Evolve Beyond Imaginationliterature.puertoricosupplier.com/021/CO20488.pdfEDITOR Annabel Lemétais EDITING & COPY-WRITING Daniel Campi CONTRIBUTORS Martina Heilig, Carlos Pérez DESIGN

Evolve... Beyond Imagination

GLOBAL NEWS REVIEW FROM CHECKPOINT SYSTEMS

ISSUE 16 FEBRUARY 2008S P E C I A L E D I T I O N

PoV Evolve INGLES 7/3/08 16:53 Página 1

EDITOR Annabel Lemétais

EDITING & COPY-WRITING Daniel Campi

CONTRIBUTORS Martina Heilig, Carlos Pérez

DESIGN & LAYOUT: María Ferreiro

Point of View is published in 15,000 copies in English,German, Spanish, French, Italian and Dutch, anddistributed in 25 countries in the world.

We value your opinion of PoV. For comments,please e-mail the editor Annabel Lemétais at“[email protected]”

www.CheckpointEurope.comwww.CheckpointAsiapac.com www.CheckpointSystems.com

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Evolve...Beyond Imagination

More than an EAS solutions provider, CheckpointSystems is a true shrink management partner to ourretail customers. Through a program of intensiveR&D, partnerships and acquisitions of forward-looking technology providers to the retail industry weare continuing to supply innovative solutions that helpour partners to substantially improve their shrink andin-store merchandise marketing strategies.

We are happy to welcome two recently acquired companiesinto the Checkpoint family: Alpha S3 Security Products, the

world leaders in high-theft protection solutions, and SIDEP,one of the largests suppliers of EAS solutions, with a strongpresence in Asian markets.

Checkpoint is developing the next generation of EASsolutions right now and we are expanding our shrink

management portfolio with an exciting launch that will changethe face of RF protection forever—you can find out more inthe following pages.

Come and find us at the EuroShop 2008 in Germany, theSecurity Show 2008 in Tokyo and the Retail Industry

Leaders Association Loss Prevention, Auditing &Safety Conference, in Dallas, USA to see how we

are evolving RF and how we can help you asYour Shrink Management Partner.


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Evolve changes the game of Shrink Management

Per Levin started with the IT and Systems Integration side before he movedon to help retailers tackle their enormous shrink losses. Over the last years,

RF EAS technology has broken through several ‘impossible’boundaries. Now, with the introduction of the new

Evolve line from Checkpoint, RF is taking on a newmeaning, providing retailers with the ultimate tech-nology they need to successfully fight the world's $98

billion shrink problem. Point of View conducted aninterview with Per to learn more.

Per Levin,WorldwidePresident ofthe ShrinkManagementDivision inCheckpointSystems, hasbeen workingwith the retailindustry for over20 years.

What benefits will Evolve bring to retailers?Evolve is less hassle for consumers and itattacks shrink harder with better performanceand with data that helps LP deploy theirlimited resources. It is an adaptabletechnology with which the CFO and theCIO will feel very comfortable. Additionally,due to its better overall performance, itprovides increased deterrence. So ultimately,in the hands of the right people, it shouldsignificantly drive shrink down.

Why has this technology beencalled 'Evolve'?This is the first software-based EAS system.Software Defined Radio (SDR) helped usdevelop 360 RF, new algorithms and fullflexibility going forward. The technologyis backward compatible with legacy systemsfrom Checkpoint and forward upgradeableto new needs such as EPC RFID. You cankeep evolving by continually upgrading tonew software versions over the Internetand keep improving performance.

Evolve is less hassle forconsumers and it attacksshrink harder with betterperformance and with datathat helps LP deploy theirlimited resources.

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INTERVIEW


exactly what garment went out the doorillegally and be able to re-order it quicklyin order not to miss the next sales opportunity.With Evolve, RFID migration is builtright in, ready for upgrade when the retaileris ready.

