insights from global retailers

Quarter 1 / 2009

in this issue...RSR, VDC Research, Gatekeeper Systems, Nespresso, Grupo Cortefiel,BGN, ASPIAG, Sportshouse, Frost & Sullivan, Nuance Group

• Maximize Profits• Reduce Shrink• Improve Operations

• Maximize Profits• Reduce Shrink• Improve Operations

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A recent study by RSR, “Loss Preven-tion and Beyond: Survival of theFittest,” sponsored by Sensormatic Re-tail Solutions, revealed substantial dif-ferences between top retailperformers – those whose salesgrowth outpace the 3% industry aver-age – and retailers below that average.Findings indicate that 71% of all re-spondents said they frequently use ex-ception analysis reporting - a keybusiness intelligence tool - as a criticaltechnology in their loss prevention (LP)arsenal (see chart below). Another find-ing is that nearly three times the num-ber of top performing retailers utilizesElectronic Article Surveillance (EAS)technology as compared to underper-formers.

With the troubled economic climatemore retailers are seeking to improvetheir gross margin and reduce em-ployee and customer shrink; thus fuel-ing the need to leverage existing LPtools as well as invest in the latesttechnology. The reach and efficiency oftraditional loss prevention tools likeEAS anti-theft systems can be furtherextended and maximized by strategicdeployments of store business intelli-gence platforms.

“Greater usage of business intelli-gence tools has improved the effi-ciency of our other loss preventiontechnologies and delivered a strong re-turn on investment,” said DavidGeorge, vice president of Asset Pro-tection for Harris Teeter. “Business in-

Industry Study Finds 71% of Retailers Use ExceptionReporting As Critical Business Intelligence Tool to Improve Shrink and Maximize Profits

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Retail Systems Research (“RSR”)is the only research company runby retailers for the retail industry.RSR provides insight into businessand technology challenges facingthe extended retail industry, andthought leadership and advice onnavigating these challenges forspecific companies and the indus-try at large. To learn more aboutRSR, visit www.retailsystemsre-search.com.

Study Also Finds That Top Retailers Use Electronic Article Sur-veillance Three Times More than Underperforming Retailers

Source: RSR Research, November 2008

22%

40%

30%

44%

71%

62%

49%

31%

38%

57%

56%

41%

55%

41%

17%

28%

40%

58%

51%

40%

22%

19%

16%

14%

12%

11%

11%

11%

11%

8%

On-hand adjustment audits

Pre-employment screening systems

More frequent physical inventories

Sales audit

Exception Analysis Reporting

Returns and void management

Cash management systems

“Low tech” theft deterrents (locked cabinets, etc.)

Procedural review

Video Surveillance

Most Important Tools Used for Loss Prevention

Frequently Sometimes Never

In-Store, your informationhighway to the latest trends,news, and insights in globalretail, takes you on a world-wide journey. In this issue,we present some of theworld’s leading retailers asthey share their businesschallenges and successesachieved through implement-ing different in-store security technologies.

We appreciate your feedback.If you have comments orideas for stories you wouldlike featured in future editions, please email us at InStore@Tycoint.com.

Read on….there’s plentymore In-Store!

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telligence solutions such as Sensor-matic Analytics tied to our CCTV sys-tems have enabled our operators andloss prevention teams to quickly iden-tify and address both operational andloss prevention issues in each of ourstores and across the entire chain. The

end result is two-fold: improved shrinkreduction and better performing storeoperations.”

RSR conducted the online survey dur-ing September and October, 2008, in-cluding respondents from retailerswith stores around the world. Amongits findings:

• Employee theft of goods and cashare top retailer concerns, with in-ternal theft as number one sourceof shrink, shoplifting second andinternal theft of cash third.

• While almost half of top perform-ers use EAS to control shrink, only17% of underperformers use EAS.

• Top performers use business intel-ligence tools like returns and voidmanagement technologies 46%more than underperformers.

• 53% of all respondents cite betterbusiness intelligence as needed tomake effective use of the vastamounts of loss prevention datathat exists.

According to the report, this discoverywas consistent with many other find-ings that top performers don’t merelydo the same things better compared

to underperformers, but they alsotend to do different things: “(They)think differently, plan differently andrespond differently.”

