insights from global retailers

Quarter 4 / 2008

in this issue...

Global Technology and Innovation Forum UnitesRetailers and Technology SuppliersCVS Integrates Technology Across Business Functions to Enhance its ROI

Source Tagging Equals Savings and Shrink Reduction for Best Buy

Understanding Loss Prevention in the DIY World of Sodimac

ILACAD Takes an In Depth Look at the Retail Food Market in Latin America

The Prevent, Control, Convict ALTO Model Teaches Thieves that “Crime Doesn’t Pay”

TNS Retail Forward Offers Retailers Global View on Macro Trends and Shopper Insights

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Recently, in Cancun Mexico, 245 retailers, industry consultants, andtechnology suppliers gathered at thisunique industry forum of open dialogueand exchange of experiences about therapidly changing retail environment.

Sponsored by ADT Integrated Solu-tions, the event explored how solutionslike access control, video systems,RFID, SmartEAS®, source tagging,exception reporting/data mining and

fire detection can integrate with Elec-tronic Article Surveillance (EAS) systems to enhance loss preventionand operational efficiency efforts whiledriving retail profitability.

At RETECHLA, major global retailersCVS, Best Buy and Sodimac sharedtheir practical experiences of technol-ogy implementations and strategiesthat helped improve business perform-ance and profitability. Also, leadingtechnology consultants from IBMGlobal Business Services, Venture Development Corp. (VDC), Frost & Sulli-van, IHL Consulting, ILACAD, and TNSRetail Forward offered a global perspec-tive on technologies and trends in retail security.

Additional presentations included LossPrevention experts Loss Prevention Re-search Council (LPRC), LL Training andConsultant Group and PCG Solutions,Inc., the training, education, and con-sulting firm. ALTO, the private Chileanorganization that helps companies con-trol shoplifting crime, discussed retailloss prevention and its legal framework.RFID Journal and ADT/Sensormatic pre-

sented emerging RFID technology in retail and Tyco International covered theleading Sensormatic EAS/RFID dualtechnology offering.

“An event like RETECHLA allows retailers to better understand the rapidly changing landscape of retailtechnologies,” said Andrew Nathanson,director: AIDC, RFID and Retail Automa-tion at Venture Development Corp. Mr.Nathanson added, “RETECHLA affordsthe opportunity for retailers to gain abroader perspective on the advance-ments of in-store technologies – we areexcited to discuss some of the new andemerging innovations and how they influence the retail market.”

Julio Hoenigsberg, regional director ofADT Integrated Solutions Latin Amer-ica, characterized the benefits of this innovation forum for loss preventionand operational excellence in retail mar-kets. “RETECHLA is a key event forkeeping pace with the latest trends inretail security and exploring how retail-ers are utilizing technology solutions tobecome more secure, more efficientand more profitable.

To meet the demands of the growingLatin American market ADT created this forum for retailers and technologyproviders to exchange experiences first-hand and share best practices.”Hoenigsberg added, “RETECHLA pro-vides a great overview of where retailtrends are going in presenting the LatinAmerica vision, the emerging market vision and the global vision.”

RETECHLA 2008 Global Technology and Innovation Forum Unites Retailers and Technology Suppliers

In-Store, your link to the latest trends, news, and in-sights in retail, takes you ona global journey withRETECHLA 2008 - LatinAmerica’s largest Retail Tech-nology security event. Fromthis venue, some of theworld’s leading retailers, industry consultants andLoss Prevention experts willshare their first-hand experi-ences on the technologiesand the evolution of the retail industry.

We value your feedback. Ifyou have ideas or storiesyou would like covered in future editions, please emailus at InStore@Tycoint.com.Stay tuned….there’s plentymore In-Store!

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RETECHLA session speakers RETECHLA showcased value added solutions from companies that complement Tyco retail technologies

Speaker Sergio Migliorini from SODIMAC explores loss prevention in DIY stores

RETECHLA was well attended by retailers, industry consultants and technology suppliers

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CVS Integrates Technology across Business Functions to Enhance its ROI

Given their breadth of services, positionas the number one provider of prescrip-tions in the nation and commitment tosuperior customer service CVS investsin new stores and technologies to drivefuture growth. Yet with growth comesthe risk of increased shrink opportuni-ties as Larry Foster, Director of LossPrevention Forensic Analysis forCVS/Pharmacy indicates. In his roleLarry provides the overall direction andmanagement of Loss Prevention (LP)systems implementations and analysis.