What feedback has there been fromfirst installations?We have had good feedback from the earlyadapter program, and we are now successfullyrolling out in Tesco's new 'Fresh and Easy'stores in the US. I also think the market willlove the new Evolve S10 Slimline. It is a newproduct that will please apparel storedesigners, since it is mounted directly onthe doorframe and blends perfectly into thestore environment. Our most seasoned fieldengineers report solid performance fromdifferent parts of the world.

What other products will we seein the Evolve family?Right from day one, there are five differentsystem designs to choose from, along withthe new D11 deactivator. The Evolve D11deactivator is also time-stamping everytransaction and is IP-based to help LPmanagers “know” what is really going on.Evolve is a huge step forward for shrinkmanagement today and for years to come.

How does Software DefinedRadio (SDR) fit in?SDR is the engine that creates this flexibility.It is the fourth big breakthrough in the historyof RF. SDR and new algorithms create amoving field. As the tag approaches thesystem, the field moves 360 degrees aroundthe tag. This new principle opens new doors toimproved performance and reduces the impactof the orientation.

What are the benefits of connectivity?You can now communicate to all your storesfrom the head office via the Internet or Intranet,so it is a fast, flexible, secure and low costcommunication. You can overlay this EAS timestamped data with other relevant “data-feeds”in our Shrink Management suite of applicationsand LP management can get a quick and clearview of where and when they should deploythere resources. Fast and timely action is keyfor modern LP managers. When stores “know”that LP “knows”, compliance with establishedprocesses increases and shrink falls.

How will Evolve help withRFID implementation?We focus our RFID effort on practicalimplementation for retail. Initially, the Evolvelabel is the key, featuring dual frequencies thatinclude both Gen 2 UHF and 8.2 EAS. Thecurrent source tagging program and systemscontinue doing the EAS job, so you do not needto worry about that. Instead, you can focus allyour attention and investments to the higherpriority issues of improved inventory visibilityof boxes and items. But at some point, yourpriorities may change. You will want to know

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P10

P20S10 Slimline

G20

G10EVOLVE ANTENNA FAMILY

With Evolve, RFID Migration isbuilt right in, ready for upgradewhen the retailer is ready.

INTERVIEW


Tell us about AlphaAlpha was founded over30 years ago in Canton,Ohio. We still have amanufacturing facilityin Ohio and ouroperations team,finance and customerservice operations are based there.The head office of our division is now inCharlotte, North Carolina. We also haveoffices in Europe, Asia and Latin America tobetter serve our sales partners and retailcustomers around the world.

What is Alpha's expertise?Alpha's business has been focused on the high-theft side of retail. The solutions that areoffered by many other companies in the retailindustry are usually focused on a broader

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Alpha and Checkpoint: building the ultimate SMS product portfolioThe recent acquisition of secured merchandising experts Alpha Security Products byCheckpoint Systems has brought together two of the retail industry's key players in theprovision of advanced product protection solutions. We spoke to Larry Yeager, VicePresident and General Manager, Checkpoint's Alpha division, about what the acquisitionmeans for the retail industry.

Larry YeagerVice Presidentand GeneralManagerCheckpointAlpha division.

range, applicable to high, medium and lowrisk-items. At Alpha, we specialize in

high-theft: the most challengingproducts to protect. In other

words, all major retailersalready have a securitysystem in place, includingEAS, CCTV, exceptionmonitoring, alarms, guards,

processes, etc. Even with allof that, there are still specific

merchandise products thatcontinue to disappear from their

stores. Alpha focuses exclusively on thosehigh-theft items and helps complement thesecurity investment the retailer has alreadymade. Our solutions vary from retailer toretailer, but the one thing they all have incommon, is that we are protectingonly their high-theft merchandise. �

INTERVIEW


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What kind of products do you protect?Everything from expensive designer handbagsto $300 hard drives, to memory sticks andother merchandise that is traditionallydifficult to protect, like razor blades andrazors, perfumes, wine and spirit bottles, inkcartridges, flat screen TVs, etc. These are allattractive to shoplifters because they are veryuseable for re-sale. If you consider that Alphasolutions are found in roughly 70 out of thetop 100 retailers of the world, it proves thatour products work. We are very proud of thefact that a retailer will typically see a return ontheir investment within six months ofinstalling an Alpha security solution in theirstores - regardless of what product we areprotecting.