“In tough economic times, shrink con-tinues to rise,” said Paula Rosenblum,

RSR’s managing director and widelyrecognized as one of the top analystsin the retail industry. “With the slow-ing economy many retailers have cutback on staff and now will be relyingon technology to help control theft.Smart, winning retailers know the bestway to maximize profitability and im-prove shrink is to leverage existing as-sets and improve store intelligence.”

Rosenblum added, “Underperformingretailers are significantly behind win-

ning retailers in investing in intelligentsolutions. More compelling is that only17% of underperforming retailers em-brace EAS to protect their stores com-pared to 48% of winning retailers – astrong case for why underperformersare missing opportunities from newtechnology enablers.”

Sensormatic® Analytics powered by Retail Expert offers a comprehensivesuite of store business intelligence solutions to provide retailers themeans to measure their performanceobjective, manage their store opera-tions and ultimately, improve theirprofitability and performance.

For a free copy of the report visithttp://www.retailsystemsresearch.com

For more information on Sensormatic®

Analytics visit http://www.sensor-matic.com/Products/StoreBusinessIn-telligence2/SBI_home.aspx.

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“Greater usage of business intelligence tools has improved the efficiency of our other loss prevention technologies and delivered a strong return on investment.” David George, vice president of Asset Protection, Harris Teeter

Source: RSR Research November 2008

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White Paper from VDC Research Reveals Need for Retailers toEmbrace Real-Time Inventory Visibility Solution to Drive Operational Efficiencies and Profitability

Recently VDC released a compellingwhite paper “Chaos in the Retail Cosmos,” sponsored by Sensormatic Retail Solutions details the acute requirement for improved inventoryvisibility and management on the retailfloor, representing retailers’ best opportunity to make meaningful im-provements to their efficiency andprofitability. As the title of the papersuggests, the global economy contin-ues to struggle through one of themost chaotic fiscal climates in history.VDC’s research reveals the benefits re-tailers realize by investing in item-levelRFID inventory management solutionsto overcome operational challengesand the requirements for achieving thehighest possible ROI.

According to Tom Wimmer of VDC,“Out-of-stocks, misplaced merchan-dise, shrink and vendor fraud are ongo-ing challenges for retailers that canadversely impact sales and profitability.Given the current economic outlook,retailers need to consider investing ina new breed of inventory managementsolutions that are capable of address-ing these challenges head-on, whileenhancing the customer’s shopping ex-perience and creating opportunities tocapture incremental revenue.”

Investments in improving item-levelvisibility can provide retailers with im-mediate benefits according to VDC’sanalysis. When carefully staged andmanaged, with the cooperation of trad-ing partners, increased item-level visi-bility can lead to materialimprovements in planning, forecasting,merchandising and execution, creatinga viable source of competitive differen-tiation: item-level intelligence.

One retailer experiencing the benefitsof item-level visibility is BoekhandelsGroep Nederland (BGN), the Nether-lands’ largest book retailer. Accordingto Jan Vink, CIO for BGN, “We partici-pated in this important industry re-search to share our experienceimplementing item-level RFID withinour stores. With the deployment of theTrueVUE RFID platform, we realized anincrease in inventory accuracy from65% to 97.5%, while reducing our re-ceiving process to less than 20 min-utes. Our investment in item-levelRFID has created opportunities for usto reduce inventory carrying cost, andenhance revenue capture with eachcustomer visit.” The Sensormatic Solu-tion, powered by the TrueVUE™ RFIDplatform, is offered by ADT.

VDC Research Group (VDC) is atechnology market research andstrategy consulting firm that ad-vises clients in a number of tech-nology markets. Using rigorousprimary research and analysistechniques, VDC helps its clientsidentify, plan for, and capitalize oncurrent and emerging market opportunities. To learn more aboutVDC, visit www.vdcresearch.com.

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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

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In focusing on the requirements forsuccessful implementation and ROIgeneration, the paper recognizes theimportance of partnering with suppli-ers and integrators that have the tech-nical and commercial capabilities todeliver, deploy and manage these so-lutions with or for their customers.

VDC recognizes that many vendorsnow have the technical expertise re-quired to meet retailers’ immediaterequirements for item level manage-ment in a cost effective manner, butmaximum ROI hinges on understand-

ing and addressing the commercial requirements of all stakeholders. Thevery best solutions harness the item-level intelligence provided by thesesystems to inform and empower de-ploying companies, their trading part-ners and ultimately their customers.

