 16 Mid- western and surrounding states. For more information about Gordmans, visit http://www.gordmans.com.

5 NORTH AMERICA Under Armour Improves the Customer Retail Shopping Experience with Sensormatic® Overhead People Counting

ADT® is helping retailers in these tough entering and leaving a store, placing a economic times improve sales conversion time stamp on each count to provide de- rates with the latest technology that can tailed reports highlighting data the retailer help them analyze customer shopping decides is important to track. This data patterns. The Sensormatic Overhead Peo- can be merged with time and attendance ple Counting sensor platform captures systems to ensure the store is properly people-counting data, which then can pro- staffed to meet customer demand during vide important insights to retailers. Glob- the busiest times. Under Armour® (NYSE: UA) is a leading ally recognized performance apparel developer, marketer, distributor and retailer Under Armour now uses this real- Additionally the data allows retailers to retailer of branded performance ap- time intelligence tool to help improve measure the effectiveness of advertise- parel, footwear, and accessories. The profits and reduce operational costs at its ments and promotional activity. This valu- Company's products are sold world- company branded retail locations. able operational information provides retailers additional value from their loss wide and worn by athletes at all levels, According to Frank Albany, Director of prevention and security solutions. from youth to professional, on playing Loss Prevention for Under Armour, “The fields around the globe. The Under Sensormatic Overhead People Counting Knowing how many people frequent their Armour global headquarters is in platform has enabled us to identify impor- store and at what time gives Under Ar- Baltimore, Maryland, with European tant customer trends such as peak shop- mour the ability to focus on a number of headquarters in Amsterdam's Olympic ping hours, traffic counts, sales operational areas such as how many sales Stadium, and additional offices in conversion ratios, tracking and trending people are required, sales rates and which Denver, Hong Kong, Toronto, and sales per staff member and department promotions and ads are attracting shop- Guangzhou, China. For further informa- as well as help measure advertising effec- pers to their stores. Additionally ADT pro- tiveness. Its built-in analytics and ad- vides Under Armour with an integrated tion, please visit the Company's web- vanced data capture technology helped us security solution approach that includes site at http://www.underarmour.com. improve store layouts and reduce theft by burglar and fire alarm, video systems, as measuring and evaluating our labor effi- well as Electronic Article Surveillance ciencies, ultimately to drive sales.” (EAS). This integrated product family helps provide Under Armour with efficient and Sensormatic Overhead People Counting effective loss prevention management for from ADT can distinguish between incom- stores in multiple locations. ing and outgoing shopper traffic, count side-by-side traffic and track multiple peo- For more information on Sensormatic ple simultaneously. Comparing people Overhead People Counting visit counting information to sales transaction http://www.sensormatic.com/Products/St data allows retailers to calculate the rate oreBusinessIntelligence2/SmartEAS/Clar- of sales per customer visit. Sensors de- ity_Overhead_People_Counting.aspx tect and count the number of shoppers

The Sensormatic Overhead People Counting platform has en- abled“ us to identify important customer trends. Its built-in analytics and advanced data capture technology helped us improve store layouts and reduce theft by measuring and evaluating our labor efficiencies, ultimately to drive sales. Frank Albany, Director of Loss Prevention for Under Armour”

NORTH AMERICA 6 People Counting Impact on Store Performance

56% 44% Store associates per potential customer

50% 39% 11% Location performance

55% 46% Conversion rate

35% 59% 6% Promotion effectiveness

Extremely Somewhat Not very effective effective effective

Source: AMR Research, Store Traffic Counting Technology, Final Findings - January , 2007

7 NORTH AMERICA Eldorado Modernizes its Stores with the Latest Electronic Security Systems

Russia’s largest consumer electronics Too much electronic “noise” found in According to the General Director of Eldo- retailer Eldorado, with over 1000 stores electronics store settings can impact rado I. Nemchenko, “specialists of the in Eastern Europe and Central Asia, Radio Frequency (RF) performance; thus, SM TRADE [an authorized business part- switched from Radio Frequency (RF) tech- Eldorado selected the Sensormatic ner for Sensormatic] have earned the best nology to the high performance Sensor- anti-theft solution. With virtually no false reputation by providing great assistance matic acousto-magnetic (AM) Electronic alarms, the Ultra•Lane AM technology in creation of the effective anti-theft sys- Article Surveillance (EAS) systems as a offers superior detection performance tem, which in turn provides stable opera- standard for its store chain. Over the past with the Sensormatic patented resonator tions at the Eldorado stores in all cities three months Eldorado completed the technology and new high coercivity bias where the chain is present.” final roll out by installing Sensormatic EAS to achieve high detection that is resistant systems in the remaining 80 stores. to detuning by such elements as metal, For more information on Sensormatic foil, liquids and magnetic fields – a must UltraLane and other EAS detection Designed to provide anti-shoplifting secu- for an electronics format like Eldorado. systems, visit rity for retailers that require checkout lane In order to improve efficiency at the front http://www.sensormatic.com/Products/EA protection, the Sensormatic® Ultra•Lane® end, they installed the Power Pad® con- S/DetectionSystems/PedestalSystems/Pe system provides reliable and effective AM tact-free deactivators into the counters, destalSystems_home.aspx technology with a high detection rate to ultimately enhancing the customer protect high valued electronics merchan- experience with faster check-out. dise available at Eldorado stores.

