METRO Cash & Carry Selects Checkpoint Systems as Their Exclusive Shrink Management Global Partner

2006-11-06 15:24 12039

METRO Cash & Carry to Improve Customer Service Through Sophisticated Shrink

Management Solutions From Checkpoint Systems

HONG KONG, Nov. 6 /Xinhua-PRNewswire/ -- Checkpoint Systems (NYSE: CKP),

the global leader in product identification and shrink management solutions,

has been selected by METRO Cash & Carry to launch a global shrink management

and source-protection program in Europe, Asia and Africa. The strategic

agreement, which includes worldwide store installation of NDRF (New Digital

Radio Frequency) technology and source tagging, will help METRO Cash & Carry

to minimise shrinkage and reduce operational costs by using only one

supplier, Checkpoint Systems, and implement source tagging, with the ultimate

aim of improving their customers' shopping experience.

Installation of 3G NDRF antennas and deactivators is planned for the more

than 425 Cash & Carry self-service wholesale stores in 28 countries, making

it the most international EAS (Electronic Article Surveillance) roll out of

its kind.

The global shrink management solution provides METRO Cash & Carry (under

METRO and MAKRO brand names), with product protection throughout the entire

supply chain, from manufacturing and distribution to the point of sale, where

the RF tags on the item are deactivated. This eliminates the need for

employees to spend time physically securing the tags in-store or removing

them at point of sale.

"Protection of products right from manufacture is now essential to

minimise shrinkage, and improve processes," said Gerhard Friedrichs,

Corporate Head of Security of METRO Cash & Carry.

"Traditionally across METRO security was managed in-store, using a number

of different technologies and methods, such as AM (Acoustomagnetic) and RF,

from different suppliers. Partnering with Checkpoint will allow METRO to have

a consistent product protection solution across its entire international


Source tagging ensures that the presentation of a product is not altered

as the tag can be applied onto, or integrated directly into, a product's

label or packaging. This provides a discreet security solution that enables

the retailer to display the products freely, giving customers easy access to


Products prone to theft will be protected first, such as garments, shoes,

razor blades, wine, spirits, liquors, and high-value meat. The Benelux

nations, which have already commenced their source tagging program are

protecting high risk items like batteries, ink cartridges, garments and


A large proportion of METRO Cash & Carry's product range will be tagged

and the security added to the product will be adapted to each country's

specific needs. A variety of unique source tagging solutions from Checkpoint

will be used by METRO, including high speed auto-apply labels, fully

integrated hang tags, shoe and woven labels with or without variable data to

be applied on apparel, within apparel or into the shoe items.

Checkpoint is also able to provide METRO Cash & Carry with tags through

its Global CheckNet Service Bureau, which can print virtually any label or

ticket upon demand from any of the five continents. This will help to

increase the quality of METRO's manufacturing phase, enabling products to

reach stores much quicker and with the right level of product protection.

METRO Cash & Carry has built an internal team to handle the

implementation of the project and Checkpoint is supporting the program with

it's own source tagging team, including source tagging advisors based at

METRO's Buying Offices around the world.

George Off, CEO and Chairman of the Board of Checkpoint Systems Inc.,

said: "Our strategic partnership with METRO Cash & Carry has seen both

parties invest long-term commitment to help secure merchandise better while

also improving the customer shopping experience. This program demonstrates

the advantages that RF source tagging can deliver and, with this bold move by

METRO Cash & Carry, along with announcements by other global retailers over

the last 12 months, RF source tagging has clearly established itself as the

industry standard in Europe as well as in many vertical markets globally."

About Checkpoint Systems Inc.

Checkpoint Systems Inc. is the global leader in shrink management

solutions for the retail industry and its supply chain. Checkpoint's services

are aimed at increasing sales and protecting the profits of its customers.

Listed on the NYSE, Checkpoint operates in every geographic market and

employs 3,600 personnel worldwide. Checkpoint specializes in source

protection of consumer goods, EAS (Electronic Article Surveillance), RFID

(Radio Frequency Identification) and merchandising solutions. CheckNet is

Checkpoint's strategic platform for its source tagging service, a global

network for 'just in time' delivery of critical information and protection

applied on products at the point of manufacture.

About METRO Cash & Carry

METRO Cash & Carry is the international market leader in self-service

wholesale business for professionals. It is the biggest sales division of

German-based METRO Group, the Top 3 retailing group worldwide. METRO Group

had annual sales of a 55.7 billion in 2005 and covers the sales formats

METRO/Makro Cash & Carry, Real/Extra food retail, Media Markt and Saturn as

well as Galeria Kaufhof department stores. More information at or

Source: Checkpoint Systems Inc.