According to Larry, “CVS needed a ro-bust transaction monitoring applicationthat was capable of growing with ourneeds. The strategy involved developinga data solution across multiple businessfunctions to drive profitability.” Sensor-matic® Analytics powered by Retail Ex-pert offered CVS acomprehensive suite of busi-ness intelligence solutions ca-pable of integrating acrossmultiple business areas to in-clude LP, Store operations,Pharmacy operations, Market-ing, Merchandising,Sales/audit, Bank reconcilia-tion, Treasury and Compensa-tion.

To reduce shrink and improveoperational performance, CVSinternally branded the solutionas VIPER. They created astrong partnership with RetailExpert to design modules thatintegrated all transactions in-cluding their point of sale,

pharmacy dispensing system and phar-macy inventory as well as front storeperpetual inventory transactions -- andeven their direct store delivery informa-tion. With all of these information ele-ments included in VIPER, CVS is able toextend their ROI and reduce shrinkthroughout the store, not just at thepoint of sale.

Managing sales reducing activities (i.e.voids, returns, coupons, etc.) were criti-cal for CVS to increase sales, manageand control inventory loss and improveinventory service levels. The VIPER suiteaddressed sales reducing activities bymonitoring and trending these transac-tions as Key Performance Indicatorswithin VIPER. Each of these indicatorsis analyzed across the organizationalstructure of the company and in some

As America's largest retail phar-macy with 6,300 retail locationsacross 38 states, CVS/Pharmacymanages more than 1 billion prescriptions annually - morethan any other pharmacy serv-ices provider. To support theirstrategy for growth, CVS is integrating technology with loss prevention measures.

Sensormatic Analytics offered CVS a robust trans-action monitoring application capable of growingwith their needs

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cases by vendor. VIPER is able to intelli-gently identify those transactions thatare outside the norm and require furtherinvestigation. As a result CVS was ableto dramatically reduce the use of salesreducing activities and effectively in-crease sales and reduce shrink.

As Larry explains, this unique systemdesign offers numerous benefits, “notonly does VIPER give us visibility to per-formance surrounding our Point of Salesystem at a high level, but also we areable to see activities within the fourwalls of our stores.” He added, “Withthe Pharmacy Dispensing and Inventorymodules we are able to reveal activitiesthat indicate potential loss or opera-tional deficiencies, and have the abilityto analyze these results by the specificdrug classes. This information enabledus to reduce the basic errors that occurwith the complicated prescription drugprocess. Also, we have been able toidentify inventory loss associated withthese high risk drugs.”

Through a pharmacy case study CVSlearned first-hand the ROI of VIPER inprotecting high risk drug inventory. Results revealed how the VIPER suiteidentified several pharmacy inventorytransactions that required further investigation.

Looking ahead VIPER offers growth po-tential to provide powerful solutionsacross the company. CVS plans to continue extending the benefits ofVIPER to other areas that represent significant expenses such as the ware-house and even supply processes. Byintegrating intelligent technology likethe Sensormatic Analytics suite intotheir LP program CVS achieved a1000% return on investment*.

For more information, visit Sensor-matic.com and click on Store BusinessIntelligence.

*March 20, 2008 Stores® Magazine Knowledge Series™ sponsored by ADThttp://www.iian.ibeam.com/events/nrfe001/25796/index.jsp?adid=stores032008

Understanding Loss Prevention in the DIY World of Sodimac

Offering the best variety and cate-gories of products that are easily ac-cessible to customers definesSodimac’s customer focused philoso-phy. To maintain customer satisfactionan important element of Sodimac’sproduct assortment policy is their pri-vate brand strategy; creating regionalprivate brands in tools, paint, adhe-sives and other important categories.

With customers demanding betterservice and more convenient accessto merchandise, Sodimac recognizedthe need to implement new Loss Pre-vention (LP) technologies. In selectingthe right anti-theft solutions Sodimacneeded to consider how to openlydisplay and protect vulnerable high-theft items. The most significant chal-lenges to overcome in a DIY formatinclude:

• Wide exits that allow large pur-chases like lumber, dry wall,metal fences, etc.

