ELECTRONIC ARTICLE SURVEILLANCE

EXECUTIVE BRIEF

Enclose herewith are the study papers to assist the executives in their accurate selection for a suitable Electronic Article Surveillance (EAS) Technology and brand to protect their outlets against customer theft. The information is compiled from the feed back from our sales, technical and customers' experiences on the EAS system. Customers' convenience and minimising the intimidation of customers is given careful consideration. We hope to create a happy customer - shoppping atmosphere without compromising security.

PROTECTION AGAINST SHOPLIFTERS AT SUPER AND HYPER MARKET USING THE ELECTRONIC ARTICLE SURVEILLANCE (EAS)

1. GENERAL

1.1 SUPER and HYPER MARKETS have very vast floor space. The diversity and abundance of readily available merchandise is very vulnerable to customer theft. The heavy customer traffic is favourable to shoplifters. The prevention and detection of shoplifting is extremely difficult under these circumstances. The customer are highly sensitive when wrongly accused of shoplifting. The protection of super and hyper market needs careful and deliberate planning.

2. POSITIONING OF THE MONITORING ANTENNAS

2.1 THE ANTENNAS are either positioned at the exits or at the checkout counters. The inevitable question, is which is the most effective way of protection without intimidating the customers.

3. MONITORING ANTENNAS POSITIONED AT THE EXITS

3.1 When the antennas are positioned at the exit, the detaching of tags and deactivation are conducted at the checkout counters. The advantage of this method is that very few systems are required, thus the investment cost on the systems are much lower. However, this method has many disadvantages when compared to positioning the antennas at the checkout counter.

3.2 The disadvantages are as follows :

3.2.1 The fewer systems positioned at the exits have a much lesser deterring effect compared to positioning individual system protecting each checkout counter. The primary aim of every retail outlet is to deter shoplifting in preference to apprehending shoplifters.

3.2.2 The customer traffic converge at the exits after checkout, the traffic is very heavy at this point. When the alarm is triggered, identifying the person that triggers it, is extremely difficult and could cause unnecesary embarrassment and hassle to honest and innocent customers if wrongly identified.

3.2.3 Having to serve the customers in haste, the cashier sometimes do not deactivate the tags properly, even though the tags and deactivators used are of the best quality. When the tags are not deactivated properly, the alarms will be triggered, even by honest customers.

As an example :
10.000 protected items sold per day
1% (is not deactivated properly) x 10.000 items = 100 false alarm
100 times - 10 operating hours = average 10 false alarm per hour.

3.2.4 If false alarms are rampant, eventually the security guards will not react to the alarm for fear of the wrath of honest customers. This scenario will favour the shoplifters and eventually the situation of "Free For All" may exist.

3.2.5 When sticker tags are tagged at random position on the items or are tagged by the source Tagging, the tags will be difficult or impossible to locate especially so on bulky items by the cashier. In addition some of the sticker tags may not be effective if not properly pasted.

3.2.6 Systematic tagging position will compromise their location and will be easily removed by shoplifters. This method of protection may give the cashiers and security personnel a false sense of security.

3.2.7 The system position at the exits can be easily taken advantage of by the intelligent shoplifters. When the shoplifters are passing through the antennas, they will leave the goods stolen in their trolley openly. If these items are detected, they can easily blame the cashier for not punching the items in. They cannot be accused of shoplifting as the items are not hidden, it is openly displayed in the trolley. This method of stealing can be referred to as "THE OPEN THEFT, NO RISK CONCEPT".

4 MONITORING ANTENNAS AT EACH CHECKOUT COUNTER

4.1 This method is the most commonly used. Sometimes it is referred to as the "BY PASS METHOD". The customers hand over all the goods at the checkout counter. The customer and his empty trolley walk though the antennas and is screened. He will receive his goods at the other end of the counter after payment.

4.2 The evident disadvantage of this method, is the initial investment cost on more systems being purchased. However, the by pass method needs no deactivators, thus offsetting part of the cost spent on more systems nonethless. If deactivation are needed, the 1% of stickers Tags non desactived by cashier's mistake, will not do any false alarms. In addition, the effectiveness on deterring and detecting possible shoplifting makes it economically more viable than positioning the system at the exits in the long run.

4.3 There are many advantages of the systems position at each checkout counters (the BY PASS METHOD). The presence of antennas at each checkout will be a very strong deterrent to shoplifters.

4.4 The sticker tags can be at random and hidden position. The shoplifters are never sure of whether the items are being tagged or not, further savings can be increased by not tagging all the items at the same time.
This is additional savings on labour and tag cost. This will allow the flexibility, should for any reason deactivations are required, they can be easily installed and incorporated in the system.

4.5 The service at the checkout counter without having to locate and deactivate 100% of the tags is much more swift and efficient for customer service.

4.6 Should the alarm trigger, the serving cashiers can easily resolve the situation with the customer with minimum embarrassment. In actual fact, this situation can be easily handled and presented as part and parcel of customer services.

4.7 The monitoring antennas maybe placed at the entrance of the hyper market. This is to located items with tags that maybe brought in from another shop. Some hyper markets prefer that items and shopping carrier bags from another shop be deposited at a safe counter before the customers are allowed entry into their hyper market.