In an effort to preserve their store design and aesthetic appeal, Eldorado selected the Sensormatic Ultra•Lane for its ultra thin design and durability. The small size Ultra•Lane antennas can be mounted into cash register’s modules (or can be mounted on a support structure in the middle of the exit aisle) without obstruct- ing customer and shopping cart traffic.

The pedestal’s ultra-thin, yet durable design offers protection for Eldorado’s checkout lanes with minimal impact on shopping cart passage as well as provides an aesthetically pleasing look that pre- serves the store design. The system is based on Sensormatic Ultra•Max® Acousto Magnetic technology, which is the same technology used by leading retailers around the world to protect their valuable merchandise from theft.

In an effort to preserve their store design and aesthetic appeal, Eldorado selected the Sen- sormatic Ultra•Lane for its ultra thin design and durability.

EUROPE 8 ADT Partners with the University of Parma RFID Lab for RFID Impact on Fashion Industry Supply Chain Project

ADT partnered with the RFID Lab at the Sensormatic® iREAD platform – blending renowned University of Parma for the traditional AM technology with innovative project “The Impact of RFID Technology RFID technology to manage item level on the Fashion Industry Supply Chain,” intelligent tags at the point-of-sale (POS). with the goal of demonstrating a return Along with the Sensormatic® EAS tech- on investment for supply chain manage- nologies, the EAS dual Ultra•Exit system, ment of fashion apparel using Radio Fre- RFID in fashion is becoming the SmartEAS system is linked to the EAS quency Identification (RFID) technology. “ system with Alarm Management and Traf- The conference which took place in April more important, especially in fic Flow modules with overhead systems marked the first full year of research activ- helping retailers address out of and software managed remotely online ity by the Board of Fashion Advisors at stocks and gaining better ac- (Alarm Management and People Counter) the RFID Lab - University of Parma (the at the POS. corporate committee for the fabric and cess to their merchandise, garment sector, handling laboratory re- Antonio Rizzi, Full Professor Industrial Logistics” The Sensormatic® iREAD platform offers search activities and technologies aimed & Supply Chain Management Department of a flexible, scalable and easy to install sin- at the specific market sector). As part of gle infrastructure integrating EAS, RFID Industrial Engineering, University of Parma its ongoing efforts, ADT supplied Sensor- and other sensor technologies to help re- matic RFID technology to support re- tailers improve inventory control, allowing search conducted on supply chain them to dramatically reduce the cost and management. Working in conjunction complexity of RFID at item-level within with this respected institution supports the store. The iREAD solution preserves ADT’s strategy for moving Sensormatic data integrity from merchandise items on Item Level Intelligence solutions forward the store floor to provide information ac- into the growing apparel industry. curacy that drives intelligence back into the supply chain. Retailers can adapt the “RFID in fashion is becoming more Sensormatic iREAD platform to any type important, especially in helping retailers of display - shelves, exhibition stands, address out of stocks and gaining better support structures, etc., offering retailers access to their merchandise,” according greater visibility within the POS and to Antonio Rizzi, Full Professor Industrial inventory - allowing them to be more Logistics & Supply Chain Management proactive and keep up with the latest Department of Industrial Engineering, trends. With the iREAD platform retailers University of Parma. “ADT has tremen- can achieve better customer satisfaction dously supported our RFID lab in creat- and increased sales through improved ing the RFID fashion store, an RFID item availability. enabled retail environment. They pro- vided us with their innovative technology According to Rizzi, “Through this project solutions for the intelligent management at the distinguished University of Parma of merchandise to ultimately improve retailers in Italy are encouraged by this retail operations.” major advancement in the use of RFID technology in retail, consisting of numer- Offering a comprehensive technology ous investigations and academic-based portfolio for in-store environments, ADT projects like this one, designed for more provided the University with an integrated in-depth feasibility studies in order to Sensormatic RFID and acousto-magnetic continually gain more acceptance Electronic Article Surveillance (EAS) tech- nationally.” nology solution set including the Sensor- matic AMD-3050 SuperTag® Power For more information on Sensormatic Item Detacher, Ultra•Exit 2M threshold Level Intelligence powered by VUE Tech- crosser, CBC-4020 UltraLink® People nology visit http://www.sensormatic.com Counter and the award-winning /Products/RFID/RFID_home.aspx.