• Most frequently shoplifted itemsthat have metal content

• Source tagging label footprintsmall enough for an extensiveline of products

According to Mr. Migliorini, “as agrowing DIY retailer, our LP strategiesinclude the continued rollout ofAcousto-Magnetic (AM) technology inall Sodimac stores in Chile, and even-tually in stores located Colombia, Peruand Argentina. With the rollout weneed to continue the focus to pro-mote our source tagging programwith our vendors in order to maximizethe program across the chain. We willalso initiate pilots with point-of-salescanning manufacturers and ADT to

Headquartered in Chile, Sodimac isthe leading home improvement Do-It-Yourself (DIY) chain that becamepart of the Chile-based retail giantFalabella group in 2003. As LatinAmerica’s top DIY retailer Sodimacoperates under two formats andbrands targeting different seg-ments: “Homecenter” and “Con-structor.” Sodimac has experiencedcontinued growth in Chile, Colom-bia, Peru and recently in the Argen-tine market where it will make asignificant investment over the nextfive years. Sergio Migliorini, LossPrevention Director, shares theSodimac loss prevention point ofview.

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The robust Sensormatic Pro-Max® is the perfect solution for withstanding impact from carts or other objects common in the DIY environment

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integrate Sensormatic’s POS deacti-vation solutions.”

ADT/Sensormatic had the winningcombination of technology solutionsto overcome Sodimac’s obstacles. Tohelp reduce shrink and increase salesof openly displayed merchandise,Sodimac stores are protected by theSensormatic® Pro-Max® DetectionSystem -- the high performance anti-shoplifting solution designed to coverwide exit openings. With a robust design Pro-Max® is the perfect solu-tion for withstanding impact fromcarts or other objects common in theDIY environment. Pro-Max® offersflexible configurations and the widestEAS detection coverage, enablingSodimac to protect high traffic areasfor large contractor purchases.

A significant amount of the most fre-quently stolen products found in a DIYhave metal. Sensormatic AM systemsoffer the highest detection rate to pro-tect all types of products. Most impor-tantly Sensormatic AM technology iscapable of detecting security tagsfound in a wide line of metallic prod-ucts Sodimac carries like power andhand tools, lighting, etc., and taggedproducts containing non-ferrous metals.

Sodimac launched the source taggingprogram in 2006 to ensure productsare protected, shelf ready and openlydisplayed for customers to conve-niently purchase. With more than 300suppliers and more than 8,000 SKUsthe source tagging program hasproven successful in helping increasethe speed of products to the selling

floor that translates into increasedsales.

Having the smallest label footprintthat easily integrates into a widerange of products, the Ultra•Strip®

offered Sodimac a number of keybenefits:

• Virtually no false alarms• Not detuned by foils or liquids• Unlimited activation/deactivation• Only activated with specially de-

signed activators

Implementing source tagging alongwith Sensormatic EAS into their LPprogram not only increased Sodimac’s profitability due to product availability but also enhancedlabor savings at the store level. AsSodimac discovered, Sensormatic isthe preferred technology to help protect the challenging retail environ-ment of a DIY.

For more information, visithttp://www.sensormatic.com/Prod-ucts/GST/GST_home.aspx.

Offering the best variety and categories of products that are easily accessibleto customers defines Sodimac’s customer focused philosophy

The retail food market is one of themost important formats in LatinAmerican, representing one of thelargest segments in attendance atRETECHLA. Frederic Gautier is regarded as one of the leading re-searchers in the Latin America retailmarket. His studies on the retail foodmarket focus on the various formatsand significant trends in Mexico, Argentina and Brazil with lessonslearned about these different types of formats.

In 2007 the Latin American economyexperienced a 5.6% growth as por-trayed in the following map. Accord-ing to Gautier this growth is

evidenced by the investment to expand retail operations, “In 2007more than $8 billion has been in-vested in the Latin American retailsector. With $2.2 billion of invest-ment, Cencosud is the retailer thatmost invested in acquisitions in 2007and Wal-Mart opened 212 stores inLatin America in 2007.” Of the top tenfood retailers in 2008, Wal-Mart, along-standing ADT customer, ranks asnumber one in Latin America. Withover 3,200 stores in thirteen marketsoutside the continental U.S., knownfor providing customer service andconvenience to customers in theirlocal communities, Wal-Mart has over1,950 stores in Latin America.