VDC presents a framework for suc-cessful deployment of item-level in-ventory management solutions usingcase studies to demonstrate the incre-mental benefits tech savvy retailersare deriving through thoughtful plan-ning and execution.

Interested in learning more? For acomplimentary copy of the whitepaper visit:http://www.sensormatic.com/cp/VDC_WhitePaper.aspx

For more information on SensormaticItem Level Intelligence visithttp://www.sensormatic.com/Prod-ucts/RFID/RFID_home.aspx.

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Nineteen of the Top-Twenty Cart-Based Retailers Worldwide Relyon the Gatekeeper Advantage Now Bolstered by Sensormatic Solutions for Operational Improvement

Through an industry alliance, Gate-keeper Systems and Sensormatic arenow helping retailers improve opera-tions by offering a range of integratedend-to-end cart containment and lossprevention solutions that blend tech-nological sophistication and ease-of-use. Today’s retailers are plagued byshopping carts increasingly used asthe tool of choice among shopliftersor organized retail theft rings called"boosters." From organized theft ringsto individual repeat offenders, untoldamounts of stolen goods literally arerolling out of retailers’ front doors.

Shoplifters use carts to appear lessconspicuous in order to steal largequantities of high-value merchandise,often escaping with hundreds of dol-lars worth of goods. Utilizing itspatented technology, Gatekeeper’spurchek® prevention system providescost-effective protection againstpushout theft while preserving a cus-tomer-friendly shopping experience.purchek®, the industry's leading in-store, anti-theft solution with an inte-grated self-locking wheel, dramaticallyreduces cart-based theft.

Retailers struggle with improving op-erational efficiency while maintainingvisibility of store level events. Now re-tailers can take advantage of Sensor-matic SmartEAS® (electronic articlesurveillance) business intelligenceplatform offered by ADT, to seam-lessly integrate the Gatekeeper line ofcart-based technology solutions. Inte-grating the SmartEAS platform intoGatekeeper’s technology offers retail-

ers more enterprise level intelligence,enhanced data reporting capabilities,and improved visibility to store levelevents, such as pushout theft. Byjoining the two solutions retailers canbenefit from improved operationalperformance, while achieving a maxi-mum return on investment with mini-mal capital outlay. Also, retailers canleverage the additional functionality ofthe American Dynamics® Intellexbrand intelligent video managementsystem to capture more significantdetails of pushout theft events forforensic analysis.

A recent research study by RIS Newsand IHL Group stated that spend onbusiness intelligence software isplanned to grow over 50% in 2009 asretailers look to improve efficienciesduring the economic downturn.More information on the study can befound at www.ihlservices.com. According to Greg Buzek, presidentof IHL Group, “As business intelli-

Gatekeeper Systems is the leadingprovider of intelligent cart solutionsfor retailers to prevent shopping cartloss and merchandise theft. Gate-keeper’s patented GS TechnologyPlatform is the solution of choice for19 of the top 20 Global Retailers.Gatekeeper has offices located inthe U.S., Canada, Europe, and HongKong as well as global distributionoutlets, allowing solutions to beeasily accessed by major retailersworldwide. For more information,visit www.gatekeepersystems.com.

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gence becomes more IT-centricstrategic partnerships like Gatekeeperand Sensormatic make sense for retailers to achieve operational im-provement. Retailers worldwide facea host of challenges in order to remain competitive and protect the bottom line.

By leveraging the collective solutioncapabilities of these two industryleaders for loss prevention, retailers

can gain efficiencies in a similar waythey that they have seen by adoptingintegrated software suites for theirmerchandising and inventory controlinitiatives.

“With over 1.2 million shopping cartsprotected worldwide, Gatekeeper cannow combine the GS Technology Plat-form with the flexibility of Sensor-matic’s open architecture, solutionsto reduce the total cost of infrastruc-

ture deployment,” according topurchek® product manager CraigGreenberg.

“To improve operations, Gatekeeper’spurchek® system is integrated withthe Sensormatic UltraLink SmartEASenabling customers to transitionlabor-intensive manual paper logs thatare often incorrect to more accuratereal-time tracking and data captureenterprise reporting for improveddata integrity and better visibility ofdaily events,” added Greenberg.