9 EUROPE Mahaveer Wines India Embraces the Sensormatic® Ultra•Tag® to Help Control Theft and Maintain Profits

As part of India’s leading Spirits Company, $551.4 billion, with organized retail for- Mahaveer Wines faces the same chal- mats (characterized as chain stores and lenges of retailers worldwide - as business stores that are subject to central owner- expands so does shrink. Until Mahaveer ship or franchisees) at a projected 44 per- Wines became a franchisee of United cent Compounded Annual Growth Rate Spirits they were not practicing open (CAGR) – compared to CAGR of 19.5 per- merchandising. Although customer de- cent between 2003 and 2007. As F&S mand was high the merchandise was reported shoplifting accounts for over 50 selling, but with a great amount of risk. percent of loss in the Indian retail market, Mahaveer Wines is a franchise of United Once they committed to displaying items which remains the number one source of Spirits Limited (USL), the INR 5500 core openly instead of locking up wines and inventory loss. EAS is designed to help spirits arm of the UB Group. USL is the spirits, they began searching for Elec- retailers prevent losses due to external largest Spirits Company in India and tronic Article Surveillance (EAS) solutions. theft – India’s most significant challenge among the top three spirits companies impacting retailer profitability and in the world, selling 90 million cases in A major market study in December 2008 inhibiting future growth as F&S reported. for Sensormatic by the Growth Partner- 2008-2009. Headquartered in Banga- ship Company Frost & Sullivan (F&S) With rapid industry development, the lore, USL has a portfolio of more than identified the need for loss prevention majority of retailers like Mahaveer need 140 brands, 19 of which are millionaire solutions in India, which helps shed light to focus on improving loss prevention brands (selling more than one million on the challenges Mahaveer faced. solutions that maximize growth and prof- cases a year). For more information, According to F&S by 2012 the India retail itability. For Mahaveer open merchandis- visit http://www.unitedspirits.in market is projected to grow to around ing of wine was a new concept. They

ASIA 10 required a solution that offered them the detected at exit unlike the RF system freedom to display products openly to which didn’t detect the tag at exit.” customers, standardize product displays and reduce losses while increasing sales. With easy application to in-store inven- To meet their needs they selected the tory, the multipurpose Sensormatic highly effective Ultra•Post® acousto-mag- Ultra•Tag helps store personnel save netic (AM) electronic article surveillance significant time in protecting stock. Its (EAS) detection system and the Ultra•Tag compact design also has eliminated the MT in their retail outlets. need for the chain to realign its shelving – a major disruption that larger tags could After testing Radio Frequency (RF) versus otherwise require. The tag’s easy detach- AM technologies in the same retail set- ment also saves employee time at check- ting Mahaveer staff found the detection out while helping customers get through rate of the AM system was greater than check-out faster. These benefits support 95% while the RF system detection rate Mahaveer’s goal of cutting theft, improv- was less than satisfactory. ing customer service and, ultimately, increasing profitability. According to Mr. M.M. Anantha Murthy, a Partner of Mahaveer Wines, “We found For more information on the the Sensormatic Ultra•Tag MT to be the Sensormatic Ultra•Tag platform visit ideal tagging solution. Most importantly http://www.sensormatic.com/Products/E the detection rate for the Sensormatic AS/HardTags/HardTagsFamily/UltraTag_Pl EAS system is almost 100%, with the tag atform_Home.aspx. “We found the Sensormatic Ultra•Tag MT to be the ideal tagging solution. Most importantly the detection rate for the Sensormatic EAS system is almost 100%, with the tag detected at exit unlike the RF system which didn’t detect the tag at exit. Mr. M.M. Anantha Murthy, a Partner of Mahaveer Wines ”

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.

