Retailers Worldwide Adopting Source Tagging

March 10, 2005

Growing Number Of Retailers Worldwide Adopting Source Tagging To Improve Loss Prevention

Tagging at source improves Loss Prevention Program Effectiveness

Tyco Fire & Security, the world’s largest manufacturer of electronic article surveillance (EAS) solutions announced that sales of its Sensormatic EAS labels reached record levels last year. This was primarily driven by its source tagging business that grew by 38% worldwide compared to the previous year. Source tagging is the process of applying anti-shoplifting tags to goods at the point of manufacture. The Sensormatic solutions are sold throughout Australia and New Zealand by ADT Security.

By applying EAS tags during the manufacturing process, products arrive at retail outlets with greater consistency in tagging. This helps speed the time it takes to get products on the sales floor, helps lower store labour costs, while providing retailers with protection against shoplifting.

“EAS technology continues to offer retailers the highest degree of protection from shoplifting,” said John Smith Tyco Fire & Security’s vice president and general manager of EAS. “Newer tags are now smaller, more easily applied by consumer good manufacturers and more difficult for shoplifters to defeat than ever before. Also, technological advances are making it possible to source tag on a wider range of goods, including metal and liquid products.”

“ADT Security is working with its EAS customers to enable them to adopt source tagging,” said Martin Cotterell, Business Development Manager EAS. Worldwide, 80 percent of the top 200 retailers employ an EAS system using Sensormatic brand equipment and tags.

“Last year’s results solidify our position as the source tagging world leader. In the last four years the volume of items protected with Sensormatic labels at the point of manufacture greatly surpassed our next closest competitor.”

A recent global survey of Tier 1 and Tier 2 retailers conducted by Venture Development Corp. showed source tagging to be a growing trend. Over 45% of retailers that use EAS have implemented source tagging programs; nearly 13% of current Tier 1 and Tier 2 EAS users plan to roll out source tagging in their stores and another 11% are evaluating. “This appears to be a strong trend to adopt source tagging as a means of improving the effectiveness of an EAS program and maximizing staff productivity,” said Taylor Smith, senior analyst with VDC.

ENDS

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