For more information on SensormaticSmartEAS solutions visithttp://www.sensormatic.com/Prod-ucts/StoreBusinessIntelligence2/SBI_SEASProducts.aspx.

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“With over 1.2 million shopping carts protected worldwide, Gatekeeper can now combine the GS Technology Platform withthe flexibility of Sensormatic’s open architecture, solutions to reduce the total cost of infrastructure deployment.” Craig Greenberg, purchek® product manager

One of the latest international retail-ers to embrace ADT’s SensormaticUltra•Exit solution is Nespresso, withmore than 120 sales boutiques andboutique bars in key cities around theworld. As the fastest growing operat-ing unit of the Switzerland-basedNestlé group, Nespresso sells sophis-ticated coffee machines, accessoriesand premium portioned coffees.

To protect their high valued productsfrom theft while preserving theirstores’café appeal, Nespresso re-quired the right EAS solution. Ne-spresso tried Radio Frequency (RF)systems but were dissatisfied withtheir performance.

“We needed an EAS solution thatcould offer wide exit protection in astylish design that blended into ourunique café environment,” said Ne-spresso.

“Another key criterion was a hard tagcapable of protecting our high-endcoffee machines and accessories,”they added. “Also a significant consid-eration is our popular assortment ofcookies and chocolates openly dis-played for our guests’ convenience.

This challenge required a labeling so-lution that was not only small enoughto fit inside compact products with-out covering the brand or content in-formation, but also would bedetected in and around the metallicpackaging of these products. In addi-tion to all of the important benefitsUltra•Exit offered, we had the choice

of a concealed system that was per-fect for one of our stores in Spain.”

Ultra•Exit delivers one of the highestlevels of anti-theft detection capabili-ties available today – a top priorityshared by leading retailers. Acousto-magnetic (AM) EAS systems are thepreferred anti-theft technology for re-

Leading Global Retailers Including Nestle Group’s NespressoBoutiques Embrace Sensormatic® Ultra•Exit Retail Anti-TheftSystems to Help Control Theft and Maintain Profits

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EUROPE

“We needed an EAS solution that could offer wide exit protectionin a stylish design that blended into our unique café environment” Nespresso

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tailers, especially for those like Ne-spresso selling metal-based or metal-packaged goods. Compared to RFsystems, AM systems have the high-est detection rate to protect all typesof products. In particular, they can de-tect security tags inside foil-linedbags or tagged products containingnon-ferrous metal.

Other leading global retailers with ex-tensive international presence includeGrupo Cortefiel, Inditex, Mango andMarionnaud. All have recognized thebenefits of the SensormaticUltra•Exit anti-theft system in helpingthem preserve store aesthetics, im-prove store operations and protecttheir profits.

For more information on SensormaticUltra•Exit solutions visithttp://www.sensormatic.com/Prod-ucts/EAS/DetectionSystems/Pedestal-Systems/PedestalSystems_home.aspx.

Grupo Cortefiel is one of Spain’slargest fashion retailers and one ofEurope’s leading retail companies inthe specialty chain category. Throughits five brands Cortefiel, Pedro del Hi-erro, Springfield, women´s secret andMilano together with Fifty FactoryOutlet, Grupo Cortefiel operates anetwork of more than 1,590 stores in56 countries. Given Grupo Cortefiel’sextensive geographic presence, theyrequired a solution to protect theirvaluable products while also offeringvital business intelligence to helpdrive sales and improve operationalefficiencies.

They installed Sensormatic®

SmartEAS® technology from ADTthroughout their chains in Spain,France, Germany, Belgium, Luxem-bourg, Czech Republic, Poland, Aus-tria and Hungary due to it being themost beneficial and effective prod-uct, offering the maximum advantages.

The solution links information fromanti-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 optimizeprocesses and improve profitability.

Among the key benefits, this solu-tion set will help decrease shrinksignificantly and also better managehundreds of employee workinghours per year.

Installed in the Cortefiel, Springfield,Pedro del Hierro, Milano andwomen´secret stores, the Sensor-matic® SmartEAS® solution can beused to monitor the flow of people instores and analyze and manage theanti-theft alarm systems.

SmartEAS® takes the data obtainedfrom each Grupo Cortefiel store andautomatically generates exception-based reports that can be used tohelp enhance the efficiency of theanti-theft systems and reveal howsales figures compare to store traffic.