What kind of innovations has Alpha broughtto the protection of high-theft merchandise?Alpha is very proud of its reputation as aninnovator. Most of our product ideas camefrom our retail customers expressing theirfrustration on how to effectively protectspecific merchandise. We then engineerdifferent unique, innovative solutions and testthem. Our focus in every Alpha product is tooffer uncompromising security, while ensuringthat the product is easy to use by the peoplewho will be using it, and that it helpsmerchandise the product it protects throughgreat aesthetic design. Over time, many ofour original ideas have been copied by low costmanufacturers, but there is a big differencebetween an Alpha product and a low-costimitation. We have a number of signatureproducts. One of these-now in its sixth orseventh generation-is the Spider*Wrap. Thisis a product that uses cables to protect boxes ofvarying sizes, so you can have one product thatcan protect a number of different size boxes:everything from a hard drive to a computermonitor. There are different low-cost versionsof our Spider*Wrap, but none offer everythingthat an Alpha Spider*Wrap does.

What about Cable*Loks?Cable*Loks protect everything for DIY tohigh-fashion retail merchandise. Theproduct offers much flexibility in the type ofmerchandise it can protect, and because of itsease of use and great aesthetics, you will findit in stores such as sporting goods stores andexpensive boutique retailers. In addition, wedeveloped a technology called 3- Alarm thatcan be found in all our different products toprovide even greater increases in the level ofsecurity. Now the retailer can choose a good-better-best approach in the type of security

device they want to invest in to protect veryexpensive items in computer electronic stores,like 400-dollar software packages or 1,000-dollar purses. We invented 3-Alarms thatwork with Cable*loks, hard tags, Keepers, andsoon, with Spider*Wraps… and we're taking3-Alarm to new levels each and every year.

Tell me about the S3 key LokThe purpose behind the S3 Key was to developa platform on which a number of different

solutions would be available to use forshrink management to be easilyunlocked at point of sale. Before, anumber of different keys were used tounlock a myriad of solutions. We've

got it down to one platform thatwill unlock hard tags, Cable*Loks

and Spider*Wraps or Keepers,so there will be one unit tounlock everything, making

things much quicker andsimpler at point of sale.

It provides ease of useand enhances customerexperience.

What kind of EAStechnology do youfocus on?Our solutions are

technology-agnostic:they are flexible to

whatever system the

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Our focus in every Alpha productis that it is easy to use and that itprotects through great aesthetic design.

INTERVIEW


up or behind counters or using library systemswhere the customer exchanges a card to pickup the merchandise. With Alpha's solutionsmany of their impediments to sale are goingaway. Because we provide more than adequateprotection, the product can be out on the floor,which makes the consumer much morecomfortable about making the purchase.

What do you think the acquisition will bringto Alpha and Checkpoint customers?From a strategic standpoint this is a perfectacquisition. Checkpoint has positioned itself asan SMS solutions provider around the world.Now, thanks to this acquisition, they haveexpanded their offering, with products thatperfectly complement their existing EASproduct range. The investment that retailershave made can be built upon by adding Alphaproducts. This acquisition makes Checkpointthe number one SMS solutions providerglobally. Alpha is focused on high-theftsolutions to provide Checkpoint customers andnew customers with possibilities to improveopen merchandising of more expensiveproducts and high-risk products, helpingthem to increase sales. But just asimportantly, we will continue working withother EAS technologies and making sure weare offering the best Alpha solution regardlessof the EAS technology that the retailer haschosen.

We are looking forward to the EuroShop andRILA events, as opportunities to demonstratesome of our advanced secure merchandisingsolutions alongside Checkpoint Systems.

customer is using. Our view is that thecustomer had chosen the technology they wantto use in their store so we provide them withthe EAS system add-ons to go with theirtechnology, whether it is RF, EM or AM.Alpha solutions are intended to complementtheir EAS investment regardless of which oneit is. We will continue with this philosophyin the future.

