Not All Labels Are Created Equal Genuine Sensormatic the logical choice

Transcription

1 Safer. Smarter. Tyco. TM Not All Labels Are Created Equal Genuine Sensormatic the logical choice

2 Sensormatic labels help retailers protect their assets, organize their stores and build customer loyalty. Retailers invest in Electronic Article Surveillance (EAS) systems to protect the merchandise in their stores without compromising shoppers experience. The world s leading retailers choose Tyco Acousto-Magnetic (AM) EAS technologies and genuine Sensormatic labels, based on the combined benefits of exceptional range, sensitivity, tamper-resistance, and immunity to nuisance alarms. Working together as an integrated solution, Sensormatic EAS systems and genuine Sensormatic labels help retailers organize their stores and merchandise to appeal to shoppers, protect their assets, and build customer loyalty and sustainable profits. Retailers have made significant investments to achieve these goals, and not just in technology. Stores not only purchase and maintain assets such as pedestals, antennas, and point-of-sale-deactivators, but also hire, train, and equip security staff and sales associates to use them effectively. They also maintain supplychain and stocking processes to make sure merchandise is correctly tagged, and monitor Loss Prevention data to analyze trends and assess performance of their programs from end to end. With all the Tyco pioneered robust, cost-effective Acousto-Magnetic EAS protection and advanced the technology over decades of research, development, testing, and consultation with retailers around the world. time, effort, and money retailers have committed to EAS merchandise protection, it s surprising that any would cut corners on the most critical component on which everything else depends: the EAS labels. In many ways, AM EAS labels are like the crash sensors used in automobile airbag systems: small, seamless, and of insignificant cost compared to the value of what they protect. Because the costs of failure are so high, crash sensors are designed and manufactured to such high standards that most people who depend on them have never heard of a single failure. Similar to airbag system components, premium branded EAS tags are engineered as part of a complete protection system, with performance not cost in mind. This paper will outline what retailers should expect from a quality EAS label and review research comparing genuine Sensormatic labels sourced through approved channels against an off-brand alternative. It will point out the losses, customer irritation, and hazards retailers may encounter when they compromise on genuine EAS protection for their merchandise, stores, and customers. / 2 / Genuine Sensormatic Labels / Tyco White Paper / For internal use only. Not for external web posting.

3 What s in a label? The experience and engineering that go into premium labels are inconspicuous by design. Quality materials complement high-quality merchandise, are free from hazardous materials, and comply with industry green initiatives. Stable, high-strength adhesives stand up to manufacturing processes, handling, and wear. Precision assembly minimizes sharp corners that can cut garments and shoppers, and minimize unsightly bending and delamination. But even more important than appearance and build quality are the technologies that go inside. AM labels are engineered to resonate at a precise detection frequency. Quality materials and precision manufacturing concentrate more energy at this frequency, for greater sensitivity and range, less interference from outside the detection band, and more consistent deactivation at the point of sale. Figure1 compares the amplitude (strength) and frequency of signals returned by a sample of Sensormatic Ultra-Strip III labels to the same measurements from a sample of labels from an off-brand source. Sensormatic Outperforms Off-Brand Labels in Product Testing Amplitude and Frequency Performance Genuine Sensormatic vs. Off-Brand TARGET FREQUENCY 58 khz Key Sensormatic DR Off-Brand AMPLITUDE (nwb) RESONANT FREQUENCY (khz) Figure 1: Out-of-box amplitude and frequency distributions from a large roll sample of Sensormatic Ultra-Strip III labels (in blue) and a sample of non-sensormatic large roll labels from a single manufacturer (in red). Target frequency is 58 khz. Data may not apply to labels from other manufacturers. For internal use only. Not for external web posting. / Genuine Sensormatic Labels / Tyco White Paper / 3 /

4 Substandard labels have direct financial impacts, measured as the costs of stolen items. These issues aren t theoretical higheramplitude signals (top-to-bottom in Figure 1) from genuine Sensormatic labels mean better detection with more reliable alarming, even with challenging products containing liquids, foils, and metals. Higher amplitude signals also mean less de-tuning of labels from interference sources like metal shipping containers, hangers, and racks. And the tight Performance in the real world Sensormatic brand. This difference The advantage of genuine labels becomes advantage of off-brand labels when apparent the moment they re put to use. calculated on the basis of working Substandard labels may take materials, labels. engineering, and manufacturing shortcuts to reach slightly lower price points. But the alone erases a very substantial portion, if not all, of any price // Specifications compliance 97% of lower price may represent false economy. frequency band (left-to-right in Figure 1) of Testing conducted by the independent Sensormatic labels translates into better Georgia Tech Applied Research Corporation detection and deactivation performance. confirmed the superiority of genuine Since deactivators detect the tag before Sensormatic labels tested against an enabling the deactivation pulse, reliable off-brand alternative*: label detection also offers consistent deactivation. The result is fewer nuisance // Out of box yield almost 25% of Sensormatic labels met Tyco s strict manufacturing specifications only 20% of the off-brand labels met the specification. One of the advantages of genuine Sensormatic labels is their ability to withstand exposure to environmental factors often encountered in shipping and storage. alarms and a friendlier store environment the off-brand labels tested were This may explain the higher out of for shoppers and employees without completely dead right out of the box, specification number for the off brand sacrificing merchandise protection. compared to only 1% for genuine tested. * Testing conducted on samples of large roll labels, label detection rate derived from label specification testing data April 2013 /4/ Genuine Sensormatic Labels / Tyco White Paper / For internal use only. Not for external web posting.