For Cortefiel the most attractive as-pect of this type of system is thevalue added option of the Smart EASalarm management module, in addi-tion to the people counting system.Smart People Counting provides traf-fic flow information and store conver-sion rates in order to measureperformance levels and optimise theorganisation of tasks, evaluate mar-keting campaigns and improve sales.

Together with its source tagging pro-gram and its Sensormatic® anti-theftsystems which are also provided by

Grupo Cortefiel Implements Business Intelligence to ImproveStore Operations in Europe

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ADT, Grupo Cortefiel has introducedan integrated solution for loss preven-tion and business intelligence whichcan be used to deliver outstandingprotection for its entire network andimprove store operations.

“Delivering business intelligence isthe next step in terms of loss preven-tion,” says Ricardo Arroyo, ADT Direc-tor of Strategic Accounts (Retail) forSouthern and Western Europe. “OurSmartEAS® technology will allowGrupo Cortefiel to efficiently link anduse the information from its anti-theft

and POS systems. This integrationprovides real-time intelligence atstore, region and corporate level, en-abling the ability to act quickly.”

For more information on Grupo Cortefiel visit http://www.grupocorte-fiel.com/.

For more information on SmartEASsolutions visit http://www.sensor-matic.com/Products/StoreBusinessIn-telligence2/SBI_SEASProducts.aspx.

“Delivering business intelligence is the next step in terms of loss prevention.” Ricardo Arroyo, ADT director of strategic accounts (Retail)

BGN, the Netherlands’ largest bookretailer, deployed a Sensormatic item-level intelligence solution to supportdramatic improvements in efficien-cies and sales. The Sensormatic solu-tion, powered by the TrueVUE™ RFIDplatform, provides BGN with item-level visibility across its chain. BGNhas increased inventory visibility from65% to 97.5%. Also it has increasedreceiving accuracy to 100% while dra-matically reducing employee inven-tory time. Most importantly, BGN hassignificantly increased sales as well.

As a leading adopter of item-levelRFID, BGN’s objectives are to inte-grate the supply and demand chain,automate the ordering and replenish-ment process, enhance productivityand improve the customer shoppingexperience.

Currently all books are source-taggedwith RFID labels from BGN’s distribu-tor, received into inventory, and cyclecounted continuously within thestore. In addition, the item is trackedat the point-of-sale (POS) as well aswhen it leaves the store.

With the deployment of the TrueVUERFID platform, BGN will realize the fol-lowing capabilities delivered through asingle, standardized solution:

• Enterprise-level reporting pro-viding item-level intelligenceacross all stores

• In-store receiving to provideautomated “proof of delivery”of incoming books

• In-store cycle count and real-time inventory managementof all store inventory

• Real-time tracking of specialorder items utilizing smartsurfaces and wireless net-working devices

• Tracking of inventory move-ment from the back room tothe sales floor to improvestore replenishment

• Enterprise-level device man-agement and monitoring

According to BGN's CIO Jan Vink, “To date we have processed morethan two-and-a-half million books.

BGN Boosts Sales with Item-Level Intelligence Solutions

Complete Enterprise Inventory Visibility Solution Helps BGN Drive Inventory Visibility to97.5%, Improving Operational Efficiency, Profitability and Customer Service

Boekhandels Groep Nederland (BGN),a Dutch chain of 442 bookshops situ-ated throughout the country with ayearly turnover of € 200 million. Thecompany owns and operates a chainof bookstores that together receiveabout 11 million visitors a year.

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“With smart shelves, hand-held devices and kiosks, we have re-duced our weekly inventory to less than two and one-half hoursper store while inventory accuracy increased from 65% to 97.5%.”Jan Vink, CIO, BGN

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With smart shelves, hand-held de-vices and kiosks, we have reducedour weekly inventory to less than twoand one-half hours per store while in-ventory accuracy increased from 65%to 97.5%. Also, our receiving processwas reduced to less than 20 minuteswith an accuracy rate of 100%, culmi-nating in an increase in sales. As a re-sult of this success, we are confidentin our commitment to roll out item-level RFID across all of our retail loca-tions by utilizing the Vue platformfrom Sensormatic as a single-sourcefor RFID hardware, software andservices to facilitate our enterprisedeployment.”