ILACAD Takes an In Depth Look at the Retail Food Market inLatin America

In 1997 Frédéric Gautier foundedthe Latin American Institute of theChannels of Distribution (ILACAD),a private institution dedicated to review the evolution of retail inLatin America and the product markets of mass consumption.ILACAD has offices in Argentina,Mexico, Brazil, and Guatemala andoperates in 8 Latin-American coun-tries to provide its retail market vision and best practices expertiseto approximately 300 Retail andFMCG clients. Take a closer look asMr. Gautier explores this compelling market.

Chile: 16 mill. U$S 7.653

U$S 6.571

México: 107 mill.U$S 7.726U$S 3.398

Perú: 28 mill.U$S 3.264U$S 4.000

Colombia: 46 mill.U$S 2.978U$S 3.800(e)

Argentina: 39 mill.U$S 5.429U$S 4.553

Population (in millions)PBI/capitaSales per m2

Central America: 41 mill.U$S 2.646U$S 3.400 (e)

Brasil: 192 mill.U$S 4.423U$S 3.880

Venezuela: 28 mill.U$S 5.995

U$S 4.700(e)

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In 2007 the Latin American economy grew 5.6%

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Further analysis reveals the concen-tration by country of the three topretail chains as depicted in the fol-lowing map. In the retail environ-ment store formats range from“max” to “mini.” With those variedformats come differences in thetotal store floor space, product as-sortments and most importantly theconcentration of customers fre-quenting that format. In the case ofthe Mexican market for example,there is a mix of formats from maxto mini.

A snapshot of the customer pene-tration per point-of-sale (POS) in the following diagram indicates hyper-markets, grocery and membershipclubs have the largest saturation;while hypermarkets and grocerystores have an equivalent amount ofcustomers per POS. With a large population of customers frequentingthese varied formats that offer someof the most frequently shoplifteditems like cosmetics, food, apparel,electronics and more, retailers needto consider loss prevention tech-nologies that improve both securityand operational efficiency.

Mexico’s top three chains, Wal-Mart,Soriana and Comercial Mexicana allrely on ADT to provide the securitysolutions suited to protect their typeof environment. With over 1,079stores in Mexico representing thelargest number of all stores in LatinAmerican, Wal-Mart protects theirstores with integrated security solutions including SensormaticAcousto-Magnetic (AM) EAS sys-tems complimented by AM Source Tagging, American Dynamics CCTVand Software House Access Controlsystems.

Brazil:Carrefour

CBD Wal Mart

Carrefour Cencosud Coto

Colombia:Éxito (cf.Casino)CarullaOlímpica

MexicoWal Mart SorianaComercial Mx

Venezuela:Central Madeirense

Exito (Casino) Unicasa

Uruguay:Disco (Casino)

Tienda inglesa MultiahorroChile:

D&S Cencosud Unimarc

77 %

59 %

61 %

61 %

66 %

76 %

Source : ILACAD 2008

56%

Argentina:

Hypermarkets 66.0% 4,645,345 273 17,016 18,386Supermarkets 29.0% 2,041,136 412 4,954 5,194Grocery 39.0% 2,744,976 172 15,959 18,547

Clubs 14.0% 985,376 48 20,529 22,395Convenience 12.0% 844,608 6,995 121 108

Homes per PDV 2007

Avg Homes per PDV 2008

Formats (Total) Penetration Number of Homes

Number of PDV 2008

108

4954

121

22395

5194

745816838117016 15959

20529

Hypermarkets Supermarkets Grocery Clubs Convenience

Source : SHOPPER 2008 / ILACAD

Concentration of the top three chains per country

Hypermarkets and grocery stores converge the same amount of customers per POS

Soriana self-service hypermarket cen-ters, with an assortment of almostevery product line, helps control inter-nal theft and vendor fraud with Ameri-can Dynamics® CCTV systems -respected as a leading global brand of video security technologies. Witha retail footprint of 410 stores in allMexican Republic and annual revenueof $5.9billion USD, Soriana launchedtheir new super format called “Soriana Super.”