5 // Detection performance Nearly a 2 to 1 advantage in Sensormatic detection predicted from laboratory results the bottom line in real-world performance. In addition to their compelling performance advantage, genuine Sensormatic labels are engineered to maximize retailer value from all their investments in EAS infrastructure, training, and processes from the point of manufacture to the store exit. // Economical application manufacturers, service providers, and distribution centers use high-speed devices to transfer labels from large rolls to merchandise. The precise alignment of genuine Sensormatic labels minimizes downtime from equipment jamming as well as demagnetization of labels during the application process. // Secure adhesion premium Sensormatic adhesives grip substantially more than several off-brand alternatives (up to 700% more), so labels stay attached to merchandise through shipping and handling. ** // Consistent fit and finish quality components and manufacturing processes maintain precise placement, and keep labels from bending after application, even when applied from center of the roll. // Broad protection adhesives bond well even to challenging materials such as polypropylene cosmetic bottles and high-density polypropylene blister packs, extending the range of high-value products that benefit from EAS protection. Sensormatic labels protect high-theft meat category. // Stability premium materials retain their magnetic properties across a supply chain full of metal objects and magnetic fields that can degrade less robust components. // Safe & green - manufacturing techniques and precision construction protect the environment from toxic chemicals, employees who apply labels by hand, and shoppers who handle the merchandise they protect. High-performance protection Merchandise protection is the bottom line and where Sensormatic labels excel. Superior design and manufacturing assures that Sensormatic labels respond correctly to EAS pedestals, antennas, and deactivators for consistently high performance in challenging store environments. High detection rates Reliable detection of non-deactivated labels is the key to effective EAS Loss Prevention. Every dead, degraded, or poorly-tuned label represents an opportunity for theft. Substandard labels have direct financial impacts, measured as the costs of stolen items. Although harder to measure, significant additional losses occur when stolen items cannot be sold and when product substitutions and discounting take place during replenishment. Indirect impacts include frustration when shoppers can t find the items they came to purchase, and irritation when store systems and staff insist they re still in stock. In the worst-case frozen out-of-stock scenario, undetected theft reduces stock to zero without triggering replenishment. Retailers EAS decisions should reflect the value of their merchandise, sales, and customers, not just the cost of the labels. Even beyond financial and customersatisfaction impacts, poor detection performance sends a message to habitual thieves and Organized Retail Crime (ORC) gangs who account for an increasing share of retail shrink. Just as broken windows and graffiti identify a neighborhood as poorly policed, inadequate protection at store exits identifies a store as a low-risk target. Defeat resistance Organized criminal gangs do their homework, and construct or purchase items designed to defeat EAS systems. These are often foil-lined booster bags or clothing used to conceal stolen merchandise and block resonant frequencies. Signals from high-quality labels are more difficult to block and require bulky countermeasures that are easier for Loss Prevention staff to spot. Wellprotected merchandise represents a risky target for thieves, and sends them away in search of easier targets. Nuisance alarm avoidance The other side of merchandise protection is resistance to nuisance alarms from labels that are inadequately deactivated at the point of sale. Nuisance alarms annoy ** In-house adhesive testing conducted on various label brands across various product categories For internal use only. Not for external web posting. / Genuine Sensormatic Labels / Tyco White Paper / 5 /