11 ASIA ASIA 12 Now Asian Retailers Can Achieve Better Inventory Management

ADT® recently announced the Asian debut “Tracking in-store inventories accurately The complete Sensormatic Item Level of the Sensormatic® real-time inventory and reducing out-of-stocks situations are Intelligence solution platform, combined visibility solutions suite to improve retail key challenges to retailers as these can with ADT’s global sales and service capa- inventory management. The Sensormatic lead to lost sales and higher operational bilities, are uniquely positioned to help Item Level Intelligence product suite is costs. With real-time inventory visibility, retailers worldwide scale and execute part of ADT’s efforts to offer retail cus- retailers can reduce out-of-stocks by up to real-time inventory visibility solutions that tomers integrated technology solutions 50% by ensuring greater product availabil- can optimize profitability, cut costs and to help them gain better control, security ity for their customers through accurate better retain customers. and visibility into their inventories and stocks replenishment. The new Sensor- increase operational efficiencies. Tar- matic Item Level Intelligence solutions For more information on Sensormatic geted for specialty apparel and book re- offer retailers a complete enterprise solu- Item Level Intelligence powered by VUE tailers, these solutions provide retailers tion using advanced multi-sensor tech- Technology, please visit the capability to know what goods they nologies in a multi-layered approach to http://www.sensormatic.com/Products/RF have in their stores and their quantities, control shrink and optimize operations, ID/RFID_home.aspx. all without time-consuming and error- thereby increasing profitability,” said prone manual counting of inventory. Roger Tsang, General Manager of ADT Security, Hong Kong and Macau. Given the item-level intelligence these so- lutions offer retailers, they can also deter- Technology market research and strategy mine where the goods are located: consulting firm VDC Research Group pro- whether on shelves or displays, in the filed two retail pilot projects in a whitepa- back storeroom, misplaced or missing. per sponsored by Sensormatic Retail Solutions titled “Chaos in the Retail Cos- Retailers in Hong Kong, for example, can mos.” VDC cited the following benefits now effectively address lost sales due to associated with using Sensormatic Item inventory inaccuracies, one of their most Level Intelligence solutions for a leading Inventory accuracy increased to 97.5% significant forms of loss that undermines book retailer and European department from 65% - book retailer their profitability. ADT’s Sensormatic real- store during the pilot projects: time inventory visibility solutions incorpo- rate the TrueVUE™ RFID software • Inventory accuracy increased to 97.5 platform and networking products. Retail- percent from 65 percent - book Replenished close to 75% of the inventory ers can enhance their store environ- retailer - book retailer ments, optimize supply chain, generate • Replenished close to 75 percent of incremental revenue and achieve better the inventory with semi-automated customer satisfaction through: inventory replenishment system - book retailer Enhanced store revenues by almost 15% • Maximizing the availability of mer- - book retailer chandise on sales floor by reducing • Enhanced store revenues by almost out-of-stocks 15 percent compared to stores lacking the technology due to an immediate • Improving inventory accuracy and order capability enabled by item level 87% improvement receiving incoming minimizing overstocking management - book retailer shipments - European department • Increasing item visibility from the • Eight minutes to receive all incoming store back room, dressing room and front shipments instead of one hour – an exits 87 percent improvement - European Sensormatic Item-Level Intelligence • Locating the right item quickly and department store Improvements to inventory checking the availability of the item • Updated information on shelf inven- management within the store using innovative tory levels every 10 minutes drast- multi-sensor technologies cally reduced retailer’s potential for stock-outs - European department store

13 ASIA Sensormatic do Brasil Eletronica Ltda. Provides Anti-Theft System for Drugstores

The pharmacy and drugstore format is constantly growing and transforming. To ensure profitability in the business, retail- ers in this segment are investing in prod- uct diversity, new markets, top talent and electronic security. According to Abra- farma (Brazilian Association of Pharmacy and Drugstore Networks), in 2007 phar- macy networks spent $35 million in secu- rity solutions to reduce goods theft, which totaled approximately $42 million last year.

To meet this challenge, Sensormatic do Brasil Eletronica Ltda., a company special- izing in electronic security solutions for retail, initially installed the Electronic Arti- cle Surveillance (EAS) anti-theft system, known in Brazil as Vigilância Eletrônica (Electronic Monitoring) of Goods, in over 15 stores of Drogaria São Paulo -- one of the largest pharmacy networks of the na- tional market. Today, out of the more than 240 Drogaria São Paulo stores, 90 are protected by Sensormatic® solutions.

