Retailing, Franchising, and Consumerism Business Intelligence in China

Metro Selects Checkpoint Systems For Shrink Management Global Partner

Hong Kong's Checkpoint Systems 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 estate."

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.

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 cosmetics.

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