6 shoppers, irritate employees with noise pollution, waste Loss Prevention staff time, and create incentives to ignore or even turn off EAS protection. Precision tuning of EAS labels is the key to avoiding all these outcomes when labels, deactivators, and pedestals are all tuned to the same narrow band of frequencies, detection and deactivation are both more effective. The result is a more positive in-store experience for legitimate shoppers, without compromising protection at the store exit. Adding up the value Figure 2 compares the initial cost and merchandise protection value of a case of 5,000 genuine Sensormatic labels against an off-brand alternative. The example is hypothetical, but the attempted theft numbers represent typical retail experience according to published research on retail theft. The detection rate is also hypothetical although it is based on testing of samples of a leading competitor s large roll labels. The results are clear: $55 saved on a case of 5,000 off-brand labels results in a $435 loss from poor detection rates. As demonstrated by this hypothetical example, differences like these can add up fast: a retailer who labels 5,000 items averaging 2 inventory turns at each of 100 stores would save $76,000 every year by choosing genuine Sensormatic. 4 Those costs of substandard merchandise protection are even greater considering all the additional indirect costs and noneconomic impacts, including: // Loss of frustrated customers // Encouragement of thieves and ORC // Frozen out-of-stock scenarios // Irritation from nuisance alarms // Wasted Loss Prevention staff time Genuine Sensormatic Labels Offer Retailers Significant Value Compared to Off-Brand Alternative Initial cost Sensormatic Off-brand Difference Case of labels ASP $ 1 $175 $120 $55 Merchandise protection Tagged items 5,000 5,000 Theft attempts Detection rate 3 89% 48% 41% Thefts avoided Average item value $15 $15 Protection value $960 $525 $435 Sensormatic advantage 4 $380 Figure 2: Value comparison of genuine Sensormatic labels against a hypothetical off-brand alternative. Please see text for details. 1 Based on volume pricing for Tier 1 retailers. 2 Based on average shrink rates from 2011 Global Retail Theft Barometer Study. 3 Results may vary by manufacturer and label format. 4 $435 protection value - $55 added cost = $380 value per carton x 100 stores x 2 turns = $76,000. / 6 / Genuine Sensormatic Labels / Tyco White Paper / For internal use only. Not for external web posting.

7 Retailers Return to Genuine Sensormatic A major European drug store tried bargain AM labels a few years ago, but quickly learned that they would not deactivate reliably. Responding to complaints from store managers about nuisance alarms, they discarded the remaining 50% of their off-brand label stock and came back to genuine Sensormatic. A major Latin American DIY home improvement center and long-standing Sensormatic customer unknowingly received off-brand labels substituted by a supplier, and saw a sudden and dramatic increase in shrink. When a store audit confirmed that they were receiving substitute labels, they abandoned their on-hand inventory and demanded replacement genuine Sensormatic labels from their supplier. Genuine Sensormatic, the Most Trusted Label in Retail. Why Tyco Retail Solutions? The performance of highly-engineered mission-critical systems often depends on the integrity of small, inexpensive components. That s why automakers source branded airbag crash sensors from proven suppliers through approved supply chains: the potential savings from off-brand alternatives just don t justify the risks. And that s why retailers should rely on genuine Sensormatic labels for the highest degree of protection from Tyco Retail Solutions Electronic Article Surveillance. Tyco Retail Solutions pioneered robust, cost-effective Acousto-Magnetic EAS protection and advanced the technology over decades of research, development, testing, and consultation with retailers around the world. Today s Sensormatic solutions labels, tags, systems, and complete store information platforms meet or exceed the industry s strictest standards for detection and deactivation, help retailers control shrink, provide a better customer experience, and improve their bottom line. Tyco Retail Solutions takes a systems approach that covers every step of the retail supply chain from the point of manufacture until the moment merchandise leaves the store. With strong relationships with source-tagging providers, a robust hardtag recirculation program, and active contributions to industry standards, Tyco Retail Solutions helps impact the retail industry through partnerships, thought leadership, and standards needed to balance business profitability and responsible corporate citizenship. With industry-leading Research and Development teams and a worldwide Professional Services Organization, Tyco Retail Solutions delivers design, implementation and service that are second to none at retail locations everywhere. For internal use only. Not for external web posting. / Genuine Sensormatic Labels / Tyco White Paper / 7 /

8 Global strength. Local expertise. At your service. North America Headquarters 4700 Exchange Court Suite 300 Boca Raton, FL United States Phone: Latin America Headquarters 6600 Congress Ave. Boca Raton, FL United States Phone: United Kingdom/Ireland Regional Headquarters Security House, The Summit Hanworth Road Sunbury-on-Thames Middlesex. TW16 5DB United Kingdom Phone: Continental Europe Headquarters Am Schimmersfeld Ratingen Germany Phone: Asia-Pacific Headquarters 31 International Business Park, Creative Resource Building #03-02 Singapore Phone: South Africa Headquarters 1 Charles Crescent Eastgate Ext 4, Sandton South Africa Phone: Leverage our strength and experience Tyco Retail Solutions is a leading global provider of integrated retail performance and security solutions, deployed today at more than 80 percent of the world s top 200 retailers. Customers range from single-store boutiques to global retail enterprises. Operating in more than 70 countries worldwide, Tyco Retail Solutions provides retailers with real-time visibility to their inventory and assets to improve operations, optimize profitability and create memorable shopper experiences. The Tyco Retail Solutions portfolio for retailers is sold direct through Tyco businesses and authorized business partners around the world. Rev LabelPerformance_WP_RTL_ _EN Tyco Retail Solutions All rights reserved. TYCO RETAIL SOLUTIONS and SENSORMATIC are marks and/or registered marks. Unauthorized use is strictly prohibited. Safer. Smarter. Tyco. TM