5. CONCLUSION

IN ANY retail outlet, happy customers are the prime factor towards its success. When customers are intimidated and wrongly accused of shoplifting, the consequences may be as follows :

5.1 We will have many unhappy customers who may never return again. These angry customers will create a scene and commotion and other customers may be apprehensive to return for fear of suffering the same fate.

5.2 These customers may report their grievances to the local press, a bad press report will severely damage the good image of that particular super and hyper market.

5.3 A very unhappy and wrongly accused customer may take up a legal suit against the hyper market.

5.4 A properly planned and protected super and hyper market needs not face the wrath of customers. The system position at the counters can be presented as part and parcel of an efficient and polite customer service system. In Europe, more than 95% of super and hyper markets position their antennas at the checkout counter using THE BYPASS METHOD.

ELECTRONIC ARTICLE SURVEILLANCE SYSTEM USING THE ELECTROMAGNETIC TECHNOLOGY AND THE RADIO FREQUENCY TECHNOLOGY

1. There had been numerous occasion where potential customers request us for comparative information on the above two EAS Technologies.

This information is compiled from the feed back from customers experiences using the system and from our sales and technical staff experiences in the field.

2. SIDEP manufactures and markets both EM and RF systems.

3. This comparative information is mostly based on the comparison of both SIDEP EM system and our RF system. Nonetheless, in general, identical technologies though of different brands normally differ marginally in characteristic.

4. Enclosed herewith is the paper to provide the information required to assist our customers in their choise of technology.

COMPARATIVE POINTS ON THE E.A.S RADIO FREQUENCY SYSTEM AND THE ELECTROMAGNETIC SYSTEM

1. AESTHETIC

The E.M panel antennas are large and bulky. It is obstructive in tight counter check outs.

The Radio Frequency System antennas are designed slim and can be painted in any colour to compliment the check out surroundings aesthetically.

2. ACCESSORIES AND PROTECTORS

The E.M System protect the articles by sticking label tags / magnetic stripes on to the articles. These protective stripes may drop off or be located and easily peeled off.

The RF system paper tags are available in different sizes. They can be under the disguise of bar codes, price tags, or printed with the brands / logos of any choise.

In addition the RF system offer a very wide range of protectors to enhance the protection of theft prone items.
* Cigarette Protector
* CD Protector
* Cassette Protector
* Bottle Tag
* Etc.

The benefits of these protectors are :

* The coils are embedded inside the protector and cannot be peeled off.

* The protectors and tags are reusable thus it is a more economical than using disposable labels.

* The SIDEP RF protectors use conceal activator coils instead of labels, the detection rate on these protectors are almost 100%.

* Enhance the protection of these theft prone items.

e.g. Cigarette Protector - Cigarettes are sometimes not stolen by the carton. The shoplifter sometimes pinch a couple of packets from the carton. When the cigarettes are in our RF Cigarette Carton Protector, stealing cigarettes by the packets is extremely difficult.

Sometimes label tags are hidden in the CD pack to protect the CD. The shoplifters are aware of this, they choose to open the packing and just steal the CD. Under the protection of the RF CD Protectors, they are unable to remove the CD from the packaging.

3. DETECTION RATE

The detection rate / pick rate of the RF system is far superior than the EM System. Although the EM sticker labels are smaller, however reports show that detection rate on EM labels are about 50% whereas the RF labels and coils are detected 95% and above by the RF antennas.

4. INTERFERENCE

EM System is known to be easily interfering with the point of sales equipment. This down time affects the smooth operations of the sales and service to customers, sometimes affecting the profitability.

5. HEALTH HAZARD

There have been many reports in medical magazines internationally on the effect on the strong electromagnetic field created by the electromagnetic system magnetising the pace-maker. This may affect the pace-maker to "a dangerous extent" ("Heart and Blood Vessels Magazine")

Such professional magazine written by Worldwide Scientific Commitees suggest that Premises using the electromagnetic system should inform the customers of the possible danger by sign posting. The SIDEP EM system is design with the lowest possible magnetic field to reduce health hazard without compromising its detection rate. Though the SIDEP EM magnetic field is low, it is advisable to follow the advice of these medical report on sign posting when in use.

6. COMPATIBILITY

The EM Tags and labels are normally not compatible with different brands.

On the other hand, the RF system working on 8.2 Mhz is compatible and allow the use of tags and accessories of different brands on each other's system. This compatibility is an advantage to the customers as competitive prices for the products have to be maintained at all times.

7. SOURCE TAGGING AND DEACTIVATION

The radio frequency with its paper thin tags are suitable for disguise and conceal at source tagging for high value goods. Unlike, the electromagnetic labels that need to be in contact or very close to the deactivator before the tag can be deactivated the RF labels can be deactivated at much further distance.

The powerful magnetic field sent by the electromagnetic deactivator in order to deactivate the electromagnetic tags, may interfere with the point of sales equipment, thus the integration with the point of sales scanner is not practical.

More than 40 brands of scanning point of sales equipment have agreed to incorporate the RF deactivator in their scanner. Source tagging is one of the most effective way of reducing shoplifting.

8. POPULARITY

Reports from the market show that the RF System is more popular than the EM system because it meets the customers requirement for an effective and economically viable system to protect their goods.

CONSIDERATIONS WHEN SELECTING AN EAS SYSTEM

1. The following factors should be considered when selecting an E.A.S System :
1.1 Proven Technology and System
1.2 Cost of System and Accessories
1.3 Compatibility with different brands
1.4 After Sales Service