Talk about an interesting setting,BGN’s Selexyz Dominicanen bookstore in Maastricht, Netherlands waserected inside a former 800 year oldDominican church. This book store issaid to hold the largest stock of booksin English in Maastricht, one of theoldest cities in the country, transform-ing reading literally into a religious ex-perience!

For more information on SensormaticItem Level Intelligence visithttp://www.sensormatic.com/Prod-ucts/RFID/RFID_home.aspx.

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ASPIAG Realizes the Benefits of EAS Investment by SignificantShrink Reductions and Improved Productivity

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In Italy, the DeSPAR brand is repre-sented by 12 regional retail formatsconnected to the ConsortiumDeSPAR Italy. The largest is ASPIAGwith stores most often run by inde-pendent retailers in the "Triveneto"area and in the Ferrara province withapproximately 570 DeSPAR, EU-ROSPAR and INTERSPAR stores.

The ChallengeIn recent years, the ASPIAG groupwas challenged with inventory differ-ences that affected their profits. As agrowing retailer they focused their ef-forts on combating inventory reduc-tion, placing particular attention onselecting a technology solution capa-ble of supporting their need to reduceshrink. After careful analysis they de-termined the high valued itemsshoplifters found attractive, which ul-timately reduced profits. As a result,ASPIAG turned to ADT to design aplan to effectively reduce the percent-age of inventory shortages.

The Technology SolutionTo help reduce shrink the ASPIAGgroup selected ADT’s high perform-ance Sensormatic Ultra•Maxacousto-magnetic (AM) anti-theft system to protect 67 of their largeststores. Designed specifically for su-

permarkets, hypermarkets and otherretailers that require lane protection,the Ultra•Lane® slim yet durable de-sign offered ASPIAG minimal impacton shopping cart passage at the POS,utilizing an aesthetically pleasing look.Another important benefit ofUltra•Lane was the easy integrationof the deactivation antenna into checkstands for fast and simple deactiva-tion of tagged products, enabling customers to move through the POSmore quickly and efficiently.

AM systems offer the highest detec-tion rate to protect all types of prod-ucts. For ASPIAG that meant theability of the Ultra•Max AM systemto detect security tags inside foil-lined bags or tagged products con-taining non-ferrous metal as well asmetal shopping carts. To protect theirentrances and exits ASPIAG selected

Ultra•Exit antennas to deliver one ofthe highest levels of anti-theft detec-tion capabilities available today forwide exit protection.

The Return on InvestmentAccording to Massimo Salviato, contract director for Aspiag Service,“as a retailer committed to offeringits customers a satisfying shoppingexperience, ASPIAG pays very closeattention to reducing theft. By deploy-ing the Sensormatic Ultra•Max AMsolution, with a labeling program forthe most stolen items, we discoveredour investment in the technology wascovered with a remarkable reductionin shrink. We are very pleased withthe benefits this high performancesolution offers in effectively decreas-ing inventory differences as well asdetecting metallic-based products.”

ASPIAG is part of the SPAR AustriaGroup with over 13,500 outlets in33 countries, ranging from smalllocal grocers like the Italian DeSPARstores to large EUROSPAR storesand INTERSPAR hypermarkets.

“By deploying the Sensormatic Ultra•Max AM solution...wediscovered our investment in the technology was covered with aremarkable reduction in shrink.” Massimo Salviato, contract director for Aspiag Service

For more information on Sensormatic EAS solutions, visit http://www.sensormatic.com/Products/EAS/EAS_home.aspx.

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Sportshouse Helps Improve Shrink and Boost the Bottom Line withADT’s Sensormatic® Ultra•Exit Retail Anti-Theft Systems

As one of the biggest sportswear re-tail groups, Sportshouse sells differ-ent international brands of fancifuland fashionable sports and causalwear including Adidas, Asics, Nike,Puma, Birkenstock and more. Estab-lished in Hong Kong in 1985,Sportshouse opened a chain storeC.P.U. in 2001 to satisfy the needs ofthe younger demographic for trendycasual wear, supplying brands likeArnold Palmer, Dr. Martin, JimmyBlack, Red Wing and Pierrotti.

According to the 2008 Global RetailTheft Barometer, the shrink figures bycountry report Asia Pacific as havingthe largest percentage of theft due to

shoplifting at 51.3%. To protect theirhigh valued products from theft,Sportshouse required the right Elec-tronic Article Surveillance (EAS) solu-tion for their shops. Given their widerange of highly pilfered merchandise,Sportshouse chose the SensormaticUltra•Exit system based on its highlyeffective Ultra•Max acousto-magnetic(AM) anti-theft technology, wide exitcoverage and contemporary designthat blends with their store setting.