With retail footprint of 217 stores and73 restaurants in 42 cities throughoutMexico and annual revenue of $4.6billion USD, Comercial Mexicana pro-tects its new City Market gourmetfood stores with the high perform-ance Sensormatic Ultra•Max®

anti-theft technology.

Other Mexican retailers such as Palacio de Hierro, with 10 stores inMexico, Guadalajara and Monterreyand annual revenue of $1.1 billionUSD; as well as Liverpool, with 71stores in all Mexican Republic and annual revenue of $3.9 billion USDprotect their stores with Sensormatic

Ultra•Max EAS systems. With an un-paralleled detection rate to protect alltypes of products, Ultra•Max offersthese food retailers the ability to detect to security tags inside foil-lined bags, metal shopping carts ortagged products containing non-fer-rous metal – products most com-monly shoplifted that RadioFrequency (RF) systems cannot adequately protect.

Both Chedraui, with retail footprint of120 stores, and Farmacias San Pablowith a retail footprint of 23 stores inMexico, integrated American Dynam-ics CCTV along with Ultra•Max EASsystems for an added layer of protection.

Éxito, a leading retail chain with 273stores in 45 cities throughout Colom-bia, has relied on ADT over the past10 years for their security and lossprevention needs. To help protecttheir high-risk, high-value items suchas bottled wines and spirits, Éxito de-ployed the Sensormatic Ultra•Tag forits ease of application and detach-ment -- saving Éxito store personnel

significant time in protecting stock.Capable of shielding a wide range ofmerchandise, the multipurpose Sen-sormatic Ultra•Tag offered Éxito en-hanced productivity and greatersecurity to help cut theft of bottledwines and spirits by more than 80percent.

As the retail food industry in LatinAmerica continues developing newformats and services to keep pacewith the continued growth, retailerscan refer to the research informationfrom ILACAD when considering theinvestment in new LP technologies.

For more information on ILACAD, visit http://www.ilacad.com/

For more information on Sensormatic solutions, visit http://www.sensormatic.com/

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The comprehensive American Dynamics Intellex Ultra digital video management system captures high resolution image,delivering value, performance, reliability and integration capability to retailers.

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Source Tagging Equals Savings and Shrink Reduction for Best Buy

With operations in over 990 storesserviced daily by approximately150,000 employees, Best Buyneeded a loss prevention solutionthat would deliver the double S: Savings and Shrink reduction. As amultinational retailer Best Buy offersa diverse family of brands that have“grab and go” convenience cus-tomers have come to appreciate. ForBest Buy the challenge becomeswhether to openly merchandiseitems to maximize customer conven-ience and enhance profits versus locating items behind display casesto protect them from theft while inconveniencing the customer.

Their concept of having more prod-ucts conveniently merchandised required the right anti-theft solution

while maintaining a consistent cus-tomer shopping experience that BestBuy highly values. To improve opera-tional efficiencies while limiting theft,Paul Stone, Vice President of LossPrevention and Risk Management forBest Buy faced the challenge of researching the right EAS solutionideal for a store environment likeBest Buy known for their wide varietyof electronics.

Too much electronics “noise” foundin their store setting impacted RadioFrequency (RF) performance; thus,Paul selected the SensormaticUltra•Post® as their theft deterrentsystem. With virtually no false alarms,the Ultra•Post® Acousto-Magnetic(AM) Technology offers superior detection performance with the Sensormatic patented resonator technology and new high coercivitybias to achieve high detection that is immune to detuning by such elements as metal, foil, liquids and magnetic fields – a must for the BestBuy electronic environment. Proven, reliable detection and system per-formance of Ultra•Post® supportedBest Buy’s “grab and go” philosophy.

To increase prod-uct availabilityand achieve laborsavings at thestore level, BestBuy implementedSensormaticsource tagging(items sourcetagged at point ofmanufacture) intothe LP programby identifyingproduct cate-

gories that fit into their merchandis-ing strategies. The program’s earlystages targeted CD’s and DVD’s withan overall goal to source tag all enter-tainment media products 100%.