How do your products affectconsumer experience? What our products do is to make merchandisemuch more accessible. Rather than having themerchandise locked up behind glass, theretailer is much more comfortable aboutbringing it out on to the shop floor where theconsumer can inspect it and touch it and feelit. This also requires less customer servicepersonnel on the retailer's part. Again, we arevery proud of the fact that a retailer willexperience an ROI within six months ofutilizing our solutions, but this ROI willcome in the form of reduction in theft andincrease in sales. This speaks very highly onthe positive impact our product has in regardto the consumer experience.

What are the main benefits of securemerchandising? One of the demands on retailers today is beingable to openly merchandise all of theirproducts. In the past, things have been locked

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Our solutions are technology-agnostic:they are flexible to whatever EASsystem the customer is using.


Evolve...Beyond Imagination

Visit us at:


PRODUCT FOCUS

A picture is worth a thousand wordsWorlds of pictures raise the customer's emotions and create anatmosphere they can feel comfortable with. With its salespromotion system EmotionLine, Checkpoint Systems shows howeasily this can be achieved. Offered as a full service package,EmotionLine helps the retail industry to increase sales in a fastand cost-effective way. The broad public can get in touch with thesystem for the first time at the EuroShop 2008, which takes placein Dusseldorf from the 23rd to 27th of February 2008.

Sales Promotion with EmotionLine

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T he principle of EmotionLine is easy: A large-sized picture will be tightened

in a lightweight aluminium frame that isinstalled either on the ceiling or the wall. Notonly customer-specific images can be used for thatpurpose. Checkpoint has already collected morethan 1,000 images from the food area in a newpicture data base. With bio-degradable colours,the chosen image will be printed on textile(polyester material). It will be externally providedwith a silicone tape so that it can be tightenedwith the aluminium pattern. Different framepattern types and sizes offer a wide rangeof possible applications.

“The specific benefit of EmotionLine is thatCheckpoint is the first provider on the market tocreate a full service system for the retail industry”,says Product Manager Ingolf Schulten. “From thepicture data base to the installation service, weoffer everything from one source so that there isvirtually no need for the customer to take care ofit. With less effort, textile prints can beexchanged so that a new shopping atmospherein the store can be created over and over again.”Aside from the easy handling, the mostsignificant advantage lies in the almostinexhaustible application areas. EmotionLine cannot only be installed above the fresh food counterbut also directly at the presentation of the goodse. g. around a pallet presentation or above thegondola head. Further fields of application are

ceiling constructions with pictures or purecolour images in order to enclose the sectionof the store. A special textile printing evenallows exterior installation. “There are manyspaces often being wasted today”, explainsIngolf Schulten. “Large-sized worlds of picturesor pure colour spaces can not only improve thecustomer's orientation and guidance. Byupgrading the shopping atmosphere, retailerscan also significantly increase their sales.”

Beyond Imagination: Checkpoint at the EuroShop 2008EmotionLine, offered on the market underCheckpoint's brand METO since October 2007,introduces itself to a broad public for the firsttime at the EuroShop 2008, which takes placein Düsseldorf from the 23rd to 27th ofFebruary 2008. Over 300 square metres,Checkpoint will also showcase solutionsbased on radio frequency for supplychain optimisation as well as for shrinkmanagement. The highlight of theEuroShop 2008 will be the presentationof the new Evolve security antennas.“According to our motto 'BeyondImagination' we present branch-specificsolutions at the EuroShop 2008 that helpretailers to gain more transparency from thestores. Doing so, Checkpoint pursues anintegral approach: From the supply chainto the point of sale”, states Dirk Endlich,Country Manager and Marketing Managerof Checkpoint Systems Germany.

EuroShop23rd to 27th February 2008Exhibition Hall 6 / Pavilion C40.

PRODUCT FOCUS

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By upgrading the shoppingatmosphere, retailers can alsosignificantly increase their sales.


Documents

Evolve Beyond Imaginationliterature.puertoricosupplier.com/021/CO20488.pdfEDITOR Annabel Lemétais EDITING & COPY-WRITING Daniel Campi CONTRIBUTORS Martina Heilig, Carlos Pérez DESIGN