Checkpoint In Talks With Big Brands

Keeping an eye on the impending retail boom in India, Checkpoint Systems Inc, one of the world's leading providers of radio frequency-based loss prevention systems, has launched new solutions to combat shrinkages through employee theft and shoplifting.

Sources said Checkpoint is in talks with retail brands such as Titan, Pantaloons, Globus, Trent, among others.

Acccording to the company, shrinkage is a serious issue facing the retail sector as it accounts for nearly 10 per cent of sales. While on an average, employee theft accounts for nearly 38.4 per cent followed by shoplifting at 35.8 per cent, vendor fraud is the lowest at 6.4 per cent. It claims that installing the electronic article surveillance systems can lead to as much as 50 per cent reduction in shrinkage.

 

It offers solutions for branding, tracking and securing assets from production line to point of purchase through electronic article surveillance technology. In India, industry estimates put the loss at 2.5 per cent of a retailers turnover which amounts to nearly Rs 300-350 crore per annum.

The vice-president and general manager, Checkpoint Systems, Asia-Pacific, Alun Wilson, said: "Shrinkage due to shoplifting or theft by employees can eat into the profits if not controlled. So many times retailers are not even aware how much they are losing through external and internal theft."

In India, the company aims to offer services in order to enable "smart" labelling and security solutions that encourage better inventory management and open merchandising leading to enhanced shopping experience and higher sales.

"Organised retailing in India is projected to grow six-fold by 2005 so our timing is just right as the market is still maturing and at the threshold of organised retail boom. Our solutions improve profitability to a large extent," he added. Further adding that once realisation of the extent of the problem of shrinkage rises, so will the awareness of using right tools to prevent shrinkage and facilitate in efficient inventory management.

Checkpoint Systems, Inc is a $691 m multinational manufacturer and marketer of integrated, technology driven system solutions for retail security, labelling and merchandising.