According to Mr. Stone, source tagging not only offered Best Buylabor savings but also savings byeliminating the plastic keepers forCD, DVDs, video games, “Ourprocess involved incorporating sourcetagging language into vendor masteragreements, targeting merchantgroups within Best Buy to promotesource tagging and negotiating trade-offs with vendors.”

The implementation of source tag-ging resulted in significant sustainedshrink reduction and also an increasein sales of both CDs and DVDs. Elim-inating plastic keepers resulted in awin-win for Best Buy and the productvendor since source tagging offeredmore flexible product placement in anopen merchandising environmentconvenient for customers.

For more information, visithttp://www.sensormatic.com/Prod-ucts/GST/GST_home.aspx.

An industry leader with operations inthe United States, Canada, Europeand China, Best Buy Co., Inc., is amultinational retailer of technologyand entertainment products andservices with a commitment togrowth and innovation. The Best Buyfamily of brands and partnershipscollectively generates more than $40billion annual revenue. Paul Stone,Vice President of Loss Preventionand Risk Management, explains thebenefits of the Sensormatic® EASand source tagging programs.

Item

s Ta

gg

ed

Sensormatic Next Largest CompetitorProjected

30

25

20

15

10

5

02000 2001 2002 2003 2004 2005 2006 2007

Sensormatic source tagging continues to grow

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The Prevent, Control, Convict ALTO Model Teaches Thieves that“Crime Doesn’t Pay”

Retailers experience feelings of vul-nerability and helplessness whenchallenged with high crime rates thatcontinue to threaten their businessperformance and profits. This starkreality served as a catalyst for thesuccess Acción Legal Total (ALTO)has achieved in controlling and deter-ring retail criminal activity.

As an innovative model for theft andloss prevention, ALTO offers a unique

approach that complements the se-curity services and technology usedby retailers. In terms of loss preven-tion, ALTO has designed a modelbased on three areas to Prevent,Control and Convict those who com-mit acts such as shoplifting and fraud.

With highly recognizable media andsignage, ALTO prevents criminal conduct as thieves fear prosecutionto the fullest extent of the law. ALTO extensively researches the predictivebehavior and patterns of shoplifters tohelp control criminal activity througheducating their retail clients. Wellversed in the nuances of the legalsystem, ALTO provides legal directionto help convict shoplifters. Throughcompiling a criminal index, ALTO gathers information to determine ifsomeone is a repeat offender, be-longs to organized crime and whatproducts he or she most often steals.ALTO shares this information amongtheir retail community to more effectively enhance their security operations.

According to Mr. Nazer, “our businessmodel has been used in Chile produc-ing successful results among ourclients. Retailers have seen a 50% reduction in crime and fraud, an 80%reduction in repeat offenders and abetter ability to control organized retail crime. Through our legal strate-gies such as zero tolerance, criminalsentences and exemplary punish-ments have been obtained. Initiallysuccessful in Chile, we plan to usethis as a format for success in otherLatin American countries and eventually around the globe.”

Through comprehensive research,ALTO has drawn profound conclu-sions about criminal activity that canserve as eye-openers for retailersworldwide:

• 70% of offences occur in the last12 days of the month

• The same offender that steals ina retail environment also shopliftsin other industries.

• 73% of the offences occur be-tween the hours of 12:00 p.m.and 8:00 p.m.

Looking ahead, ALTO recognizes thekey challenges facing retailers in theLatin American market over the nextfew years. Loss Prevention depart-ments must enhance the proficiencyof their operations. To help boost profitability in an industry dominatedby low margins, retailers need to consider RFID and other innovativeloss prevention technologies.

For more information on ALTO, visithttp://www.alto.cl/

Founded by Jorge Nazer Rodríguez,an attorney from Los Andes Univer-sity in Chile, ALTO S.A. is an organi-zation that pursues to diminishcrime for companies throughoutChile, using legal means to controland dissuade retail theft. In additionto his extensive background in crimi-nal procedural reform, Mr. Nazerserves as an Investigator for theManhattan Institute of Policy Re-search in New York City, U.S.A., andis the recipient of several awards forenterprising industrialists and entrepreneurs.