As a leading retailer, Sportshouse re-lies on Ultra•Exit systems to deliverone of the highest levels of theft de-terrence available today. AM systemsprovide the highest detection rate to

protect all types of products whilemaking them conveniently accessiblefor customers to purchase. TheUltra•Exit detection system providesmore than two meters of coveragebetween pedestals, which offersSportshouse a high flexibility for shopdesign and the ability to create theirunique theme.

“The high quality acrylic constructionand sleek design ensure theUltra•Exit system blends into ourstore to provide us with a pleasantprofessional retail shop appearancewhile still offering a strong visual deterrent,” said Iris Choi, general manager for Sportshouse.

With the Sensormatic Ultra•Exit sys-tem, Sportshouse is able to preservetheir store aesthetics, and increasesales by improving their operations toachieve better customer satisfaction.

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“...the Ultra•Exit system blends into our store to provide uswith a pleasant professional retail shop appearance while stilloffering a strong visual deterrent.” Iris Choi, general manager, Sportshouse

Visit http://www.sensormatic.com/Products/EAS/DetectionSystems/PedestalSystems/PedestalSystems_home.aspx.

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Frost & Sullivan Study Reveals India’s Organized Retail Market Looks to Security Solutions as It Expects 44% Growth by 2012

Recently Frost & Sullivan published amajor market study for Sensormaticthat identified the need for loss pre-vention solutions in India. To gain fur-ther insight into the Indian retailmarkets, the study explored retailers’pain points along with their loss pre-vention and operational needs in vari-ous retail segments. Researchrevealed in 2007 total sales for theIndia retail market, comprised of or-ganized and unorganized retailers,were $339.7 billion.

By 2012, the retail market is projectedto grow to around $551.4 billion. In acountry with over one billion inhabi-tants, consumer retail demand isgrowing rapidly as the region modern-izes, paving the way for retail expan-sion. With swift industrydevelopment, the majority of retailersfocus on improving loss preventionsolutions that maximize growth andprofitability.

Between 2003 and 2007 organizedretail formats (characterized as chainstores and stores that are subject tocentral ownership or franchisees) ex-perienced a Compounded AnnualGrowth Rate (CAGR) of 19.5%. By2012, the organized retail market ex-pects to increase at a more aggres-sive rate, projected at 44% CAGR --prompting retailers to look for effec-tive and innovative loss preventionmethods.

According to the study, shoplifting inthe Indian retail market accounted forover 50% of loss, which remains thenumber one source of inventory loss.EAS is designed to help retailers pre-vent losses due to external theft –India’s most significant challenge im-pacting retailer profitability and inhibit-ing future growth. Employee theftrepresented the second largestsource of inventory loss at 20%.

Frost & Sullivan, the Growth Partner-ship Company, enables clients to ac-celerate growth and achieve best inclass positions in growth, innovationand leadership. Frost & Sullivanleverages over 45 years of experi-ence in partnering with Global 1000companies, emerging businessesand the investment communityfrom 31 offices on six continents. To join our Growth Partnership, visithttp://www.frost.com

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2009 - 2011 are estimates.F&S sources: CSO, NSSO and Technopak Advisers Pvt. Ltd.

Indian Retail Market Overview

Organized retail consists of 4% of the total Indian retailmarket and is expected to grow to 15% by 2011.

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“To help combat their greatestsources of loss due to shoplifting andemployee theft retailers are relyingon EAS solutions to help improvetheir bottom line,” states Frost & Sul-livan senior research analyst ArchanaAmarnath. “Since organized retail accounts for 4% of the total Indian retail market and is expected to increase to 15% by 2011, there is ahuge potential for growth and an ex-citing opportunity for Sensormatic toeducate the market and support retailers’ loss prevention goals.”

Additionally the study revealed 45%of the retailers that currently use EASrank it as the second most importanttechnology, second only to POS, todeliver benefits like shrink reductionand increased profitability. The risingprevalence of hypermarkets and de-

partment stores, which stock largenumber of products, has made EAS a must-have technology to prevent pilferage. As more retailers become educated on the benefits of EAStechnologies, we expect further in-vestment in superior solutions withgreater integration and data analyticscapabilities.