Based on the highly effective Ultra•Max® acousto-magnetic (AM) anti-theft technol- ogy, Sensormatic EAS systems offer the smaller Sensormatic AM tag size com- highest levels of anti-theft detection capa- pared to the larger RF tags, Drogaria São bilities available today – a top priority Paulo can protect a wider variety of items shared by leading retailers. For Drogaria without masking consumer brand, dosing São Paulo, the Sensormatic solution helps and other important product information. create a more convenient shopping expe- Also Bottura adds that when pharmacies don't have anti-theft protection systems, rience while protecting items, especially "By investing in such security, the biggest they choose to restrict goods which re- those high theft self service items com- goal of drugstores is to reduce shoplift- sults in reduced sales. monly found in drugstore settings. ing, especially in times of economic crisis as we are experiencing,” explains Luciano For more information on Sensormatic AM-based Sensormatic EAS systems Bottura, product manager, Sensormatic EAS systems visit http://www.sensor- help retailers like Drogaria São Paulo de- do Brasil Eletronica Ltda. “According to matic.com/Products/EAS/EAS_home.aspx tect thefts of metal-based or metal-pack- our experience shoplifting can result in a aged goods. The AM technology can also loss of up to 1% a year, and the most detect security tags on goods in metal stolen products are pills - painkillers, mus- shopping carts. AM systems have the cle relaxants and anti-impotence-, along highest detection rates to protect all with shaving devices, sunscreen and sun- types of products commonly sold at tan lotions because they are easier to be Drogaria São Paulo stores. Given the put in pockets or bags.”

LATIN AMERICA 14 Who Helps Protect the Best Pharmacies?

Front of store merchandise is especially because of the narrowness of this new the four pedestal system, the second vulnerable and when left exposed, can store design. Sensormatic Electronic Arti- opening had merchandise close to the devastate a pharmacy’s profitability. It’s cle Surveillance (EAS) systems are ideal store front which had to be both seen no wonder that retailers rely on Sensor- for pharmacy retailers, with insertable and accessible. matic® anti-theft solutions from ADT® to anti-theft items and reusable tags for sun- help provide the cure. glasses, hats, toys and gift items. Com- The new Ultra•Exit system was used, giv- bine these benefits with ADT Security’s ing total coverage to the four meter open- For example, Terry White Rockingham 24/7 monitored intruder and smoke ing while maintaining the pulling power of (Terry White Chemist’s Pharmacy of the alarms, access control and video surveil- the specials located behind the Sensor- Year 2008), asked Sensormatic for a total lance, and retailers like Terry White matic slim line pedestals. Now surpass- solution embracing: Chemists have a powerful system to ing over 75,000 Ultra•Exit units shipped help protect their pharmacy. worldwide, the system offers a triple • Wide aisle checkout technology combination: contemporary design, wide • Friendly, welcoming aesthetics Pharmacists incorrectly assume that if range of models for different retail for- they don’t tag everything they won’t get mats and the highly effective Ultra•Max® • Performance without false alarms results. And to tag everything means a acousto-magnetic (AM) anti-theft technol- • Tags that did not cover up important great deal of work, therefore, they do ogy - ideal for protecting metal-based or information or overpower perfumery nothing. The 80/20 rule, and staff training metal-packaged goods commonly found packaging. that reinforces the use of the manufac- at Terry White Chemists. • No barriers at the forward central pay turer’s barcode as part of the deterrent station aspect of the system, now has the phar- The main pay station was protected using macist seeing the system as a manage- one single pedestal in the middle; the • Discreet camera systems, ment tool to increase bottom line profits field of coverage was extended by using by controlling shrink. Ranger antennas’ inserted into the door to create a management system to con- frame. This configuration provided the trol theft in their pharmacy. Terry White Chemists, Rockingham uti- checkout style pay station the coverage lized Sensormatic’s wide aisle pedestals needed without pedestals intruding into An added problem was a pay/cash desk in the two major openings; the major the important customer payment area. that could not accommodate pedestals opening of eight meters was covered by Terry White Rockingham chose to use the Sensormatic video surveillance system to further reinforce the deterrent effect to reduce losses. Through a total solution approach from ADT, Terry White Chemists achieves superior EAS protection com- bined with aesthetics to improve store operations and protect their profits.

For more information on Sensormatic Ultra•Exit solutions visit http://www.sen- sormatic.com/Products/EAS/Detection- Systems/PedestalSystems/PedestalSyste ms_home.aspx.

ADT Security is your one-stop shop for Pharmacy loss prevention and security solutions. To find out more, visit is http://www.adtsecurity.com.au/retail.

15 AUSTRALIA Quarter 3 / 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 [email protected].

If you have questions on any of the technologies discussed in this issue, by region, please visit http://www.sensormatic.com/whoweare/Con- tactus.aspx or contact the following regional marketing representative:

North America Lee Pernice E-mail: [email protected] Phone Number: 1-561-981-4275

Europe Daxa Patel E-mail: [email protected] Phone Number: +44 1943 743002

Asia Joyce Lim Email: [email protected] Phone Number: +65 6389 8225

Latin America Carolina Garcia E-mail:[email protected] Phone Number: +56 24246734

Australia Tamora Wells E-mail: [email protected] Phone number: +61 2 9947 7239 http://instore.sensormatic.com