Chile’s Leading Hypermarket Chain Reduces Shrinkage with the Latest EAS Technology

With a retail footprint of more than 100 stores in Chile and revenues over $3 billion dollars, Chile’s leading hypermarket chain provides millions of customers the convenience of one stop shopping. Offering a wide variety of products developed under their own valued brand, customers can find anything ranging from food, apparel, electronics and more.

To support their strategy for remaining competitive and focused on growth, this ninth largest chain in Latin America needed to update their existing technology to attain a more effective loss prevention program. As a segment of hypermarkets, supermarkets not only face significant challenges with shrink and razor thin margins, but also the technological challenges of “items most frequently shoplifted.”

In addition to metal-based items like razor blades and batteries, a high percentage of GM and HBC product packaging contains metal. By nature of their high theft value, these items present an added layer of complexity for retailers to create a safer shopping environment with better access to more conveniently displayed products. Acousto-Magnetic (AM) systems are the preferred EAS technology for retailers that sell metal-based objects or use metal shopping carts. In comparison to Radio Frequency (RF) systems, AM systems have the highest detection rate to protect all types of products. More importantly, AM technology is capable of detecting security tags inside foil-lined bags, metal shopping carts or tagged products containing non-ferrous metal.

Most Frequently Pilfered Items

 

FMI Security and Loss Prevention 2007 Study

The AM solution offers a dual benefit when protecting the most frequently shoplifted item, meat. By providing a microwave safe label, this solution offers customers the convenience of taking meat directly from the freezer to the microwave for defrosting. Additionally this label, available from Paper Pak Industries and Sealed Air Corporation, is already inserted into their absorbent pads providing the most cost effective way to source tag meats while protecting the meat’s freshness, display and shelf life. Based on the advantages AM anti-theft technology offers, it is apparent why Chile’s leading hypermarket required this type of solution to increase open merchandising opportunities to maximize customer convenience and enhance profit.

In a 3 month pilot, both RF and AM technologies were tested to protect 200 SKUs. The findings indicated a reduced shrinkage rate of almost 79% by implementing a source-tagging pilot with ADT. As a result, they determined AM technology offered higher performance versus their RF systems and enlisted the support of ADT to manage the technology conversion in their stores. They expect a rapid return on investment for the pilot and even better results in higher shrink stores.

As part of an ambitious commercial plan to grow their business and increase profitability, Chile’s leading hypermarket chain will roll-out Sensormatic® EAS solutions beginning in some of their key stores. In addition to helping improve their overall security, this new technology will allow this top chain to enhance its loss preventions efforts and business profitability — a winning combination for success.

Filed under Loss Prevention; Source TaggingKeywords EAS; electronic article surveillance

Published on 1/11/2008 Permalink

Comments

Add a comment

*

* indicates a required field