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TNS Retail Forward Offers Retailers Global View on MacroTrends and Shopper Insights

Fact based. Forward thinking. Resultsfocused. These initiatives define theTNS Retail Forward philosophy. Intoday’s technology driven environmentit’s important to recognize the rapidlychanging relationship between retail-ers and shoppers. Operational meth-ods that worked for retailers in thepast won’t necessarily suffice in thefuture. With baby boomers approach-ing retirement their spending habitsbegin to decline as they consumeless, a significant macro trend affect-ing today’s retail climate. In the nextdecade, Baby Boomers will begin exit-ing the work force and redirect theirvast energies and spending power.

What does this mean for retailers?They need to be more sensitive to thelatest wants of the aging demographicand respond with products, servicesand experiences tailored to helpBoomers defy, deal with and enjoyage. Convenience is high priority. BabyBoomers want retail settings that aresmaller, closer and easier to access.

“Compared with the Baby Boom generation, the Digital Generation represents savvy, skilled shopperswho know what they want and whereto find it, thanks to the Internet andthe rapid evolution of search functionsand filters to connect consumers with

Founded in 1968 by ManagementHorizons, TNS Retail Forward is aglobal management consulting firmfocused exclusively on retailers andconsumer goods companies. Theirexperienced team has developedstrategic solutions for many of theworld’s leading retailers and con-sumer products companies. TNSRetail Forward’s consulting capabili-ties include shopper research, com-petitive analysis, economicforecasting, market positioning, andstrategy formulation. JamesMarstiller, Senior Vice President, of-fers an engaging perspective onglobal retail trends and shopper in-sights.

“As consumers become smarter shoppers, retailers need to rely on solutionsthat help improve operational efficiencies to produce a more satisfying shoppingexperience,” according to Mr. Marstiller.

almost any product they desire. Inthe digital age, everything is intercon-nected with access to all types ofproducts just a click away. If con-sumers can’t find what they want,they will be able to create what theywant, especially with the options digital media offers,” according to Mr.Marstiller. Retailers will need to respond by employing more uncon-ventional media and marketing formats. Saving the customer timewill be paramount for retailers to havean edge on the competition.

Despite the generation gap both BabyBoomers and the Digital Generationare seeking convenience and timesavings. Sensormatic has respondedto the changing retail landscape by introducing products that save time atthe point-of-sale and improve cus-tomer throughput. Integrated Deacti-vation and the easy to apply andremove Ultra Tag Platform are twosolutions that offer retailers improvedproductivity while enhancing the cus-tomer experience.

“As consumers become smartershoppers, retailers need to rely on solutions that help improve opera-tional efficiencies to produce a moresatisfying shopping experience. Retailers are recognizing the pathwayto remaining competitive is throughan integrated approach,” adds Mr.Marstiller. Sensormatic® realizes EASand RFID are complementary tech-nologies that can provide retailerswith several approaches to preventing

theft while improving operational efficiency, depending on their needsand specifications. Many retailers canbenefit from dual EAS-RFID function-ality while others may require a sequential, layered approach. Sensormatic® is investing in forward-thinking solutions by implementingdual EAS-RFID technology, providingitem level security and visibility in anever changing retail environment.

For more information on TNS RetailForward, visit http://www.retailforward.com/

For more information on the latestloss prevention solutions, visithttp://www.sensormatic.com.

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Ultra•Tag offers easy application and removal, saving an employee time atcheck-out while improving customer throughput.

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Retailers lose $93 billion annually to merchandise being out of stock- IHL Group 2008

Solving retail out of stock problem completely equals 3.7% increase in sales - IHL Group 2008

Retail CEOs expect to increase by 51% the investment around the consumer over the next 3 years- IBM 2008

79% of customers will commit to a deeper brand relationship after a satisfying experience- IBM CFE Retailer Studies 2007

retail industry research notes...

We hope you have enjoyed reading our premiere issue of In-store, global insights to retail. 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

Belinda MarshPhone number: +61 2 9947 7239E-mail: bemarsh@tycoint.com

New Zealand

Natalie GreavesE-mail: ngreaves@tycoint.com

North America

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

Europe

Adam ChapmanE-mail: achapman@tycoint.comPhone Number: +44 7703 340598

Asia

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

Quarter 4 / 2008

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