“With the retail boom over the lastthree to four years there has been aninflux of world-class malls and shop-ping centers,” states Amarnath.“With a larger shopping area, multi-ple entrances, and an open counterformat, it has become difficult todeter shoplifting activity – driving theneed for EAS.”

“More and more companies are look-ing for growth opportunities given the

current challenges in the global retailenvironment,” according to Frost &Sullivan chairman David Frigstad.

“The business intelligence and con-sulting expertise that Frost & Sullivanprovides can help Sensormatic fur-ther understand current and emerg-ing trends in the Indian retail and EASmarkets. This knowledge will serveas a foundation for future product de-velopment and marketing efforts, tar-geted specifically for the Indian EASmarket.”

For more information on the Sensor-matic retail solutions portfolio or todownload a summary of the Frost &Sullivan study please visit www.sen-sormatic.com.

ASIA

RETAIL security is a major challengefor end users and integrators. A suc-cessful retail environment is builtaround giving customers a powerfulretail experience – that means a closeencounter with the items they wantto purchase. But by its very nature se-curity applications are restrictive. Thetypical layered security system iftaken to its natural end would lock re-tail items inside displays protected byelectronic detection and surveillancesystems. The merchandise would besafe but there would be no sales.

What all this means is that any EASapplication is a search for balance in

the clash between accessible retaildisplay and the principles of security.But there’s more to this story thanthat. These Nuance Group storescarry a range of portable high valueitems including fragrances, alcohol,cigarettes, electronics and other luxury goods – all of these are primetargets for thieves.

Making things more challenging still,the Nuance Group’s duty free storesaren’t bundled up on Main St with aceiling, 4 walls and restricted accesspoints lending themselves perfectly totypical EAS applications. Insteadthese stores are in major Australian

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Air Side

Case Study written by John Adams, Editor, Security Electronics & Networks Magazine

ADT Security has installed majorSensormatic brand Electronic ArticleSurveillance (EAS) retail securitysystems at multiple sites in 4 majorairports around Australia for dutyfree retailer, the Nuance Group. Theinstallation incorporates Sensor-matic’s new Floor-Max under floor /concealed EAS system, and repre-sents the first time EAS has beenused in such a large application inan air side at airports.

Nuance Group Airport Duty Free Stores

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AUSTRALIA

airports – and they’re not all in classicretail environments. The biggest ofthem sprawls across hundreds ofsquare metres of open terminal smackin the entry and exit thoroughfares ofAustralia’s largest airport. It has noceilings, no walls and no single entryand exit points.

Logically at airports, passenger thor-oughfare is the central function andthe Nuance Group’s retail securityneeds take second place to the air-ports’ demand for efficient passengermovement. And we’re not talkingabout just a few passengers. At majorAustralian airports multiple large air-craft arrive at the same time. In all,around 15,000 passengers passthrough Sydney Airport each day andall must go through the NuanceGroup’s stores. If you can visualise200 or 300 shoppers pouring througha retail environment simultaneously ina stream constantly replenished bythe arrival of new flights then you’restarting to get the picture.

To read the article in its entiretyplease access http://www.sensor-matic.com/SensormaticGetDoc.aspx?FileID=22307.

“As it stands this (Sensormatic) installation is excellent. The sys-tem works, everyone is happy and we’ve reduced shrinkage by over50% in the first year – obviously we are delighted with that.” Nuance Group, January 2009 Security Electronics & Networks Magazine

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 visithttp://www.sensormatic.com/whoweare/Contactus.aspx or contact the following regional marketing representative:

Latin America

Carolina GarciaE-mail:carogarcia@tycoint.comPhone Number: +56 24246734

Australia

Tamora WellsPhone number: +61 2 9947 7239E-mail: tamwells@tycoint.com

New Zealand

Natalie GreavesE-mail: ngreaves@tycoint.com

North America

Lee PerniceE-mail: lpernice@adt.comPhone Number: 1-561-981-4275

Europe

Daxa PatelE-mail: dvpatel@tycoint.comPhone Number: +44 1943 743002

Asia

Joyce LimEmail: retail.asia@tycoint.comPhone Number: +65 6389 8225

Quarter 1 / 2009

http://instore.sensormatic.com